Accenture Strategy report quantified the impact of digital transformation on consumer industries over the next decade

U.S. consumer attitudes shift as many become open to intelligent technologies taking an active role in purchasing decisions

NEW YORK, 2017-Jun-06 — /EPR Retail News/ — Retailers and consumer goods companies could unlock $2.95 trillion in value for the industry and consumers over the next decade by accelerating digital transformation, according to a new report by Accenture Strategy. Investments in new, digitally-driven business models will give consumers greater choice around how they purchase goods and services, and enable companies to deliver profitable, differentiated experiences.

Accenture Strategy’s ‘Painting the Digital Future of Retail and Consumer Goods Companies’ report, based on analysis for the World Economic Forum, quantified the impact of digital transformation on consumer industries over the next decade. The study identified current consumer appetite for new purchasing experiences, the business models that have the highest potential to unlock new value, and how organizations and policymakers can prepare themselves.

“The next decade will be a golden age for consumers, with technological innovation creating a variety of shopping experiences that will give consumers the simplicity, convenience or excitement they crave,” said Chris Donnelly, senior managing director, global retail lead, Accenture Strategy. “Out of the $2.95 trillion in value the report identified, consumers have the most to gain – just over $2 trillion – through cost and time savings. The success of retailers and consumer goods companies to unlock value will be dependent on their ability to gain a deep understanding of consumers, embrace disruptive technologies and adopt innovative business models.”

There’s $2.95 trillion value at stake for #retailers & #CPG companies. @AccentureStrat reveals how to unlock it

Consumer appetite for new purchasing experiences

Today, 37 percent of U.S. consumers would allow companies to collect their personal data via intelligent devices in return for a better experience or financial reward. Another 37 percent would subscribe to a service that constantly looks for the best pricing deals on their behalf, and actively recommends which company to switch to, and when.

Over a quarter (26 percent) of U.S. consumers would use sensor-based digital services that pre-emptively address their needs without human intervention. Another 24 percent would subscribe to brands that analyze their shopping history to select products especially for them, and orders them automatically.

“The retail and consumer goods industries will change more in the next 10 years than they have over the past 40,” said Oliver Wright, managing director, global consumer goods lead, Accenture Strategy. “As expectations around cost, choice, convenience and experience continue to increase, consumers will challenge the industry to evolve and innovate which will drive huge growth in digital commerce.”

Industry transformation
To reach the next frontier of digital commerce, retailers and consumer goods companies need to explore the following transformative business models which are already being welcomed by U.S. consumers:

Societal implications
As a by-product of industry transformation, there is potential disruption for people and society which companies, policymakers and regulators need to actively address to:

  • Minimize impact on local communities – With an increasing number of retail stores downsizing or closing due to the rise of digital commerce, local communities need to respond by businesses and government establishing economic development strategies and partnering with communities to repurpose physical space as hubs for experiences, leisure and lifestyle activities.
  • Reskill the workforce – Emerging technologies will drive a range of efficiencies which will significantly change the nature of the industry’s workforce. Business leaders and policymakers must focus on accelerating reskilling people, creating partnerships with educational institutions, and influencing public policy to meet the needs of the future workforce.
  • Ensure sustainability – Meeting consumer demand for rapid delivery needs to be achieved in parallel to minimizing environmental impact. Shifting to electric vehicles and exploring load-sharing can help while also enhancing delivery efficiency. Furthermore, innovation in packaging design and supporting recycling infrastructure is also critical, helping to build a more circular economy.

“To thrive in the next decade, organizations must aggressively pursue innovation and be willing to disrupt themselves. The winners will be those organizations that prioritize adopting a partnership mindset to offer customers new value, innovatively meet consumer demand for new services, and implement advanced data sciences to derive deeper customer insight to enable better decision-making,” said Donnelly.

To find out more information about the report, please visit www.accenture.com/futureretailcpg. Join the conversation at @AccentureStrat #Retailers #CPG.

About the research
Accenture Strategy created a value-at-stake methodology for the World Economic Forum to quantify the impact of digital transformation on the retail and consumer goods industries, and consumers, in digitally developed economies over the next decade. Consumer insights were taken from Accenture Strategy’s latest Global Consumer Pulse Research which surveyed 25,426 consumers across 33 countries during July and August 2016, including 2,532 U.S. consumers.

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy.

Contact:

Lucy Davies
Accenture
+ 44 777 3044 808
lucy.d.davies@accenture.com

Source: Accenture

Accenture Strategy: Organizations must pay attention to new factors driving customer loyalty in the digital age

Accenture Strategy unveils the new ‘languages of loyalty’ driving customer relationships in the digital age

NEW YORK, 2017-Feb-16 — /EPR Retail News/ — Organizations are wasting billions of dollars each year on customer loyalty programs that don’t work like they used to, according to new research from Accenture Strategy. With millions of loyalty points sitting dormant and the majority of U.S. consumers (78 percent) retracting loyalty at profit-crushing rates, organizations must pay attention to the new factors driving customer loyalty in the digital age or risk losing customers for good.

The Accenture Strategy report, ‘Seeing beyond the loyalty illusion: it’s time you invest more wisely’, gauges the experiences and attitudes of 25,426 consumers around the world, including 2,532 U.S. consumers, about their loyalty relationship with brands and organizations today. The report found that 54 percent of U.S. consumers have switched provider in the past year, and almost one fifth (18 percent) confirm their expectations around brand loyalty have completely changed. The report also identified five new factors influencing loyalty today.

Orgs. are wasting billions on customer loyalty programs that don’t work. It’s time to pay attention to the new factors driving loyalty #GCPR

“New ‘languages of loyalty’ have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty today,” said Robert Wollan, senior managing director, global lead of Advanced Customer Strategy at Accenture Strategy. “Every consumer has a natural instinct around what makes them ‘stick’ to a brand. The traditional ‘low price’ and ‘reliable service’ mechanics are no longer as effective at driving loyalty. With 66 percent of U.S. consumers spending more with the brands they love, organizations that stick to traditional approaches and don’t explore the new drivers influencing loyalty risk draining profitability and pushing customers away – even when they have the best intentions or are following their historical playbook. It’s time for organizations to take a fresh look at loyalty.”

The new languages of loyalty
Accenture Strategy has identified five languages of loyalty which are driving customer relationships in the digital age, particularly among U.S. millennials:

  • ‘Tokens of affection’ – Fifty-nine percent of U.S. consumers feel loyal to brands that present them with small tokens of affection, such as personalized discounts, gift cards and special offers to reward their loyalty.
  • ‘Get to know me’ – Forty-one percent of U.S. consumers are loyal to brands that offer them the opportunity to personalize products to create something that is bespoke to them. Fifty-one percent are loyal to brands that interact with them through their preferred channels of communication. Eighty-one percent feel loyal to brands that are there when they need them, but otherwise respect their time and leave them alone. Furthermore, 85 percent are loyal to brands that safeguard and protect the privacy of their personal information.
  • ‘Thrill seeker’ – Forty-four percent of U.S. consumers are loyal to brands that actively engage them to help design or co-create products or services. Forty-one percent are loyal to organizations that present them with new experiences, products or services. Furthermore, 33 percent are loyal to brands that engage them in ‘multi-sensory’ experiences, using new technologies such as virtual reality or augmented reality.
  • ‘If you like it, I like it’ – Twenty-three percent of U.S. consumers are loyal to brands that partner with celebrities, and another 23 percent feel loyal to organizations that partner with social influencers, such as bloggers and vloggers. Forty-two percent are loyal to brands that their family and friends do business with. Furthermore, 37 percent show loyalty to brands that actively support shared causes, such as charities or public campaigns.
  • ‘Hook me up’ – Thirty-nine percent of U.S. consumers feel loyal to brands that connect them with other providers, giving them the ability to exchange loyalty points or rewards. Likewise, 51 percent are loyal to brands that keep them on the cutting edge by consistently offering the latest products and services.

“Organizations need to understand the loyalty languages of their most profitable customers and implement the optimal mix to ensure they’re delivering the experiences that drive advocacy, retention and growth,” said Kevin Quiring, managing director, Advanced Customer Strategy, Accenture Strategy. “An appetite for extra-ordinary, multi-sensory experiences, hyper-personalization and co-creation, are changing consumer dynamics around loyalty and forcing brands and organizations to shift their approaches and programs.”

Additional U.S. consumer findings from the report include:
 
Fight for loyalty:

  • Sixteen percent of U.S. consumers currently have a negative or non-existent reaction when brands try to earn their loyalty.
  • Over a quarter (26 percent) think brands should do everything possible to earn their loyalty.

How consumers express loyalty:

  • Fifty-five percent of U.S. consumers express loyalty by recommending the brands and companies they love to family and friends.
  • Forty-three percent increase the level of business they do with the brands and companies they love.

For further information on Accenture Strategy’s ‘Seeing beyond the loyalty illusion: it’s time you invest more wisely’ report, please visit: www.accenture.com/GCPRloyalty. Join the conversation at @AccentureStrat #GCPR #loyalty

About the research
Accenture Strategy’s ‘Seeing beyond the loyalty illusion: it’s time you invest more wisely’ report is based on the findings from its twelfth annual Global Consumer Pulse Research. The report gauges the experiences and attitudes of 25,426 consumers around the world about their loyalty relationship with brands and organizations today. The survey includes online responses from respondents in: Denmark, Finland, Sweden, UAE, Thailand, South Korea, Singapore, Norway, Mexico, Malaysia, Ireland, South Africa, Russia, Argentina, Turkey, Poland, Philippines, Netherlands, Belgium, Czech Republic, India, Indonesia, France, Germany, Japan, China, Brazil, Spain, Canada, Australia, Italy, United Kingdom and the United States. The survey was fielded in July and August 2016.

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy.

Contact:
Lucy Davies
Accenture
+ 44 777 3044 808
lucy.d.davies@accenture.com

Source: Accenture

Kurt Salmon, part of Accenture Strategy, and NRF launch 2017 Store Tours app showcasing some of the most innovative retail stores in New York

NRF 2017 Store Tours app provides NRF Retail’s BIG Show attendees with unique look at New York retail stores

NEW YORK, 2017-Jan-17 — /EPR Retail News/ — Kurt Salmon, part of Accenture Strategy, and the National Retail Federation (NRF) today (JANUARY 15, 2017) launched a new app that showcases some of the most innovative retail stores in New York. The NRF 2017 Store Tours app highlights the locations of stores, including the NBA Store, Bloomingdale’s 59th Street, Uniqlo and Zara, and provides NRF Retail’s BIG Show attendees with a guided tour of each one.

“As an organization dedicated to delivering next-generation customer experiences, we are thrilled to support NRF – the largest retail advocacy organization – in designing an exciting experience for its attendees,” said Eric Shea, managing director, Kurt Salmon, part of Accenture Strategy. “NRF Retail’s BIG Show brings together some of the world’s top retail industry executives, and we look forward to providing them with a unique look at innovative stores in New York via the app.”

Heading to #NRF17? Download the NRF 2017 Store Tours app brought to you by @KSRetail, part of @AccentureStrat

The mobile app provides industry professionals attending NRF Retail’s BIG Show with the opportunity to go on guided tours of a selection of innovative retail stores around New York. Each tour is built around the themes of ‘omnichannel’, ‘fashion and luxury’, and ‘food’, and will feature up to twenty retailers in each category.

“New York is the shopping capital of the world and we wanted to make it as easy as possible for NRF Retail’s BIG Show attendees to see some of the most sophisticated stores the city has to offer,” said Susan Newman, Senior Vice President of Conferences and Marketing, NRF. “We thank Kurt Salmon, part of Accenture Strategy, for its retail and technical prowess in developing this app, and can’t wait for our attendees to try it out next week.”

Users can download the NRF 2017 Store Tours free app by visiting the Apple app store, Google Play, or the Microsoft app store. To learn more about the app, please visit: https://nrf2017.kurtsalmondigital.com

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy.

Contacts:
Lucy Davies
Accenture
+ 44 777 3044 808
lucy.d.davies@accenture.com

Source: Accenture