SAP just launched its inaugural Asia Pacific Japan Digital Experience Report that reveals how some of the region’s largest brands perform in delivering the digital experiences their customers want. It offers detailed insights about customers’ digital expectations across 10 countries in the region and the ability of brands to meet them.
Capturing results from nearly 19,000 consumers, who rated more than 46,500 digital interactions against 14 attributes, the report found that nearly two thirds (65%) of respondents were not delighted with their digital experience. Even in countries where there are more delighted than unsatisfied consumers, there is a considerable difference in performance among industries and between the best and worst performing brands. Furthermore, the study also uncovers a strong correlation between the digital experience and business outcomes, including customer loyalty and advocacy.
Consumers who are delighted with their digital experiences are more than five-and-a-half times more likely to remain loyal to a brand than those who are unsatisfied. Only 13% of unsatisfied respondents would remain loyal. On average, customers delighted with the digital experience delivered a Net Promoter Score of 67% compared to a score of -66% from those who were unsatisfied.
Security an important attribute across Southeast Asia
As Southeast Asia consumers increasingly turn to online channels for their needs, safety and security remains a top concern in their digital engagement across the markets with close to 60% rating this as an important attribute of a digital experience, according to SAP’s report. The ability to engage anytime and on their own terms is also rated highly at 49% followed by having a cohesive, integrated and simple experience at 46%.
Across countries in Southeast Asia, including Indonesia, Malaysia, Philippines, Singapore and Thailand, less than half (47%) were delighted with their digital experience, with 20% unsatisfied, giving a digital experience score of 27%. Importantly, delighted consumers are over 9 times more likely to remain loyal than those who are unsatisfied and deliver an NPS of 70% compared to -67% from those who are unsatisfied.
For instance, consumers who were more satisfied with a digital experience were willing to share their educational level and buying preference. Consumers who had an unsatisfying digital experience were not open to sharing their mobile phone records or personal finances.
What consumers value in their digital experience
Consumers rated their satisfaction with the digital experience from individual brands across 10 industries based on 14 attributes, including security, engagement, personalization, responsiveness, and simplicity, among others.
Source: SAP – “What matters to consumers?”
Safe and secure was by far the most important attribute to consumers (63% rating this attribute as 9 or 10 on a scale from 0 to 10) when ranking the components of a delightful digital experience. The next most important were services that are available anytime on my terms (41%), providing relevant offers without infringing on privacy (38%) and cohesive, integrated and simple (38%). However, those brands that performed well also scored significantly higher in the more emotional attributes, such as predicts my preferences and excites and engages me.
“It is Asia’s moment for digital. The connection between the digital experience and business outcomes, particularly customer loyalty and advocacy, highlights the urgency at which brands in the region must drive the digital experience to thrive in the digital economy,” said Adaire Fox-Martin, President, SAP Asia Pacific and Japan. “Failure to do this will see brands left behind by new, non-traditional players prepared to seize the opportunity and deliver digital experiences that delight.”
Delivering delightful digital experiences
Organizations that performed best were frequently those whose business models were developed from the ground up with the digital consumer in mind or that re-invented their business models or indeed their entire organization for digital-first or digital only engagement.
Fox-Martin concluded, “With SAP’s Asia Pacific Japan Digital Experience Report, we’re offering a method that helps organizations measure and manage their digital-experience performance from their customers’ perspective. Whilst organizations and industries will have varying approaches to digital transformation, the central driver will always be the customer. Brands that perform best in this new digital marketplace are those that use a digital business framework to unite their people and processes on a single system to deliver on their customers’ ever increasing demands.”
To download the Asia Pacific and Japan Digital Experience Report 2016, visit APJ Digital Experience Report