Extra tags: data security
A new global survey from Salesforce reveals critical changes to consumer spending amid inflation and economic uncertainty. Findings from the study of over 5,000 consumers, including 1,002 in Singapore, highlight current sentiment on spending and what it will take to earn consumer loyalty in 2023.
Travel, hospitality, retail, media and entertainment are most at risk as consumers rethink spending
In Singapore, consumers are thinking more critically about where they will spend their money in 2023, with 84% saying they will reassess their budget over the next 12 months.
Travel and hospitality providers are most at risk – 83% of Singapore consumers say they will reassess their spending on holidays and eating out over the coming year. Retail, as well as media and entertainment, also face the potential for lowered spend, with 81% and 74% of consumers, respectively, reporting reassessment plans in those sectors.
Personalised, real-time experiences drive loyalty for spend-conscious consumers
An economy plagued by inflation and staffing shortages hasn’t lowered consumers’ expectations for top-notch service. Over 60% of Singapore consumers, in fact, expect a better experience from their favourite brands as a result of the current economic climate.
The good news is these same consumers are clear about what they believe makes an improved experience. Seventy-seven per cent say they will remain loyal to companies that deliver faster service, and 72% say they will stay loyal if the company offers a more personalised experience.
Singapore consumers also expect brands to use their data to offer more relevant customer services, with 57% reporting they expect companies to react instantly with the most up-to-date information when transferring across departments. Bolstering trust can also be an opportunity for loyalty; 81% say that companies that provide data security will encourage their loyalty.
Speaking about what smile cosmetics company Zenyum is doing to create personalised customer experiences, Julian Artopé, CEO, Zenyum, said, “At Zenyum, we’ve always been focused on democratising access to dental treatment. We provide free personalised insights into what customers can expect from straightening their teeth with ZenyumClearTM Aligners at the very beginning of the journey to ensure they don’t experience any hidden cost and have all their individual questions answered. Every smile is different, and we tailor the entire experience to our customers’ requests from the moment they submit pictures of their teeth to when they go for the fitting of their 3D-printed ZenyumClearTM Aligners. This only works at our scale with a customisable strong data backbone that can capture these individual requests.”
Disconnected experiences spark frustration in consumers
On the flip side, Singapore consumers were also willing to report what made for a poor experience. They reported top frustrations ranging from disconnected experiences (46%) to not getting answers to their questions quickly (39%) and being offered products that aren’t relevant to them (37%).
When added together, frustrating experiences create negative brand perceptions — and possibly, a future customer loss. According to more than half (54%) of Singapore consumers, poor quality service is the primary reason that prevents them from making repeat purchase.
Real-time data drives exceptional customer experiences
Research shows that personalised customer experiences are no longer ‘nice to have,’ they are essential to competing in a changing economy.
Real-time data offers a path for companies that want to compete in this new economy and deliver the personalised experiences consumers expect. When pulled together into a single source of truth, real-time data offers rich and actionable insights that can help deliver intelligent and connected customer experiences.
“With the GST hike this year and inflation keeping prices high, it is no surprise Singaporeans are being more cautious and selective with their spending. In a market with abundant options, consumers can be easily lured away by better alternatives if companies do not offer personalised, connected, fast and trusted experiences that keep them coming back. Companies that are adapting their customer experiences by actioning on real-time data insights will be the ones that win the favour of consumers, even as they become more spend-conscious,” said Cecily Ng, Senior Vice President and General Manager of Salesforce Singapore and Taiwan.
