Creating a customer-led turnaround
The Challenge
In 2014 Morrisons was in crisis. Operating profits were down 52%, its worst results in eight years. The new chair and chief executive wanted a fresh, distinctive direction that would appeal to customers and be embraced by colleagues, whilst still remaining true to the heritage of the business
Services: Leadership Immersion; Customer Strategy; Proposition Development
The Impact
12.7
12.7% increase in pre-tax profit in July 2017
20
20% increase in customer satisfaction
14
14 consecutive quarters of like-for-like growth
The Outside-in Perspective
As well as arranging for the Executive team to go on shopping trips with customers, we spoke to current and retired colleagues, alongside other stakeholders, and members of the communities that Morrisons served.
Then, to build belief that a customer-led turnaround was possible, we spoke to leaders from organisations who had been there and done it, including Lego, John Lewis, O2, Jaguar Land Rover, Metro Bank, and Pret.
The Insight
To customers, outstanding service starts with nailed-on bulletproof essentials like finding what you want and avoiding queues. But the difference comes from people – generous interaction with shopkeepers who care and with foodmakers who love food. Morrisons stood alone as still having fully trained butchers and fishmongers in every store as well as bakers baking bread from flour several times a day. Fresh food and value mattered to both colleagues and customers.
The Solution
The breakthrough came from a customer focus group, identifying new language to describe the proposition - we are food-makers and shopkeeperss. This new positioning was loved by colleagues, with an ‘Outstanding Service programme devised and rolled out across the 500-store estate, leading to 300 extra hours of colleague time in reduced absence
“Strong growth, including our best quarterly like-for-like sales for nearly a decade, together with another special dividend for our shareholders, shows how new Morrisons can keep improving for all stakeholders. Morrisons continues to become broader, stronger and a more popular and accessible brand. I am confident that our exceptional team of food-makers and shopkeepers can keep driving the turnaround at pace.”