Economy · August 2, 2022

Companies struggling with customer relevance

A vast majority, 88%, of executives believe customers and employees are changing faster than their businesses can change, according to a new Accenture report.

The report titled “The Human Paradox: From Customer Centricity to Life Centricity” focuses on the gap between people’s expectations of what companies should deliver and what companies think their customers want.

According to the research, 67% expect companies to understand and address their changing needs during downtimes. However, oversimplification of segmentation and underestimating the impact of external pressures on behavior has led to this gulf between expectation and reality. To bridge the gap, companies need to see their customers as they see themselves and use this knowledge to meet customers’ evolving needs.

“Various external worldly factors are affecting people more than ever, making life more complicated and making purchasing decisions more multifaceted,” said Baiju Shah, Accenture Song’s chief strategy officer.

“There is a growing gap between what consumers need and value and what companies offer, creating a gap of relevance. We believe companies can bridge this gap and announce significant growth by not focusing on promoting consumption. but contributing significantly to the lives of customers. “

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As research data showed, 61% said their priorities keep changing due to external pressures and, as a result, are perpetually in multiple stages of crisis management, with paradoxical behaviors emerging: customers who want to prioritize themselves but also want to make changes for others; customers want to follow their personal values ​​but not at the expense of financial value; and customers want to be in control of their destiny but they also want to be guided towards it.

Although paradoxical behaviors in humans are not new, what has changed is the increasing frequency and convenience with which they are made: two thirds (69%) of consumers globally who admit they have inconsistently think paradoxical behaviors are both human than acceptable.

And while the report found that nearly all companies are struggling to stay relevant, it goes on to suggest that companies that embrace a life-centered approach are best placed to thrive in the future, form new connections, and create relevant brands, products or services.

“Instead of seeing clients as just a pair of hands deciding when to reach the portfolio, they should be seen as ever-changing, ever-changing individuals, deeply affected by a variety of outside influences,” Rachel Barton, Accenture Strategy: Europe’s chief commercial and co-author of the report, added.