Business of Experience

These days, experienceis The consumer behavior shifts we’re seeing today have been in motion for years, and many have everything. been accelerated by the COVID-19pandemic. This new reality forces businesses to look deeply at how people are experiencing their brands – A great and too many are falling short of meeting their The emphasis on customers’ rapidly changingexpectations. experience For years, the rise of customer experience via experience isarguably touch points (CX) has gone hand in hand with is defined not by the digital revolution. Even though we have what you offerbut made huge strides in improving CX, it has at its greatest today become too homogenized, leaving little by how well you because the structure differentiation. enable your But right now, an experience renaissance is customers to of almost everything afoot, galvanizing companies and their leaders in the C-suite to push beyond the CX philosophy achieve the we do has been and reimagine their entire business through the lens of experience. Big and small, companies that outcomes most upended by world embrace this mindset shift will be able to meet important tothem. their customers’ needs, uncover new market opportunities and set themselves up for events in 2020. sustained growth, relevance and durability. Welcome to the Business of Experience(BX). COVID-19: NEW HABITS

77% of CEOs agree that their company will fundamentally change the way itengages and interacts with itscustomers. BUSINESS OF EXPERIENCE INFOGRAPHIC

From CX toBX An evolution from CX, BX is a more holistic And it’s not just the CEO: 56% of COOs, 53% of approach that allows organizations to become CSOs and 51% of CFOs also said their company will customer-obsessed and reignite growth. Whereas fundamentally change the way it engages and CX has CX was limited to the CMO’s or COO’s purview, BX interacts with its customers. is in the board room as a CEO priority because it ties become back to every aspect of a company’soperations. mainstream, leading to a sea of sameness. To offer great experiences, we must change how we deliver them.

It paysoff… On average,these On average, BX leaders outperform CX-oriented companies in BX-orientedcompanies year-on-year profitability growth*by: grow their profitability year-on-year by atleast six times over their industry peers. *Accenture Interactive identified the top 15% BX companies based on their survey responses to questions around BX capabilities. Using publicly available financial data, Accenture Interactive calculated industry- indexed EBIT for each company for 1-, 3-, 5- and 7-year CAGR, and then compared BX companies to their peers.

The rise of Businessof Experience While attention to customer experience is not new, BX has taken on an urgent business imperative today in large part because of three major challenges besetting CX as we know it: customer demands, a sea of sameness and a flight to purpose.

Customerdemands Too many organizations are out of sync, too rigid or moving at a pace that is slower than consumer change. In the past, brands competed with other brands in their space for excellence in experience (if they even paid attention to it). 61% 33% But now if an organization’s experience fails to meet of leading companies say By contrast, standards set by companies that do not directly compete with it, then they will be seen as a failure. That’s because consumer their customers are companies lagging expectations have become truly liquid across different shaped by the most in their performance product and service categories. They no longer compare their brand experiences between two different companies in the hyper-relevant, real-time are only 33% likely to same space. Rather, they make comparisons between their and dynamic experiences say the same. brand experience of, for example, a mobile service provider with a best-in-class airline. they encounter across all industries and that those experiences impact how and why theyinnovate.

CX sea ofsameness When companies talk about CX, they typically mean things like traditional sales and marketing touch points like attentive store clerks, simple and beautiful apps and websites or AIchatbots. 85% When executed well, CX investments have yielded good Today, more than four out results: more customers, sales and loyalty. Its importance is not going away, but its value proposition is stalling of five brands report because many of the fundamentals of CX are now languishing growth from commonplace and have become a given for customers. As a result, it’s now harder to differentiate through their investments in CX, customer touch points alone than it has been indecades. and 85% of elite brands’ CX scores remainstagnant.* * Forrester’s 2019 CX index, June2019

Flight topurpose Brands today are facing intense pressure to stand for something bigger than the products and services they sell. Today, eight in 10 consumers say purpose is at least as important to them as CX. At the same time, brands are also 60% expected to emphasize certain values, such as sustainability, and show their commitment to both purpose and values via Around 60% of leading the experiences they offercustomers. Recognition that a brand’s vision and commitment to companies (versus around improving the quality and equality of human lives can play a 30% of their peers) say that critical role in its growth is the foundation of a BX approach. they need to stand for something bigger than the products and services they sell and that they expect to always seek the best outcomes for theircustomers. GENERATION PURPOSE

Building aBusiness ofExperience We’ve identified four winning ways to help you realize the promise of BX. Our research shows that BX leaders (i.e., companies that are independently performing well in terms of financial growth and business cycle endurance) are far more likely to take the following approaches, enabling them to consistently outperform peers whodon’t: 01. 03. Obsess aboutcustomer Expand theexperience needs—and use thatas remit acrossyour yourcompass. organization. 02. 04. Makeexperience Sync the tech, innovationan data andhuman everydayhabit. agendas.

01 Obsess about customer needs– and use that as yourcompass

What itmeans How you getstarted: ‣ Turn yourself into an organization obsessed with customer and why it understanding. ‣ New methods and approaches are needed to gain contextual, data- integrated understanding of people’s unmet needs such as integrating matters traditional customer segmentation with contextual mindset research. ‣ Good BX means efficiently and continually learning from your customers. The rapid and continual integration of qualitative and quantitative insights about a group of people can inform actionable outcomes and Customer needs have always been invite your customers to collaborate in shaping the future. shifting and have just taken a big leap. They will continue to evolve, often unpredictably, beyond the fallout from Leadingcompanies thepandemic.Asaresult,wenowneed 55% are twice as likely toinvestinways touncovercustomers’ (55% versus 26%) unmetneeds,bothbigandsmall. vs to say they have the ability to translate customer 26% data intoactions.

02 Makeexperience innovation an everydayhabit

What itmeans How you getstarted: ‣ Think about the process of experience innovation as an onion with three main layers: and why it feature, service and business. Each one provides a platform for the next. - Feature innovation is about incrementally improving human experiences with an existing product, such as an auto play button or contactlesspayments. matters - Service innovation arises when a set of features creates new services and products. - Business innovation develops if a service creates radical, disruptive change to the human experience. At this level, embedding experience innovation as an entire Atrueexperienceinnovationcultureasks business can change or create a whole newecosystem. youtoclosethegapbetweenyourbrand promise and the experiences you deliver Almost 80% of leading by changing not just what you say, but companies said they were howyoubehaveacrossyourorganization. 80% very confident about their Experience innovation is not a tactic that ability to link their CX shows up at a specific moment. It occurs vs innovations to actual at all levels of your business. And it’s not business results (e.g., boosts achievedbyoptimizingCXtouchpoints– in sales or contract it’s achieved by solving problems in renewals), versus 52% of all fundamentally newways. 52% othercompanies.

03 Expand the experience remit across theorganization

What itmeans How you getstarted: ‣ Start by making experience a priority across every function, including operations, and why it HR, product development, strategy, technology and more. ‣ Every single employee needs to feel a sense of ownership and understand how matters their individual roles and day-to-day work align with and contribute to the business and the experiences they offercustomers. ile employees are crucial to the delivery of experience in an ‣ Remember: wh organization, they are people too, and their experience as employees is a Experienceisnottheresponsibilityofjustone necessary component of this aswell. member of the C-suite anymore—it’s everybody’s business. BX is ultimately about fusing your front office of sales, marketing, Leading companies are service and product functions (no more 57% more than twice as likely siloes) and connecting it to the back office (57% versus 25%) to say they (e.g.,HR,supplychain,etc.).Itisanoperating vs have a strong ability to model change across the board that flips the infuse customer experience focus from engaging customers at touch thinking across their points to building engagement in every organization and with their customer’s journeyinstead. 25% partners at all levels. NIKE’S HOUSES OF INNOVATION

04 Sync the tech, data andhuman agenda

What itmeans How you getstarted: and why it ‣ Start by building a more agile technology infrastructure with cloud. ‣ With the savings that the cloud architecture unlocks, you can reinvest in data, powered by AI, to driveperformance. ‣ Together, cloud and data both impact experience, which is powered by the matters relevance and agility you’ve created through technology. Successful companies are taking achievable steps to boldly reimagine their business and We found that 58%of operatingmodelsinordertoaligntechnology, dataandtalentintoonesystemthat’sdrivenby 58% today’sleading customer experience and focused on a single companies say they unified journey. BX leaders rewire data, tech vs can define and and people to enable agility that continuously deliver new digital unlocksefficienciesthatcanbereinvested capabilities with in newopportunitiesforperformanceand agility (versus just growth. 25% 25% of theirpeers). INTERMARCHÉ DATA FACTORY

About theResearch From November 2019 to January 2020, with a refresh in May-June 2020, Accenture Research and Accenture Interactivesurveyed: The research was Morethan The surveycovered designed to study the way that business leaders considered 1,550 21 their customers’ experiences and how top executivesworldwide countries their companies’ capabilities contributed to experience and Of theseexecutives, and business outcomes. 25% 22 wereCEOs industries

Contactus Baiju Shah Lisa DeBonis FlavianoFaleiro Nevine El-Warraky ChiefStrategy Managing Growth Markets Managing Officer, Director, Lead, Director, Accenture Accenture Accenture Accenture Interactive Interactive Interactive Interactive As Accenture Interactive’s Chief Lisa, part of the UK/I and EMEA Flaviano is Growth Markets Nevine is the Accenture Interactive Strategy Officer, Baiju is leadership teams at Accenture Lead for Accenture consumer goods lead for Europe. responsible for Accenture Interactive, focuses on driving Interactive. He leads a team of She has more than 30 years Interactive’s global growth growth for businesses in thetelco, more than 3,000 creatives, marketing consultancy experience strategy, which includes its media and technology industries designers and experience and in helping organizations drive purpose, positioning, and identifying and scaling innovation architects across growth, develop their marketing acquisitions and investments.He engagements that have the Africa, Asia Pacific, LATAMand capabilities, and shape their also leads the Design practice potential to improve the quality the MiddleEast. portfolio strategies and operating globally, which includes a team and equality of people’s lives. models. of more than 2,000 strategists, designers and product innovators as well as previous acquisitions such as Fjord, Insitum andMatter. LinkedIn LinkedIn LinkedIn LinkedIn Twitter Twitter

AboutAccenture AccentureInteractive Accenture is a leading global professional Accenture Interactive helps the world’s leading services company, providing a broad range of brands transform their customer experiences services and solutions in strategy, consulting, across the entire customer journey. Through our digital, technology and operations. Combining connected offerings in design, marketing, content unmatched experience and specialized skills and commerce, we create new ways to win in across more than 40 industries and all business today’s experience-led economy. Accenture functions—underpinned by the world’s largest Interactive was ranked the world’s largest and delivery network—Accenture works at the fastest-growing digital agency in the latest intersection of business and technology to help Ad Age AgencyReport. clients improve their performance and create sustainable value for their stakeholders. With To learn more, follow us @AccentureACTIVEand 513,000 people serving clients in more than 120 countries, Accenture drives innovation to visit www.accenture.com/interactive improve the way the world works andlives. Visit us at www.accenture.com This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. This document is produced by professionals at Accenture as general guidance. It is not intended to provide specific advice on you circumstances. If you require advice or further details on any matters referred to, please contact your Accenturerepresentative.