Accenture Strategy Service Is The New Sales

Service Is The New Sales
Companies continue to be more invested in acquiring

new customers than in proactively retaining existing
ones. That strategy worked in the past. But in the
digital age, customer acquisition is just one factor of
success. Customer servicewith a specific focus on
reducing churnis now also a critical growth driver.
Are you prepared to seize the service opportunity?
Purchase is no longer
the end game
The traditional linear buying pathfrom discovery
to consideration to evaluation to purchaseis
dead. In the digital age, a highly fluid, nonstop
customer model prevails. With easy access to more
information, products and channels than ever
before, customers continuously assess the products,
that nearly two-thirds of consumers switched at

least one of their providers due to poor service
in 2014.1 The global switching economy these
consumers represent is estimated to be worth a
staggering $6.2 trillion.2 If that number isnt enough
to catch business leaders attention, consider this:
that number is growing at a higher rate than global
GDP. Churn has increased by 20 percent in recent
years, with no signs of slowing.3
services and brand promises that surround them.
In an always-on environment, the point of sale is
They are in a perpetual state of evaluation. And
still importantbut its no longer the singular point
their expectations are at an all-time highas is their of victory. Customers are won (and lost) long before
propensity to walk away from providers that fail to
and long after the sales transaction. The experiences
give them what they want.
customers have when they evaluate and ultimately
These customer digital wanderings are having a
use products and services take center stage.
profound effect on company growth. Accentures

2014 Global Consumer Pulse Research has shown
Why service matters
Of course, social media is not only used for sharing
A number of studies indicate that it costs four
customer service experiences that, in turn, influence
to 10 times more to attract new customers
new sales. But the sad truth is that theres less
than to retain existing ones.4 If companies with
interest in singing companies praises. Customers
large, embedded customer bases could improve
who have poor service interactions are 50 percent
customer retention even slightly, they could
more likely to share their experiences via social
generate hundreds of millions of dollars in margin
media channels than those who have good ones.8
improvement. So, what can they do to keep their

customers? The answer lies in customer service.
Accenture has identified the service experiences
that are most likely to cause customers to switch.
negative experiences; consumers can also post good
Winning the customer

retention game
Topping the frustration list: having to communicate
Companies are beginning to see the huge profit
with a company multiple times for the same reason,
potential associated with churn reduction.
long wait times, impolite representatives, and having But few have invested the time and resources
company representatives claim one thing and deliver needed to really master the art and science
another.5 Eliminating these sorts of experiences
of customer service. Rather, many continue
is a way of keeping existing customers engaged.
following an old playbook in which churn
But it can also reduce the likelihood of acquiring
management is reactive, and customer calls are
new customers. How? Following a bad experience
viewed as cost drivers, not opportunities for
with a company, 77 percent of customers will tell
growth. In the digital age, this must change.
others. And 28 percent will post negative comments

online.6 That dissuades potential customers and
eliminates the potential for future sales. The impact
of negative social media posts cannot be overstated.
Companies can take three steps to help position

service as the new sales and effectively use churn
reduction as the economic value lever it is.
An average Facebook user with 245 friends can

reach more than 150,000 other users. And heavy
Facebook users can reach more than seven million.7
Quantify churns impact.
aligning their responsibilities with those of Chief
Historically, companies have relied on a Net
Sales Officers, Chief Operating Officers, Chief
Promoter Score or data from organizations such
Service Officers and CIOs to provide a seamless
as J.D. Power to understand customer satisfaction.
end-to-end customer experience. Chief Retention
With todays analytics capabilities, theres a much
Officers (CROs), for example, are accountable for
more direct for companies to understand the impact
implementing cross-functional churn-reduction
customer service has on churn. Companies have
initiatives and seamless, consistent customer
more information about their existing customers
service experiences. Chief Customer Officers
than ever before. Its time they use this data to
(CCOs), responsible for directing initiatives from
identify precisely what their customers notice
the center of the customer experience, can help
and value when it comes to service. In addition,
solve upstream/downstream issues that drive
analytical tools can help companies directly measure
poor experiences. For CROs and CCOs to be most
customer services contribution to churn, as well as
effective and accountable for results, they must
services impact on the bottom line. Companies need
be measured and rewarded on services impact on
to build strong analytics capabilities and introduce
growthnot just cost takeout. It is vital that the
new metrics such as Accentures prior Post-
companys leadership team recognizes and values
Interaction Churn to gain actionable insights about
these new teams contribution to revenue growth.
the economic impact of service on churn, revenue

growth and profitability.
Tackle the most toxic interactions.

Accenture research revealed that 82 percent of
Give retention the attention it deserves.
switchers would stay with their original provider
Companies are quick to dedicate funding and
if the company had taken steps to address their
resources to acquire new customers and pursue
dissatisfaction.10 Companies should not squander the
new sales opportunities. They need to prioritize
second chance that customers are willing to give
retention as highly as other growth initiatives. One
them. However, they have neither the resources nor
way to accomplish this is to invest in targeted
the funding to modify every potentially frustrating
service improvements that produce better
customer interaction. What they can do is develop
customer experiences. Offering first-contact issue
skills and analytics to isolate, understand and
resolution, the ability to solve issues through
remediate the largest root causes of dissatisfaction
any channel, shorter wait times, polite and
among their customers. This involves identifying
knowledgeable service workers, and data privacy
toxic service interactions, as well as process or
can make all the difference.9
policy misalignments that have a disproportionate
Another way to prioritize retention involves defining

new leadership roles focused on retention and
impact on churn. And it means working with peers

in other functional areas to eliminate the hot spot
issues that frustrate customers most.
Service to grow revenues

Historically, companies looking to grow revenue have
dedicated the lions share of attention and resources on
acquiring new customers at the all-important point
of sale. However, in todays always-on world, higher
customer defection increasingly impacts revenue
achievement. Forward-thinking executives can deliver
engaging, differentiating service experiences to reduce
churn and drive topline revenue growth and profitability.
Contact the author
References
Rob Honts
Managing director, Accenture Strategy,

Customer Service global lead
[email protected]
Join the conversation

@AccentureStrat
Accenture Global Consumer Pulse Research, 2014
Accenture analysis, Accenture analysis based on consumer

expenditure data and proprietary research
Accenture analysis of 2014 and 2004 Global Consumer Pulse
Research results.
The Chartered Institute of Marketing, Cost of customer

acquisition vs customer retention, 2010. Retrieved May 29, 2015
from http://www.camfoundation.com/PDF/Cost-of-customeracquisition-vs-customer-retention.pdf
Accenture Global Consumer Pulse Research, 2014
Ibid
Pew Research Center, Why most Facebook users get more than
they give, February 3, 2012. Retrieved May 30, 2015 from http://
www.pewinternet.org/2012/02/03/why-most-facebook-users-getmore-than-they-give/
MarketingCharts, Bad Customer Service Interactions More Likely

to be Shared Than Good Ones, April 15, 2013. Retrieved May 30,
2015 from http://www.marketingcharts.com/online/bad-customerservice-interactions-more-likely-to-be-shared-than-goodones-28628/
Accenture Global Consumer Pulse Research, 2014.
10
Ibid
About Accenture
Accenture is a global management consulting, technology services
and outsourcing company, with more than 336,000 people serving
clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all industries and
business functions, and extensive research on the worlds most
successful companies, Accenture collaborates with clients to help
them become high-performance businesses and governments. The
company generated net revenues of US$30.0 billion for the fiscal
year ended Aug. 31, 2014. Its home page is www.accenture.com.
About Accenture Strategy
This document is produced by

consultants at Accenture as general
guidance. It is not intended to
provide specific advice on your
circumstances. If you require
advice or further details on any
matters referred to, please contact
your Accenture representative.
Accenture Strategy operates at the intersection of business

and technology. We bring together our capabilities in business,
technology, operations and function strategy to help our clients
envision and execute industry-specific strategies that support
enterprise wide transformation. Our focus on issues related to
digital disruption, competitiveness, global operating models,
talent and leadership help drive both efficiencies and growth.
For more information, follow @AccentureStrat or visit
www.accenture.com/strategy
Copyright 2015 Accenture

All rights reserved.
Accenture, its logo, and
High Performance Delivered are
trademarks of Accenture.
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How has the customer experience changed in the digital age?

How has the customer experience changed in the digital age?

Why is customer service important for retaining existing customers?

Why is customer service important for retaining existing customers?

Service Is The New Sales

Companies continue to be more invested in acquiring

that nearly two-thirds of consumers switched at

services and brand promises that surround them.

In an always-on environment, the point of sale is

They are in a perpetual state of evaluation. And

still importantbut its no longer the singular point

and long after the sales transaction. The experiences

give them what they want.

customers have when they evaluate and ultimately

These customer digital wanderings are having a

use products and services take center stage.

profound effect on company growth. Accentures

Why service matters

Of course, social media is not only used for sharing

A number of studies indicate that it costs four

customer service experiences that, in turn, influence

to 10 times more to attract new customers

new sales. But the sad truth is that theres less

than to retain existing ones.4 If companies with

interest in singing companies praises. Customers

large, embedded customer bases could improve

who have poor service interactions are 50 percent

customer retention even slightly, they could

more likely to share their experiences via social

generate hundreds of millions of dollars in margin

media channels than those who have good ones.8

improvement. So, what can they do to keep their

negative experiences; consumers can also post good

Winning the customer

Topping the frustration list: having to communicate

Companies are beginning to see the huge profit

with a company multiple times for the same reason,

potential associated with churn reduction.

of customer service. Rather, many continue

is a way of keeping existing customers engaged.

following an old playbook in which churn

But it can also reduce the likelihood of acquiring

management is reactive, and customer calls are

new customers. How? Following a bad experience

viewed as cost drivers, not opportunities for

with a company, 77 percent of customers will tell

growth. In the digital age, this must change.

others. And 28 percent will post negative comments

Companies can take three steps to help position

An average Facebook user with 245 friends can

Quantify churns impact.

aligning their responsibilities with those of Chief

Historically, companies have relied on a Net

Sales Officers, Chief Operating Officers, Chief

Promoter Score or data from organizations such

Service Officers and CIOs to provide a seamless

as J.D. Power to understand customer satisfaction.

end-to-end customer experience. Chief Retention

With todays analytics capabilities, theres a much