Report identifies a “crisis of relevance” as
consumers want companies to respond faster to meet their changing
needs
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 (NYSE: ACN).
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The Human Paradox: From Customer
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“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.
What customers want Six in 10 consumers (61%) said that
their priorities keep changing because of external pressures and as
a result, are perpetually in multiple stages of crisis management,
with paradoxical behaviors emerging, including:
- Customers are prioritizing themselves but want to effect
change for others: Even as up to 66% of consumers say their
decision-making is driven by their own needs, some 72% of consumers
feel they can personally impact the world and their communities
through behaviors and buying choices. For example, a consumer will
select a one-hour delivery for sustainable products.
- Customers want to follow their personal values but not at
the expense of financial value: More than half of consumers say
the pandemic motivated them to adopt a more sustainable lifestyle,
but up to 65% say price increases have led them to select
lower-cost brands on recent purchases. For example, a consumer will
seek to buy ethically farmed, sustainable beef but select the
cheaper option, particularly in this inflationary environment.
- Customers want to be in control of their fate but also want
to be guided to it: Though over three-quarters (76%) of
customers feel empowered to make key decisions in their life,
nearly two-thirds (64%) of people wish that companies would respond
faster with new offerings to meet their changing needs. For
example, a consumer wants to feel like they are making their own
decision on which product to buy but is also comfortable going with
what’s recommended to them.
Human beings, not walking wallets While paradoxical
behaviors in humans are not new, what’s changed is the increasing
frequency and comfort with which they are made: Two-thirds (69%) of
consumers globally who admit to behaving inconsistently think that
paradoxical behaviors are both human and acceptable.
“Instead of seeing customers as just a pair of hands that decide
when to reach for the wallet, they should be viewed as
ever-changing, ever-evolving individuals deeply affected by a
variety of external influences,” added Rachel Barton, lead of
Accenture Strategy’s business in Europe and co-author of the
report. “Only by understanding these contexts will businesses have
the right strategy to offer the most relevant solutions and help
drive growth.”
What businesses should do: From customer-centricity to
life-centricity While the report found nearly all businesses
are struggling to stay relevant, it goes on to suggest that
companies that embrace a life-centric approach — bridging the
experiential interplay between customers’ ever-changing lives and
the external forces that influence them daily — are best positioned
to thrive in the future, form new connections, and create relevant
brands, products, or services.
“‘Customer-centric’ thinking took businesses a long way in
creating memorable experiences for people,” said David Droga, chief
executive officer and creative chairman, Accenture Song. “But given
the weight of disruption people are grappling with in their lives,
we believe businesses need to evolve to not only stay relevant but
to be useful to customers. ‘Life-centric’ businesses see customers
differently; understand external forces affecting their
decision-making and provide valuable solutions for their needs in a
simple and profound way.”
“The Human Paradox” global research is the first in a year-long
series of research reports focused on helping businesses understand
“life-centricity” as their new approach to long-term sustainable
growth and relevance. For more information about what it takes to
be a life-centric business, click here.
Research Methodology Accenture surveyed 25,908 consumers
in 22 countries, to gain an understanding of how their preferences,
beliefs, and behaviors are evolving as they navigate the changing
world around them. The research, conducted in January and February
2022, was refreshed with a pulse survey of over 13,000 consumers in
11 countries during April and 12 countries during June 2022. To
deepen the understanding of the survey findings, Accenture ran
online focus groups with 385 participants across seven countries in
March 2022.
1Statistic from Accenture survey of 850 global executives,
conducted January to March 2022.
About Accenture Accenture is a global professional services
company with leading capabilities in digital, cloud and security.
Combining unmatched experience and specialized skills across more
than 40 industries, we offer Strategy and Consulting, Technology
and Operations services and Accenture Song — all powered by the
world’s largest network of Advanced Technology and Intelligent
Operations centers. Our 710,000 people deliver on the promise of
technology and human ingenuity every day, serving clients in more
than 120 countries. We embrace the power of change to create value
and shared success for our clients, people, shareholders, partners
and communities. Visit us at accenture.com.
Accenture Song accelerates growth and value for our clients
through sustained customer relevance. Our capabilities span
ideation to execution: growth, product and experience design;
technology and experience platforms; creative, media and marketing
strategy; and campaign, commerce transformation content and channel
orchestration. With strong client relationships and deep industry
expertise, we help our clients operate at the speed of life through
the unlimited potential of imagination, technology and
intelligence.
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Rosie Milton Accenture +44 77 6928 6484
rosie.milton@accenture.com
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