By Matt McNaghten and Clark Passino
In reaction to the recent change in the retail landscape, leading retailers have launched initiatives to understand and drive improved retention. Deloitte conducted a series of executive interviews in June and July 2010 across retail sectors that revealed just how acutely the customer brand loyalty issue is affecting the industry and a variety of innovative and leading practices. The consensus is that customers are leaving at a greater rate overall, and unlike previous periods, those that are leaving span a greater spectrum of the customer base in terms of annual spend. We found four leading practices that can be used to evaluate the current retention situation and formulate a strategy for addressing the fundamental reasons for customer migration.