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| Source: Cover, Asia Pacific and Japan Digital Experience Report 2016 |
- SAP research reveals Asia Pacific Japan's largest and best-known brands risk losing customers over poor digital experiences
- Assessment of over 46,500 digital interactions across Asia Pacific and Japan shows 65% of consumers are not delighted with their digital experiences
- Strong correlation evident between delightful digital experiences and improved loyalty, advocacy, and consumers' willingness to share private data
- A significant digital gap exists between the best and worst performing brands across all markets in Asia Pacific Japan
In Southeast Asian countries, delighted consumers are far more open to sharing personal information for a better digital experience as compared to consumers in Australia, New Zealand, Korea and Japan.
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, personalisation, responsiveness, simplicity, among others.
Safe ty and security 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
Organisations that performed best were frequently those whose business models were developed from the ground up with the digital consumer in mind or that had reinvented their business models or indeed their entire organisation 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 organisations measure and manage their digital-experience performance from their customers' perspective. Whilst organisations 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."
Interested?
Download the Asia Pacific and Japan Digital Experience Report 2016
About the Survey
*To better understand the digital experiences being delivered by Asia Pacific and Japan's leading brands and how these compare to consumer expectations, SAP commissioned AMR to poll just under 19,000 consumers across ten countries in the region: Australia, New Zealand, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand and Japan. Respondents analysed over 700 of the largest and best-known brands across eight industries (retail - consumer; retail - grocery; telecommunications/ISPs; insurance; banking; utilities; media & entertainment; and government). SAP conducted followup interviews with brands recording the best digital experiences to identify the reasons for this.
**SAP asked consumers about their propensity to recommend the brand to a friend (applying Net Promoter Score methodology) and their loyalty to the brand, and if they would remain a customer in the future.
***Importance based on consumers scoring each attribute on a scale of 0 (not important) to 10 (most important), with the most important attributes defined by a score of 9 or 10.
- Assessment of over 46,500 digital interactions across Asia Pacific and Japan shows 65% of consumers are not delighted with their digital experiences
- Strong correlation evident between delightful digital experiences and improved loyalty, advocacy, and consumers' willingness to share private data
- A significant digital gap exists between the best and worst performing brands across all markets in Asia Pacific Japan
SAP Asia Pacific Japan has launched its inaugural Asia Pacific Japan Digital Experience Report*, revealing how some of the region's largest brands perform in delivering the digital experiences their customers want. The study also uncovers a strong correlation between the digital experience and business outcomes, including customer loyalty, Net Promoter Score** and consumers' willingness to share private information.
SAP's Asia Pacific Japan Digital Experience Report 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.
Assessing more than 700 large brands across the region, the study also uncovers strong correlations between digital-experience performance and key business-performance metrics such as 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.
Data privacy and personalisation preferences
The link between the digital experience and business outcomes was also apparent in the report's examination of data privacy and personalisation preferences. The analysis shows that there is a strong link between digital-experience performance and the willingness of consumers to provide private data across 10 countries in Asia Pacific Japan:
SAP's Asia Pacific Japan Digital Experience Report 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.
Assessing more than 700 large brands across the region, the study also uncovers strong correlations between digital-experience performance and key business-performance metrics such as 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.
Data privacy and personalisation preferences
The link between the digital experience and business outcomes was also apparent in the report's examination of data privacy and personalisation preferences. The analysis shows that there is a strong link between digital-experience performance and the willingness of consumers to provide private data across 10 countries in Asia Pacific Japan:
- More than half (55%) of delighted consumers would disclose their buying preferences, but only 12% among unsatisfied customers.
- More than half (53%) of delighted consumers would disclose their education level, whereas 12% of unsatisfied customers would do so.
- Just over half (51%) delighted consumers would disclose their occupation, but 11% would do the same if they are unsatisfied.
- Nearly half (49%) of delighted consumers would disclose their social media usage, compared to 8% among unsatisfied customers.
In Southeast Asian countries, delighted consumers are far more open to sharing personal information for a better digital experience as compared to consumers in Australia, New Zealand, Korea and Japan.
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, personalisation, responsiveness, simplicity, among others.
Safe ty and security 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
Organisations that performed best were frequently those whose business models were developed from the ground up with the digital consumer in mind or that had reinvented their business models or indeed their entire organisation 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 organisations measure and manage their digital-experience performance from their customers' perspective. Whilst organisations 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."
Interested?
Download the Asia Pacific and Japan Digital Experience Report 2016
About the Survey
*To better understand the digital experiences being delivered by Asia Pacific and Japan's leading brands and how these compare to consumer expectations, SAP commissioned AMR to poll just under 19,000 consumers across ten countries in the region: Australia, New Zealand, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand and Japan. Respondents analysed over 700 of the largest and best-known brands across eight industries (retail - consumer; retail - grocery; telecommunications/ISPs; insurance; banking; utilities; media & entertainment; and government). SAP conducted followup interviews with brands recording the best digital experiences to identify the reasons for this.
**SAP asked consumers about their propensity to recommend the brand to a friend (applying Net Promoter Score methodology) and their loyalty to the brand, and if they would remain a customer in the future.
***Importance based on consumers scoring each attribute on a scale of 0 (not important) to 10 (most important), with the most important attributes defined by a score of 9 or 10.
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