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RELEVANCE:THE BEATINGHEART OF ALIVING BUSINESSAchieving Sustainable GrowthThrough Hyper-Relevance
1 trillionlost in potential revenue in2017 due to brandswitching in the US alone.64%of brand switches drivenby lack of relevance.25%of customers would ceasedoing business withirrelevant companies.68%more likely for relevantcompanies to berecommended to friendsand family.
High performersare more likely tounderstand and acton these changes.90%of executives representing thehighest-performing organizationsagree “customer expectationsare increasingly shaped by themost relevant, real-time, anddynamic experiences.”!Those at lowerperformingcompanies were 20%less likely to agree.
84%of high performers believe their businessneeds a “much more iterative, dynamic,agile approach to doing businesscompared to three years ago.”agreed that “business reinvention isrequired to be successful in izations, 67%agreed.High performers werefar more adept atbridging the gap betweenknowledge of what isneeded to succeed andachieving it. Theknowledge-achievementgap among othercompanies was up toseven times greater.
Living Businessesunlock sustainedgrowth by continuouslyadapting to theevolving needs of theircustomers to achievetotal relevance.To identify a clear path forward for today’s large organizations,Accenture undertook a major research initiative in 2018 todetermine how leaders in sustainable growth are different fromtheir peers. We found that these companies are agile, movingnimbly and continuously to accommodate customers’ everevolving needs with speed and scale. They are pivoting theirgrowth strategies to profitable areas beyond the core – and theyare funding new growth by optimizing costs elsewhere.Our findings indicatethat these companieshave developed fiveinterdependent sets ofcapabilities whichrepresent the keys togrowth in the future.We call these thecharacteristics of a“Living Business”.
TRANSFORMATION PATHWAYS TOBECOMING A LIVING BUSINESSThe Five Capability SetsTarget New OpportunitiesTarget core and disruptive growthinitiatives to fuel responsive innovation.Design for CustomersDesign products and services ashyper-relevant platforms.Build EngagementBuild intelligent marketing and salesexperiences.Our research of over 1,000companies finds that LivingBusinesses that excel at these fivecapability sets are:3Scale with PartnersScale with a broad and new set ofecosystem alliances.Rewire CultureRewire your workforce with acustomer-first mindset.50%TIMESas likely to achieve aboveaverage revenue andprofitable growth.more likely to report a strongreadiness to weather businesscycles and disruptions than othercompanies in their industry.
NO TIMETO WASTEA track record of sustained success is no longer areliable predictor of future growth, or even survival.52% of the companies that were included in theFortune 500 in the year 2000 no longer exist.That’s why Living Businesses are focused on creatingnew advantages before their current strengths fade.The contrast between their continuously highlyrelevant offerings, and those of companies hangingonto outdated “best practices,” will be stark. And weare seeing that today’s consumers choose relevanceevery time.52%FORTUNE 500 COMPANIESIN Y2000 NO LONGER EXIST
About AccentureAbout the ResearchAccenture is a leading global professionalservices company, providing a broad rangeof services and solutions in strategy,consulting, digital, technology andoperations. Combining unmatchedexperience and specialized skills acrossmore than 40 industries and all businessfunctions – underpinned by the world’slargest delivery network – Accenture worksat the intersection of business andtechnology to help clients improve theirperformance and create sustainable valuefor their stakeholders. With 459,000people serving clients in more than 120countries, Accenture drives innovation toimprove the way the world works and lives.In 2017 and 2018, Accenture Researchsurveyed over 1,000 top executives,including 195 CEOs, at companiesspanning more than 10 industries, and withheadquarters in 28 different countries. Thesurvey asked about the extent to whichcustomer relevance is driving theircompany’s growth outcomes, and, alsoasked respondents to assess theircompany’s capabilities in terms ofbecoming and staying hyper-relevant tocustomers. We used this information toassign each company a “Vitality Score”,and, using both self-reported performancedata and public financial data, wedeveloped a model that links vitality withfirm performance.Visit us at www.accenture.comCopyright 2018 Accenture.All rights reserved.Accenture, its logo, and High PerformanceDelivered are trademarks of Accenture.Separately, as part of Accenture’s annualGlobal Consumer Pulse Survey, we askedover 23,000 consumers, representing 33countries, and commenting on more thaneight different industries, about whatmakes companies and brands relevant tothem. We also found out how theirperception of a brand’s relevance drivestheir purchasing behaviors.Read more atwww.accenture.com/livingbusiness
HEART OF A LIVING BUSINESS Achieving Sustainable Growth Through Hyper-Relevance. 68% more likely for relevant companies to be recommended to friends and family. 25% of customers would cease doing business with irrelevant companies. 64% of brand switches driven by lack of relevance.
