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Digital Transformation

Gaining consumer insights: unleashing the power of purpose-driven change

Authors

4 minute read 23 May 2023

Embracing consumer drivers to uncover innovation opportunities and future-proof organizations.

Three questions to ask

  • Why are consumer insights crucial in today's ever-evolving marketplace, where consumers hold significant power and influence over businesses?
  • How can companies align their values with the expectations of purpose-led consumers?
  • What opportunities can this alignment bring businesses in the scope of innovation and sustainable growth?

In today's ever-evolving marketplace, the consumer holds the reins. Their choices are driven by purpose and intrinsic motivation, which now defines the rules of the game. In order to thrive in this dynamic landscape, organizations must understand the absolutely necessity of gaining consumer insights, and aligning them with their business’s own values. In this article, we'll explore how this approach can ignite a wave of inspired innovation, and pave the pathway for sustainable growth.

Our world is fraught with uncertainty, from geopolitical conflicts like the war in Ukraine to protectionist economic policies and widening global divides. What has previously been felt as a “borderless”, globalizing world with liberal trade has transformed into an environment of trade restrictions and disruptions. While this presents specific challenges for businesses and markets alike, it also opens doors to strategic innovation opportunities. The key to turning a challenge into an opportunity lies in identifying and effectively responding at pace with our fast-changing landscape.

The consumer's motivations are the driving force behind change. If you can identify the purpose behind them, you have gold in your hands.

Simon Anthonis

EY VODW and EY Belgium Consulting Partner

The voice of the consumer

Consumer expectations play a pivotal role in shaping the way companies operate. Macro-evolutions significantly influence those expectations, leading purpose-led consumers to prioritize the planet's well-being (alongside product affordability) at a scale never seen before. Sufficed to say, the importance of sustainability has reached unprecedented heights. Companies now face a significant challenge: meeting the environmental and social standards set not just by legislation and reporting requirements, but also by the very customers they serve.

A recent study by EY revealed that 68% of consumers believe companies have a responsibility to invest in sustainably produced products and services. Moreover, consumers now view a company's behavior as equally important as the products it offers. 62% of participating consumers stated that in general companies’ current measures are insufficient and don’t yet go far enough.

Based on this clear survey data, embracing sustainability as a strategic criterion is now mandatory; it drives the development of environmentally friendly products and services across various industries. From finance to manufacturing to governments, innovative companies should ensure that their purposes align with those of their consumers. This mindset shift has the potential to create significant positive impact. Ultimately consumer choices are driving this change, challenging companies to identify drivers and swiftly anticipate the market’s evolving needs.

The purpose-led consumer increasingly places the importance of the planet alongside the affordability of products.

Gitte Van Hasselt

EY VODW and EY Belgium Consulting Executive Director

How EY can Help

  • Customer experience

    The EY Customer Experience solution can help your business integrate CX programs that help deliver sustainable long-term value. Discover more.

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Embodying purpose throughout the ecosystem

As demonstrated by our survey data, the expectations of purpose-led consumers go beyond symbolic gestures (viewed as “greenwashing”). Companies must now infuse a clear purpose – aligned with target customer values – in every aspect of their operations, supply chain, and ecosystem.

 

So how does this translate into consumer marketing? One recent example we’ve seen is a highway billboard between Amsterdam to Antwerp. The billboard displays the slogan ‘Long Live the Rainforest’, next to a small package of butter. It’s an everyday product with a powerful message: choosing this spreadable butter can contribute to saving the rain forest. The choice to support the rainforest through everyday products demonstrates how a company's clear purpose can shape decisions across the entire value chain, from raw materials to production to marketing and communication.

 

Companies need to evolve from a growth-at-all-costs mindset to an operational model where purpose and consumer values are kept at the heart of every organizational element. Recognizing that consumers and their drivers are the catalysts for change, organizations must proactively identify consumer motivations and purpose. Quantitative surveys alone won't suffice; qualitative insights gained through interviews,and participatory observation offer a deeper understanding of consumer values and standards.

 

 

Bottom line: companies must evolve from a growth-at-all-cost model to an operational model where the purpose and values of your consumer are at the heart of every aspect of your organization.

 

 

From Forecasting to Backcasting: Shaping a Desirable Future

We can already see that traditional forecasting methods are inadequate in this post-COVID era of unprecedented uncertainty and rapid change. Instead, we propose a “backcasting” approach. This requires a clear vision of the organization’s desired future. This process enables the company to calculate which initiatives required to achieve that future. In this way, "backcasting” empowers organizations to co-shape the world with their consumers, uncovering both uncertainty and untapped opportunities, and in so doing lead the way forward to decisive and impactful strategic decision-making.

Innovation is a complex process that demands a diverse range of competencies. EY's global network offers expert-led innovation and scaling capabilities, combining Trend Foresight's methodology with an assessment of your organization's current core. By identifying the intersection between strategic objectives and opportunities, organizations can embark on a successful innovation journey.

In conclusion, unlocking the power of consumer insights is paramount in today's consumer-driven landscape. By aligning with consumer values and purpose, organizations can fuel inspired innovation and sustainable growth from the outside in. It's time to listen to the voices of our consumers, anticipate their changing needs, and co-create a future where purpose-led organizations thrive. Together, let's embark on a transformative path and embrace the opportunities that lie ahead.

 

EY VODW

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    Summary

    Consumer insights are key to corporate success in today's landscape. Aligning with consumer values and purpose drives innovation and sustainable growth. Organizations must embody purpose throughout their operations, supply chains, and ecosystems. By adopting a backcasting approach and envisioning a desirable future, they can navigate uncertainty and make impactful decisions. Let's listen to consumers, anticipate their needs, and co-create a thriving future together.

    About this article

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    Transformation
    Customer
    Innovation
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