Banks, Automotives And High Tech Leads Digital Experience In Asia-Pacific

Author

John Kang

July 27, 2016

Consumers in the Asia-Pacific region are disappointed with the digital experience brands offer, according to a recent report by software giant SAP, which surveyed about 19,000 consumers. Nearly two-thirds across the region are unsatisfied with the experience when they research, purchase, or receive support from a company online or on a device.

Out of 10 industries SAP analyzed, banks have offered the best digital experience across most countries in the region. “In most markets, the banking sector has been exposed longest to disruptive digital technologies, which has heated up competition and accelerated innovation cycles,” explained Adaire Fox-Martin, president of Asia Pacific and Japan at SAP, in an emailed response. ”We believe this is one of the reasons [the banking sector] have performed the best. That, as well as the increasing ease with which consumers can switch financial institutions, means digital leadership is paramount.”

The automotive and high tech industries also performed well, especially in Japan and South Korea. Though the two industries have relatively low digital engagement compared to other sectors, the consumers that do engage digitally are particularly digitally savvy to get the most of the digital experience, said the report.

Meanwhile, government and telecommunications offered the worst digital experience from the 10 industries SAP analyzed, performing particularly poorly in most Southeast Asian countries, as well as in India.

Governments struggle to provide a satisfactory digital experience due to the huge volumes of workload, said the report, and telecommunications also face similar challenges as they are government-run in most countries in the region. The sector also faces the uphill task of updating legacy systems of their mobile phone and networks.

Providing a good digital experience is important for companies as it drives customer loyalty. The report says that customers “delighted” with a digital experience are 73% more likely to remain loyal to the brand, compared to just 13% to a brand with unsatisfactory digital experience – five and a half times more likely to remain loyal to the brand.

Customer loyalty is important for brands especially in a digital age where alternatives and competitors are at consumers’ fingertips. But a poor digital experience can do more than customers switching, said the report. “Many love to share a bad experience, which can lead to multiple losses across multiple customers within a short timeframe,” the report said.

“In today’s one-click economy, the consumer is the king. They demand better convenience, greater control and instant satisfaction,” said Fox-Martin. “If a brand is unable to deliver, the consumer will find another brand that can. As consumers become more powerful, organizations need more powerful systems to deliver on their high expectations.”

The report covered 711 brands, where each of the 18,861 surveyed rated at least three brands in 14 attributes. The most important attributes were “safe and secure”, followed by “available anytime on my terms”, and “relevant offers without infringing on privacy”. The least important out of the 14 were “makes me feel unique”, “predicts my preferences” and “associates with my identity”.

The countries analyzed in the report includes Australia, New Zealand, India, South Korea, Japan, Thailand, Singapore, Indonesia, Malaysia and the Philippines.

 

This article was written by John Kang from Forbes and was legally licensed through the NewsCred publisher network.

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