Customer loyalty is a major concern for CEOs in the U.S. during the next three years, according to a new and compelling study released by KPMG.
What’s more, the CEOs believe that the next three years will be more critical for their respective industries than the previous 50! In fact, 65% agree that the next three years will be more critical for their industries than the past 50.
As a result, CEOs are stepping up their customer focus and transforming into significantly different entities, pursuing growth strategies that call for increased partnerships and alliances.
Here are some major concerns held by U.S. CEOs during the next three years, according to the study:
-90% concerned about customer loyalty
-78% concerned about product/service relevance three years from now
-53% concerned about keeping pace with customers’ needs and expectations
-86% concerned about how millennials’ wants/needs will change their businesses
“Today’s top business leaders understand that long-term success in this era of fast-paced technological change and global economic shifts requires a new way of thinking and operating,” said Lynne Doughtie, Chairman and CEO, KPMG LLP. “In fact, the corporate playbook is being rewritten and replaced by one that takes business agility to a level we have never seen before.”
What’s more, 91% of the 400 U.S. CEOs surveyed in the KPMG U.S. CEO Outlook 2016 report indicated that cyber security was deemed the top risk, followed by customer loyalty and keeping current with new technologies also are major concerns.
“CEOs see new entrants disrupting their business models and acknowledge that they are not in a position to be a disruptor themselves,” said Doughtie. “One major issue is that the majority of CEOs acknowledge that they haven’t adopted a strategic innovation approach and a safe-to-fail environment.”
To drive shareholder value in the next three years, 65% of the CEOs said they plan to pursue a collaborative growth strategy that includes external partnerships and alliances, a higher percentage than organic growth (61%) and inorganic growth (58%).
Nearly 40% of the CEOs surveyed indicated that they are transforming their companies into significantly different entities in the next three years.
“CEOs find themselves managing and monitoring incredibly complex ecosystems that extend far beyond the walls of their businesses,” Doughtie said.
The majority of CEOs showed confidence about the economy and job growth during the next three years; 23% are “very confident” about growth for the U.S. economy while 59% are “confident.”