The vast majority (88%) of executives1 believe that customers and employees are changing faster than they can change their businesses, which is leading to a crisis of relevance, according to a new report from Accenture.
“External factors — from economic to cultural, environmental and political — are affecting people more than ever before, making life more complicated and purchasing decisions more multi-faceted,” said Baiju Shah, chief strategy officer, Accenture Song. “There is a growing divide between what consumers need and value and what businesses offer, creating a relevance gap. We believe that companies can bridge this gap and herald significant growth by not focusing on promoting consumption, but in meaningfully contributing to customers’ lives.”
The report, titled “The Human Paradox: From Customer Centricity to Life Centricity” and based on a survey of more than 25,000 consumers across 22 countries, focuses on the gap between people’s expectations of what businesses should be providing and what businesses think their customers want.
According to the research, two-thirds (67%) expect companies to understand and address their changing needs during times of disruption. Yet oversimplifying segmentation and underestimating the impact of external pressures on behavior has led to this chasm between expectation and reality. To bridge the gap, businesses need to see their customers as they see themselves: multifaceted, complex, and doing their best to adapt to unpredictable life circumstances; and use that insight to meet customers’ evolving needs.
To download report, CLICK HERE.