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Customer Centricity
The New Axis of
High Performance
Customer
Centricity
Customer Centricity
The New Axis of
High Performance




Focusing on the new                        has shown, in fact, that designing the       customer to her destination on time at a
                                           right customer experience and delivering     competitive price, but if it loses the bag
consumer                                   it the right way leads to better financial   she needs for a critical meeting, it still
                                           performance, stronger brand value and        stands to lose her business permanently.
Today’s customers seem to think the
                                           improved customer loyalty.1
world revolves around them—and                                                          To weather the economic and cultural
they are right.                            Make no mistake, however: achieving          transformations now underway and
                                           and sustaining customer centricity is        achieve high performance, organizations
The global economy has entered a new
                                           a challenging proposition which grows        must refocus the entire experience
and complex phase, as the contours
                                           more challenging every day. Around the       they provide around the desires and
of the commercial landscape are
                                           world, consumer expectations are rising      intentions of their target customers—
reshaped by unprecedented levels of
                                           quickly, and their perceptions are defined   from the first impressions created by
competition, eroding customer loyalty
                                           through an increasingly complex set of       marketing and sales to the day-to-day
and the quickened pace of innovation.
                                           interactions. Moreover, new consumer         experience of using a product from
Together, these forces have triggered
                                           populations are emerging with distinct       its initial purchase until it is upgraded
a seismic shift in the balance of power
                                           needs and preferences of their own.          or replaced. They must also achieve
between providers and their customers.
                                                                                        this level of customer-centricity with
                                           With so much changing, few
This is good news for organizations that                                                the speed, flexibility and certainty
                                           organizations are fortunate enough
see the opportunity amid the change                                                     demanded by their market. To make
                                           to maintain a deep understanding of
and align themselves quickly and                                                        this change, they will need insight,
                                           what customers want and a clear view
effectively around a new focal point:                                                   leadership and commitment to
                                           of what they really experience—or the
delivering a customer-centric expe-                                                     excellence—a challenging journey, to be
                                           ability to keep experience aligned with
rience—profitably and consistently—                                                     sure, but one that must be made.
                                           expectation. An airline, for example,
designed end-to-end around customer
                                           may claim success when it gets a
perspectives and intentions. Accenture’s
High Performance Business research

                                                                                          The Customer Service Dilemma: Balancing Cost
                                                                                        1

                                                                                        and Quality. Accenture White Paper. 2006.


                                                                                                  Customer Relationship Management 3
Drivers of Change


                                                                                1. Consumerism

                                                         Product-centric                                                              Customer-centric
                                                                                2. Commoditization
                                                         competition                                                                  differentiation
                                                                                   •	More options, lower prices
                                                                                   •	Customer portability
                                                                                   •	Product ubiquity
                                                                                   •	Shorter lifecycles for innovation

                                                                                3. Convergence
                                                                                   •	Industry and channel blurring
                                                                                   •	(Retailization)
                                                                                   •	Category expansion/bundling
                                                                                   •	Extended industry networks

                                                                                4. Saturation
                                                           Seller-drive                                                                 Buyer-driven
                                                                                   •	Over-stored/overcapacity
                                                           market                                                                       market
                                                                                   •	Liberalization (Europe and
                                                                                       Free Trade)
                                                                                   •	Virtualization (Internet)




                                                                            Organizations must respond to the forces
                                                                            reshaping the global economy—or risk
                                                                            becoming irrelevant and, ultimately, obsolete.




Why customers are                                  product information and the opinions                 markets will require new insights and
                                                   of other buyers are easily available,                new approaches to marketing, sales
the new focus                                      courtesy of the networked world.                     and customer service.

                                                   Accelerating product life cycles pose                Another factor helping to tip
For most enterprises, growth comes
                                                   another challenge. The rapid pace                    the balance of power away from
from developing new customer or market
                                                   of innovation means competitive                      companies is their own success. While
segments, bringing new products and
                                                   advantage is increasingly short-lived,               learning to satisfy latent customer
services to market, or driving more value
                                                   forcing providers to improve the                     demand—for speed, efficiency,
from current customer relationships.
                                                   impact and velocity of innovation and                convenience—organizations also taught
The challenge at the center of all these           increasing the damage they incur when                their customers to expect more from
growth strategies is their volatile target:        a launch backfires or a product fails.               all providers. Consider how overnight
today’s customer—more elusive, more                                                                     delivery became the new normal in the
                                                   Increasingly, enterprises must also
demanding and more diverse than ever.                                                                   courier business, or how the ubiquity
                                                   consider a changing consumer base,
Even with providers working harder                                                                      of online banking has compelled other
                                                   often including entirely new buyer
to win their favor, customers seem                                                                      providers to offer around-the-clock
                                                   segments. The demographics of mature
only to find more to dissatisfy them,                                                                   service channels. Hotels with check-in
                                                   economies are evolving, and companies
from shoddy toys to stale vegetables,                                                                   lobby kiosks, for example, help late
                                                   must respond to changing buyer needs
while finding little dissuade them                                                                      arrivals reach their rooms faster. They
                                                   and values. Also, emerging economies
from defecting to competitors. Buyers                                                                   also lead guests to expect all hotels to
                                                   are becoming important consumer
today tend to categorize providers into                                                                 offer the same experience.
                                                   markets in their own right, expected to
polar extremes—the “distinctive” and
                                                   account for more than half of global                 Customers have even come to expect
“everyone else.” Earning a place in the
                                                   consumption by 20252. These “new”                    every provider to meet the service
distinctive category has become far
                                                   consumers have distinct characteristics              standards set by other industries. Few
more difficult and costly.
                                                   and may regard foreign brands with
For one, consumers know more—and                   uncertainty or doubt. Understanding
their knowledge is power. Detailed                 and appealing to buyers in these                       Estimate adjusted for purchasing power
                                                                                                        2

                                                                                                        differences.


4 Customer Centricity—The New Axis of High Performance
Differentiated
                                               customer
                                               experience




   Differentiation                   Loyalty                           Profitable growth

   Product and experience define a   Competitive moat created around   Minimize impact of quot;me—tooquot;
   combination that stands out for   customers, who become less        price and promotions
   target customers                  sensitive to price and focus on
                                     total value and convenience       Entry to new markets/segments
                                                                       profitably



Designing and consistently executing a
customer experience designed around
customer intentions and preferences helps
organizations respond to market changes
in ways that strengthen their brand,
reinforce customer loyalty and support
profitable growth.




                                                                                                       Profitable growth. They will minimize
consumers use multiple cell phones                      experience. Even when customers view
from multiple wireless companies, for                                                                  the impact of “me-too” price and
                                                        their experiences as fair or good, they
example—but they do interact with                                                                      promotions, and make entry to new,
                                                        are quick to leave—as switching costs
airlines, banks and a host of other                                                                    high-growth markets and customer
                                                        decline, even the most revered corporate
providers, and how they are treated by                                                                 segments more profitable and less risky.
                                                        brands are vulnerable. Conversely,
these organizations in these industries                 consumers identify a differentiated
                                                                                                       In short, delivering a differentiated
influences how they expect to be treated                experience as the chief reason for
                                                                                                       customer experience is the cornerstone
by their wireless phone company—and                     choosing a new provider. To address
                                                                                                       of cost management, customer
their grocer, cable company, government                 these myriad challenges to growth,
                                                                                                       satisfaction and profitable growth. While
institutions and so forth.                              successful businesses will transform
                                                                                                       many organizations already understand
                                                        their strategies, workforces and
                                                                                                       and even embrace this concept, many
Delivering the                                          operations to be increasingly customer-
                                                                                                       also struggle to execute the customer-
                                                        centric. By refocusing on delivering
differentiated                                                                                         centric agenda successfully.
                                                        an experience designed to satisfy the
                                                        intentions and preferences of target
customer experience                                                                                    Translating strategic objectives into
                                                        customers—through their marketing,
                                                                                                       sustainable results is what separates
                                                        sales and customer service functions—
In short, today’s customers demand an                                                                  the merely interested from the leaders.
                                                        they will produce significant, sustainable
exceptional experience in return for                                                                   Organizations striving to become high-
                                                        impact on performance.
their business and loyalty. Being merely                                                               performance businesses will replace the
adequate is no longer adequate.                                                                        traditional focus on customer relationship
                                                        Differentiation. They will offer a
                                                                                                       management with a focus on customer
                                                        combination of product and brand
According to Accenture research,3 a poor                                                               experience management. Like star
                                                        experience that stands out for target
customer experience is the most-often                   customers.
cited reason for customer flight. Our
research also indicates that fully half                 Loyalty. They will create a competitive
                                                                                                        Customer Satisfaction in the Changing Global
                                                                                                       3
of all consumers leave a product or                     moat around customer relationships;            Economy: Satisfying new requirements for high
service provider at least once every 12                 buyers become less sensitive to price and      performance. Accenture 2007 Global Customer
months because of an unsatisfactory                                                                    Satisfaction Survey. 2007.
                                                        focus on total value and convenience.

                                                                                                                 Customer Relationship Management 5
Enterprise agility
                          Companies foster the
                          organizational agility
                          required to effectively
                          execute customer relevance.




        Customer relevance                Execution excellence
        Market leaders convert            High performers implement
        advanced customer insight         people and business
        into value through products,      processes and technology
        services, experience and          capabilities to deliver
        marketing.                        a tailored customer
                                          experience.




Accenture believes that true customer
centricity is founded on three core
principles: customer relevance, enterprise
agility and excellence in execution.




athletes who change the momentum                         capability development and execution—    All three tenets must have the
of the game with a curve ball, a bit                     to improve business performance and      wholehearted support of the senior
of backspin or a sudden pivot on the                     build customer loyalty. Organizations    management team, and they must be
playing field, they will shift away from                 may transform at different speeds, but   combined in a concerted and holistic
the old transactional view of customer                   transformation is the ultimate goal.     approach that revolves around the
interactions, concentrating instead on                                                            entire customer experience and which
                                                         To center on today’s customer—
the accumulative impact of every experi-                                                          crosses many functional areas.
                                                         more knowledgeable, demanding
ence—across channels and over time.
                                                         and empowered—high-performance           Accenture has identified five imperatives
                                                         businesses embrace three principles.     for achieving customer-centric benefits—
Becoming customer                                                                                 an integrated set of new and adapted
centric                                                  Customer relevance. High performers      business capabilities designed and
                                                         convert advanced customer insight        executed to provide differentiated value
                                                         into value through products, services,   for target customer segments.
Becoming truly customer centric requires
                                                         experience and marketing.
something other than more investment
                                                                                                  Becoming customer relevant.
in sales training, advertising campaigns
                                                         Execution excellence. High performers    Customer-centric organizations rely on
or call center technologies. Indeed,
                                                         organize and enable their people and     segmentation strategies that replace
companies that have embarked solely
                                                         create processes and technological       the academic with the actionable:
on implementing CRM solutions have
                                                         capabilities that enable them to         predictive, recognizable and executable
seldom become customer centric because
                                                         deliver a tailored and consistent        customer insight.
the other dimensions of their customers’
                                                         customer experience.
experiences have not changed.
                                                                                                  Delivering the differentiated
                                                         Enterprise agility. High performers      customer experience. Customer
Accenture defines customer centricity
                                                         foster the organizational agility        centricity depends on a new level
as incorporating the customer’s
                                                         required to effectively value, execute   of alignment and integration across
perspectives, values and actions into
                                                         and sustain customer relevance.          customer-facing operations, including
the business and operations strategy,
                                                                                                  marketing, sales, customer service and
                                                                                                  supply chain operations.

6 Customer Centricity—The New Axis of High Performance
Where Does Your Organization
Stand on the High-Performance
Axis?
Organizations can approach customer centricity in different
ways and move at different speeds across the transformation
spectrum—ranging from tactical improvements in individual
business units to cross-enterprise initiatives. Every path
toward customer centricity, however, should be mapped
according to the issues that matter most.

•	How	are	you	responding	to	the	buyer-driven	market?	

•	How	well	do	you	know	your	customers?	

•	Just	how	loyal	are	your	customers?

•	Is	your	customer	experience	differentiating	or	diluting?

•	How	are	your	brand	and	your	experience	(stores,	products,	
metrics)	tailored	around	the	world?

•	Who	in	your	organization	has	accountability	for	the	
customer	experience	across	fragmented	organizations?

•	Do	you	simply	offer	multiple	channels,	or	is	your	customer	
experience	truly	multichannel?	

•	How	do	your	customers	participate	in	and	own	the	
innovation	process?

•	Do	you	know	where	to	place	your	bet	on	customer	
centricity:	on	important	projects	or	on	a	strategic	program?




                                                                Customer Relationship Management 7
The new physics of
Managing the workforce ecosystem.                                                               Accenture helps senior marketing
                                                                                                executives quickly gather the insights,
Customer-centric organizations
                                                    marketing, sales and                        tools and processes they need to create
recognize that the workforce influencing
                                                                                                competitive advantage in both mature
the customer experience is wider in
                                                    customer service                            and emerging markets. We focus on
today’s networked world and is actually
                                                                                                building highly differentiated value propo-
an ecosystem of channel partners and
                                                    Transforming marketing                      sitions for each target customer segment,
other third parties.
                                                                                                on executing these strategies at speed
                                                    With account-based marketing now
Customer-centric performance                                                                    and on continuously refining marketing
                                                    an established practice and concepts
management. Organizations that put                                                              strategies and messages. The result: more
                                                    such as “one-to-one marketing” part of
the customer at the center of business                                                          relevant and more consistent customer
                                                    the marketing lexicon, marketers could
strategy and operations also manage                                                             experiences that drive profitable growth
                                                    be forgiven for thinking they have
their business in a customer-centric                                                            by helping to ensure more effective
                                                    mastered customer centricity.
way, realigning metrics, scorecards and                                                         customer acquisition and retention.
management practices to deliver new
                                                    In reality, however, the complexities
customer outcomes.                                                                              Accelerating growth
                                                    of customer-centric marketing have
                                                    confounded most efforts to understand
Customer-engaged innovation.                                                                    In a recent study, 23 percent of orga-
                                                    deeply what customers want today—let
A truly customer-centric organization                                                           nizations reported that the numbers
                                                    alone anticipate what they may want
involves the customer in shaping the                                                            of products and services they offer
                                                    tomorrow. Moreover, the average
customer experience.                                                                            have more than doubled in the last
                                                    tenure of the chief marketing officer
                                                                                                five years.5 Clearly, the intricacies of
                                                    (CMO) at a leading company is only 1.9
                                                                                                the marketing mix can make it seem
                                                    years—leaving a very narrow window for
 Russell 3000 Index analysis. Stuart. May 2003.
4
                                                                                                impossible for customer centricity to
                                                    achieving growth and innovation targets.4
 Unravelling Complexity in Products and Services.
5
                                                                                                be a reality for more than a handful of
Wharton School of the University of Pennsylvania
                                                                                                premium customers.
and The George Group. March 2006.




Accenture Marketing                                 Accenture Sales
Transformation                                      Transformation
Societe Nationale des Chemins de                    In a globalized marketplace where
Fer Francais (SNCF)—the French                      consumer electronic goods are rapidly
state-owned railway company— is                     becoming commoditized, Canon
one of the key players in Europe's vast             needed to differentiate itself, and
and sophisticated land transporta-                  the value it provides, in the eyes
tion network. With Accenture's help,                of consumers and retailers. With
SNCF has developed a dedicated                      Accenture's help the electronics
capability to build loyalty and create              company transformed its sales
marketing campaigns for its most                    function by identifying the core
valued customers. According to                      roles required within the sales force,
CRMServices' CEO, Sylvie Latour:                    and then devising a curriculum to
quot;Our new subsidiary, CRMServices,                   train employees for those roles. The
provides a critical link between loyalty            training is now carried out within a
and marketing, and it is on track not               newly established Sales Academy and
only to help SNCF generate significant              has been responsible for improved
savings, but also to reach three to five            skills and behaviors amongst the sales
million customers through targeted                  staff, as well as higher-than-average
promotions. The support of the                      customer satisfaction levels. The
Accenture team enabled us to focus                  company is now well on its way to
on customer marketing and strategy                  achieving high performance in sales.
and better target our key clients while
optimizing pricing.quot;




8 Customer Centricity—The New Axis of High Performance
Consider Samsung Electronics: With         Nevertheless, leading marketers          enabling them to quickly develop,
14 product categories across 200           are making progress with customer        implement and manage fact-based
countries, Samsung’s marketing             centricity. A few years ago, Best Buy    marketing strategies. Specifically,
executives manage a complex matrix         segmented its customers and crafted      we leverage customer centricity by
of customer-centricity options. At         specific value propositions for each     generating a consistent branded
companies	such	as	Johnson	&	Johnson,	      segment, achieving strong economic       customer experience across new and
marketers must optimize marketing          results that have been widely acknowl-   existing target customer touchpoints.
investments across 180 categories          edged in the business press. Campbell    We further accelerate growth by
in 250 countries: 45,000 category-         Soup—which has long dominated the        pinpointing the new market, product
country combinations. Then, factor         condensed soup market—has also used      and services propositions required to
in other dimensions such as product        smart customer segmentation to drive     win new customers and develop new
proliferation, market segment, channel     growth.7 By systematically investi-      market spaces.
and media and the complexity of the        gating the articulated and unarticu-
challenge becomes staggering.              lated needs of its consumer base, the
                                           company has been able to reinvent
Executives understand the magnitude        itself—and its market—by introducing a
of the task facing them. Accenture has     new generation of product categories
found that more than 60 percent of         designed for the needs of a new
cheif marketing officers believe their     generation of consumers.
companies are good at developing
growth initiatives; 41 percent say         To match these results, companies
they have a strong ability to plan         must first understand where and how        Innovation and Profitable Growth. Accenture
                                                                                    6

end-to-end implementation of these         to invest their marketing resources      and the Economist Intelligence Unit. March 2006.
                                                                                     	Carl	Johnson	and	Henry	Rak,	“Reframing	the	
initiatives; and just 30 percent feel      for the best return. Accenture helps     7

                                                                                    Market to Achieve Transformation Growth,”
they have the ability to execute quickly   organizations accelerate growth by       Grocery Manufacturers of America Forum,
and stay ahead of the competition.6                                                 Winter 2005.




Precedents and Questions
1543: Nicolaus Copernicus                  1687: Isaac Newton formulates            1920s: Edwin Hubble uses
overturns the prevailing                   three laws governing the                 Einstein's theory of general
conception of the universe by              movement of objects, including           relativity to prove that the edges
identifying the quot;truequot; center of           the rule that for every action           of the universe are expanding.
the solar system.                          there is an equal and opposite           In the year 2000, astronomers
                                           reaction.                                discover that the universe
                                                                                    is, in addition to expanding,
Does your business                                                                  accelerating.
                                           Can you execute
have the flexibility
                                           new customer
to stay centered on                                                                 Does your organiza-
                                           strategies with
what matters most                                                                   tion have the ability
                                           certainty of
to customers, as                                                                    to adapt to changing
                                           the results?
their expectations                                                                  economic forces, at
change?                                                                             the pace the market
                                                                                    demands?




                                                                                              Customer Relationship Management 9
Transforming sales                                 flexibility and adaptability, they find    Accenture helps sales organizations
                                                   themselves severely handicapped when       identify customer preferences at every
                                                   they attempt to reach new buyers,          stage of the relationship, and match
Sales force performance is a major
                                                   expand into new markets or in any way      those preferences to the sales talent
challenge in most companies—a
                                                   attempt to refocus the sales force on      best suited to each stage. We help
consistent concern for chief sales
                                                   different goals or methods.                them identify critical selling skills
officers who know that the overall
                                                                                              and develop stronger approaches to
profitability of their enterprise depends
                                                   Enhancing sales performance                acquiring, retaining and compensating
on either reducing the cost of sales or
                                                   and productivity                           talented people. We also work with
boosting the revenue their organization
                                                                                              sales organizations to determine the
generates. Yet, according to Accenture
                                                   Given the growing complexity of the        technologies they need to support their
research on high-performance
                                                   sales environment, it’s no surprise        professional talent and optimize the
workforces, as few as 25 percent of
                                                   that many organizations have seen          latest tools for capturing, analyzing
senior sales executives believe their
                                                   a decline in sales force productivity.     and sharing business intelligence.
workforce performs at a high level.
                                                   With growth now a focus of the
                                                   executive suite, sales executives are      As a result, we help the sales organiza-
The chief sales officer is compelled
                                                   under extreme pressure.                    tion boost revenues, increase sales pro-
to drive sales revenue further and
                                                                                              ductivity and reduce the cost of sales.
faster—for example, by entering
                                                   Experienced salespeople know how           We have helped improve our clients’
new geographic markets or by
                                                   to sell existing offerings to existing     sales conversions, boosted sales quota
increasing sales to small and mid-sized
                                                   clients, yet even the most experienced     attainment and developed systems
businesses. Tapping these oppor-
                                                   may struggle to adopt new sales            that enable new sales hires to become
tunities may call for strategies and
                                                   strategies designed to spur growth:        proficient very quickly. By working with
approaches that are significantly
                                                   cross-selling, up-selling, capturing new   Accenture, sales organizations acquire
different from those the sales workforce
                                                   business and reaching new customers.       and use deeper customer insights,
understands—for example, driving sales
                                                   In fact, Accenture has found that          improve selling behaviors, closely align
through indirect channel partnerships.
                                                   while more than half of companies          sales initiatives with sales strategy and
                                                   believe they are capable of expanding
With product lines growing more                                                               implement stronger sales capabilities.
                                                   sales with existing customers, only 23
complex, as new products and service
                                                                                              Transforming customer service
                                                   percent feel equally confident about
bundles are introduced to meet
                                                   their ability to acquire new accounts.
changing customer expectations, an
                                                                                              Over the last decade, companies
unprepared or poorly equipped sales
                                                   In addition, sales performance tends       have implemented more and more
force poses a major impediment to
                                                   to be managed using metrics based on       varied interaction channels and the
improving sales productivity and
                                                   the lowest costs of sales. Shifting to     customer experience now typically
increasing revenue.
                                                   new metrics that reward salespeople        spans multiple touchpoints. With so
                                                   for performance across the sales
A recent Accenture study illustrated                                                          many points of contact to manage, the
                                                   spectrum—from pre-sales through to
the magnitude of these challenges                                                             cost of customer contact is exploding—
                                                   post-sales interactions—requires a level
by discovering that more than 30                                                              globally, corporations invest billions
                                                   of boldness and innovation relatively
percent of chief sales officers                                                               annually in managing customer
                                                   rare in the typical salesforce culture.
believed they needed to improve the                                                           contact. Yet despite their investment,
alignment between their companies’                                                            customer satisfaction remains low: in a
                                                   Accenture believes that companies can
solutions and their customers’ needs.                                                         recent Accenture survey, for instance,
                                                   simultaneously reduce their cost of
Nearly 40 percent also conceded that                                                          nearly half (47%) of the respondents
                                                   sales and boost revenues by focusing
they needed to improve the way they                                                           said that companies meet their expec-
                                                   on selling behavior and sales intel-
communicate with customers.                                                                   tations only sometimes, rarely or never.8
                                                   ligence. Giving this key workforce
                                                   access to the information they need
Most sales organizations, however,                                                            Customer service has also grown more
                                                   to perform higher, and helping both
are hard wired to focus on just one                                                           complex. Customers behave the way
                                                   new and existing sales representatives
element: the sales transaction. In                                                            that they want to behave, and will
                                                   embody the personalities, competencies
addition, few have conquered the                                                              contact providers for reasons and in
                                                   and behaviors exhibited by the most
challenge of making a more customer-                                                          ways that can be hard to predict—
                                                   successful salespeople, will help the
centric approach repeatable across                                                            using different channels, for example,
                                                   enterprise take major strides toward
multiple sales opportunities with a                                                           even changing channels in the course
                                                   new goals for revenue and productivity.
wide range of customers. Lacking both                                                         of a single transaction—and their
                                                                                              intentions are not always clear.
  Customer Satisfaction in the Changing Global
8

Economy, Accenture 2007.


10 Customer Centricity—The New Axis of High Performance
Accenture Service
Transformation
Mortgage and savings provider HBOS
changed the way its contact center
agents handled calls and selling
opportunities by implementing,
with Accenture, a set of operational
interventions called Perfect Call. As
a result, customer satisfaction, call
handling times, sales conversion and
call consistency have all improved.
HBOS is the United Kingdom's largest
mortgage and savings provider, with
over 22 million customers and 60,000
employees. It employs 6,000 people in
its Retail Contact Centers which are
based at nine locations across the UK.




What is clear, however, is the critical     Any company not working to tailor            they are doing it in the context of
impact that poor customer service has       the customer experience to customer          relationship development—protecting
on business performance. Accenture          preferences—or any company that still        the customer relationships while
research suggests that the majority         serves customers the same way it did         trimming operating expenses.
of consumers worldwide left at least        five years ago—is extremely vulnerable
                                                                                         Accenture has found that achieving
one provider in the past year because       to competition. In our increasingly
                                                                                         widespread, consistent performance
of a bad service experience. However,       multi-polar world, competition can
                                                                                         is the result of focusing on three
consumers also reward good service:         come from virtually any geography,
                                                                                         key areas: knowing the customer,
in our research, consumers identified       including emerging economies such as
                                                                                         exceeding customer expectations and
service quality as their foremost consid-   India, China, Latin America and Eastern
                                                                                         fulfilling promises to the customer.
eration when choosing a new provider,       Europe. In this environment, the ability
and 77 percent reported being much          to deliver a satisfying service experience
                                                                                         Customers want to be recognized for
more inclined to continue doing business    may be a company’s best source of
                                                                                         who they are as soon as they contact
with a company that delivers a positive     sustainable competitive advantage.
                                                                                         you: their history, their preferences,
service experience.                         Yet few companies are distinguishing
                                                                                         their intentions. Leaders, therefore,
                                            themselves for service quality.
                                                                                         build a blueprint for handling customer
Even when customers don’t take the
                                                                                         interactions based on detailed
                                            Creating advantage through
ultimate step of switching providers,
                                                                                         knowledge of the customer, and they
                                            customer service
most do not simply accept bad service.
                                                                                         execute this blueprint consistently
When it happens by phone, many
                                                                                         regardless of how the customer
                                            Leading organizations, however, drive
will ask to speak to a supervisor or
                                                                                         contacts them—whether they call, come
                                            growth by delivering a differentiated
call back in the hope of getting a
                                                                                         on line on the web; walk into a branch
                                            experience—designed around customer
more helpful representative, thereby
                                                                                         office. This can be tough; at many
                                            intentions and preferences—that is
increasing call volume and operating
                                                                                         companies, this information tends to
                                            both satisfying and profitable. These
costs. Many customers will also tell
                                                                                         be scattered throughout the orga-
                                            leaders have mastered the new market
others about their experience—and, in
                                                                                         nization or distributed between the
                                            dynamics that compel them to focus on
today’s networked world companies are
                                                                                         customer, you and third parties.
                                            becoming customer-centric. They are
well-advised to remember the ability
                                            still working to reduce costs but now
that consumers now possess to use the
Internet to broadcast their criticisms.
                                                                                                Customer Relationship Management 11
Service
                                                                          strategy

                                            Field service                                                Customer-
                                            and support                                                  centric
                                            effectiveness                                                service
                                                                          Sales
                                                                          strategy
        Pace                                                                                                                                   Flexibility
                    Enterprise                                                                                                     Customer
                    agility                                                                                                        relevance
                                                                                                      Sales
                              Service
                                                                                                      process
                              delivery                                    Marketing                   design
                              management                                  strategy
                                                                                       Actionable
                                                                                       segmentation
                                                          Loyalty                      and insight
                                                          management
                                                                                        Customer- centric
                                                                                        marketing
                       Billing/                                                                                             Service
                                                                                                                Customer-
                                                                          Customer
                       customer                                                                                             performance
                                                                                                                centric
                                                    Marketing             intentions      Customer data
                       credit and                                                                                           management
                                                                                                                sales
                                                    ROI                   and             management
                       collections
                                                                          experience
                                                                                              Category,
                                                       Marketing                              product
                                                       operations                             and brand
                                                       optimization                           management
                                                                   Campaign          Trade
                                          Sales                                                            Sales
                                                                   management        promotion
                                          operations                                                       channel
                                          optimization                                                     management
                                                                                     management
                              Service                                                                                 Multi-
                                                                            Pricing
                              operations                                                                              channel
                                                                            management
                              optimization                                                                            synchroni-
                                                                                                                      zation
                                                                                           Sales incentive
                                                        High-performance
                                                                                           compensation
                                                        sales workforce
                                                                            Sales          and reward
                                                                            technology
                                                                            enablement
                                              High-                                                   Multi-channel
                                              performance                                             self-service
                                              service workforce
                                                                    Desktop           Telephony
                                                                    and mobile        integration and
                                                                    solutions         management



                                                                          Enterprise
                                                                          execution


                                                                          Certainty
Accenture offers integrated solutions to help
organizations drive business through cus-
tomer centricity, enabling them to respond
to changing customer expectations, keep
pace with changing market dynamics and
execute with high certainty of results.




12 Customer Centricity—The New Axis of High Performance
Customers today also expect instant        zations must become truly customer         Moreover, we have identified the crucial
gratification, and quickly become          centric, incorporating the customer’s      capabilities characteristic of high per-
frustrated when placed on hold             perspective, values and actions into       formers—such as the ability to develop
or transferred to another agent or         their business and operations strategy,    and consistently deliver a differentiated
directed to another store. Frustrated      capability development and execution.      customer experience. Acquiring these
customers are also difficult to            For many organizations, this may prove     capabilities—quickly, cost-effectively and
persuade to buy more or buy more           to be a hard transition to make.           with maximum performance impact—has
often—they are in fact difficult even to                                              long been a challenge for companies.
                                           Accenture will help chart the most
keep as customers. Leaders more than                                                  Today, it’s an even greater challenge. The
                                           intelligent and practical course to
meet customer intentions—they exceed                                                  technology, for example, that enables
                                           achieve high performance in a world
them. Moreover, they deliver on their                                                 the front-office capabilities needed to
                                           that is increasingly “multi-polar,”
promises at the right time and every                                                  drive loyalty and growth is undergoing
                                           with economic growth occurring in
time, whether that is a day, a month or                                               dramatic changes. While technology
                                           virtually every geographic region and
even a year after the original sales.                                                 providers offer many more options today,
                                           interdependency an essential part of       many of these options are unproven
Accenture helps organizations              global business.                           or unfamiliar, and no single solution
transform the way they serve their                                                    provides everything organizations need
                                           Our knowledge of customer centricity—
customers by addressing all three of                                                  to achieve customer centricity.
                                           gained through extensive market
these dimensions. We begin by helping
                                           research, and our deep experience,
our clients create deep insight into                                                  Accenture offers a fully integrated
                                           accumulated through years of client
customer intentions and preferences,                                                  set of solutions and services to
                                           work—combine to create a powerful
and translate these insights into                                                     address every dimension related to
                                           resource for transformation. Accenture
profitable actions. We also help them                                                 creating a satisfying, lasting and
                                           will help quickly develop new growth
leverage the latest technology and                                                    profitable customer relationship—
                                           strategies in light of changing consumer
process innovations for optimizing                                                    from customer segmentation and
                                           demands and new market opportunities.
the performance of customer service                                                   analytics, to market and customer
                                           We help operationalize new approaches
operations. Through this combination                                                  strategy development; from
                                           to customer segmentation, producing
of insight, innovation and operational                                                marketing and sales optimization to
                                           more relevant offerings and better dif-
excellence, we help drive growth,                                                     service management and contact
                                           ferentiated service experiences. And we
and shareholder value by delivering                                                   optimization. We also offer integrated
                                           help execute these models, quickly and
a more satisfying, more profitable                                                    services for managing key operational
                                           effectively, across the supply chain.
customer experience—while simultane-                                                  elements—such as data management,
ously reducing the cost of delivering                                                 campaign management and contact
                                           A legacy of leadership
customer service.                                                                     center management—on an ongoing
                                                                                      basis, to ensure the effective delivery
                                           For nearly two decades, Accenture has
Accenture: Your guide                                                                 of an optimal customer experience.
                                           been a trusted advisor to the world’s
to customer centricity                     largest enterprises on their customer-
                                           focused strategies and operations.
This is a time of tremendous potential     Our work is grounded in research-
and enormous challenge. Rapid              based insights and unmatched
commoditization and extreme price          delivery experience.
pressure are eroding traditional sources
                                           Accenture’s groundbreaking research
of competitive advantage. Increased
                                           into the defining characteristics of
competition is undermining customer
                                           high-performance businesses and
loyalty. While emerging markets offer
                                           governments spans 36 industry
significant growth opportunities, at the
                                           segments and more than 6,000
same time, their very newness presents
                                           companies. Through this research, we
significant challenges.
                                           have determined that the ability to
In this increasingly complex world, the    win customer loyalty is the defining
ability to deliver a satisfying service    characteristic of high performance in
experience is the most powerful source     marketing and customer management.
of sustainable competitive edge—nothing    Organizations that enjoy strong
else compares. To deliver the kind of      customer loyalty also realize higher
differentiated customer experience         margins, revenue growth and
that drives high performance, organi-      shareholder value.


                                                                                             Customer Relationship Management 13
Our solutions and services help orga-              management. Our reputation and               Based on the scope and depth of
nizations drive business performance               success also attracts the market’s           our capabilities, Accenture is widely
through customer centricity, by enabling           top talent—seasoned professionals            recognized as the leading provider
them to keep pace with evolving market             from leading technology and service          of solutions and services that help
conditions, achieve the flexibility to             organizations who have proven their          clients achieve high performance. In
respond quickly to changing customer               ability to succeed in both consulting        recognition of our strengths, CRM
expectations, and execute differenti-              and operations management roles.             magazine has named Accenture as
ated customer experiences with a high              We have organized our professional           the CRM consulting market leader for
certainty of results.                              development programs to ensure               several consecutive years.
                                                   our people continue to build deep,
Continuous investment in innovation                specialized skills in marketing, sales
keeps our offerings on the leading                 and customer service.
edge, by translating our client work
into repeatable solution components—               Our client teams leverage a global
including several patents granted or               network of Accenture-operated and
pending—which speed delivery and                   third-party facilities, as well as—when
accelerate benefits, while reducing the            preferred—the client’s own resources.
risk of implementing new capabilities.             This hybrid approach enables us to offer
                                                   a mix of delivery and sourcing options
Accenture continuously sets new                    ideally suited to the client’s performance
standards of excellence in managing                targets—an innovative alternative
customer relationships, through                    to acquiring CRM infrastructure and
innovative application of new tech-                execution capabilities that optimizes the
nologies and through breakthroughs                 balance of cost, quality and scalability.
in business process design and




14 Customer Centricity—The New Axis of High Performance
About Accenture                            performance with additional research,
                                        High-Performance Research                  including an annual survey of
                                                                                   consumer expectations and attitudes
                                                                                   concerning customer service. The most
                                        To examine the impact of customer
                                                                                   recent Accenture Customer Satisfac-
                                        loyalty and how marketing and
                                                                                   tion study surveyed more than 3,500
                                        customer management can help
                                                                                   consumers in Australia, Brazil, Canada,
                                        companies increase margins and
                                                                                   China, France, the United Kingdom and
                                        build shareholder value to become
                                                                                   United States.
                                        high performance, Accenture initially
                                        conducted qualitative and quantitative
                                        research on a sample set of decision
                                        makers at more than 700 business-to-
                                        business and business-to-consumer
                                        companies globally. The research
                                        identified and correlated specific
                                        capabilities with financial performance
                                        while pinpointing how these capabilities
                                        create and enhance customer loyalty
                                        to contribute to margin, growth and
                                        shareholder value. Accenture has
                                        since extended these insights in high




                                        About Accenture
For more information about developing                                              Accenture’s Customer Relationship
and successfully executing customer-                                               Management service line helps
centric strategies that help your                                                  organizations achieve high
                                        Accenture is a global management
organization achieve high                                                          performance by transforming their
                                        consulting, technology services and
performance, visit our web site                                                    marketing, sales and customer service
                                        outsourcing company. Combining
at accenture.com/centricity                                                        functions to support accelerated
                                        unparalleled experience, comprehensive
                                                                                   growth, increased profitability and
                                        capabilities across all industries and
                                                                                   greater operating efficiency. Our
                                        business functions, and extensive
                                                                                   research, insight and innovation,
                                        research on the world’s most successful
                                                                                   global reach and delivery experience
                                        companies, Accenture collaborates
                                                                                   have made us a worldwide leader,
                                        with clients to help them become
                                                                                   serving thousands of clients every year,
                                        high-performance businesses and
                                                                                   including most Fortune 100 companies,
                                        governments. With 178,000 people in
                                                                                   across virtually all industries.
                                        49 countries, the company generated
                                        net revenues of US$19.70 billion for
                                        the fiscal year ended Aug. 31, 2007. Its
                                        home page is www.accenture.com.




                                                                                          Customer Relationship Management 15
Copyright © 2008 Accenture
All rights reserved.

Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.

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Customer Centricity Axisof High Performance May2008

  • 1. Customer Centricity The New Axis of High Performance
  • 3. Customer Centricity The New Axis of High Performance Focusing on the new has shown, in fact, that designing the customer to her destination on time at a right customer experience and delivering competitive price, but if it loses the bag consumer it the right way leads to better financial she needs for a critical meeting, it still performance, stronger brand value and stands to lose her business permanently. Today’s customers seem to think the improved customer loyalty.1 world revolves around them—and To weather the economic and cultural they are right. Make no mistake, however: achieving transformations now underway and and sustaining customer centricity is achieve high performance, organizations The global economy has entered a new a challenging proposition which grows must refocus the entire experience and complex phase, as the contours more challenging every day. Around the they provide around the desires and of the commercial landscape are world, consumer expectations are rising intentions of their target customers— reshaped by unprecedented levels of quickly, and their perceptions are defined from the first impressions created by competition, eroding customer loyalty through an increasingly complex set of marketing and sales to the day-to-day and the quickened pace of innovation. interactions. Moreover, new consumer experience of using a product from Together, these forces have triggered populations are emerging with distinct its initial purchase until it is upgraded a seismic shift in the balance of power needs and preferences of their own. or replaced. They must also achieve between providers and their customers. this level of customer-centricity with With so much changing, few This is good news for organizations that the speed, flexibility and certainty organizations are fortunate enough see the opportunity amid the change demanded by their market. To make to maintain a deep understanding of and align themselves quickly and this change, they will need insight, what customers want and a clear view effectively around a new focal point: leadership and commitment to of what they really experience—or the delivering a customer-centric expe- excellence—a challenging journey, to be ability to keep experience aligned with rience—profitably and consistently— sure, but one that must be made. expectation. An airline, for example, designed end-to-end around customer may claim success when it gets a perspectives and intentions. Accenture’s High Performance Business research The Customer Service Dilemma: Balancing Cost 1 and Quality. Accenture White Paper. 2006. Customer Relationship Management 3
  • 4. Drivers of Change 1. Consumerism Product-centric Customer-centric 2. Commoditization competition differentiation • More options, lower prices • Customer portability • Product ubiquity • Shorter lifecycles for innovation 3. Convergence • Industry and channel blurring • (Retailization) • Category expansion/bundling • Extended industry networks 4. Saturation Seller-drive Buyer-driven • Over-stored/overcapacity market market • Liberalization (Europe and Free Trade) • Virtualization (Internet) Organizations must respond to the forces reshaping the global economy—or risk becoming irrelevant and, ultimately, obsolete. Why customers are product information and the opinions markets will require new insights and of other buyers are easily available, new approaches to marketing, sales the new focus courtesy of the networked world. and customer service. Accelerating product life cycles pose Another factor helping to tip For most enterprises, growth comes another challenge. The rapid pace the balance of power away from from developing new customer or market of innovation means competitive companies is their own success. While segments, bringing new products and advantage is increasingly short-lived, learning to satisfy latent customer services to market, or driving more value forcing providers to improve the demand—for speed, efficiency, from current customer relationships. impact and velocity of innovation and convenience—organizations also taught The challenge at the center of all these increasing the damage they incur when their customers to expect more from growth strategies is their volatile target: a launch backfires or a product fails. all providers. Consider how overnight today’s customer—more elusive, more delivery became the new normal in the Increasingly, enterprises must also demanding and more diverse than ever. courier business, or how the ubiquity consider a changing consumer base, Even with providers working harder of online banking has compelled other often including entirely new buyer to win their favor, customers seem providers to offer around-the-clock segments. The demographics of mature only to find more to dissatisfy them, service channels. Hotels with check-in economies are evolving, and companies from shoddy toys to stale vegetables, lobby kiosks, for example, help late must respond to changing buyer needs while finding little dissuade them arrivals reach their rooms faster. They and values. Also, emerging economies from defecting to competitors. Buyers also lead guests to expect all hotels to are becoming important consumer today tend to categorize providers into offer the same experience. markets in their own right, expected to polar extremes—the “distinctive” and account for more than half of global Customers have even come to expect “everyone else.” Earning a place in the consumption by 20252. These “new” every provider to meet the service distinctive category has become far consumers have distinct characteristics standards set by other industries. Few more difficult and costly. and may regard foreign brands with For one, consumers know more—and uncertainty or doubt. Understanding their knowledge is power. Detailed and appealing to buyers in these Estimate adjusted for purchasing power 2 differences. 4 Customer Centricity—The New Axis of High Performance
  • 5. Differentiated customer experience Differentiation Loyalty Profitable growth Product and experience define a Competitive moat created around Minimize impact of quot;me—tooquot; combination that stands out for customers, who become less price and promotions target customers sensitive to price and focus on total value and convenience Entry to new markets/segments profitably Designing and consistently executing a customer experience designed around customer intentions and preferences helps organizations respond to market changes in ways that strengthen their brand, reinforce customer loyalty and support profitable growth. Profitable growth. They will minimize consumers use multiple cell phones experience. Even when customers view from multiple wireless companies, for the impact of “me-too” price and their experiences as fair or good, they example—but they do interact with promotions, and make entry to new, are quick to leave—as switching costs airlines, banks and a host of other high-growth markets and customer decline, even the most revered corporate providers, and how they are treated by segments more profitable and less risky. brands are vulnerable. Conversely, these organizations in these industries consumers identify a differentiated In short, delivering a differentiated influences how they expect to be treated experience as the chief reason for customer experience is the cornerstone by their wireless phone company—and choosing a new provider. To address of cost management, customer their grocer, cable company, government these myriad challenges to growth, satisfaction and profitable growth. While institutions and so forth. successful businesses will transform many organizations already understand their strategies, workforces and and even embrace this concept, many Delivering the operations to be increasingly customer- also struggle to execute the customer- centric. By refocusing on delivering differentiated centric agenda successfully. an experience designed to satisfy the intentions and preferences of target customer experience Translating strategic objectives into customers—through their marketing, sustainable results is what separates sales and customer service functions— In short, today’s customers demand an the merely interested from the leaders. they will produce significant, sustainable exceptional experience in return for Organizations striving to become high- impact on performance. their business and loyalty. Being merely performance businesses will replace the adequate is no longer adequate. traditional focus on customer relationship Differentiation. They will offer a management with a focus on customer combination of product and brand According to Accenture research,3 a poor experience management. Like star experience that stands out for target customer experience is the most-often customers. cited reason for customer flight. Our research also indicates that fully half Loyalty. They will create a competitive Customer Satisfaction in the Changing Global 3 of all consumers leave a product or moat around customer relationships; Economy: Satisfying new requirements for high service provider at least once every 12 buyers become less sensitive to price and performance. Accenture 2007 Global Customer months because of an unsatisfactory Satisfaction Survey. 2007. focus on total value and convenience. Customer Relationship Management 5
  • 6. Enterprise agility Companies foster the organizational agility required to effectively execute customer relevance. Customer relevance Execution excellence Market leaders convert High performers implement advanced customer insight people and business into value through products, processes and technology services, experience and capabilities to deliver marketing. a tailored customer experience. Accenture believes that true customer centricity is founded on three core principles: customer relevance, enterprise agility and excellence in execution. athletes who change the momentum capability development and execution— All three tenets must have the of the game with a curve ball, a bit to improve business performance and wholehearted support of the senior of backspin or a sudden pivot on the build customer loyalty. Organizations management team, and they must be playing field, they will shift away from may transform at different speeds, but combined in a concerted and holistic the old transactional view of customer transformation is the ultimate goal. approach that revolves around the interactions, concentrating instead on entire customer experience and which To center on today’s customer— the accumulative impact of every experi- crosses many functional areas. more knowledgeable, demanding ence—across channels and over time. and empowered—high-performance Accenture has identified five imperatives businesses embrace three principles. for achieving customer-centric benefits— Becoming customer an integrated set of new and adapted centric Customer relevance. High performers business capabilities designed and convert advanced customer insight executed to provide differentiated value into value through products, services, for target customer segments. Becoming truly customer centric requires experience and marketing. something other than more investment Becoming customer relevant. in sales training, advertising campaigns Execution excellence. High performers Customer-centric organizations rely on or call center technologies. Indeed, organize and enable their people and segmentation strategies that replace companies that have embarked solely create processes and technological the academic with the actionable: on implementing CRM solutions have capabilities that enable them to predictive, recognizable and executable seldom become customer centric because deliver a tailored and consistent customer insight. the other dimensions of their customers’ customer experience. experiences have not changed. Delivering the differentiated Enterprise agility. High performers customer experience. Customer Accenture defines customer centricity foster the organizational agility centricity depends on a new level as incorporating the customer’s required to effectively value, execute of alignment and integration across perspectives, values and actions into and sustain customer relevance. customer-facing operations, including the business and operations strategy, marketing, sales, customer service and supply chain operations. 6 Customer Centricity—The New Axis of High Performance
  • 7. Where Does Your Organization Stand on the High-Performance Axis? Organizations can approach customer centricity in different ways and move at different speeds across the transformation spectrum—ranging from tactical improvements in individual business units to cross-enterprise initiatives. Every path toward customer centricity, however, should be mapped according to the issues that matter most. • How are you responding to the buyer-driven market? • How well do you know your customers? • Just how loyal are your customers? • Is your customer experience differentiating or diluting? • How are your brand and your experience (stores, products, metrics) tailored around the world? • Who in your organization has accountability for the customer experience across fragmented organizations? • Do you simply offer multiple channels, or is your customer experience truly multichannel? • How do your customers participate in and own the innovation process? • Do you know where to place your bet on customer centricity: on important projects or on a strategic program? Customer Relationship Management 7
  • 8. The new physics of Managing the workforce ecosystem. Accenture helps senior marketing executives quickly gather the insights, Customer-centric organizations marketing, sales and tools and processes they need to create recognize that the workforce influencing competitive advantage in both mature the customer experience is wider in customer service and emerging markets. We focus on today’s networked world and is actually building highly differentiated value propo- an ecosystem of channel partners and Transforming marketing sitions for each target customer segment, other third parties. on executing these strategies at speed With account-based marketing now Customer-centric performance and on continuously refining marketing an established practice and concepts management. Organizations that put strategies and messages. The result: more such as “one-to-one marketing” part of the customer at the center of business relevant and more consistent customer the marketing lexicon, marketers could strategy and operations also manage experiences that drive profitable growth be forgiven for thinking they have their business in a customer-centric by helping to ensure more effective mastered customer centricity. way, realigning metrics, scorecards and customer acquisition and retention. management practices to deliver new In reality, however, the complexities customer outcomes. Accelerating growth of customer-centric marketing have confounded most efforts to understand Customer-engaged innovation. In a recent study, 23 percent of orga- deeply what customers want today—let A truly customer-centric organization nizations reported that the numbers alone anticipate what they may want involves the customer in shaping the of products and services they offer tomorrow. Moreover, the average customer experience. have more than doubled in the last tenure of the chief marketing officer five years.5 Clearly, the intricacies of (CMO) at a leading company is only 1.9 the marketing mix can make it seem years—leaving a very narrow window for Russell 3000 Index analysis. Stuart. May 2003. 4 impossible for customer centricity to achieving growth and innovation targets.4 Unravelling Complexity in Products and Services. 5 be a reality for more than a handful of Wharton School of the University of Pennsylvania premium customers. and The George Group. March 2006. Accenture Marketing Accenture Sales Transformation Transformation Societe Nationale des Chemins de In a globalized marketplace where Fer Francais (SNCF)—the French consumer electronic goods are rapidly state-owned railway company— is becoming commoditized, Canon one of the key players in Europe's vast needed to differentiate itself, and and sophisticated land transporta- the value it provides, in the eyes tion network. With Accenture's help, of consumers and retailers. With SNCF has developed a dedicated Accenture's help the electronics capability to build loyalty and create company transformed its sales marketing campaigns for its most function by identifying the core valued customers. According to roles required within the sales force, CRMServices' CEO, Sylvie Latour: and then devising a curriculum to quot;Our new subsidiary, CRMServices, train employees for those roles. The provides a critical link between loyalty training is now carried out within a and marketing, and it is on track not newly established Sales Academy and only to help SNCF generate significant has been responsible for improved savings, but also to reach three to five skills and behaviors amongst the sales million customers through targeted staff, as well as higher-than-average promotions. The support of the customer satisfaction levels. The Accenture team enabled us to focus company is now well on its way to on customer marketing and strategy achieving high performance in sales. and better target our key clients while optimizing pricing.quot; 8 Customer Centricity—The New Axis of High Performance
  • 9. Consider Samsung Electronics: With Nevertheless, leading marketers enabling them to quickly develop, 14 product categories across 200 are making progress with customer implement and manage fact-based countries, Samsung’s marketing centricity. A few years ago, Best Buy marketing strategies. Specifically, executives manage a complex matrix segmented its customers and crafted we leverage customer centricity by of customer-centricity options. At specific value propositions for each generating a consistent branded companies such as Johnson & Johnson, segment, achieving strong economic customer experience across new and marketers must optimize marketing results that have been widely acknowl- existing target customer touchpoints. investments across 180 categories edged in the business press. Campbell We further accelerate growth by in 250 countries: 45,000 category- Soup—which has long dominated the pinpointing the new market, product country combinations. Then, factor condensed soup market—has also used and services propositions required to in other dimensions such as product smart customer segmentation to drive win new customers and develop new proliferation, market segment, channel growth.7 By systematically investi- market spaces. and media and the complexity of the gating the articulated and unarticu- challenge becomes staggering. lated needs of its consumer base, the company has been able to reinvent Executives understand the magnitude itself—and its market—by introducing a of the task facing them. Accenture has new generation of product categories found that more than 60 percent of designed for the needs of a new cheif marketing officers believe their generation of consumers. companies are good at developing growth initiatives; 41 percent say To match these results, companies they have a strong ability to plan must first understand where and how Innovation and Profitable Growth. Accenture 6 end-to-end implementation of these to invest their marketing resources and the Economist Intelligence Unit. March 2006. Carl Johnson and Henry Rak, “Reframing the initiatives; and just 30 percent feel for the best return. Accenture helps 7 Market to Achieve Transformation Growth,” they have the ability to execute quickly organizations accelerate growth by Grocery Manufacturers of America Forum, and stay ahead of the competition.6 Winter 2005. Precedents and Questions 1543: Nicolaus Copernicus 1687: Isaac Newton formulates 1920s: Edwin Hubble uses overturns the prevailing three laws governing the Einstein's theory of general conception of the universe by movement of objects, including relativity to prove that the edges identifying the quot;truequot; center of the rule that for every action of the universe are expanding. the solar system. there is an equal and opposite In the year 2000, astronomers reaction. discover that the universe is, in addition to expanding, Does your business accelerating. Can you execute have the flexibility new customer to stay centered on Does your organiza- strategies with what matters most tion have the ability certainty of to customers, as to adapt to changing the results? their expectations economic forces, at change? the pace the market demands? Customer Relationship Management 9
  • 10. Transforming sales flexibility and adaptability, they find Accenture helps sales organizations themselves severely handicapped when identify customer preferences at every they attempt to reach new buyers, stage of the relationship, and match Sales force performance is a major expand into new markets or in any way those preferences to the sales talent challenge in most companies—a attempt to refocus the sales force on best suited to each stage. We help consistent concern for chief sales different goals or methods. them identify critical selling skills officers who know that the overall and develop stronger approaches to profitability of their enterprise depends Enhancing sales performance acquiring, retaining and compensating on either reducing the cost of sales or and productivity talented people. We also work with boosting the revenue their organization sales organizations to determine the generates. Yet, according to Accenture Given the growing complexity of the technologies they need to support their research on high-performance sales environment, it’s no surprise professional talent and optimize the workforces, as few as 25 percent of that many organizations have seen latest tools for capturing, analyzing senior sales executives believe their a decline in sales force productivity. and sharing business intelligence. workforce performs at a high level. With growth now a focus of the executive suite, sales executives are As a result, we help the sales organiza- The chief sales officer is compelled under extreme pressure. tion boost revenues, increase sales pro- to drive sales revenue further and ductivity and reduce the cost of sales. faster—for example, by entering Experienced salespeople know how We have helped improve our clients’ new geographic markets or by to sell existing offerings to existing sales conversions, boosted sales quota increasing sales to small and mid-sized clients, yet even the most experienced attainment and developed systems businesses. Tapping these oppor- may struggle to adopt new sales that enable new sales hires to become tunities may call for strategies and strategies designed to spur growth: proficient very quickly. By working with approaches that are significantly cross-selling, up-selling, capturing new Accenture, sales organizations acquire different from those the sales workforce business and reaching new customers. and use deeper customer insights, understands—for example, driving sales In fact, Accenture has found that improve selling behaviors, closely align through indirect channel partnerships. while more than half of companies sales initiatives with sales strategy and believe they are capable of expanding With product lines growing more implement stronger sales capabilities. sales with existing customers, only 23 complex, as new products and service Transforming customer service percent feel equally confident about bundles are introduced to meet their ability to acquire new accounts. changing customer expectations, an Over the last decade, companies unprepared or poorly equipped sales In addition, sales performance tends have implemented more and more force poses a major impediment to to be managed using metrics based on varied interaction channels and the improving sales productivity and the lowest costs of sales. Shifting to customer experience now typically increasing revenue. new metrics that reward salespeople spans multiple touchpoints. With so for performance across the sales A recent Accenture study illustrated many points of contact to manage, the spectrum—from pre-sales through to the magnitude of these challenges cost of customer contact is exploding— post-sales interactions—requires a level by discovering that more than 30 globally, corporations invest billions of boldness and innovation relatively percent of chief sales officers annually in managing customer rare in the typical salesforce culture. believed they needed to improve the contact. Yet despite their investment, alignment between their companies’ customer satisfaction remains low: in a Accenture believes that companies can solutions and their customers’ needs. recent Accenture survey, for instance, simultaneously reduce their cost of Nearly 40 percent also conceded that nearly half (47%) of the respondents sales and boost revenues by focusing they needed to improve the way they said that companies meet their expec- on selling behavior and sales intel- communicate with customers. tations only sometimes, rarely or never.8 ligence. Giving this key workforce access to the information they need Most sales organizations, however, Customer service has also grown more to perform higher, and helping both are hard wired to focus on just one complex. Customers behave the way new and existing sales representatives element: the sales transaction. In that they want to behave, and will embody the personalities, competencies addition, few have conquered the contact providers for reasons and in and behaviors exhibited by the most challenge of making a more customer- ways that can be hard to predict— successful salespeople, will help the centric approach repeatable across using different channels, for example, enterprise take major strides toward multiple sales opportunities with a even changing channels in the course new goals for revenue and productivity. wide range of customers. Lacking both of a single transaction—and their intentions are not always clear. Customer Satisfaction in the Changing Global 8 Economy, Accenture 2007. 10 Customer Centricity—The New Axis of High Performance
  • 11. Accenture Service Transformation Mortgage and savings provider HBOS changed the way its contact center agents handled calls and selling opportunities by implementing, with Accenture, a set of operational interventions called Perfect Call. As a result, customer satisfaction, call handling times, sales conversion and call consistency have all improved. HBOS is the United Kingdom's largest mortgage and savings provider, with over 22 million customers and 60,000 employees. It employs 6,000 people in its Retail Contact Centers which are based at nine locations across the UK. What is clear, however, is the critical Any company not working to tailor they are doing it in the context of impact that poor customer service has the customer experience to customer relationship development—protecting on business performance. Accenture preferences—or any company that still the customer relationships while research suggests that the majority serves customers the same way it did trimming operating expenses. of consumers worldwide left at least five years ago—is extremely vulnerable Accenture has found that achieving one provider in the past year because to competition. In our increasingly widespread, consistent performance of a bad service experience. However, multi-polar world, competition can is the result of focusing on three consumers also reward good service: come from virtually any geography, key areas: knowing the customer, in our research, consumers identified including emerging economies such as exceeding customer expectations and service quality as their foremost consid- India, China, Latin America and Eastern fulfilling promises to the customer. eration when choosing a new provider, Europe. In this environment, the ability and 77 percent reported being much to deliver a satisfying service experience Customers want to be recognized for more inclined to continue doing business may be a company’s best source of who they are as soon as they contact with a company that delivers a positive sustainable competitive advantage. you: their history, their preferences, service experience. Yet few companies are distinguishing their intentions. Leaders, therefore, themselves for service quality. build a blueprint for handling customer Even when customers don’t take the interactions based on detailed Creating advantage through ultimate step of switching providers, knowledge of the customer, and they customer service most do not simply accept bad service. execute this blueprint consistently When it happens by phone, many regardless of how the customer Leading organizations, however, drive will ask to speak to a supervisor or contacts them—whether they call, come growth by delivering a differentiated call back in the hope of getting a on line on the web; walk into a branch experience—designed around customer more helpful representative, thereby office. This can be tough; at many intentions and preferences—that is increasing call volume and operating companies, this information tends to both satisfying and profitable. These costs. Many customers will also tell be scattered throughout the orga- leaders have mastered the new market others about their experience—and, in nization or distributed between the dynamics that compel them to focus on today’s networked world companies are customer, you and third parties. becoming customer-centric. They are well-advised to remember the ability still working to reduce costs but now that consumers now possess to use the Internet to broadcast their criticisms. Customer Relationship Management 11
  • 12. Service strategy Field service Customer- and support centric effectiveness service Sales strategy Pace Flexibility Enterprise Customer agility relevance Sales Service process delivery Marketing design management strategy Actionable segmentation Loyalty and insight management Customer- centric marketing Billing/ Service Customer- Customer customer performance centric Marketing intentions Customer data credit and management sales ROI and management collections experience Category, Marketing product operations and brand optimization management Campaign Trade Sales Sales management promotion operations channel optimization management management Service Multi- Pricing operations channel management optimization synchroni- zation Sales incentive High-performance compensation sales workforce Sales and reward technology enablement High- Multi-channel performance self-service service workforce Desktop Telephony and mobile integration and solutions management Enterprise execution Certainty Accenture offers integrated solutions to help organizations drive business through cus- tomer centricity, enabling them to respond to changing customer expectations, keep pace with changing market dynamics and execute with high certainty of results. 12 Customer Centricity—The New Axis of High Performance
  • 13. Customers today also expect instant zations must become truly customer Moreover, we have identified the crucial gratification, and quickly become centric, incorporating the customer’s capabilities characteristic of high per- frustrated when placed on hold perspective, values and actions into formers—such as the ability to develop or transferred to another agent or their business and operations strategy, and consistently deliver a differentiated directed to another store. Frustrated capability development and execution. customer experience. Acquiring these customers are also difficult to For many organizations, this may prove capabilities—quickly, cost-effectively and persuade to buy more or buy more to be a hard transition to make. with maximum performance impact—has often—they are in fact difficult even to long been a challenge for companies. Accenture will help chart the most keep as customers. Leaders more than Today, it’s an even greater challenge. The intelligent and practical course to meet customer intentions—they exceed technology, for example, that enables achieve high performance in a world them. Moreover, they deliver on their the front-office capabilities needed to that is increasingly “multi-polar,” promises at the right time and every drive loyalty and growth is undergoing with economic growth occurring in time, whether that is a day, a month or dramatic changes. While technology virtually every geographic region and even a year after the original sales. providers offer many more options today, interdependency an essential part of many of these options are unproven Accenture helps organizations global business. or unfamiliar, and no single solution transform the way they serve their provides everything organizations need Our knowledge of customer centricity— customers by addressing all three of to achieve customer centricity. gained through extensive market these dimensions. We begin by helping research, and our deep experience, our clients create deep insight into Accenture offers a fully integrated accumulated through years of client customer intentions and preferences, set of solutions and services to work—combine to create a powerful and translate these insights into address every dimension related to resource for transformation. Accenture profitable actions. We also help them creating a satisfying, lasting and will help quickly develop new growth leverage the latest technology and profitable customer relationship— strategies in light of changing consumer process innovations for optimizing from customer segmentation and demands and new market opportunities. the performance of customer service analytics, to market and customer We help operationalize new approaches operations. Through this combination strategy development; from to customer segmentation, producing of insight, innovation and operational marketing and sales optimization to more relevant offerings and better dif- excellence, we help drive growth, service management and contact ferentiated service experiences. And we and shareholder value by delivering optimization. We also offer integrated help execute these models, quickly and a more satisfying, more profitable services for managing key operational effectively, across the supply chain. customer experience—while simultane- elements—such as data management, ously reducing the cost of delivering campaign management and contact A legacy of leadership customer service. center management—on an ongoing basis, to ensure the effective delivery For nearly two decades, Accenture has Accenture: Your guide of an optimal customer experience. been a trusted advisor to the world’s to customer centricity largest enterprises on their customer- focused strategies and operations. This is a time of tremendous potential Our work is grounded in research- and enormous challenge. Rapid based insights and unmatched commoditization and extreme price delivery experience. pressure are eroding traditional sources Accenture’s groundbreaking research of competitive advantage. Increased into the defining characteristics of competition is undermining customer high-performance businesses and loyalty. While emerging markets offer governments spans 36 industry significant growth opportunities, at the segments and more than 6,000 same time, their very newness presents companies. Through this research, we significant challenges. have determined that the ability to In this increasingly complex world, the win customer loyalty is the defining ability to deliver a satisfying service characteristic of high performance in experience is the most powerful source marketing and customer management. of sustainable competitive edge—nothing Organizations that enjoy strong else compares. To deliver the kind of customer loyalty also realize higher differentiated customer experience margins, revenue growth and that drives high performance, organi- shareholder value. Customer Relationship Management 13
  • 14. Our solutions and services help orga- management. Our reputation and Based on the scope and depth of nizations drive business performance success also attracts the market’s our capabilities, Accenture is widely through customer centricity, by enabling top talent—seasoned professionals recognized as the leading provider them to keep pace with evolving market from leading technology and service of solutions and services that help conditions, achieve the flexibility to organizations who have proven their clients achieve high performance. In respond quickly to changing customer ability to succeed in both consulting recognition of our strengths, CRM expectations, and execute differenti- and operations management roles. magazine has named Accenture as ated customer experiences with a high We have organized our professional the CRM consulting market leader for certainty of results. development programs to ensure several consecutive years. our people continue to build deep, Continuous investment in innovation specialized skills in marketing, sales keeps our offerings on the leading and customer service. edge, by translating our client work into repeatable solution components— Our client teams leverage a global including several patents granted or network of Accenture-operated and pending—which speed delivery and third-party facilities, as well as—when accelerate benefits, while reducing the preferred—the client’s own resources. risk of implementing new capabilities. This hybrid approach enables us to offer a mix of delivery and sourcing options Accenture continuously sets new ideally suited to the client’s performance standards of excellence in managing targets—an innovative alternative customer relationships, through to acquiring CRM infrastructure and innovative application of new tech- execution capabilities that optimizes the nologies and through breakthroughs balance of cost, quality and scalability. in business process design and 14 Customer Centricity—The New Axis of High Performance
  • 15. About Accenture performance with additional research, High-Performance Research including an annual survey of consumer expectations and attitudes concerning customer service. The most To examine the impact of customer recent Accenture Customer Satisfac- loyalty and how marketing and tion study surveyed more than 3,500 customer management can help consumers in Australia, Brazil, Canada, companies increase margins and China, France, the United Kingdom and build shareholder value to become United States. high performance, Accenture initially conducted qualitative and quantitative research on a sample set of decision makers at more than 700 business-to- business and business-to-consumer companies globally. The research identified and correlated specific capabilities with financial performance while pinpointing how these capabilities create and enhance customer loyalty to contribute to margin, growth and shareholder value. Accenture has since extended these insights in high About Accenture For more information about developing Accenture’s Customer Relationship and successfully executing customer- Management service line helps centric strategies that help your organizations achieve high Accenture is a global management organization achieve high performance by transforming their consulting, technology services and performance, visit our web site marketing, sales and customer service outsourcing company. Combining at accenture.com/centricity functions to support accelerated unparalleled experience, comprehensive growth, increased profitability and capabilities across all industries and greater operating efficiency. Our business functions, and extensive research, insight and innovation, research on the world’s most successful global reach and delivery experience companies, Accenture collaborates have made us a worldwide leader, with clients to help them become serving thousands of clients every year, high-performance businesses and including most Fortune 100 companies, governments. With 178,000 people in across virtually all industries. 49 countries, the company generated net revenues of US$19.70 billion for the fiscal year ended Aug. 31, 2007. Its home page is www.accenture.com. Customer Relationship Management 15
  • 16. Copyright © 2008 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.