Intelligent Revenue Growth B2C

INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE THE POWER OF AI

BUSINESS SITUATION CONSUMERS AREN’T BUYING THE STATUS QUO Companies in industries like communications, media and retail are facing new, profound challenges. For incumbents, it is a time of existential crisis. Growth has stagnated. Margins are tighter. Categories are blurring. Digital natives are changing customer expectations both inside and outside of their industries. One thing is certain: Future growth will look different than it has in the past. Liquid expectations are raising the bar As digital brands proliferate, they are setting higher standards. Consumers expect rich, highly personalized experiences with no friction. Digital disruptors are blurring industry lines Niche players with agile operating models are creating new market opportunities across industries, and achieving unprecedented speed-to-scale. Channels are merging and disappearing The penetration of artificial intelligence (AI) powered digital assistants —in phones, cars, and homes—is creating interactions without boundaries. Consumers can access content, products, and services from a single point of contact, everywhere and at any time. A digital “earthquake” in retail is imminent Traditional retailers will continue to lose their grip on consumers, as digital disruptors, like Amazon, vie for dominance at the local level. As a result, consumers are in a constant state of re-appraisal, demanding that businesses remain relevant in every micro-moment between sales and service. As market dynamics are increasingly shaped by digital players who are radically customer centric, incumbents are losing their capacity to attract, engage, and retain customers. INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE 2

As market dynamics are increasingly shaped by digital players who are radically customer centric, incumbents are losing their capacity to attract, engage, and retain customers. INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE 3

KEY TENSION BECOMING HYPER-RELEVANT WILL REQUIRE BREAKING DOWN SILOS But pursuing a single growth formula isn’t a quick change for big companies. It will require them to completely rethink how they work within and across business functions. They can no longer make decisions in silos, working Businesses need against discrete business metrics as opposed to to rethink how they customer outcomes. Domain expertise will have to work within and be augmented by data-driven insights, which reveal relationships across the silos leading to innovative across business growth strategies. In doing so, they will collapse functions. product development, sales, marketing, and service into a seamless continuum of value for the customer. And, they will establish a new foundation for sustainable growth. INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE 4

INSIGHT HYPER- RELEVANCE IS THE TICKET TO NEW GROWTH The digital disruptors and new entrants that are defining the future are unifying around the customer. That means they are pursuing a single growth formula where products, customers, channels, and servicing are combined and tailored in a seamless way for each customer. They deliver end-to-end customer experiences that are agile, real-time, and hyper-relevant to the individual. INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE 5

OPPORTUNITY A DATA-DRIVEN, AI-POWERED PATH TO NEW GROWTH AI will be central to enabling new growth. It will reveal integrated insights from data across products, Embracing AI across customers, and channels to inform better decision- the business can making across the enterprise. offer a potential It will empower employees, unleashing human ingenuity 30–50% increase and fueling innovation. And most importantly, it will help in enterprise businesses personalize and humanize every consumer 1 touchpoint at speed and scale. profitability. THE INTEGRATION OF AI WILL HELP: Unify across • Diagnose – AI helps leaders drive coordinated change functions and improve by revealing granular insights on how actions impact performance key performance indicators (KPIs) across the business, not only within each function. This creates operational efficiency and lays the groundwork for a seamless, omni-channel customer experience. • Prescribe – Algorithmic recommendations go beyond interim improvements to specific sub-functions (customers, channels, products) to help businesses meet end goals in a more integrated and impactful way. Discover new • Understand – AI will provide granular insights about individual opportunities consumers by processing vast sets of structured and for growth unstructured data from 1st and 3rd party sources. • Target – AI helps identify micro-segments and priority demand spaces (e.g. new occasions, category sub-segments, and servicing opportunities) to develop new business models and optimize product, pricing, promotion, and packaging practices. 1 Accenture IHP, AI and the future of growth. INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE 6

Increase efficiency • Automate – AI learns from its interactions with customers. while unlocking As such, it identifies and delivers increasingly relevant working capital experiences, automates more activities than ever before, provides operational efficiency, and informs business process transformation. • Unlock – By pushing more activities down to the execution layer, AI drives margin enhancement and lowers costs to unlock capital for funding the digital business. • Empower – AI and automation can be scary concepts for employees, but they don’t have to be. These powerful tools enable employees to pivot from their manual tasks of today to lead high-value analytical and strategic initiatives related to innovation and competitive differentiation. Create hyper-relevant • Sense – AI’s use of unstructured data (e.g. photos, video, experiences to increase audio, etc.) increases insight by identifying individual engagement, reliability, needs based on their context. and loyalty • Comprehend – Natural language processing will help machines better infer what human communications are intended to convey. • Act – AI increases engagement by building personalized experiences in real time, including customized products, promotions, marketing, and value-added services. • Learn – Machine learning enables continuous improvement by understanding and adapting to an individual’s needs and desires. Using AI to unify around the consumer and reinvent relevance, companies will develop a powerful new capability to retain and expand their customer base, reduce costs, differentiate competitively, and drive new growth. Furthermore, AI will help them set ever-increasing standards of performance by continuously optimizing interactions and transactions—creating a self-perpetuating path to growth. Explore how Accenture is helping clients reinvent relevance and unlock new growth opportunities. Visit www.accenture.com/ai-for-business-transformation INTELLIGENT REVENUE GROWTH FOR B2C EMBEDDING AI TO REINVENT RELEVANCE 7

CONTACT ABOUT ACCENTURE Lan Guan Accenture is a leading global professional services company, Managing Director, providing a broad range of services and solutions in strategy, Applied Intelligence, CMT consulting, digital, technology and operations. Combining [email protected] unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at Matthew Green the intersection of business and technology to help clients Managing Director, improve their performance and create sustainable value for Applied Intelligence, Products (Retail) their stakeholders. With approximately 449,000 people serving [email protected] clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. JOIN THE ABOUT ACCENTURE CONVERSATION APPLIED INTELLIGENCE @AccentureAI Accenture Applied Intelligence helps clients apply new data science and intelligent technology across their business, and into every function, so they can transform their business and achieve new outcomes at speed and scale. Recognized as a leader by industry analysts, the company helps clients create new intelligence using artificial intelligence, machine learning, proprietary algorithms and app-based solutions, all powered by the Accenture Insights Platform. We collaborate with a powerful alliance and delivery network to help clients operationalize within any market and industry with a focus on speed to value. Combining expertise across industries, analytics, technology and design, Accenture is uniquely qualified to drive new business outcomes with precision, at scale. Visit us at www.accenture.com/appliedintelligence. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent Copyright © 2018 Accenture. or imply the existence of an association between Accenture and the lawful All rights reserved. owners of such trademarks. Accenture, its logo, and High This document is produced by consultants at Accenture as general Performance Delivered are guidance. It is not intended to provide specific advice on your registered trademarks circumstances. If you require advice or further details on any matters of Accenture. referred to, please contact your Accenture representative.