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Changing Consumer Motivations & Expectations | Accenture

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Accenture identifies what motivates consumers & how these motivations lead to changing consumer expectations, preferences & shopping habits. Read more.

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  1. 1. Life Reimagined Mapping the motivations that matter for today’s consumers
  2. 2. Consumers have reimagined what’s important to them in life. Are companies keeping pace? Life Reimagined: Mapping the motivations that matter for today’s consumers 2 Copyright © 2021 Accenture. All rights reserved.
  3. 3. Consumers are starting to come back to a world they once knew… but many are realizing that the people they once were are no longer. The pandemic compelled consumers—en masse—to shift their expectations more rapidly and completely than we’ve seen at any other time in history. People are looking inward, elevating concepts of relationships and responsibility and re-evaluating their priorities. Now, many of them are applying their new mindsets to where, what and how they buy. Consumers expect to be seen and understood by companies and, through their purchase choices, they are simultaneously seeking to influence their communities and the environment—and to confirm how they see themselves in the world. Life Reimagined: Mapping the motivations that matter for today’s consumers 3 Copyright © 2021 Accenture. All rights reserved.
  4. 4. Base: All respondents(N=25,444) Source:Accenture GlobalConsumerPulse Research2021 Reimagined Consumers (Agree + Strongly Agree) Evolving Consumers (Unsure) Traditional Consumers (Disagree + Strongly Disagree) Life Reimagined: Mapping the motivations that matter for today’s consumers 4 5 0 % 33 % 17% Reacting to the statement “Thepandemicmademe totally revisemy personalpurposeand whatisimportantforme inlife” Copyright © 2021 Accenture. All rights reserved.
  5. 5. Life Reimagined Accenture research revealed that the core values of a majority of consumers meaningfully changed as a result of the pandemic and that what motivates them to change brands—and their willingness to pay for new features that brands offer—has meaningfully changed as a result. We surveyed 25,000 consumers in 22 countries to gain insights into their purchasing preferences across 14 industries. We learned that half of consumers globally say they’ve totally revised their personal purpose and re- evaluated what’s important to them in life. We call them Reimagined consumers. Only 17% disagreed—we call them the Traditional. Life Reimagined: Mapping the motivations that matter for today’s consumers 5 Copyright © 2021 Accenture. All rights reserved.
  6. 6. Who are Reimagine d consumers ? What’s most interesting about Reimagined consumers is not what makes them different but what makes them the same. Reimagined consumers don’t have clear demographic distinctions—not in gender, age, income levels, job status, or urban or rural locations. They are a generally heterogenous group. This indicates that motivations of Reimagined consumers are not confined to a specific demographic subset like Gen X or Millennials—and that mindsets like theirs have become mainstream. Reimagined consumers are everywhere. Life Reimagined: Mapping the motivations that matter for today’s consumers 6 Copyright © 2021 Accenture. All rights reserved.
  7. 7. What Reimagined consumers have learned may not easily be unlearned. Life Reimagined: Mapping the motivations that matter for today’s consumers 7 And the substantial difference in mindsets between Reimagined consumers and Traditional may be an indicator for companies of where future opportunities for growth lie. 72% ofReimagined consumers expectcompaniesthey’redoing business withtounderstand andaddresshowtheirneeds andobjectives changeduring times ofdisruptions—versus only27% oftheTraditional. 66% ofReimagined consumers saytheynowexpectbrands totakemoreresponsibility in motivatingthemtolivebytheir valuesandtomakethemfeel morerelevantintheworld— versus 16%ofTraditional consumers. 50% ofReimagined consumers saythatmanycompanies disappointed thembynot providing enoughsupport andunderstanding oftheir needsduringchallenging times—versus 14%of Traditional consumers. Copyright © 2021 Accenture. All rights reserved.
  8. 8. Price and quality have become easy-to- check table stakes flattened by the internet and are no longer differentiators for companies. Knowing this, Accenture looked at how a bundle of five rising purchasing motivations stacked up against price and quality for both Traditional and Reimagined consumers… and the results revealed opportunities for companies to differentiate and grow anew. Meet the new Motivations Life Reimagined: Mapping the motivations that matter for today’s consumers 8 Weighted importance of factors in consumers’ purchase decisions was determined through survey responses to questions about seven different value drivers for decision-making on brands in each of 14 industries. This is an aggregate global industry view. Base: Reimaginedand Traditional Consumers(N=17,165) Source:Accenture GlobalConsumerPulse Research2021 Bundle of the New Motivations Price & Quality Bundle of the New Motivations Price & Quality ReimaginedConsumers TraditionalConsumers Copyright © 2021 Accenture. All rights reserved.
  9. 9. These five distinct purchasing motivations are oriented around consumers’ desire to feel better and have confidence in the products, services and companies they patronize. Life Reimagined: Mapping the motivations that matter for today’s consumers 9 Are you keeping me and my neighbors safe? What about your employees? Do you remember me? Are you making my experience with your brand as personal as it can be? Are you there for me when I need you? Are you meeting me where I am, in the digital world, the physical world and through a blend of the two? Are you able to deliver what I need, when I need it, across all channels? What about the environments and societal and corporate responsibility? Can you help me make sustainable choices? Can you help me support my local community? Can I trust you to do the right thing for me and not just for your business? Can I trust you to be who you say you are and truly stand for the things you say you stand for? Health & safety Service & personal care Ease & convenience Product origin Trust & reputation Copyright © 2021 Accenture. All rights reserved.
  10. 10. For example, in retail, a majority of consumers are universally inclined to switch providers if health and safety measures were discontinued, but Reimagined consumers are more than twice as willing as Traditional consumers to pay extra to retain those measures. In automotive, 55% of Reimagined consumers would switch brands if they discontinued promoting the most sustainable products and 40% of Reimagined would be willing to pay more for brands to retain those commitments. Motivation s Motivator s Willingness to switch if discontinued Willingness to pay to retain Powerful enough to drive both brand switching (“should I stay?) and willingness to spend more (“would I pay?”). Life Reimagined: Mapping the motivations that matter for today’s consumers 10 How powerful are these motivations? Copyright © 2021 Accenture. All rights reserved.
  11. 11. Companies have stretched to meet the needs of consumers over the course of the pandemic, at great and likely unsustainable cost. They will need to assess the permanence of the new experiences and concessions they’ve offered, as what has been learned by consumers over the course of the pandemic may not easily be unlearned. One such way is by plotting themto understandthe risk and the rewards of each resolution scenario. Life Reimagined: Mapping the motivations that matter for today’s consumers 11 How should companies respond? REENGINEER REIMAGINE RETHINK RECALIBRATE Experiences consumers think worth switching to retain BUT NOT worth paying extra to retain Experiences consumers think worth switching provider AND paying extra to retain Experiences consumers think not worth switching provider OR paying extra to retain Experiences consumers think worth paying extra to retain BUT NOT worth switching provider to retain NO (likelihood not to pay) PAY (likelihood to pay) STAY (likelihood to stay) GO (likelihood to switch) Copyright © 2021 Accenture. All rights reserved.
  12. 12. RETHINK Companies should consider rolling back and potentially re- deploying these investments elsewhere because they seem to have limited perceived value, less differentiation and minimal risk if offloaded. Life Reimagined: Mapping the motivations that matter for today’s consumers 12 RECALIBRATE As existing consumers may be willing to pay more in this category, companies should consider creating a premium tier of services to unlock new revenue streams. Some of these may be more experimental offerings that consumers are willing to pay extra for but do not have broad enough appeal to drive switching. REENGINEER Companies should retain and reengineer these offerings to make them financially sustainable or risk losing customers. Expectations around these offerings have likely become the ‘new normal’, so brands need to reeingineer these benefits into the realm of affordability to protect their existing customers and attract new ones. REIMAGINE Companies should invest in scaling and innovating these offerings as they create the opportunity to drive true differentiation. It is here companies will find the most white space to monetize, attract new consumers and create new value streams. Copyright © 2021 Accenture. All rights reserved.
  13. 13. Looking through the lens of experience Life Reimagined: Mapping the motivations that matter for today’s consumers 13 To drive growth, companies must reimagine their entire business through the lens of experience. This entails: Investing continuously to understand your customers’ evolving mindsets Structuring your entire organization to create experiences that captures your customers’ evolving demands across all aspects of operations Evolving your business model 1 . 2. Reimagining the experiences your company delivers to meet rising motivations with speed, agility and innovation 3 . 4 . Copyright © 2021 Accenture. All rights reserved.
  14. 14. By embracing the business of experience, organizations can seize the opportunity, meet the Reimagined and others where they are and build new loyalty and revenue streams for a sustainablefuture. Life Reimagined: Mapping the motivations that matter for today’s consumers 14 Copyright © 2021 Accenture. All rights reserved.
  15. 15. More on this topic Accenture conducted its 16th annual Global Consumer Pulse Research to gain an understanding of global consumers’ preferences, beliefs and behaviors. The online survey of 25,444 consumers age 18+ in 22 countries was designed to identify how consumer expectations are evolving—and how companies can capitalize on that evolution to achieve new levels of growth and competitive agility. Fieldwork was conducted between December 2020 and February 2021. Read the full report: www.accenture.com/ConsumerResearch View “voice of consumer” videos Use the interactive tool to view consumer switch, stay and pay data by industry Listen to Accenture’s Built for Change podcast Episode 7, Getting to Know the Reimagined Consumer. Life Reimagined: Mapping the motivations that matter for today’s consumers 15 Copyright © 2021 Accenture. All rights reserved.
  16. 16. AgnetaBjörnsjö Principal Director Accenture Interactive, Research Global Lead With more than 20 years of experience in market and business research, Agneta’s role is to design and lead a variety of research initiatives that open up new perspectives and support provocative thought leadership. She is based in Stockholm. KevinQuiring Managing Director Accenture Strategy, Customer Sales & Service North America Lead Kevin advises organizations across a variety of industries in the design and development of customer strategies and leads initiatives focused on driving profitable growth through customer acquisition, development and retention. He is based in Minneapolis. MarkCurtis Managing Director Accenture Interactive, Global Head of Innovation A serial entrepreneur and innovator in media, digital, mobile and design for 30 years, Mark’s role spans offer definition, marketing and business development, as well as public speaking and media commentary. He is based in London. Bill Theofilou Senior Managing Director Accenture Strategy, CEO & Enterprise Strategy Global Lead Bill focuses on helping CEOs become more competitive by addressing their company’s growth and cost challenges concurrently. Bill has more than 20 years of experience restructuring companies for profitable growth, developing new go-to-market models and growth strategies, and aligning organizational and cost structures to support strategy. He is based in Boston. Connect with our experts Life Reimagined: Mapping the motivations that matter for today’s consumers 16 Copyright © 2021 Accenture. All rights reserved.
  17. 17. AboutAccenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 537,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com AboutAccentureResearch Accenture Research shapes trends and creates data driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 300 researchers and analysts spans 20 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations, such as MIT and Harvard—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients. For more information, visit www.accenture.com/research This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. Copyright © 2021. Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

Description

Accenture identifies what motivates consumers & how these motivations lead to changing consumer expectations, preferences & shopping habits. Read more.

Transcript

  1. 1. Life Reimagined Mapping the motivations that matter for today’s consumers
  2. 2. Consumers have reimagined what’s important to them in life. Are companies keeping pace? Life Reimagined: Mapping the motivations that matter for today’s consumers 2 Copyright © 2021 Accenture. All rights reserved.
  3. 3. Consumers are starting to come back to a world they once knew… but many are realizing that the people they once were are no longer. The pandemic compelled consumers—en masse—to shift their expectations more rapidly and completely than we’ve seen at any other time in history. People are looking inward, elevating concepts of relationships and responsibility and re-evaluating their priorities. Now, many of them are applying their new mindsets to where, what and how they buy. Consumers expect to be seen and understood by companies and, through their purchase choices, they are simultaneously seeking to influence their communities and the environment—and to confirm how they see themselves in the world. Life Reimagined: Mapping the motivations that matter for today’s consumers 3 Copyright © 2021 Accenture. All rights reserved.
  4. 4. Base: All respondents(N=25,444) Source:Accenture GlobalConsumerPulse Research2021 Reimagined Consumers (Agree + Strongly Agree) Evolving Consumers (Unsure) Traditional Consumers (Disagree + Strongly Disagree) Life Reimagined: Mapping the motivations that matter for today’s consumers 4 5 0 % 33 % 17% Reacting to the statement “Thepandemicmademe totally revisemy personalpurposeand whatisimportantforme inlife” Copyright © 2021 Accenture. All rights reserved.
  5. 5. Life Reimagined Accenture research revealed that the core values of a majority of consumers meaningfully changed as a result of the pandemic and that what motivates them to change brands—and their willingness to pay for new features that brands offer—has meaningfully changed as a result. We surveyed 25,000 consumers in 22 countries to gain insights into their purchasing preferences across 14 industries. We learned that half of consumers globally say they’ve totally revised their personal purpose and re- evaluated what’s important to them in life. We call them Reimagined consumers. Only 17% disagreed—we call them the Traditional. Life Reimagined: Mapping the motivations that matter for today’s consumers 5 Copyright © 2021 Accenture. All rights reserved.
  6. 6. Who are Reimagine d consumers ? What’s most interesting about Reimagined consumers is not what makes them different but what makes them the same. Reimagined consumers don’t have clear demographic distinctions—not in gender, age, income levels, job status, or urban or rural locations. They are a generally heterogenous group. This indicates that motivations of Reimagined consumers are not confined to a specific demographic subset like Gen X or Millennials—and that mindsets like theirs have become mainstream. Reimagined consumers are everywhere. Life Reimagined: Mapping the motivations that matter for today’s consumers 6 Copyright © 2021 Accenture. All rights reserved.
  7. 7. What Reimagined consumers have learned may not easily be unlearned. Life Reimagined: Mapping the motivations that matter for today’s consumers 7 And the substantial difference in mindsets between Reimagined consumers and Traditional may be an indicator for companies of where future opportunities for growth lie. 72% ofReimagined consumers expectcompaniesthey’redoing business withtounderstand andaddresshowtheirneeds andobjectives changeduring times ofdisruptions—versus only27% oftheTraditional. 66% ofReimagined consumers saytheynowexpectbrands totakemoreresponsibility in motivatingthemtolivebytheir valuesandtomakethemfeel morerelevantintheworld— versus 16%ofTraditional consumers. 50% ofReimagined consumers saythatmanycompanies disappointed thembynot providing enoughsupport andunderstanding oftheir needsduringchallenging times—versus 14%of Traditional consumers. Copyright © 2021 Accenture. All rights reserved.
  8. 8. Price and quality have become easy-to- check table stakes flattened by the internet and are no longer differentiators for companies. Knowing this, Accenture looked at how a bundle of five rising purchasing motivations stacked up against price and quality for both Traditional and Reimagined consumers… and the results revealed opportunities for companies to differentiate and grow anew. Meet the new Motivations Life Reimagined: Mapping the motivations that matter for today’s consumers 8 Weighted importance of factors in consumers’ purchase decisions was determined through survey responses to questions about seven different value drivers for decision-making on brands in each of 14 industries. This is an aggregate global industry view. Base: Reimaginedand Traditional Consumers(N=17,165) Source:Accenture GlobalConsumerPulse Research2021 Bundle of the New Motivations Price & Quality Bundle of the New Motivations Price & Quality ReimaginedConsumers TraditionalConsumers Copyright © 2021 Accenture. All rights reserved.
  9. 9. These five distinct purchasing motivations are oriented around consumers’ desire to feel better and have confidence in the products, services and companies they patronize. Life Reimagined: Mapping the motivations that matter for today’s consumers 9 Are you keeping me and my neighbors safe? What about your employees? Do you remember me? Are you making my experience with your brand as personal as it can be? Are you there for me when I need you? Are you meeting me where I am, in the digital world, the physical world and through a blend of the two? Are you able to deliver what I need, when I need it, across all channels? What about the environments and societal and corporate responsibility? Can you help me make sustainable choices? Can you help me support my local community? Can I trust you to do the right thing for me and not just for your business? Can I trust you to be who you say you are and truly stand for the things you say you stand for? Health & safety Service & personal care Ease & convenience Product origin Trust & reputation Copyright © 2021 Accenture. All rights reserved.
  10. 10. For example, in retail, a majority of consumers are universally inclined to switch providers if health and safety measures were discontinued, but Reimagined consumers are more than twice as willing as Traditional consumers to pay extra to retain those measures. In automotive, 55% of Reimagined consumers would switch brands if they discontinued promoting the most sustainable products and 40% of Reimagined would be willing to pay more for brands to retain those commitments. Motivation s Motivator s Willingness to switch if discontinued Willingness to pay to retain Powerful enough to drive both brand switching (“should I stay?) and willingness to spend more (“would I pay?”). Life Reimagined: Mapping the motivations that matter for today’s consumers 10 How powerful are these motivations? Copyright © 2021 Accenture. All rights reserved.
  11. 11. Companies have stretched to meet the needs of consumers over the course of the pandemic, at great and likely unsustainable cost. They will need to assess the permanence of the new experiences and concessions they’ve offered, as what has been learned by consumers over the course of the pandemic may not easily be unlearned. One such way is by plotting themto understandthe risk and the rewards of each resolution scenario. Life Reimagined: Mapping the motivations that matter for today’s consumers 11 How should companies respond? REENGINEER REIMAGINE RETHINK RECALIBRATE Experiences consumers think worth switching to retain BUT NOT worth paying extra to retain Experiences consumers think worth switching provider AND paying extra to retain Experiences consumers think not worth switching provider OR paying extra to retain Experiences consumers think worth paying extra to retain BUT NOT worth switching provider to retain NO (likelihood not to pay) PAY (likelihood to pay) STAY (likelihood to stay) GO (likelihood to switch) Copyright © 2021 Accenture. All rights reserved.
  12. 12. RETHINK Companies should consider rolling back and potentially re- deploying these investments elsewhere because they seem to have limited perceived value, less differentiation and minimal risk if offloaded. Life Reimagined: Mapping the motivations that matter for today’s consumers 12 RECALIBRATE As existing consumers may be willing to pay more in this category, companies should consider creating a premium tier of services to unlock new revenue streams. Some of these may be more experimental offerings that consumers are willing to pay extra for but do not have broad enough appeal to drive switching. REENGINEER Companies should retain and reengineer these offerings to make them financially sustainable or risk losing customers. Expectations around these offerings have likely become the ‘new normal’, so brands need to reeingineer these benefits into the realm of affordability to protect their existing customers and attract new ones. REIMAGINE Companies should invest in scaling and innovating these offerings as they create the opportunity to drive true differentiation. It is here companies will find the most white space to monetize, attract new consumers and create new value streams. Copyright © 2021 Accenture. All rights reserved.
  13. 13. Looking through the lens of experience Life Reimagined: Mapping the motivations that matter for today’s consumers 13 To drive growth, companies must reimagine their entire business through the lens of experience. This entails: Investing continuously to understand your customers’ evolving mindsets Structuring your entire organization to create experiences that captures your customers’ evolving demands across all aspects of operations Evolving your business model 1 . 2. Reimagining the experiences your company delivers to meet rising motivations with speed, agility and innovation 3 . 4 . Copyright © 2021 Accenture. All rights reserved.
  14. 14. By embracing the business of experience, organizations can seize the opportunity, meet the Reimagined and others where they are and build new loyalty and revenue streams for a sustainablefuture. Life Reimagined: Mapping the motivations that matter for today’s consumers 14 Copyright © 2021 Accenture. All rights reserved.
  15. 15. More on this topic Accenture conducted its 16th annual Global Consumer Pulse Research to gain an understanding of global consumers’ preferences, beliefs and behaviors. The online survey of 25,444 consumers age 18+ in 22 countries was designed to identify how consumer expectations are evolving—and how companies can capitalize on that evolution to achieve new levels of growth and competitive agility. Fieldwork was conducted between December 2020 and February 2021. Read the full report: www.accenture.com/ConsumerResearch View “voice of consumer” videos Use the interactive tool to view consumer switch, stay and pay data by industry Listen to Accenture’s Built for Change podcast Episode 7, Getting to Know the Reimagined Consumer. Life Reimagined: Mapping the motivations that matter for today’s consumers 15 Copyright © 2021 Accenture. All rights reserved.
  16. 16. AgnetaBjörnsjö Principal Director Accenture Interactive, Research Global Lead With more than 20 years of experience in market and business research, Agneta’s role is to design and lead a variety of research initiatives that open up new perspectives and support provocative thought leadership. She is based in Stockholm. KevinQuiring Managing Director Accenture Strategy, Customer Sales & Service North America Lead Kevin advises organizations across a variety of industries in the design and development of customer strategies and leads initiatives focused on driving profitable growth through customer acquisition, development and retention. He is based in Minneapolis. MarkCurtis Managing Director Accenture Interactive, Global Head of Innovation A serial entrepreneur and innovator in media, digital, mobile and design for 30 years, Mark’s role spans offer definition, marketing and business development, as well as public speaking and media commentary. He is based in London. Bill Theofilou Senior Managing Director Accenture Strategy, CEO & Enterprise Strategy Global Lead Bill focuses on helping CEOs become more competitive by addressing their company’s growth and cost challenges concurrently. Bill has more than 20 years of experience restructuring companies for profitable growth, developing new go-to-market models and growth strategies, and aligning organizational and cost structures to support strategy. He is based in Boston. Connect with our experts Life Reimagined: Mapping the motivations that matter for today’s consumers 16 Copyright © 2021 Accenture. All rights reserved.
  17. 17. AboutAccenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 537,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com AboutAccentureResearch Accenture Research shapes trends and creates data driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 300 researchers and analysts spans 20 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations, such as MIT and Harvard—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients. For more information, visit www.accenture.com/research This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. Copyright © 2021. Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

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