Asia Pacific Japan Digital Experience Report

52 Pages·2016·4.21 MB·English

SAP ASIA PACIFIC JAPAN
DIGITAL EXPERIENCE REPORT
2016
CONTENTS
Executive Summary 2
Understanding Asia Pacific Japan’s Digital-Experience Performance 6
The Digital-Experience Attributes 7
What Matters to Consumers? 8
Calculating the Digital-Experience Score 9
Business Impact of the Digital Experience 12
Personalisation Vs. Privacy: the Virtuous Circle 14
Industries at a Glance 16
The Digital Experience by Country 18
Australia 19
India 22
Indonesia 25
Japan 27
Malaysia 30
New Zealand 32
Philippines 36
Singapore 38
South Korea 40
Thailand 43
The Digital Business Framework 46
References 49
Acknowledgements 50
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
EXECUTIVE SUMMARY
As the region with the greatest number of digitally As more people in the Asia Pacific Japan region
savvy consumers, Asia is primed to lead the digital come online with increasingly sophisticated and
world. Smartphone and tablet penetration in mature engaging smart devices, the digital experience is
markets such as Korea and Singapore borders nearly taking over an increasingly large part of the overall
90%. Meanwhile in developing nations such as India experience a customer has with a brand. From
and Indonesia as many as three people a second discovery through purchase, delivery and support
experience the Internet for the first time. According to of a product or service, the digital experience has
the Economist 1, by 2030 more than a billion Indians become ubiquitous across industries.
will be online.
But how are brands performing in delivering
It is Asia’s moment for digital. Although Asian on consumers’ digital demands as part of the
organisations may not always be first, they have the omni-channel experience? SAP has increasingly
opportunity to be better, learning from the pitfalls received this question from our customers.
and best practices of preceding digital-first business They want to better measure and manage how
models and completely (re)inventing themselves for they interact digitally with their customers and
a digital economy. better understand the impact of the digital customer
experience on business outcomes.
BANKING RETAIL (CONSUMER)
ALL RESPONDENTS HAD
GOVERNMENT AUTOMOTIVE
SOME KIND OF DIGITAL
EXPERIENCE WITH AT LEAST
TWO OF THESE INDUSTRIES:
UTILITIES RETAIL (GROCERY)
TELECOMMUNICATIONS INSURANCE
• 18,861 CONSUMERS SURVEYED
• 46,498 DX INTERACTIONS RATED
• 215 BRANDS INDEXED MEDIA & HIGH TECH
ENTERTAINMENT
• 711 BRANDS RATED
1. www.economist.com/news/leaders/21693925-battle-indias-e-commerce-market-about-much-more-retailing-india-online
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
This was the motivation behind SAP’s Asia Pacific
Digital Experience: The digital experience is defined in
Japan (APJ) Digital Experience Report. Much
this research as a digital interaction between a brand and
research in this space starts by surveying the brands its customer as part of the discovery, transaction, delivery
to investigate their digital performance. This study or support of a product or service.
takes a more candid approach and goes directly
to those brands’ customers, who have assessed
LOYALTY AND NPS®
tens of thousands of digital experiences across ten
business-to-consumer industries. Of those identified as Of those identified as
unsatisfied with their delighted with their
digital experience: digital experience:
This sample size allows an unprecedented level of
analysis at the national level, the industry level and
even at the level of the individual organisation. The
research enables statistically significant findings and
UNSATISFIED DELIGHTED
analysis for 215 of Asia Pacific Japan’s largest brands.
What we found is that a brand’s own perception of
its digital performance is far more forgiving than that
of its customers.
In most markets across Asia Pacific Japan, there
Just 13% 73%
is a sizable gap between what consumers expect
would remain would remain 
from a digital experience and what brands are loyal to loyal
the brand
actually delivering. Nearly two-thirds of consumers
across the region are not delighted with the digital
experience brands provide them. And this gap matters:
A delightful digital experience drives customer At the same time, Similarly, based on the NPS®
the NPS® from methodology, delighted digital
loyalty and advocacy and is ultimately tied to better this segment is customers identified the
organisational performance across industries. These a staggering brands they interact digitally
with a complete about turn
are the fundamental findings of SAP’s APJ Digital
Experience Report.
-66% 67%
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
THERE IS A STRONG CORRELATION
ONLY ONE THIRD OF CONSUMERS = BETWEEN DIGITAL EXPERIENCE
IN THE REGION ARE DELIGHTED PERFORMANCE AND CONSUMERS’
WITH THE DIGITAL EXPERIENCES WILLINGNESS TO PROVIDE BRANDS
BRANDS PROVIDE. WITH PRIVATE DATA.

It’s clear that digital transformation is top of mind The study included an analysis of consumers’
for organisations in the region as they grapple with willingness to provide different types of private data
implementing better technology and processes to in return for a more personalised digital experience.
boost their front-end customer experiences. The more delighted consumers were with a brand’s
digital experience, the more willing they were to
Nevertheless, only 35 per cent of consumers are disclose personal information.
delighted by the digital experience they receive from
brands in the region. Across an index of 215 large
brands, just under 42 per cent or 90 brands, had
more delighted than unsatisfied customers.
NATIONAL DIGITAL-EXPERIENCE
THE CORRELATION BETWEEN SCORES VARY WIDELY ACROSS ASIA
DIGITAL EXPERIENCE PERFORMANCE PACIFIC JAPAN, BUT SIGNIFICANT
NPS PEERXDFPOIEGRRIIMTEAANLNCCEE LOYALTY AND NET PROMOTER SCORE® (NPS®) GAPS EXIST CONSISTENTLY
AND LOYALTY IS VERY STRONG. BETWEEN THE BEST AND
WORST PERFORMING BRANDS
IN EACH MARKET.
Customers delighted with a digital experience While the national digital-experience scores across
are over five and half times more likely to remain the ten markets varied significantly, the gap in score
loyal to a brand than those who are unsatisfied. between the best and worst performing brands in
On average, customers delighted with the digital each market is consistently large. Regardless of a
experience delivered a Net Promoter Score® of country’s overall digital experience performance,
67 per cent compared to a score of -66 per cent numerous brands within each country risk irrelevance
from those who were unsatisfied. by delivering digital experiences inferior to those of
their domestic and international competitors.
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
Digital transformation takes on many forms, but In today’s one-click economy, consumers demand
regardless of how an organisation defines it, its more every day – better convenience, greater control
motivation should be clear: the customer. According to and instant satisfaction. If a brand can’t deliver it,
research commissioned by SAP with IDG in early 2016, the consumer will find another that can. Every time
improved outcome-based, omni-channel customer consumers gain more power, organisations need more
experiences was by far the top driver of digital power to keep up with these demands.
transformation strategies among organisations.
The digital experience is a lot more than a website
The customer is driving digital transformation; but is or an app. Underlying the elusive delightful digital
digital transformation delivering for the customer? experience is a much more sophisticated system.
By closely examining national, industry and brand-level As the findings indicate, organisations that perform
performance – as reported directly by consumers in best are those who unite their people and processes
the region – that is what SAP’s APJ Digital Experience on a single system to deliver on their customers’
Report uncovers. relentlessly increasing demands.
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
UNDERSTANDING ASIA PACIFIC JAPAN’S
DIGITAL-EXPERIENCE PERFORMANCE
The Asia Pacific Japan Digital Experience Report serves To assess Asia Pacific Japan’s digital performance,
to fill a gap in the market for consumer-based insights the study included a sample size of 18,861 consumers,
into the region’s digital performance. In response each of whom rated up to three brands. As a result, the
to local organisations’ strong demand for detailed report gathered assessments of nearly 46,500 digital
understanding of the value digital transformation interactions. The countries analysed in this report
can deliver, SAP commissioned research firm AMR included: Australia, New Zealand, India, South Korea,
to examine digital performance at the national and Japan, Thailand, Singapore, Indonesia, Malaysia and
industry levels, as well as at the level of the individual the Philippines.
organisation where sample size permitted.
QUESTIONNAIRE
RESPONDENTS COMPLETED COVERAGE
A 15 MINUTE ONLINE
SATISFACTION WITH
SURVEY RATING UP TO DIGITAL EXPERIENCE
3 INDUSTRIES EACH (GENERAL)
SATISFACTION WITH
DIGITAL EXPERIENCE
(BY INDUSTRY)
SATISFACTION WITH
DIGITAL EXPERIENCE FOR
INDIVIDUAL COMPANIES
NET PROMOTER SCORE® (NPS®)
LOYALTY
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
THE DIGITAL-EXPERIENCE ATTRIBUTES
At the core of SAP’s APJ Digital Experience Report the basis for the report’s findings. Consumers rated
lie the attributes of a delightful digital experience. brands’ performance in 14 attributes ranging from the
Defined in consultation with analysts, existing research functional (such as available anytime on my terms) to
and consumer focus groups, these attributes, as the emotional (such as excites and engages me).
rated by consumers across the region, represent
Available anytime Cohesive, integrated Fits in with my life Respectful and Responsive and Relevant offers without Customised and
on my terms and simple and is effortless dedicated t o my needs interactive infringing on privacy tailored to my
preferences
Makes me feel Predicts my Associates with Makes me love Excites and Makes me Is safe
important preferences my identity the brand engages me feel unique and secure

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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
WHAT MATTERS TO CONSUMERS?
Consumers rated how important the 14 digital on a scale from zero to ten. The below percentages
experience attributes were to them as part of the represent the number of respondents across the region
ultimate digital experience. An attribute was deemed who ranked that attribute as such.
important if consumers rated it either a nine or ten
70
63%
60
50
%)
RE ( 40 41%
O 38% 38% 37%
C 36%
S
CE 32% 31%
N 30 29% 29%
RIE 27% 26%
PE 24% 23%
X
E 20
L
A
T
GI
DI 10
0
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT
CALCULATING THE
DIGITAL-EXPERIENCE SCORE
To determine Asia Pacific Japan’s digital-experience An average of the ratings was then calculated, with
score, consumers from across the region rated their each consumer assigned an overall digital-experience
satisfaction with the digital experiences delivered score between 0 and 10.
from individual brands based on the 14 attributes,
on a scale from 0 (unsatisfied) to 10 (delighted).
DELIGHTED
WITH THE DIGITAL EXPERIENCE
THE DX SCORE IS CREATED BY
AMBIVALENT SUBTRACTING THE PROPORTION
WITH THE DIGITAL EXPERIENCE WHO ARE UNSATISFIED FROM THE
PROPORTION WHO ARE DELIGHTED
THE
DX
UNSATISFIED DELIGHTED UNSATISFIED
SCORE
WITH THE DIGITAL EXPERIENCE
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SAP ASIA PACIFIC JAPAN DIGITAL EXPERIENCE REPORT