Nearly Two Thirds of Consumers in Asia Pacific and Japan Are Not Delighted with Their Digital Experience

SINGAPORE, July 25, 2016 /PRNewswire/ -- SAP Asia Pacific Japan today 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®[1] 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 per cent) 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 per cent of unsatisfied respondents would remain loyal. On average, customers delighted with the digital experience delivered a Net Promoter Score of 67 per cent compared to a score of -66 per cent 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:

• 55 per cent of delighted consumers would disclose their buying preferences, 12 per cent among unsatisfied customers.
• 53 per cent of delighted consumers would disclose their education level, 12 per cent among unsatisfied customers.
• 51 per cent of delighted consumers would disclose their occupation, 11 per cent among unsatisfied customers.
• 49 per cent of delighted consumers would disclose their social media usage, only eight per cent among unsatisfied customers.

In South East 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 and secure was by far the most important attribute to consumers (63 per cent 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 per cent), providing relevant offers without infringing on privacy (38 per cent) and cohesive, integrated and simple (38 per cent)[2]. 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 re-invented 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."

To download the Asia Pacific and Japan Digital Experience Report 2016, visit APJ Digital Experience Report

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; government). SAP conducted follow-up interviews with brands recording the best digital experiences to identify the reasons for this.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device -- SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 320,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

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SOURCE SAP Asia Pacific Japan

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