Crisis of relevance: 88% of organizations recognize that they cannot keep up with the pace of change of people



“In the digital world, the power and influence of the customer has been enhanced" that's why, "if there is something that bothers him, he will surely complain on the networks exposing the brands, ”said Pasjalidis (Getty)
“In the digital world, the power and influence of the client has been enhanced” for this reason, “if there is something that bothers him, he will surely complain on the networks exposing the brands,” said Pasjalidis (Getty)

Organizations around the world are facing two phenomena that, although they are not new and are intimately associated, they are generating confusion in the leaders and drop in competitiveness for many. It’s about the daily fight for stay relevant For your customers. Precisely with this objective, they try to unravel the paradoxical behaviors of increasingly empowered people as consumers. The customer has high expectations, chooses the best experiences and has less tolerance. Thus, on the side of the companies, they are not always clear which way is the best.

A new study by Accenture, a global strategy, consulting and technology professional services company with a presence in more than 120 countries, revealed that the 88% of executives believes that consumers are changing faster than they can change their businesses, which is leading to a crisis of relevance”.

People, according to the study, “want companies to respond faster to meet their changing needs,” which is plunging organizations into what it called a “relevance crisis.” “The external factors, from theeconomic to cultural, through environmental and political, they are affecting people more than ever, making life more complicated and purchasing decisions more multifaceted,” he said. Baiju Shah, director of strategy Accenture Song.

88% of executives
88% of executives “believe that consumers are changing faster than they can change their businesses, which is leading to a relevance crisis” (Getty)

“There is a growing gap between what consumers need and value and what companies offer, creating a relevance gap. We believe companies can bridge this gap and post significant growth if they do not focus on promoting consumption, but on contributing significantly to the lives of customers”Shah added.

The specialist in strategies and innovation, industrial engineer and master’s degree in business management, Diego Pasjalidis, pointed out, in dialogue with infobae, that the relevance gap “is the distance that exists between the intentions and the actions that organizations implement to transform themselves”. And he explained: “Although all executives are aware that they must think about the permanent transformation and evolution of their business —be it not to disappear, to grow or to diversify— the distance between what they need or want and what they actually do, how they do it and when they do it generates tensions, inefficiencies and, many times, they do not even achieve the expected results”.

The aforementioned report, entitled The Human Paradox: From Customer Centricity to Life Centricity It was based on a survey of 25,908 consumers from 22 countries and He focused on the gap between people’s expectations of what companies should offer and what companies believe their customers want. It was made in January and February 2022, was updated with a pulse survey to more than 13,000 consumers in 11 countries during april and in 12 countries during June 2022. To delve into the results of the survey, Accenture said that it organized online focus groups with 385 participants in 7 countries in March 2022. In addition, it consulted 850 global executives, between January and March 2022.

The specialist pointed out that
The specialist pointed out that “the most deeply rooted culture will tend to devour any new intention of change or, at least, will delay it in time and in the depth of what they achieve”

According to that research, two-thirds of people (67%) expect companies to understand and address their changing needs in times of disruption. However, oversimplification of segmentation and underestimation of the impact of external pressures on behavior have caused this gap between expectations and reality. “To bridge the gap, companies must see their customers as they see themselves: multifaceted, complex, and doing their best to adapt to life’s unpredictable circumstances. and use that vision to meet the changing needs of customers”, according to Accenture.

According to the report, 6 out of 10 consumers (61%) said their priorities are constantly changing due to external pressures and, consequently, are perpetually in multiple stages of crisis management, with paradoxical behaviors arising, among them.

In first place, although people prioritize themselves, they want to bring about change for others and, although to the 66% of those consulted said that their decision-making is driven by their own needs, around the 72% feel they can personally influence the world and their communities through their purchasing behaviors and choices.

(Getty Images)
(Getty Images)

In second place, people want to follow their personal values, but not at the expense of financial value. More than half of those consulted stated that the pandemic motivated them to adopt a more sustainable lifestylebut up to 65% said that rising prices led them to select lower-cost brands in their recent purchases.

In third place, Accenture interpreted that consumers want to be in control of their destiny, but also to be guided. Although more than three quarters (76%) of those consulted feel empowered to make key decisions in their lives, almost two thirds (64%) of people want them to businesses respond faster with new offers to meet your changing needs.

Analysts noted that although paradoxical behaviors in humans are not new, what has changed is the growing frequency and comfort with which they are carried out: Two-thirds (69%) of consumers worldwide who admitted to behaving inconsistently think that paradoxical behaviors are humane and acceptable.

Privacy vs. personalization (Customers say they don't like message invasion or use of their data but increasingly expect more personalized experiences) (Getty Images)
Privacy vs. personalization (Customers say they don’t like message invasion or use of their data but increasingly expect more personalized experiences) (Getty Images)

“Companies today must see people as constantly changing and evolving individuals, deeply affected by a series of external influences”, added Ezequiel Arslanyan, executive director of Accenture Song in Latin America. “Only by understanding these contexts will companies have the right strategy to deliver the most relevant solutions and help drive growth.”

“In the digital world, the power and influence of the client was enhancedhave more expectations, look for better experiences and have less patience”, he described Pasjalidisand recalled that “If there is something that bothers him, he will surely complain on the networks exposing the brands.”

“All this generates additional tension in organizations since they must deal with various paradoxes: performance vs. brand (earning money in the short term vs. developing a long-term bond); build sales funnel vs customer journeys (the customer experience when interacting with the brand can include many touchpoints, direct, indirect and influenced by other experiences), privacy vs personalization (customers say they don’t like message invasion or use of their data but expect more and more personalized experiences) and connection vs. conversion (customers want brands aligned with their values, but brands must generate enough income to sustain themselves)”, he explained.

6 out of 10 consumers (61%) said their priorities are constantly changing due to external pressures
6 out of 10 consumers (61%) said their priorities are constantly changing due to external pressures

Although the report concluded that almost all companies are struggling to remain relevant, it suggested that organizations that adopt a life-centered approach, that is, it bridges the experiential interaction between people’s ever-changing lives and the external forces that influence them on a daily basis, they are better positioned to prosper in the future, form new connections and create relevant brands, products or services.

“Customer-centric thinking has led companies to go a long way in creating memorable experiences for people,” he said. David Drug, CEO and Creative Chairman of Accenture Song. “But given the weight of disruption people are dealing with in their lives, we think businesses need evolve not only to stay relevant but to be helpful to customers”. Furthermore, “life-centric” companies view customers differently; understand the external forces that affect their decision making and offer valuable solutions for your needs in a simple and profound way”, he added.

When asked about his vision about why such an important crisis is taking place in organizations, Pasjalidis considered that there is a mixture of “Ignorance, fear and culture”. And he explained: “Ignorance has to do with really understanding what the new reality involves, since it is not just about technology (in fact, technology is just a lever that we must know how to use), which implies that organizations must learn what data to observe, how to set goals, how to lead and create a culture that allows breaking the inertia of the current business without breaking the functioning of the business and without putting its assets at risk (and this is the main fear of executives)”.

Businesses need to evolve not only to stay relevant but to be useful to customers (Getty)
Businesses need to evolve not only to stay relevant but to be useful to customers (Getty)

The specialist consulted by this means pointed out that, “As it happens in life, it is more difficult to change than to start from scratch in a different way: the most deeply rooted culture will tend to devour any new intention of change or, at least, will delay it in time and in the depth of what they achieve”.

Finally, he called on the leaders to “become aware that technological changes, social transformation and the green transition are the drivers that are in the hands of consumers. This forces organizations to work on reducing any gap, focusing on the consumer and knowing that their differential value for them must constantly evolve”.

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