This is what winners look like

For many Swiss companies, 2020 meant one thing above all else: a standstill. Budgets were put on hold (which hit many marketing departments particularly hard); expansion plans were suspended indefinitely, and daily life was dominated by the effort to navigate the pandemic with as little damage as possible.

But then there were also the other companies—those that thrived during the crisis, exceeded the budgets of «normal» years, or developed creative solutions that helped them tap into new business areas. These companies are found not only in the relevant booming industries such as e-commerce or digital communication, but also in fields where one would hardly have expected to find them. The consulting firm PwC therefore wanted to know: What makes companies winners during a crisis? What steers them safely through stormy waters? The factors are manifold—but a smart approach to customer intelligence—that is, the process of collecting and analyzing information about customers and their activities—tops the list.

Background of the Study

For the Research Paper «The Evolving Customer: Profile of a Winner» In the fall of 2020—at a time when the second wave of the pandemic was in full swing—the consulting firm surveyed more than 500 European executives. One criterion for selecting respondents was that their companies were able to achieve growth despite market disruption; another criterion was that the company’s long-term goals were not neglected even during the «exceptional circumstances of the pandemic» and that progress toward achieving them was made. The full study is available to readers of this magazine, but here is a brief summary of some of the key findings: Companies that consistently align their transformation processes with the needs of their customers are disproportionately likely to emerge as winners from the crisis. It is essential that they also provide an outstanding customer experience in the digital space—and adapt new technologies both internally and externally, integrating them into their processes. In addition, they prioritize agile work practices, growing revenue, and operating with exceptional efficiency.

«Disruption is driven by customers whose needs are not being met.»

When analyzing the study’s results, it is striking that customer intelligence, in particular, is of enormous importance. After all, crisis or no crisis: Whatever the trigger for transformation may be, the most important single factor for its success, according to the PwC study, is a clear understanding of customer needs, followed by a flexible response to changing customer behavior and preferences. This is where the wheat is separated from the chaff: While the winners stay in close touch with their customers, only two out of ten companies in the group of less successful firms can claim that they «process customer feedback in real time and comprehensively understand the customer journey.».

Understanding Customers Leads to Revenue Growth

The PwC study highlights the enormous difference that a smart approach to customer intelligence makes between successful and less successful companies: The winners are at least 30 percent more likely to develop new business opportunities from their interactions with customers; which in turn leads to short- to medium-term revenue and profit growth. This is also an important message for those decision-makers who are deterred by the complexity and costs associated with transformation processes and therefore put off necessary reforms.

Praise from the Critics

Furthermore, according to PwC, a one-time interaction can only become a lasting, sustainable relationship if companies maintain constant contact with their customers and continuously assess whether they are satisfied or dissatisfied. Carl Haynie, Director of Customer-Centric Transformation at PwC Switzerland, explains: «Contrary to popular belief, digital and customer-centric business transformation is rarely driven by a company’s desire to reinvent itself in order to stay ahead of the curve. Far more often, disruption is fueled by dissatisfied customers whose needs are not being met.»

Further Steps on the Path to Success

In its study «The Evolving Customer: Profile of a Winner,» PwC also identified various other criteria for successful business operations in challenging times: for example, breaking down internal silos, fostering trust among various stakeholders, leveraging technology as an enabler, and focusing on leadership and strategy.

INTERVIEW

«Just deciding to make a change isn't enough»

Peter Kasahara, Managing Partner of Digital Intelligence and Customer-Centric Transformation at PwC Switzerland, speaks with m&k about success and customer needs.

m&k: Peter Kasahara, why do some companies still find it so difficult to consistently align their business with customer needs?

Peter Kasahara: There are three factors that have a significant impact here. First, companies often do not know their customers’ needs at all—or at least not well enough. Second, I’ve observed that companies which do have information about consumer preferences and behavior often fail to efficiently translate this into personalized offers that would provide customers with tangible added value. This, however, would be crucial for keeping pace with the ever-faster-changing consumer needs and the increasing
Meeting customer expectations. After all, personalized experiences allow companies to build and strengthen their relationship with customers.

They say it themselves: Customer Intelligence is more important than ever. How if you integrate their Use it in the Business processes? I I guess that sounds like a little easier than it was on the That's the end of it…

Companies that don’t yet know their customers very well, in particular, naturally have some catching up to do in this area. Simply deciding to make a change isn’t enough: The question then arises as to what capabilities—both in terms of human capital and technology—the company actually has to undertake this transformation.

How has the pandemic how companies conduct their business with customers Changed?

Those who had the necessary resources—not every industry was so fortunate—have in many cases experienced a huge boost in their ability to harness digital potential. These are the «winners.» However, we’re also seeing that the gap with those who were already struggling with problems has widened, and the market is consolidating.