Tag: Purchasing Power

Toronto, Canada – Despite 92% of respondents agreeing that customer experience (CX) is vital to customers, 52% of the respondents said that CX on their end has less impact or no impact at all to their purchasing decision or long-term loyalty, according to the latest report by total experience management company Alida. 

In their global report, they have found that 95% of respondents say they’re willing to spend more for a better customer service experience, placing greater emphasis on their personal experience versus convenience. Respondents note that bad personal experience (79%) and poor brand reputation (65%) were also cited as the biggest influences in making a purchase.

Unfortunately, 75% believe brands are simply not listening to their feedback, and one in ten believe businesses will never use customer feedback to inform business decisions.

According to the report, the biggest ‘offenders’ are banks, in-person retail, and credit card companies.

Nicole Kealey, chief strategy officer at Alida, notes that the past year has seen a fundamental shift in how consumers interact with brands, forcing companies to change the way they engage with and stay close to their customers.

“Being reactive is no longer a viable business strategy. Our study shows that business leaders are missing out on a tremendous opportunity to harness the insight and opinions directly from their customer base to create a better customer experience, drive sales and increase customer loyalty,” Kealey stated.

The report also noted that 4 out of 5 consumers state that they are highly motivated to do business elsewhere after a bad customer experience. The majority of respondents stated that they are also likely to leave a bad review, something that can have a negative long-term impact on a business. According to the report, t negative social reviews influence the purchase decision of six in ten respondents.

Kealey notes that as all industries look to best navigate a post-pandemic world, companies must understand that one of their most important assets to success is a happy customer.

“A customer who has enjoyed your products, services and experiences will come back again and recommend you to their friends and family. But competition will become fierce and optimizing every step of the brand experience will be critical. To do so, brands must integrate CX into their overarching business strategy and employ the tools they need to truly understand their customers and take action,” she concluded.

Singapore – As the national government is easing down border restrictions related to COVID-19, local businesses in Singapore are finding new ways to bounce back and generate positive momentum. One of these factors is the significant rise of the Chinese expat demographic, who are seen as a factor these local brands can bank on in terms of purchasing power, a survey conducted by AI marketing platform EternityX shows.

Around 52% of the affluent respondents noted that they have spent an average of more than S$1,000 per month on luxury or beauty goods, 19% of which even spent an average of more than S$5,000 – a sum typically equivalent to buying a small shoulder bag from a luxury fashion house or a diamond ring from a high-end jeweler.

Furthermore, regardless of the complicated cross-border logistics, more affluent Chinese expats prefer shopping on Chinese online marketplaces including JD.com, Tmall, Taobao, and Pinduoduo rather than local and regional ones such as Shopee and Lazada.

The survey also found that most Chinese expats have been easing back into their pre-pandemic life; as 63% of respondents said that they have been spending more this year than they had in 2020.

“During the lockdown, we’ve seen brands shifting their focus to new consumer demographics within the territory, and Chinese expats are believed to be an important segment to aid consumption growth, now and into the future,” said Richard Andrew, managing director for Southeast Asia and Australia at EternityX.

In terms of making investments, about three-quarters of the affluent agreed that digital resources, including search engines (80%) and social media (73%), play important roles when they make investment decisions. In addition, 33% of the affluent Chinese expats plan on saving and investing 16% to 30% of their annual income, with stocks and bonds, insurance, and real estate being the top 3 investment options, indicating great untapped opportunities for financial institutions.

Lastly, in terms of media consumption, while over 71% of the respondents have lived in Singapore for over 10 years, Chinese expats still heavily utilize Chinese media platforms, with iQiyi, Douyin and Sina being the most influential platforms when it comes to their spending decisions; while WeChat, Toutiao and Sina News are their primary Chinese media channels for breaking financial news.

Media consumption plays a huge role on the purchasing behavior of these expats, as the survey shows that despite many of the respondents speaking English at home, 77% still tend to purchase brands that advertise in Chinese on a Chinese media channel. The survey reveals as well that campaigns running on Chinese digital platforms in simplified Chinese drive higher engagement and generate more leads with Chinese expats living overseas. This shows the power of communicating in a customer’s native language and the diversity of the platforms that can provide enhanced interaction with Chinese expats.

For Andrew, their latest data has shown that it can take up to 30 steps for a customer to make their purchase decision; the more expensive the products, the more steps the customers need.

“This survey reveals the unique ways in which Chinese expats spend their disposable income and consume media, which sheds light on how brands and businesses should tailor a personalized approach that best connects with their target customers. Demographics matter and therefore brands should embrace technology and innovative digital solutions that precisely target one of Singapore’s wealthiest segments [Chinese expats] in order to maximize the effectiveness of advertising campaigns,” he stated.