Accelerating Growth with Data-Driven Customer Experience
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The document discusses the significance of reducing friction in customer experiences, highlighting that companies are losing nearly $1 trillion due to customer switching stemming from irrelevant interactions. It emphasizes the necessity for a data-driven, customer-centric approach to identify and eliminate friction points, and underscores the importance of understanding customer lifetime value to prioritize impactful interventions. The text ultimately advocates for organizations to develop rigorous analytical frameworks to navigate and address friction, ensuring a seamless, effortless experience for consumers.
Accelerating Growth with Data-Driven Customer Experience
- 2. 2 Acceleratinggrowth Withdatadriven customerexperience Friction is an invisible force that impacts much of our day-to-day existence. Often, it operates unseen. But it’s there, hidden in the details, making everyday interactions more difficult, more time-consuming and more frustrating than they need to be. In today’s “one size fits none” world, our consumer research reveals companies are losing nearly $1 trillion in revenues to customer switching because they’re not consistently relevant to customers in the moment. Today it takes more than the best technology, data or capabilities. It demands an intensely customer centric mindset—one that inspires profoundly different behaviors. It has never been more important to know where friction is hurting your business..
- 3. 3 With the challenge from the CEO clearly defined, how do you respond with confidence that you can improve customer experience and rally the organization?How will you know you are working on the right things that are causes of friction in the first place? And finally, how do you figure out which friction matters most? Accenture Research shows that, creating frictionless experiences are central to consumer-facing businesses and reducing friction has become a core driver of competitive differentiation. Nearly two-thirds (64 percent) of consumers who switch from one brand to another state that the lure of a more relevant product, service, or experience is behind the shift.1 Taking nothing for granted, CXO’s are continuously thinking about how to attract and retain customers by offering consistently relevant, personalized, and frictionless experiences. For nearly two-thirds of consumers who switch from one brand to another, it’s the lure of a more relevant product, service, or experience that’s behind the shift. 64% Imagine yourself as the Chief Customer Officer. Your CEO has just asked you to define what it means to make it easy to do business—so much so that becoming easy to work with is a differentiator in the market. You understand how you respond to friction as a consumer. We are always battling friction—whether we struggle with a ride share provider to find the right corner or when the dog sitter gets the date wrong. Friction surrounds us and we’ll gladly stay —and spend—with any provider who can remove it. Creating effortless interactions— experiences so simple, so easy, so natural, we don’t even think about them. This is the future of customer experience.
- 4. 4 Data & analytics are the critical factor in answering five key frictionless questions: Analyzing data and conducting experiments to explore correlation and causality requires deep data understanding. Without this, it is hard to design an appropriate set of interventions in which you can have confidence. The next step is to prioritize those interventions, taking into account the degree of difficulty to execute changes and value to the customer. This challenge is particularly tough in a SaaS environment where companies need to move fast, are often drowning in data but lack actionable insight. Uncovering insight buried in the data means the whole business can coalesce around a prioritized set of actions that will have the biggest impact. Of equal importance, an intervention plan rooted in a set of data-driven insights provides a basis for driving buy-in and building confidence across the organization. What are our customers’ needs and expectations at key moments across customer journeys?01 Where is friction slowing them down, frustrating them, or preventing them from getting what they want?02 How do we understand the impact of friction and which friction points matter most?03 Can we identify patterns in the data ? Can we correlate friction frequency or intensity to customer satisfaction or propensity to spend? Can we develop a set of data-driven hypotheses on interventions to address friction? Can we design experiments to validate our hypotheses and maximize our response 04 05 You need the right data.
- 5. 5 Accenture’s data-driven strategy framework helps companies identify friction and prioritize impactful interventions while building a solid evidence-based case for change. A sophisticated understanding of customer lifetime value (CLV) is central to the analysis. CLV provides the baseline value that customers currently ascribe to a company’s products, services, and experiences. Without that baseline, it’s impossible to prioritize the sources of friction customers are experiencing or quantify the incremental value that removing friction will add. Effortless experiences: How Accenture finds and removes friction for clients Analyzes in-house and third-party data sources to create and test a frictionless hypothesis Model user engagement, propensity to buy, customer satisfaction or other target business outcomes Conducts comparative learning and determines competitor positioning/capability Analyze user personas, product capabilities, market sizing, and segmentation 5
- 6. 6 Your customers want their interactions with you to be friction free. They won’t always be able to “see” or articulate the friction that’s creating the pain points in your customer experience. But they’ll feel it.2 That’s why frictionless experiences will be a key driver of future competitive differentiation. For many, they already are. But finding and addressing friction is no easy task. By definition, it hides in the details. And it changes for each customer in each context in each moment. Consumer-facing companies must now adapt to a new imperative: to acquire the agility and data sophistication to identify and eliminate customer friction where it matters most. The key is not to get overwhelmed by the sheer number of possible places where friction may exist on your platforms and in your customer experiences, but instead to zero-in on where it’s really doing damage. Focus on the vital few, not the unmanageable many. Do you truly understand the story your data is telling you? To do that, you need to stop the endless organizational back and forth about where friction exists and what to do about it. You must develop a rigorous analytical approach which supplies the actionable insights needed to build a strong evidential case for change. This approach demands comprehensively linked internal and external datasets andadvanced analysis tools that can find the friction signal amid the noise. It needs a deep understanding of customer lifetime value to prioritize and guide corrective actions. And it needs a willingness to operationalize frictionless insights across the enterprise. Focus on the vital few and not the unmanageable many. A manifesto for a frictionless future
- 7. 7 Here are three questions you can ask to kick-start a data-driven journey to truly frictionless and effortless experiences today… 01 02 03 Ready to get started? Do you have data to help you define a set of hypotheses about what’s causing friction in your customer experience? Does your team have the skill and capacity to perform the analytics to dive into the data, develop and test hypotheses, prioritize the most valuable actions, and build an unarguable case for change? Can you align the whole business around a common understanding of frictionless experience—and how it cascades through the organization and out into the end-to-end customer experience?
- 8. 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 482,000 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. Copyright © 2019 Accenture All rights reserved. Accenture and its logo are trademarks of Accenture. This document makes reference to trademarks owned by third parties. All such third-party trademarks are the property of their respective owners. No sponsorship, endorsement or approval of this content by the owners of such trademarks is intended, expressed or implied. For more information, please contact: References JACQUELINE MORGAN Principle Director, Software & Platforms Jacqueline.morgan@accenture.com CRAIG VAUGHAN Managing Director, Accenture Digital Craig.vaughan@accenture.com PHILIP DAVIS Managing Director, Accenture Strategy Philip.a.davis@accenture.com 1 Accenture Living Business research (cited on p 3) 2 IT Web, 30 April 2019, “Frictionless security is tough but you can ease the pain”, https:// HYPERLINK “http://www/”www. itweb.co.za/content/ JBwErvn5wpWq6Db2 (accessed 18 July 2019)