Skip to Main Content
Access your saved content
Consumer electronics (CE) manufacturers are concerned about diminishing customer loyalty. Based on an Accenture Consumer Research study, this point of view discusses why consumers are less loyal to consumer electronics manufacturers than other industries and explains the strategy they can adopt to build customer loyalty. The reasons for change are not what you may think.
Learn more about Accenture Customer Operations Services
Instead of a lack of trust or lack of satisfaction, the top two drivers for customers to switch consumer electronics manufacturers are “competitive pricing” and “value for the money.” CE customers in this industry are also more likely than the average to say they consider shopping around for better deals. High levels of quality appear to be taken for granted, and customers are turning their attention instead to shopping for the best price or “value for the money.”
These same factors seem to be driving the growing phenomenon of “partial switching.” This means that consumers are staying with the company they do business with, but have also added another provider. Partial switching is higher for consumer electronics than the global average, and the second highest of any industry overall.
To overcome customers’ preoccupation with pricing, it’s important for consumer electronics manufacturers to consider strategies to build customer loyalty by increasing customers’ engagement, improving their experiences and increasing perceived value.
Traditionally, manufacturers in this industry have attempted to increase customer engagement and add perceived value through product innovation—using new features to combat perceptions of product commoditization. Today, however, innovation in consumer electronics is increasingly being affected by the new business model called “superstacks”—a more extensive and cohesive integration of operating systems, semiconductor chips, devices, applications and end-user services than the industry has traditionally achieved.
A wide array of CE makers are likewise positioned to benefit from their use of the superstack concept. Accenture worked with client, Olympus, to develop an integrated solution for its customers.
Superstacks have the potential to win more customer loyalty and satisfaction, and get customers to pay more and be less obsessed with the prices of products—because consumers will pay for that better customer experience. To optimize their success in using a superstack strategy, CE executives need to evaluate what systems, chips, applications and services will best combine with their devices to deliver more significant value to consumers—and to facilitate consumer contact. Creating superstacks intelligently will require more use of analytics by manufacturers to identify consumer’s specific requirements.
Coupled with analytics methods and processes, agile companies will also interact with consumers via social media, and engage them in innovation. Social media forums are an important part of a successful superstack strategy, as they create value for the consumer and provide manufacturers with a valuable way to engage consumers in the innovation process. They also have the potential to serve as an important source of data for analytics.
To combat the growing problem of weak customer loyalty, consumer electronics manufacturers need to use new approaches to innovation and engagement. A key will be to develop differentiated superstack ecosystems, both to add distinctive value and to build more direct customer relationships. Beyond that, manufacturers’ superstack strategies will need to be properly targeted with analytics and reinforced with new forms of customer engagement.
Mitch Cline is Accenture’s global Electronics and High Tech Industry group lead.
Learn more about Accenture Services for Electronics and High Tech Industry
Montgomery (Monte) Hong is Accenture’s global Communications Industry group lead and also the lead of Accenture Customer Operations Business Service.
July 13, 2012
Skip Footer Links