Screenager Multiplied Experiences. Real-time Emotions. Enter

++ Screenager Multiplied Experiences. Real-time Emotions. Enter

Screenager ++ Multiplied Experiences. Real-time Emotions. Here we are, the Screenagers ++. Our screen-centric devices have become appendages we cannot live without, as hyper-accelerated growth has amplified our dependency on real-time consumption, constant connectivity and an ever-expanding universe of expectations. Our digital maturity has reached a new and higher level. From sprint to full stride, screenagers have multiplied faster than imagined. Today, not only are there more digital consumers, but more consumers own multiple smart devices. This is creating an array of new digital services and experiences, and more significantly, a multiplier effect that is generating more business opportunities at scale across every industry, age group and facet of human life. While adoption of smart devices has risen, the pace has slowed as consumers become more discerning about the quality of content, dependability of technology, ease of service and data privacy. As intelligent devices are delivering new experiences, consumers are more selective and willing to wait for innovation - especially when providers or usability don t measure up to expectations. Screenagers are now power players in a multi-billion-dollar game. The stakes are rising as communications, media and technology companies scramble to deliver the next big thing to keep their customers engaged. To avoid being left in the digital dust, enterprises need both a profound understanding of what their customers want and the expertise to deliver a safe and unique brand experience, a clear value proposition and user interaction that meets or exceeds those expectations. The winners will create and sustain strong, emotional trust. We have identified five mega-trends that are distilled and analyzed from Accenture s 2016 Digital Consumer Survey to help companies disrupt the status quo and connect with customers like never before. The Way you Effect 02 03 Transmission 04 make me feel 05

Screenager ++ Real-Time Experiences. Multiplied Results. 01 02 03 04 05 Effect More Consumers x More Devices x More Experiences You, Me & IoT Smart Things Don t Come Easy Transmission Minding the Gap in Privacy, Security & Service Quality Make Me Feel Screenagers Demand More or Nothing Quality, Simplicity & Emotional Trust

01 Effect More Consumers x More Devices x More Experiences Everywhere you look, eyes are angled down and aglow in the light of a smartphone, smartwatch, tablet or other digital screen. Screenagers not only own more devices, they own multiple types of devices. 80 percent of screenagers now own a smartphone a 26 percent increase since 2012 and 40 percent own a tablet and smartphone as well as a desktop device. From connecting and consuming digital content watching video, playing games and posting pictures on social media the Screen Age has redefined the new normal. With 87 percent of consumers now using mobile apps for communication services, we observe new types of usage 50 percent are already using or planning to use mobile payment services, and 46 percent take elearning or online training courses via digital devices. This is the Multiplier Effect in action: greater scale and bigger dollars.

Effect More Consumers x More Devices x More Experiences More Consumers x More Devices... 80% Smartphone ownership 26% increase since 2012 Smartphone + tablet + laptop/desktop: 2016= 40% 2015= 37% 81% of consumers who intend to buy a TV will get a Smart TV 5% increase...x More Experiences 87% consumers use mobile apps for communication services 58% rank online portals as the best channel to interact with service providers - ahead of physical stores 50% of consumers are already using or planning to use mobile payment services 46% take elearning courses/ classroom on digital devices such as tablets/ laptop/ smartphone 81% watch online movies and series on a frequent basis 69% play online games

02 You, Me & IoT Smart Things Don t Come Easy You turn on your house lights and adjust the temperature from miles away. As you head home, your refrigerator reminds you to stop and buy milk. Then your car plots the fastest route to avoid rush hour traffic and construction zones. When you arrive safely home you watch as a drone delivers a package to your front door. The future has never been closer and is full of promises. As companies rush to release more and more intelligent devices and IoT applications, consumers have yet to be sold on their value propositions. These devices may be smart, but most are not easy to use and don t offer clear services. Although the next big thing is not here yet, the smart players are working hard to get it whatever it will be in front of screenagers before their competition does.

You, Me & IoT Smart Things Don t Come Easy Early adoption of intelligent devices is taking place.. Smartwatch But Smart is not yet easy and the value proposition is not yet clear Only 13% are planning to buy a smartwatch in the next 12 months Wearable fitness In-vehicle entertainment Home connected surveillance 41% already own at least one intelligent device +12% points from 2015 64% faced problems when using an intelligent devices, down from 83% from last year, but still far too high to make people happy Only 7% think about bundling intelligent devices with a service

03 Transmission Minding the Gap in Privacy, Security, & Service Quality The life of a screenager is characterized by intensity and immediacy. Their digital experiences need to be agile and real-time smooth and safe. Nothing less will do. Privacy and security are becoming critical priorities. 47 percent are concerned about privacy and security issues, while the lack of service quality is also causing frustration for screenagers. 71 percent are ready to pay extra for a better mobile network connection and 83 percent think advertising interruptions when watching digital content are far too frequent. In order to achieve high performance, companies need to ensure safety, privacy and continuity of service so their customers don t get lost in transmission.

Transmission Minding the Gap in Privacy, Security, & Service Quality Privacy & Security 47% are concerned about privacy & security issues 62% are concerned about security of financial transactions 42% say recent hacker attacks using IoT devices will impact their use and purchase decisions 63% are ready to use other alternatives to avoid hacking issues Service Quality 71% are ready to pay extra for better mobile network connection 83% think advertising interruptions while watching digital content are too frequent

04 Make Me Feel Screenagers Demand More or Nothing As screenagers become more mature, sophisticated and selective, their wallets won t open without good reason. 71 percent said that a large range of products and services that work well together will encourage them to purchase more. For now, however, they are only planning to increase their budget by 13 percent because they already have their devices, and are ultimately looking for innovative experiences, services, features and content. Companies need to keep screenagers at the center of their market approach more than ever before. Knowing who their customers are, what they like and what they re ready and willing to pay for is critical, and the difference between success and obsolescence.

Make Me Feel Screenagers Demand More or Nothing Only 13% plan to increase spending on smartphones, tablets, laptops and PCs. What will encourage screenager to purchase more products and services? A drop of 20% points from 33% in 2014 83% said reliability and speed of problem resolution 71% said large range of products and services that work well together 60% said exclusive content or services unique to a provider 41% intend to purchase a smartphone in the next year to get the newest and most innovative features

05 Quality, Simplicity & Emotional Trust Loyalty is a delicate balance to create and even harder to maintain. While no one owns the screenager, emotional trust is created by the right services, simplicity, identity, quality, privacy and products. This is fundamental to create engagement 76 percent of consumers think quality brands will encourage them to purchase more products and services. Screenagers may say they love you, but they live and breathe real-time emotions. Unless you maintain constant brand engagement across all channels, you will quickly lose your audience with 60 percent ready to switch to a new provider for better service. Establishing and maintaining brand engagement without compromise is critical to reaching screenagers and keeping them connected.

Quality, Simplicity & Emotional Trust 76% think quality brands will encourage them to purchase more products and services 71% believe that having a single bill integrating a bundle of products and services will motivate them to purchase additional products or service 64% prefer a specialized company when buying a smart home plug devices 60% are ready to switch to a new provider due to poor mobile connections and viewing experience +17% points from 2015

Opportunities for Service Providers The combination of increased smartphone ownership and usage, coupled with dissatisfaction with the mobile experience, presents opportunities for service providers. The following are some strategic recommendations to help providers retain customers by improving the mobile experience while developing new revenue streams: Re-imagine the user experience from the user end and work back to the provider s infrastructure and front-end systems. Create seamless multi-device, multi-channel experiences from the time users engage. Screenagers don t have the patience to wait for a second or third version to get it right; loyalty is heavily determined by their experience, so executing flawlessly based on user insights is the key to building and maintaining that loyalty. Meet the need for an integrated, omni-channel customer relationship approach and system to understand user behavior and intent. Meeting the demands of screenagers across the spectrum requires analytics that inform, coupled with agile front-end development capabilities to stay current and adapt quickly. Consider new revenue models. The device is a delivery vehicle for multiple services used daily, and users expect flexibility and value for their dollar. Institute an open innovation approach. No one provider can do it all. An open innovation approach that entails partnering with content and service providers to create a dynamic ecosystem to deliver desired services and apps is a key strategy to reinvigorating the user base. Take advantage of uniquely-available data and insights. When upgrading their networks, providers must take full advantage of the massive quantity of data and insights that are uniquely available through networks and devices and target specific improvements based on user-centric insights. Use analytics to uncover customer insights. Users see connectivity as a commodity and pay for data and services. Using analytics to find customer insights will help providers clearly define value propositions, decide how to add differentiated value to their services, and ultimately enable them to increase revenues streams. Develop guidelines for recommended apps and services, Privacy and security are very real concerns, but they are increasingly difficult to address given the complexity of the mobile ecosystem. Developing guidelines for recommended apps and services is one way to help customers protect themselves. The Way you Effect 02 03 Transmission 04 make me feel 05

Contacts Marco Vernocchi Senior Managing Director Communication, Media and Technology Global Digital Lead marco.vernocchi@accenture.com Steve Kasten Managing Director Communications, Media and Technology Global Digital Marketing Lead steven.kasten@accenture.com Bouchra Carlier Global Lead for Media & Entertainment and Communication, Media and Technology Digital Research bouchra.o.carlier@accenture.com Join the conversation: #digiknow www.accenture.com/screenager About Accenture Research Accenture Research is a global team of industry and digital analysts who create data-driven insights to identify disruptors, opportunities and risks for Accenture and its clients. Using innovative business research techniques such as economic value modeling, analytics, crowdsourcing, expert networks, surveys, data visualization and research with academic and business partners they create hundreds of points of views published by Accenture every year. Copyright 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. About the 2016 Accenture Digital Consumer Thought Leadership program The Accenture Digital Consumer Thought Leadership program for communications, media and technology companies is based on a survey which was conducted online between October and November 2015, with 28,000 consumers in 28 countries: Australia, Brazil, Canada, China, Czech Republic, France, Germany, Hungary, India, Indonesia, Italy, Japan, Mexico, Netherlands, Philippines, Poland, Romania, Russia, Saudi Arabia, Slovakia, South Africa, South Korea, Spain, Sweden, Turkey, United Arab Emirates, United Kingdom, United States. The sample in each country is representative of the online population, with respondents ranging in age from 14 to 55 and over. The survey and related data modeling quantifies consumer perceptions of digital devices, content and services, purchasing patterns, preference and trust in service providers, and the future of their connected lifestyle. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining 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 the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. Cover