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All new work at McDonald’s Under Armor is about customers

A customer receives an order on Wednesday, January 8, 2020, from a drive-through window at a McDonald’s restaurant in London, Ontario, Canada, during a test of a “PLT” sandwich (plants featuring Beyond, lettuce, tomatoes). I did. Meat pea-based pate.

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In addition to supply chain issues, rising raw material costs due to pandemics, and other protracted business challenges, a major focus in many C suites of the world’s largest companies is the creation of new executive ranks. .. Chief customer officer.

Over the past few quarters, companies across the economy, from McDonald’s, CVS Health, Under Armor, Walgreens to wholesale grocery store United Natural Foods, are better in contact with the rapidly changing consumer landscape in the boardroom. Added the best work to help you. ..

Pre-pandemic customer well-being was often tracked across a point list of discussions with various internal teams passed to the C Suite, but now has a responsibility to impact employees across the organization. It is considered important to leave it to the seniors of the person. The customer wants.

“Many organizations were product-centric or channel-centric, but now there’s a growing sense that they need to be more customer-centric,” said Gartner’s vice president of customer experience for research and advisory. Augie Ray says. Hard. “Sure, the pandemic has made us realize that many organizations aren’t in touch with their customers. They realize they need to listen more.”

According to a 2021 survey of 3,000 CEOs of the IBM Institute for Business Value, providing a better customer experience and building stronger customer relationships is a top priority for the next few years. There were two.

Digital’s role in promoting new sales

This phenomenon is nothing new. Many companies have a version of this role (Chief Consumer / Customer / Experience Officer) for the past 10 years. However, the extent to which people’s Internet use has skyrocketed during the coronavirus pandemic is not expected to diminish. According to an IBM survey, more than three-quarters of executives say that customer behavior will continue to change after Covid-19. As the balance between physical shopping and online shopping changes permanently, the customer’s primary role in the boardroom is becoming very important.

According to Gartner’s 2019 Customer Experience Management Survey, 90% of 401 companies say they employ Chief Experience Officers. This is an increase from 61% in 2017. The results of the next survey will be announced within a few weeks. “When it comes to the companies that create these roles, we’re in the middle of a bell-shaped curve,” says Ray. “This role is often a recognition of what’s already happening. Many organizations with customer experience VPs are promoting someone to this new CCO role.”

The role of the Chief Customer Officer, who reports directly to the CEO, is defined by industry and varies widely from organization to organization. Posts are usually a fusion of marketing, branding, and perhaps sales, with digital and data as the roadmap. The rise of mobile computing has led to a wave of chief digital officers responsible for digital interaction with customers.

Paul Papas, Global Managing Partner of IBM Consulting’s Business Transformation Services, said:

The excess of online customer data collected during the pandemic has spurred some new thinking about the structure of the C Suite. “In large companies, sales and marketing have fallen apart, and e-commerce and data are back together again. [to enable] Ivan Pollard, The Conference Board’s Marketing and Communications Leader and Former CMO of General Mills, said: I managed to influence the strategy of the company. “

Many brands have adopted an omni-channel strategy that strengthens their physical footprint, rather than seeing online and collected data as a threat to the survival of physical stores.

McDonald’s and new consumer habits

Appointed McDonald’s First Global Chief Customer Officer in July, Manu Steijaert leads a team of data analytics, digital customer engagement, global marketing, global restaurant development and restaurant solutions groups. And digital customer touchpoints, “according to the company’s statement on its role.

Given McDonald’s reputation for adopting technology and customer centricity since its turnaround in 2015, Steijaert has a solid roadmap to follow.

“Once people are ready for McPlant, we’re ready for them,” CEO Chris Kempczinski said at the company’s third-quarter conference call about plant-based hamburger menu items. McDonald’s declined to comment.

McDonald’s also launched a new business strategy in 2020, built around the changing consumer needs of the early pandemics. Investing time and money in delivery, digital and drive-through is an important focus. Kempchinsky said on the phone, “Promoting food delivery services was meeting the needs of customers who probably didn’t think that any of us were fully grateful even a few years ago, so here. Stay. “

According to Morningstar, Steijaert could play a role in how McDonald’s interprets customer data from the new loyalty program. In this program, the underlying information provides the ability and competitiveness to build a database of order history and timing, showing which promotions will be successful.

Growing up with his parents McDonald’s and then leading the company’s restaurant innovation team, his background is about how McDonald’s rethinks the physical space as pandemics continue to influence in-store dining. I’m talking.

“People say that pandemics are all about drive-through and delivery. Obviously, some of those habits will stick,” Ray says. “But there is also a strong desire to return to normal … Humans are still physical creatures, and you also need to understand the needs of people in the physical world and how they use your products there. I have.”

Same-store sales are the key to business growth, “data plays an important role in it, increasing the frequency of visits and driving a continuous increase in tickets,” said Atlantic Equities Research Ana. The list, Edward Lewis, said. “If you think about it, so many things have happened, and it’s important to have someone responsible for overseeing all these areas, and obviously McDonald’s need to do that. Something I felt. “

Under Armor appointed the first CCO in October. Massimo Baratto oversees global marketing, e-commerce and retail for sportswear brands and follows market leaders Nike and Adidas.

At the company’s third-quarter conference call, CEO Patrik Frisk said: Under Armor declined to comment.

Baratto will guide the company’s relationships with its customers by adapting to how consumers’ buying habits of sportswear and athletic shoes have changed during the pandemic. According to Matt Powell, vice president and senior industry adviser for market research firm NPD Group, digital sales of athletic shoes accounted for 30% of the total market in 2019 and 40% in 2020. More people buy shoes on their smartphones than on laptops, and conceptually, customers are paying attention to activities that help them stay healthy while maintaining a social distance.

“I think brands have begun to understand how much of their business comes from the best customers,” Powell said. “They are strengthening their loyalty programs and using their knowledge of what customers buy to shape their upcoming assortment.”

Data coming from loyalty programs, such as customer buying habits, is one way for CCOs to use context to better humanize each customer experience. According to IBM’s Papas, the data also helps call center staff collect context about customers during a call, such as which web page they were viewing and a detailed history of buying behavior.

According to analysts, the CCO’s core job: customer satisfaction and brand loyalty is the goal that every company needs to be committed to, but new executives are the long-term C Suite. It’s too early to know if you’re maintaining your position. “The CCO is not responsible for Touchpoints. The CCO is not reported by the product or digital teams,” Ray said. “Ultimately, it’s a big force role, but it’s a force that needs to be used to influence leaders and frontline employees across the organization and become more customer-centric in their day-to-day operations.”

All new work at McDonald’s Under Armor is about customers

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