How can Sainsbury's build resilience by innovating for customers? - clarasys.com
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How can Sainsbury’s build resilience by [ innovating ] for customers? clarasys.com
[ Operate ]
[ Introduction ]
In any ordinary year, a 117% increase in digital sales, as Sainsbury’s saw, would be unheard of for
supermarkets, but 2020 has been no ordinary year. Sainsbury’s focus earlier in the year to save
to invest, connect with customers and put food first has put it into a strong position during the
pandemic. Grocery sales increased by 8.1% and general merchandise by 7.4%. While this leap is
impressive, the constant changes in regulation due to COVID-19, and the potential disruptions
due to Brexit, make customer behaviour more unpredictable - requiring a more aligned,
resilient and responsive operating model for Sainsbury’s.
To navigate the uncertainty with The opportunities for Sainsbury’s don’t stop Based on your opportunities and our
there. With more people spending additional expertise we would suggest to explore one
more clarity and confidence, time at home, home furniture sales have also of these forward looking problem
Clarasys is offering you a free increased. Sainsbury’s Habitat stores offer statements together:
another channel to help customers get
workshop on a CX related through difficult times with style and the “How might we improve the
topic of your choice to explore overall integration could increase the ease to shop and provide
penetration of omnichannel customers which
how Sainsbury’s can build better value, range and
are the most loyal and profitable.
resilience by innovating for quality for our customers
customers. At a more food focused level: growing online, consistently?”
opening more neighbourhood stores, closing
deli counters, leveraging Nectar more “How might we align and
effectively, optimising operating costs,
Sainsbury’s initiative of refocusing on what simplify business functions to
reducing food waste and plastic use, provide
matters most to customers is a complex
further interdependent initiatives that need to provide a seamless experience
balance to find, but Sainsbury’s is already
committing to enhance it. For example, while
be combined into a convenient, consistent to customers more
and valuable offering for customers. effectively?”
Argos gained 2 million new customers, 420
standalone stores will be closed bringing
With all these challenges, opportunities and
down the number of stores to 100 in the “How might we embrace agile
initiatives, it is more important than ever to
country - opening up the opportunity to
provide a seamless experience across your and customer-centric ways of
combine Argos stores with Sainsbury’s shops
to create a more convenient and value
channels for customers and align simplified working to build a resilient
business functions to build resilience in your organisation and unleash
experience for customers.
end-to-end service offering and operating
untapped potential?”
model.
clarasys.com Page 1
[ Operate ]
How can Sainsbury’s build resilience
by [ innovating ] for customers?
Understand your customers, colleagues and suppliers, before you spend time and effort
optimising your operating model. We will work with you to define the future vision and desired
customer experience. We then use this to recommend the best way to operate.
As a supplier, As a supplier,
As a shopper, As a shopper, I need to be I want to informed
As an employee,
I want a range of I want relevant able to about changes and
I want to feel that
products across discounts and seamlessly demand trends in a
our store is COVID-
different price points recommendations supply my timely manner to
safe and people are
when and where products to adapt operations
social distancing
I need them Sainsbury’s with
little disruption
As an employee, As a shopper, I
I want to be well As a shopper, As a supplier, As a supplier,
want my items I want a consistent I want to
equipped to I want Sainsbury’s to
to be in stock experience across collaborate with
provide the best uphold my contracts
and for them all of Sainsbury's Sainsbury’s on NPD
customer service I as a preferred
to be clearly brands to create better
can in-store supplier, and be
marked on isles products
treated fairly
As an online shopper,
I want to be able to shop
using different channels
and devices
Provide ease of shop, value, range and quality consistently
As an employee, As an employee, As a shopper,
I want to experience As a supplier, I want
I want to have a clear I want to know the
Sainsbury’s as a single Sainsbury's to continue to
role and not be business priorities
entity that buy from me
expected to meet all and how the work I
requests, last do achieves them understands and
minute serves my needs
As a supplier, I As a supplier, I want
As an online shopper, want visibility over to be paid for the
I want a wide range the demand for my volume of produce
As an employee, of delivery/click products committed too
As an employee, As a shopper,
I want and collect options
I don't want to be I want to know
consistent available
stressed because of that food/stock
alignment on
understaffing isn't being wasted
ways of working
unnecessarily
Simplified business functions pull in the same direction for customers
Page 2 clarasys.com
[ Operate ]
We are the [ experience ]
consultancy
As a shopper, As an online
As an employee, As an I want to be able to shopper, I want a
I want to be given As a supplier,
employee, use my phone as a seamless online
the freedom to go I want to be paid
I want to ‘Scan and Go’ option experience that makes
the extra mile for on time and in
work in a and to track how it easy for me to make
customers the full amount
way that much I spend as an order with reliable
reduces waste I shop delivery times
and re-work
As an employee, As a shopper, As a supplier,
As an online As a supplier,
I want to feel I want to use my I want certainty on
shopper, I I need clear demand
supported through phone to collect volumes of produce
want a requirements, through
periods of nectar points in store I am required to
wider range master scheduling and
uncertainty like and not worry about supply
of online data from the supply
Brexit/COVID delivery slots carrying my nectar chain
card
Agile and customer-centric ways of working unleash untapped potential
clarasys.com Page 3
[ Operate ]
Provide ease of shop, value, range and
quality [ consistently ]
Grocery shoppers continue to be primarily motivated by convenience and their perception of
value. While there are multiple compelling competitors in the UK market, Sainsbury’s can flex
into the ‘Basics’ and also ‘Taste the difference’ ranges to attract a wider and more varied
customer base. With the UK shopper being faced with multiple concerns regarding availability
due to COVID-19 and Brexit, a key consideration has become:
“How might we improve the ease to shop as well as providing better value, range and quality for
our customers consistently?”
There are multiple opportunities for Sainsbury’s to explore how to differentiate themselves while also building resilience in its offering.
1. Rapid Food innovation and New Product Development (NPD):
Getting a product from idea to shelf can take l How you can explore this: Shorter l How Clarasys could help Sainsbury’s to
months, if not years, and requires substantial feedback loops with customers, trials and get started or accelerate existing
OpEx and CapEx investments across a a more responsive supply chain. By trialing efforts: This short feedback loop which is
company’s supplier base, internal functions products in concept stores and partnering based on agile principles could be applied
and stores. With the pace of change with suppliers, concept products can be to a specific area or a new product to test
Sainsbury’s is currently experiencing, refined and amended before they get this approach. By doing a deep dive on the
products may be less relevant, have minimal launched nationally - to maximise value to end-to-end NPD process, we can reveal
incremental sales or even be delisted weeks customers and Sainsbury’s - while and shape opportunities for
after the launch. Customers want relevant, reducing waste. However, this does not improvements, using our customer-led
valuable and exciting products, while have to be limited only to food. business transformation approach. In an
Sainsbury’s wants to increase basket size, Experimentation with biodegradable bags initial [ free workshop ] we could explore a
loyalty and incremental sales. that can be repurposed as compost bins, ‘slice’ or scenario of your NPD process to
isles could be reorganised around key identify potential areas of improvement.
dishes to cook, or deploying more
environmentally friendly packaging all
benefit from an iterative ‘test, learn, and
scale’ approach.
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[ Operate ]
Delivering CX-led improvements with you
Mobilisation Discovery Definition Recommendation Delivery
1 2 3 4 5
Establish the Value driven Define target Establish and People,
governance discovery value streams prioritise value process and
stream opportunities system changes
Agile value stream CX and cost Key opportunities to Prioritised backlog of Agile delivery
improvement transformation levers deliver future state opportunities approach that
governance is in applied to gather value stream underpinned with delivers early value to
place with a insight and generate identified business cases and consumers,
structured approach focus areas implementation employees and the
considerations business
How? How? How? How? How?
l Set up agile l Create customer l Balance l Evaluate and size l Set up an agile
operating rhythm journeys mapped improvements implementation scrum process
l Engage cross to process, across people, effort, cost and l Collaborate with
functional set of systems and process & tech benefits implementation
stakeholders teams l Validate l Create a high-level partners and
l Gather existing VoC l Run pain points improvements delivery roadmap business delivery
and get access to discovery with business and which includes key teams
relevant VoE/VoB l Conduct value and align with wider change l Create an
waste analysis strategic management & actionable
l Use robust data to transformation tech requirements customer
run some process l Agree weighted feedback loop
mining and digital prioritisation
twin analysis criteria
Sainsbury’s benefit Sainsbury’s benefit Sainsbury’s benefit Sainsbury’s benefit Sainsbury’s benefit
l Building on l A single view of l Clearly prioritised l Tailored path to l Build sustainable
existing how customers enhancement completion built and scalable
knowledge and engage with you opportunities that around your needs approaches that
assessments to hit and how you serve fit into your and priorities enable you to
the ground them (e.g. strategy (e.g. l Objective continually
running customer getting putting food first assessments of optimise your
l Transparent ways substitute or investing into initiatives that service, improve
of working with products due to general deliver value (e.g. productivity and
you in control unavailability) merchandise) product picking reduce your
l Data-led evidence optimisation) operational costs
to complement
discovery
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[ Operate ]
2. Leverage General Merchandise (GM):
Sainsbury’s is in the unique position to have a l How you can explore this: The technical l How Clarasys could help getting started
food, GM and furniture proposition that it can integration and creation of a cross- or accelerating existing efforts: together
combine to provide a cross-industry industry omnichannel experience that is with you, we can define bring together a
omnichannel experience for customers. The seamless for customers is no small current view of your personas, customer
potential to purchase your daily food shop undertaking. To create a common journeys and customer feedback, create a
while topping up on GM in-store and online understanding of the future end-to-end new to-be customer journey that enables
can significantly increase penetration and customer journey, you need to understand Sainsbury’s to realise its strategic
basket value while creating more profitable the current journey and create a future objectives. In an initial [ free workshop ] we
customers. In addition, the insights gained version based on customer needs and could define the current high level
from the Nectar data can further inform how your strategic objectives. customer journey of someone that shops
to create and optimise this experience for across Sainsbury’s, Argos and Habitat, and
customers. explore how this experience could be
brought together in-store and online
seamlessly.
3. On demand food:
While sales of supermarkets have gone up, l How you can explore this: This trend and l How Clarasys could help getting started
food deliveries have too, and UK shoppers need is relatively recent, so it would or accelerating existing efforts: we lead
are increasingly becoming used to food benefit from more substantial research our projects with the customer in mind. By
delivery. In fact, Deliveroo and UberEats have and testing. You could find areas where conducting in-depth user research we can
already explored partnerships with smaller the demand and capability enable help assess potential solutions and
supermarkets. In line with your strategy to concept stores to test it, driven by partnerships to serve that customer need
create more neighborhood shops, expand customer needs. Once verified, it could fit and expand Sainsbury’s offering. In an
physical points of distribution and grow into an overall proposition and be initial [ free workshop ] we could define the
online, a partnership with on-demand food assessed for expected return on high-level customer journey map for
delivery could further increase penetration investment. online shoppers or create a persona for
and market share while improving the on-demand shopper that can form the
convenience for customers. foundation of an expansion into serving
food through an additional channel.
Last year’s pandemic has influenced how customers shop, and in order to continue to be at the forefront in the UK’s supermarket industry
Sainsbury’s has some unique opportunities to explore. Balancing emerging customer needs, with constant needs for ‘everyday low prices’ can be
challenging. By starting with customer needs and exploring services from their perspective, Sainsbury’s can effectively test, prioritise and
implement enhancements to build resilience in its operating model while serving the nation on multiple fronts.
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[ Operate ] clarasys.com Page 7
[ Operate ] Simplified business functions pull in the same [ direction ] for customers Sainsbury’s provides more than food to the nation. It has a entire-home solution through Argos and Habitat that provide a vast range of products not normally found in supermarkets and it improves the comfort at home in challenging times. More than that, it is a lifeline for many vulnerable people who rely on consistent availability and online deliveries. Therefore, it is even more important to align the organisation behind core customer needs. However, with Sainsbury’s size comes the increased potential of misalignment and complexity as the value of an organisation flows through its interconnections. At an extreme, this complexity can lead to teams working at cross-purposes or even against each other unknowingly. For example, a marketing team could promote a customer benefit, while another team is trying to remove it to reduce costs - ultimately creating significant waste. A core questions therefore becomes: “How might we align and simplify business functions to provide a seamless experience to customers more effectively?” At a team level, adopting system thinking, encouraging cross-pollination and creating vertical functions that sit across other business units can create alignment, but it misses the opportunity to focus that alignment on customer needs. Two of the most significant enablers to achieve that exact focus are Service Design and data-led enhancements. 1. Create a Service Design view of your organisation end-to-end: Service Design connects your customer l How you can explore this: By starting l How Clarasys could help getting started interactions with your employees, processes with the customer touchpoints, mapping or accelerating existing efforts: we can and technology [ end-to-end ] - highlighting an as-is customer journey and conducting bring together a current view of your how value flows through your operating user research, Sainsbury’s can get a service design and, together with you and model. This view provides clear insight into deeper understanding beyond Net customer feedback, create a new service the needs, pain points and opportunities at all Promoter Score and customer satisfaction design that enables Sainsbury’s to create stages, and highlights the most significant scores. This insight can then be used to a more compelling and resilient offering areas of potential improvement across the capture the current blueprint of how across its channels. In an initial [ free customer interactions, supply chain and value Sainsbury’s serves a specific interaction workshop ] we could explore a ‘slice’ or stream. This becomes increasingly valuable and highlight areas for improvement that vertical of how you serve a customer as Sainsbury’s is also operating Argos and inform a future Service Design blueprint. touchpoints and explore internal ways to Habitat, potentially having multiple As an extension, this view could also be optimise how you serve the customer. opportunities for cooperation, alignment and applied to the supply and value chain to simplification - resulting in reduced operating explore how each function is tuned to costs, optimised allocation of investments serve the customer better. and an enhanced customer experience. Page 8 clarasys.com
[ Operate ]
Connecting your business end to end, through and through
CX Touchpoints
Phone
Online
Email
Store
Gather consumer insight
Service Design
Colleague interactions
Internal processes and operations
Underlying technology and systems
Pain points, needs, opportunities
Drive supply chain and customer value stream improvements
V O E / V O B
Business Inbound Operations Outbound Delivery
Value stream
planning logistics and mtg. logistics
Marketing and Service and
Sales aftercare
Uphold retail Principles: Safety, Quality, Value and On-time Delivery (OTD)
2. Scale and leverage Nectar to create a single view of the customer:
Sainsbury’s already has higher customer to provide an even richer view of the a future virtual representation of the
satisfaction scores than Asda, Tesco and customer. This more complete view of the customer to explore what data points can
Morrisons online and in-store, but it could go customer would, in turn, enable more be measured when to inform potential
even further to leverage customer insights to targeted recommendations and personalised enhancements in customer experience
improve propositions and customer discounts - increasing basket value, loyalty and service.
experience. Some of key considerations are and profitability. Amazon have used this to
then how you can increase the use of Nectar generate their powerful recommendation l How Clarasys could help getting started
while getting better data. First, to increase engine, which is accountable for 35% of or accelerating existing efforts: We are
the use of Nectar, Sainsbury’s could explore revenue and highlights the tangible benefits data and customer-led in everything we
enabling discounts or benefits only when of having this competitive edge do. We take pride in being able to
customers use Nectar instead of coupons. immerse ourselves into any business. We
This would increase customer loyalty while l How you can explore this: First, collate will work with you to review your
connecting in-store visits with online all existing data points, map the customer measures assessing CX and develop a
purchasing - creating an improved single journey and explore what additional prioritised backlog of actionable
view of the customer. Secondly, Nectar insights you would need to create a more improvements to delight customers, and
insights could be aligned with data in the tailored service. Then assess the current reduce the cost to serve and
Customer Relationship Management system view you have of the customer and design infrastructure costs.
clarasys.com Page 9[ Operate ]
Agile and customer-centric ways of
working unleash untapped [ potential ]
Even when the offering is right and the business functions are pulling in the same direction for
customers, it is your colleagues who drive the evolution of the business. As such, empowering
them to adopt more agile principles and putting customers first will be an investment into the
future and unleash some untapped potential across Sainsbury’s. The important questions then
becomes:
“How might we embrace agile and customer-centric ways of working to build a resilient
organisation and unleash untapped potential?“
People are naturally curious and are motivated through autonomy, purpose and mastery. By moving decision making to the person who is closest
to the detail and breaking complex problems into manageable chunks, people feel empowered and are more likely to go the extra mile for
customers. To enable this, explore how agile principles could be applied more and embed the culture that reinforces the desired behaviours.
1. Adopting agile beyond digital:
While the original principles are grounded in l How you can explore this: The path of l How Clarasys could help getting started
digital delivery, the mindset applies beyond it. least resistance is to start with a team that or accelerating existing efforts: We are
Being flexible, welcoming change, sharing already works in agile ways and look at experts in agile at any scale. Our Clarasys
intentions early, supporting people, simplicity, their dependencies in the organisation Agile Methodology and principles take
quality, iterative development are all and the customer needs. Through a what is at the heart of agile and combine it
principles that can be valuable even in gradual expansion of agile principles up with enterprise transformation, change
logistics. The challenge is how to align and down the value stream, elements of management and process improvement.
multiple teams working in this way in parallel, the end-to-end service can become more Our principles allow us to anticipate what
and controlling the governance and spectrum agile as the principles are adopted them is around the corner, progress work in
of agility for their specific role. over time. parallel where possible, deliver value
early, minimise rework, and iteratively
improve environment in meaningful ways
that stick.
2. Customer-led culture by default:
To make something stick, behaviours need to l How you can explore this: Changing l How Clarasys could help getting started
be embedded in a culture that guides and culture is complex but through the right or accelerating existing efforts: We have
channels them in a common direction. It is, nudges, choice architecture and embedded change, culture and new
therefore, no surprise that ‘Culture Eats reinforcing mechanisms, the culture can behaviours in complex environments for
Strategy for Breakfast’, as culture significantly be shifted in the desired direction. our clients, and can work with the
determines the success of a company long- Sainsbury’s already has the heritage and leadership team and colleagues to define
term. The key is to have a culture that people positive brand recognition externally. This the desired culture, build a roadmap for
believe in and can embrace, and the first step can be used to build a wider leadership implementation, and shape interventions
to create it is to agree what it should be. message that encompasses values, to reinforce and embed them over time as
behaviours and principles that guide daily outlined in our approach below.
decision making - the more this is focused
around the customer, the more
meaningful it will become.
Page 10 clarasys.com[ Operate ]
Delivering a cultural change to embed the new CX Vision
1 2 3 4 5
Establish desired Assess cultural Design how to Communicate and Embed the new
CX culture gaps and identify implement the deliver the change CX culture
change enablers cultural change
Work with the Conduct gap analysis Develop a change roll- Partner with leadership Support the
leadership team to to understand out strategy with a and change champions organisation to embed
align CX vision to difference between the targeted set of change to communicate the CX culture into BAU.
company vision, and current culture and the interventions to get changes, start role- The organisation feels
underpin it with a clearly target culture. user buy-in and help modeling the new accountable and
articulated set of goals, drive the cultural shift values and behaviours comfortable in owning
values and behaviours. and support the their CX culture and
business to adopt new pushing for continuous
culture. improvement.
Outcomes Outcomes Outcomes Outcomes Outcomes
l Target CX culture l Cultural gap l Tailored change l CX ambassador l CX Culture owned
defined analysis approach to network by business
l Stakeholder l List of change different groups l Engaged and l BAU support and
alignment and enablers across the empowered training
buy-in organisation employees l CX Culture targets
l Success criteria l Training approach l Organisation updated
defined, Metrics and materials aligned behind CX
and targets in l Comms plan and strategy
place CX campaigns
By combining agile ways of working beyond technology and embracing a customer-centric culture, internal ways of working can be optimised
while creating a more motivated and resilient workforce that is empowered to do the right thing for customers.
clarasys.com Page 11[ Operate ]
Moving [ forward ]
Sainsbury’s is facing some of its biggest challenges, but it also has all the capabilities to turn it
into an even greater opportunity. By exploring agile NPD, integration with general
merchandise and testing on demand delivery, Sainsbury’s can improve the ease of shop while
increasing range, quality and value to customers. Similarly, with its connected business units
and cross-application of Nectar, customer insights can inform internal optimisation initiatives
more effectively. Finally, all of this is enabled and underpinned by the relevant behaviours and
beliefs which Sainsbury’s continues to embrace by focusing on food and what matters most.
We know how important return on invest is for you, therefore we would be excited to run a free workshop on a CX-related topic of your choice
to explore how we could help Sainsbury’s become even more resilient by innovating for its customers. If you would like to find out more on how
we work or how we could help you, feel free to review our approach to CX improvements below, go to our website, or contact us directly.
In designing a new customer-centric operating model, we believe it is necessary to consider the
5 dimensions below:
Understand the [ people needs ] of the Clear ownership for [ target
new operating model. Visi operating model, vision and
on values ]
,
Understand the [ skills, competencies sta valu
and motivations ] of the existing le nd Established and [ upskilled teams ]
op ar e
workforce
Pe d in implementing continuous
sa
improvement
nd
s
Understand the [ gap in capability ] and Standards
Roles and across business
plan to grow or recruit people to fill it responsibilities Define [ data standards ] and
functions and business rules on how data are
culture markets
Understand how [ people will be stored and accessed
impacted ] by the change and therefore
the necessary communications and
training that will be required
rneys
New Governance
sses
operating in relation
KPI and to business
Repo
metrics model
an me r jou
and
r oce
performance customer
Create [ reporting dashboard ] of measurement [ Customer centric ] design of
specific KPIs and metrics to [ measure outcomes customer and employee journeys
rtin
dp
success ]
g
Master data, Implementation of [ business
sto
Embed [ reporting processes ] to personas, CX tool processes ], designed to support the
Cu
enable compliance and risk monitoring best practice most [ valuable CX initiatives ]
Agree rapid [ risk/dependency Processes are [ aligned across the
mitigation ] procedure organisation ] to facilitate customer
Technology experience from all areas so that
Continuously [ track and monitor ] customer experience is a [ key
business performance, customer and consideration for future projects ]
employee engagement through [
scorecards ] Define [ data standards ] and
business rules on how data are stored
and accessed
Understand and document the future capabilities required and
identify [ appropriate new or existing solutions ]
For more information, to discuss your workshop, or any other issues, please feel free to contact one of
our expert or send us a note on our information line:
Ed Kemp-Sloan Tom Carpenter Information line
Retail Lead Customer Experience Lead info@clarasys.com
ed.kempsloan@clarasys.com tom.carpenter@clarasys.com
Page 12 clarasys.com[ Operate ]
yo u!
to talk ing to
forward
Thanks for reading - we look
clarasys.com Page 13+
Who we are
An [ independent ] experience consultancy firm “I’m starting to get daily requests
based in central London and Boston, MA. to present our findings to different
teams and include some of our
We believe in a better way of doing business data in their presentations – this is
working closely with our clients to understand a massive deal and a clear sign
their customers and business. that the work and the way we’ve
gone about it has changed the
We’re proud of the [ rapid ] and [ sustainable ] business’ perception of the value of
change we deliver, always working in a “customer” for good.”
[ transparent ] and [ collaborative ] way to bring
Customer Experience Director
you on the journey with us. Landsec
We bring [ expertise ] in customer experience
ensuring improvements across the customer
lifecycle will increase propensity to buy, refer and
repurchase through both digital and brick and
mortar stores.
We believe in...
Delivering [ high quality ] Delivering [ tangible benefits ] Providing you with the [ skills and
experiences that make a lasting quickly and continually through our confidence ] to deliver continuous
difference to the way people live agile approach and preference for business improvements yourself
and work and enterprises succeed practicality over powerpoint, e.g.
and grow £2m in revenue rescued at one of
our previous Insurance clients
info@clarasys.com
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