The Year 2020 has had a dramatic effect on consumer lifestyles that will fundamentally transform the manner in which firms must deliver their services. Consumers are increasingly being forced to use and are being educated in the use of digital technologies in every aspect of life. Examples include the use of mobile apps for financial services, online ordering of products, and telemedicine. As the world emerges from the COVID-19 pandemic, companies must ask the questions of “what is the new normal?” and “what do customers expect from us?”
In this presentation, you will learn:
• Winners and Losers: which companies are successfully navigating the new normal and which ones aren’t based on the latest data from the American Innovation Index™ that ranks 174 U.S. companies across 20 industries on company innovativeness based on the experiences of their customers?
• Changing Business Models for the Future: What are the consumer mindsets that exist across industries and what are their expectations in the future for service delivery?
• How a channel segmentation can guide strategy in the new normal
Meeting Customer Needs in A Rapidly Changing World: Lessons From The American Innovation Index ®
& SOCIAL INNOVATION
Meeting Customer Needs In A
Rapidly Changing World: Lessons
From The American Innovation
Lerzan Aksoy, Fordham University, firstname.lastname@example.org
Gina Woodall, Rockbridge Associates, email@example.com
• Introduction of the American Innovation Index™
• Winners and Losers in the Pandemic
• Changing Business Models for the Future
• How to Develop a Winning Strategy in the New Normal
An ambitious research program that quantifies the
innovativeness of nearly 200 companies in 20 industries
from the customer point of view
Methodology. Nationally representative online survey of
over 5,000 U.S. adults, comprising over 23,000 customer
Customers rated companies on key metrics:
• Social innovation
• Customer Loyalty
About the American Innovation Index™ (Aii)
Perceived innovation and social innovation
jumped 5 points
2018 2019 2020 2018 2019 2020
American Innovation Index (Aii) Social Innovation Index (Sii)
IN THE U.S.
TOP 50 71-75
Industry Aii Range
Merchandise Restaurants Wireless/Cell
& Casualty Hotels Specialty
Automotive Investments Supermarkets
Durables Lenders Technology
COMPANIES IN THE U.S.
TOP 50 66-70
Industry Aii Range
Stanley Black and Decker
Publix Super Markets
Whole Foods Market
Amer. Family Insurance
New York Life Insurance
Shipping Investments Specialty
Merchandise Lenders Supermarkets
Automotive Health Ins. Life/Disability Technology
Durables Hotels Restaurants Wireless/Cell
Service Transformation During the Pandemic
Leonard L. Berry, Texas A&M University; Tracey S. Danaher, Monash University, Australia; Lerzan Aksoy, at Fordham University; Tim
Keiningham, St. John’s University; Service Safety in the Pandemic Age, Journal of Service Research, July 29, 2020
-5% -5% -5% -5% -5% -5% -6% -7%
The Winners and Losers of the Pandemic
15 60 7 33 55 3 12 11 53 30 28 4 133 57 34 25 22 5 49 76 6 42 52 81 22 47 67 36 59 145 148 154 139 146 147 137 140 149 115 152 158 157Aii Rank
Financial Services, Insurance, Automotive,
QSR, and Grocery Responded Best
Differences in Rate of Response to Pandemic
(Expectations exceeded – expectations fell short)
Despite the Pandemic, Consumers Behave
Similarly to Their Preferences
Equal amounts of both
How I prefer to interact if no risks
or restrictions due to pandemic
How I interact now (late June
Methods of Interacting with Businesses to Gather Information, Get Advice, Learn and Transact
Consumer Mindsets Towards Service Delivery
in the Covid Era
These younger, diverse shoppers have a
love/hate relationship with technology and use
both channels almost equally because in-person
gives them control and virtually saves them time.
Safety First Consumers
These diverse shoppers prefer shopping in stores
because there is a reduced risk of mistakes but
will shop online to avoid face-to-face interaction.
Shopping in stores not only gives these
shoppers control but reduces the risk of
mistakes being made.
These older shoppers prefer shopping in stores
so they don’t have to deal with technology but
also because of the perceived convenience and
control that it gives them.
Shopping online gives these unmarried
shoppers a safer experience with reduced
stress but also time to do other activities.
Degree of digital
One-stop shopping in-person channels for primarily older customers who shun technology and
do not feel it is fun.
Implications for Service Delivery Strategy
One-stop shopping virtual services for customers who want to save time and find it stressful
interacting with employees.
Integrated channels for customers who want to do things in-person but are willing to leverage virtual channels as
well to ensure a more holistic experience. These customers expect physical locations even when they are not
necessary for the underlying service, but will rely on technology like online interfaces, apps and robots to save time.
How to Develop a Winning
Strategy in the New Normal
1. Is there a fundamental shift in the market?
2. How much have your customers been impacted?
3. Have customer needs changed?
Answer Some Key Questions…
Segmentation studies are rooted in the idea
that markets are composed of sub-groups,
or segments, with unique needs and
behaviors that distinguish them from each
These types of studies are used:
1. To conduct a high-level overview of a
marketplace to plan long range strategy
2. To implement a targeted approach
Understanding Your Customers
An Effective Segmentation
• Companies that innovate enjoy higher customer loyalty and increase in their
• The pandemic accelerated company innovation, including service delivery
adaptations and transformation
• Even so, many consumers prefer a mix of in-person/human-centered, and
virtual service delivery
• Use research, such as a segmentation study, to understand your market and
develop a winning strategy for the future