There is a significant gap in the digital performance of consumer-focused businesses in the Asean region, according to a research study by SAP.
The study found that 47% of Asean consumers are satisfied with their digital experiences, while 20% are dissatisfied and 27% are ambivalent.
SAP’s Digital Experience Report offers detailed insights into customers’ digital expectations and brands’ ability to meet them. It captured responses from five Southeast Asian countries – Singapore, Malaysia, Thailand, Philippines and Indonesia.
Some 3,600 consumers were surveyed, who rated more than 240 brands according to 14 attributes of the digital experience, ranging from functional aspects, such as security and availability, to more emotional aspects, such as interactivity and engagement.
The report describes the digital experience as how a consumer-facing business digitally interacts with its customers during the discovery, purchase, delivery and support of a product or service.
It found that poor digital experiences affect the loyalty of Asean customers, with “satisfied” consumers nine times more likely to stay with a brand than those who are dissatisfied.
Customers classed as being “delighted” by the digital experience are more emotionally connected to that brand and more willing to buy from it for a longer period of time. This group will not hesitate to influence others to do the same, the survey found.
Read more about serving consumers online in the Asean region
- Southeast Asian retailers say securing customer payments is a major challenge as new payment technology is forced on them by market and consumer pressure.
- Singapore is leading Asia in the way it uses IT to improve business and society.
- Online retail market growth in the Asean nations remains slow but nonetheless significant, according to a survey of consumer habits in the region.
The study revealed a strong correlation between digital experience and consumers’ willingness to disclose personal information. The “delighted” Asean consumers were nearly four times more likely than the “unsatisfied” ones to provide brands with personal data, such as information on their personal finances, health records, educational level and buying preferences.
“SAP believes it is imperative for brands to have a digital strategy and to execute upon it, as consumers are stating very clearly that the digital experience matters and it matters in terms of financial and business performance,” said Scott Russell, president and managing director of SAP Southeast Asia.
Safety and security
As more and more Southeast Asian consumers go online, safety and security remains a top concern, with 58% in the region rating this as an important attribute of a digital experience. Almost 50% of those surveyed rated the ability to engage anytime and on their own terms highly, as did 46% for having an integrated and simple experience.
In Singapore, consumers rated mobile operator M1 as one of top three brands for digital experience. “We strive to deliver the best experience – responsive, personal, relevant and convenient – across all touchpoints,” said P Subramaniam, chief marketing officer at M1.
In Indonesia, Bank Central Asia (BCA), one of the largest Asean banks in terms of market capitalisation, was rated highly for its digital experience.
“We make continuous investments in digital innovations such as Sakuku, our flagship e-money service,” said Armand Hartono, deputy president director of BCA.
And in the Philippines, Globe Telecom is rated one of the top brands in the telecommunications sector and among the country’s five leading brands.
“Globe is continuously investing in its network to provide consumers with a superior digital lifestyle experience,” said Albert de Larrazabal, chief commercial officer at Globe.