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McKinsey Hard Customer Engagement Marketing Strategy Digital Transformation

Customer engagement

#Retail chain #Retail #Supermarket #Consumer Goods
ProHub Comment

This is a wild card case requiring candidates to develop a comprehensive framework for diagnosing and addressing customer engagement decline in a traditional supermarket chain with weak digital presence. The case tests ability to identify multiple engagement drivers (in-store experience, marketing channels, digital channels) and quantify opportunity from emerging channels like livestream commerce, while contextualizing findings within industry constraints.

Estimated Time 15 minutes
Difficulty Hard
Source PeterK
50 / 100
Texas-based supermarket chain Y-E-S saw a drop in their customer engagement in 2020-21 driven by the pandemic. The customer engagement didn’t improve in 2022 after most pandemic-related restrictions were lifted. The decreased customer engagement hurts Y-E-S’ brand perception, marketing efficiency, and financial results. They have approached your team to build a robust actionable strategy to boost their customer engagement. What areas would you investigate to help the client?

Clarifying Information

  1. Supermarket chain Y-E-S has 400 stores in Texas and Mexico and generates $22B in annual sales (2022)
  2. Y-E-S offers groceries and products across a wide variety of needs: beauty, pets, kids, health, home, and others
  3. Y-E-S is known for affordable prices, high quality, and convenient locations
  4. Y-E-S doesn’t enjoy a developed digital footprint (incl. online store, social media, online news)
  5. Y-E-S is perceived as local chain and Texans are proud of shopping at Y-E-S