Many iconic 20th century brands are increasingly finding their world disrupted. Between 2011 and 2016, large U.S. consumer companies lost an estimated $22 billion in sales to smaller brands. Today, consumers are in the driver’s seat. The rise of craft ale, local, organic and natural products is testament to the hyper-growth possible when companies understand changing consumer behaviors, and think differently about the customer proposition.
According to an Accenture study, 61% of consumers switched companies last year because their needs were no longer met. Once gone, more than a quarter will never go back.
The stakes are significant. U.S. companies alone risk losing a staggering $1 trillion in revenue if they fail to maintain consumer relevance.
While the majority of business leaders at top-performing companies agree that consumer expectations are influenced by relevant, real-time and dynamic experiences, many admit they struggle to move quickly enough to deliver. Eighty-five percent say their company needs a more agile approach, and a similar number agree they need to reinvent their business to be successful in today’s challenging environment.
Zealley, J. (2018, August 8). Big-Brand Status No Longer Guaranteed Success Formula. MediaPost.