The retail industry is in a state of disruption. Successful retailers are behaving differently. Rather than adding new ways of working on a 20th century business, they are redesigning their business to place 21st century values and practices into the very fabric of who they are. They are creating a Living Business -- A business that recognizes that technology alone isn’t enough to drive sustainable transformation.
People - Living Businesses put people at the heart of their organization and consider their needs, pains and delights at every stage of transformation.
Design - Design provides a common language across disciplines. It enables collaboration and breaks down silos.
This session brought these ideas to life through a combination of proprietary research, concrete examples, and practical next steps.
Visit www.accenture.com/rila to learn more.
3. LIVING SERVICES
ARE THE RESULT OF
TWO FORCES
THE DIGITIZATION
OF EVERYTHING
LIQUID
EXPECTATIONS
4. CUSTOMER EXPECTATIONS
ARE LIQUID AND TRANSCEND TRADITIONAL BOUNDARIES
DIRECT COMPETITORS
SERVICES THAT DIRECTLY COMPETE WITH YOURS
5. CUSTOMER EXPECTATIONS
ARE LIQUID AND TRANSCEND TRADITIONAL BOUNDARIES
EXPERIENTAL COMPETITORS
SERVICES THAT (PARTIALLY) REPLACE THE NEED FOR YOURS
DIRECT COMPETITORS
6. CUSTOMER EXPECTATIONS
ARE LIQUID AND TRANSCEND TRADITIONAL BOUNDARIES
DIRECT COMPETITORS
EXPERIENTAL COMPETITORS
PERCEPTUAL COMPETITORS
SERVICES THAT CHANGE CUSTOMER EXPECTATIONS – AND RAISE THEM FOR YOURS
7. WE’VE COME A LONG WAY
1990s
WEB & INTERNET
2000s
MOBILITY
2010s
LIVING SERVICES
8. •THEY ARE TAILORED AND LIVE AROUND THE
INDIVIDUAL – FLEX TO MEET EACH PERSON’S
NEEDS AND PREFERENCES
• THEY EVOLVE: THEY CONSTANTLY LEARN
MORE ABOUT OUR NEEDS, INTENTS,
PREFERENCES, AND CHANGE IN REAL TIME
• THEY ARE VERY PROXIMATE TO US IN THE
ENVIRONMENT – THINK WEARABLES AND
NEARABLES
LIVING?
9. •GROWTH OF CONNECTED DEVICES
•SENSORS
•NETWORK CONNECTIVITY
•THE CLOUD
•BIG DATA
•EVOLUTION OF UI
•CONSUMER EXPECTATIONS
WHY NOW?
10. HOW WILL LIVING SERVICES
CHANGE OUR LIVES?
SIMPLIFY
Automate decisions and actions, and reduce friction
DISRUPT
Enable radical change – from reactive to proactive, from
population-based to personal, from utility to beloved service
LEARNING
from what we do, powered by data and analytics
ENVIRONMENTS
not industries
11. OUR HOMES OUR BODIES
OUR SHOPPINGOUR WORK OUR WORK
OUR EDUCATION OUR EDUCATION
OUR FINANCESOUR FAMILIES OUR FAMILIES
OUR TRANSPORT OUR TRANSPORT
13. THE DUNBAR NUMBER
VERY FEW
BRANDS I LOVE AND
ENGAGE WITH OFTEN
BRANDS I DON’T LOVE BUT
ENGAGE WITH OFTEN
BRANDS I LOVE AND
DON’T OFTEN ENGAGE WITH
BRANDS I DON’T LOVE AND
DON’T OFTEN ENGAGE WITH
MANY
MORE LIMITED BY
BANDWIDTH OF
AFFECTION
MORE LIMITED BY
THROUGHOUT
THE DAY
15. • PROVIDE JUST THE RIGHT SERVICES ON CUE
• BUILD AWARE PLATFORMS
• A WORLD OF BRAND PLUGS AND SOCKETS
• BRANDS LET GO OF CONTROL – EMBRACE CO-PRODUCTION
• DIGITAL TREATIES AND ALLIANCES
• OPERATE ACROSS ORGANIZATIONAL BOUNDARIES
– INTERNAL AND EXTERNAL
• UNDERSTAND THE LIMITS OF YOUR REACH AND TRUST
• LIVING BRANDS – THROUGH RELATIONSHIPS
…TO MAKE YOUR BRAND
FEEL ALIVE
16. BECOMING A LIVING BRAND
WHAT KIND OF RELATIONSHIP?
{number of interactions x quality of
interactions}
UTILITY
BRAND
Something to use
Interactions on occasion
LEVELOFCONTROL
FREQUENCY OF INTERACTIONS
AUDIENCE
BRAND
Something to say
Occasional interactions
EXPERIENCE
BRAND
Something to do
Continuous interactions,
brands are part of users’
daily lives.
RELATIONSHIP
BRAND
Something to relate to
Brands that transform
users’ daily lives.
CONTROLLEDBYTHE
BRAND
CONTROLLEDBYTHE
USERS
17. BECOMING A LIVING BRAND
WHAT KIND OF ROLE?
The brand keeps
delivering its service with
no visible partnerships
The brand filters and
selects partners to deliver
a curated experience
The brand experiences
are accessible through
third party platforms
The brand aggregates
third parties and delivers
a holistic experience
STANDALONE CURATOR PARTNER PLATFORM
18. BECOMING A LIVING BRAND
WHERE & WHEN?
Gestures, voice interactions, AI…
The days of point and click are
gone
NEW INTERACTIONS
With new contexts
for interactions there
will be new engagement
opportunities for smart brands
NEW CONTEXTS
You don’t control the
experience anymore. Clients
decide when and where to
interact with brands
NEW TOUCH-POINTS
How are you going to be
available anytime, anywhere?
How is your tone of voice
going to sound?
Will you have a signature
gesture?
How will you be ready to
engage clients in new
contexts and needs?
20. I T ’ S N O L O N G E R E N O U G H T O
C R E A T E S O M E T H I N G T H A T
P E O P L E L I K E
Y O U M U S T B U I L D
E X P E R I E N C E S T H A T
P E O P L E L O V E
21. B U T L O V E I S C O M P L E X
H O W D O Y O U D E F I N E L O V E
F O R A B R A N D E X P E R I E N C E ?
22. 1
W H AT M A K E S P E O P L E LOV E
A B R A N D E X P E R I E N C E ?
2
… A N D W H AT S U S TA I N S
T H AT LOV E ?
23. TO FIND OUT, WE EMBARKED ON
A TWO-YEAR RESEARCH STUDY
WE STARTED WITH QUALITATIVE
ETHNOGRAPHIC STUDIES ACROSS:
3 COUNTRIES
US, UK AND BRAZIL
4 INDUSTRIES
RETAIL, HOSPITALITY,
AUTOMOTIVE, AND BANKING
6 BRANDS
PER INDUSTRY
USING ADVANCED STATISTICAL
TECHNIQUES, WE CREATED
AN ALGORITHM EXPLAINING
PEOPLE’S FEELINGS TOWARD
BRAND EXPERIENCES
WE THEN CONDUCTED
QUANTITATIVE GLOBAL SURVEYS
OF 27,000 RESPONDENTS
25. THE RESEARCH REVEALED 5 DIMENSIONS
FOR MEASURING CUSTOMERS' FEELINGS
TOWARD A BRAND EXPERIENCE
F
FUN
Holds people’s
attention in an
entertaining
way
R
RELEVANT
Provides clear
and customized
information
E
ENGAGING
Identifies with
individual needs
and wants
S
SOCIAL
Connects
people with
each other
H
HELPFUL
Is efficient, easy
and adapts over
time
26. O V E R A L L B R A N D A F F I N I T Y
I S B U I L T C U M U L A T I V E L Y
B A S E D O N H O W C O N S U M E R S
R A T E I N D I V I D U A L E X P E R I E N C E
M O M E N T S A C R O S S T H E F R E S H
D I M E N S I O N S
27. T H E L O V E I N D E X P R O V I D E S
A R E L I A B L E A N D R E P E A T A B L E
E X P E R I E N C E - M E A S U R I N G S Y S T E M
T H E D I M E N S I O N S A P P L Y
T O A L L B R A N D S ,
P H Y S I C A L O R D I G I T A L
28. THERE WERE 4 KEY FINDINGS
FROM THE STUDY
Each industry has a unique FRESH shape
consistent across every market.
Five experience leaders set the pace for brand
engagement across industries in the U.S.
Digital-only brands outperform traditional.
Brands have considerable scope for differentiation across
one or more dimensions; The Love Index shows where.
1
2
3
4
29. 1. THE SHAPE OF INDUSTRY
Regardless of geography,
each industry, comprised of six
prescribed brands, has its own
distinct shape reflecting the
dimensions people care about
most.
But these brands and industry
shapes are traditional – crafted
by decades of experiences with
products and services.
As experience leaders change
user expectations, brands will
need to “stretch” one or more
dimensions to differentiate.
Their scores will rise and create
a new shape altogether - for
themselves and potentially
their entire industry.
In an era of disruption, existing
brands and start-ups will
continue to bring imaginative
technologies, services and
experiences to market.
The driving force behind this
momentum is the shape of
opportunity.
30. 2. DIGITAL BRANDS
OUTPERFORM TRADITIONAL
Digital giants – such as Google, Fitbit, Amazon,
and Netflix – outperformed traditional brands
in the three markets we studied.
These findings demonstrate the embedded role
technology plays in our lives.
To remain relevant, traditional brands must
focus on building design-led, user-centric and
adaptive products, services and experiences.
31. 3. BRANDS HAVE CONSIDERABLE
SCOPE FOR DIFFERENTIATION
By plotting all of the brands within the
industry on a graph, we can assess how
they perform across the FRESH
dimensions, relative to each other.
By visualizing the scores, it becomes
clear which dimensions certain industry
players are outperforming others, whilst
highlighting the areas for improvement.
10
8
6
4
Brand A Brand B Brand C Brand D Experience leaders
32. 4. EXPERIENCE LEADERS SET
THE PACE FOR OTHER BRANDS
THE FOLLOWING COMPANIES GARNER THE MOST BRAND LOVE FOR ONE OR MORE DIMENSION:
Fun Relevant Engaging Social Helpful
Experience leaders are high-scoring top of mind brands that set the
experience expectations on specific dimensions. These top of mind
brands are those that consumers recall as their most loved brands,
without any direction from TLI team.
Experience leaders have the power to affect how traditional brands might
choose to innovate and differentiate themselves according to FRESH,
and how emerging start-ups might aim to further disrupt business and society.
33. NOW, LET’S SEE HOW
5 RETAILERS SCORE ON
THE 5 DIMENSIONS…
34. The distinct shape of the retail
industry reveals brands focus
on making their experience
Helpful, Relevant and Engaging.
US RETAIL MARKET
Lower scores on the Fun and Social
dimensions are surprising, considering how
so many people turn to ”retail therapy” to
lift their spirits, or use shopping as a way
to socialize with family and friends.
There’s an opportunity here for new, or
existing players, to boost investments in
Fun and Social experiences, as a method
for gaining a competitive advantage over
fellow industry players.
10
8
6
4
FUN
RELEVANT
ENGAGINGSOCIAL
HELPFUL
Walmart Target Nordstrom
Best Buy Whole
Walmart
Best Buy
Target
Whole Foods
Nordstrom
35. The performance of the retail
disruptor, Amazon, demonstrates
all retail brands have work to do
beyond the Fun and Social
dimensions.
US RETAIL MARKET
Traditional players are lagging behind
Amazon most considerably on the Fun, Helpful
and Relevant dimensions. The difference in the
latter 2 dimensions is likely to be driven by
Amazon’s large assortment of items, ratings,
reviews and personalized suggestions for
companion items.
Amazon scores equally unimpressively on the
Social dimension, further demonstrating the
opportunity for an existing or new player to invest
in this area as a method for increasing love.
Walmart
Best Buy
Target
Whole Foods
Nordstrom
Amazon
10
8
6
4
FUN
RELEVANT
ENGAGINGSOCIAL
HELPFUL
36. The significant differences in
performance between the
experience leaders, and the
retailers highlights clear areas
for improvement if retailers are
to meet their customer’s liquid
expectations.
US RETAIL MARKET
Consistent with previous analysis,
the Social dimension is a big area for
improvement, along with Fun.
How could retailers integrate our social
networks into the shopping experience,
to make discovery more personal?
How can retailers bring back the fun of
shopping, utilizing new technology?
Walmart
Best Buy
Target
Whole Foods
Nordstrom
Amazon
10
8
6
4
FUN
RELEVANT
ENGAGINGSOCIAL
HELPFUL
Experience leaders
37. WE CAN ALSO SEE HOW
IMPROVEMENTS IN THE 5 DIMENSIONS
CAN IMPACT THE NET PROMOTER SCORE
STEP 1
MEASURE BRAND’S SCORES
ON FRESH DIMENSIONS
STEP 2
CHOOSE A DIMENSION(S) TO
IMPROVE AND THE REQUIRED
PIN-POINT ACTIONS
STEP 4
TRACK IMPACT ON NPS
STEP 3
RE-MEASURE IMPACT
ON FRESH SCORE
Fun = 5.5
Relevant = 6.7
Engaging = 6.4
Social = 5.6
Relevant = 6.7
Design, iterate and update the
brand’s experience to make it
more Fun. This could include:
• Making the experience more
entertaining
• Designing a more immersive
experience, that makes the
user lose track of time
Fun =
7.5
(+36%)
A 2 point increase in
Fun will lead to a
+0.3
increase in NPS
38. • Gen Z and younger Millennials are seeking ease and efficiency.
• Monthly curated subscription programs – particularly for Fashion (77% of both groups),
Health and Beauty (56% Gen Z and 63% Young Millennials).
• Automatic replenishment programs - substantially more indicated that they would shift
more than half their purchases to a trusted retailer offering the service.
• Gen Z shoppers are the most excited by voice activated ordering - they can’t wait to use
this technology for fashion, consumer electronics and health and beauty items.
LASTLY…
LIQUID EXPECTATIONS ARE VERY REAL
39. T H A N K Y O U
A C C E N T U R E
J i l l S t a n d i s h
jill.standish@accenture.com
@ j p u l e r i
F J O R D
M a r k C u r t i s
mark.curtis@fjordnet.com
@ f j o r d m a r k