In South-east Asia, respondents of a customer experience survey were more prone to reduce spending, compared to those of other countries.
Through an online survey of a total of 28,400 consumers across 26 countries/regions* (1,200 respondents from all countries, except 400 from Hong Kong, 600 from Finland and New Zealand, 800 from Singapore and the UAE) on the impact of bad customer experiences (CX), an ‘experience management’ firm has the following data to share.
First, 53% of respondents in the South-east Asian (SEA) cities in the survey cut spending with a brand more after receiving bad customer service — a 2% higher rate than in a similar survey 12 months ago.
Second, of the 4,401 respondents comprising the Philippines, Singapore, and Thailand survey populations, 15% cited experiencing “a very poor customer experience” in engagements with “brands in the region”. This is similar to the incidence of poor customer experiences among the global respondents (14%) and is lower than the rate of 18% in a similar survey in 2022.
Other findings
Respondents from Thailand ranked second globally for reporting poor CX, with 19% of interactions falling short. The country also saw the largest increase in negative experiences among the 23 countries surveyed, with a rise of 6%. Also:
- Indonesia and Singapore respondents cited some of the biggest reductions in reported poor experiences, with a 10% and 8% decrease respectively.
- 47% of Filipinos respondents would reduce their spending with an organization after a bad customer experience — higher than the global average of 38%.
- Thailand respondents had the highest sales-at-risk index (11%), almost three times higher than those in Singapore (4%) and twice as high as those in Australia (6%), the US, and the UK (both 5%).
- Respondents across SEA were some of the most comfortable using AI when engaging with brands: 69% in Singapore believed AI will improve customer service levels through faster service times, resolving complaints/queries, and faster deliveries.
- Regional industries with the highest percentage of poor CX (in brackets) included:
- Indonesia: Government (31%), followed by medical institutions (21%)
- The Philippines: Internet service providers (38%), followed by Government (36%)
- Singapore: Auto dealers (16%), followed by property/health insurers (15%)
- Thailand: Government (39%), followed by auto dealers (30%)
- Regional industries with the lowest levels of bad CX (in brackets) reported by respondents:
- Indonesia: Banks and streaming media (8%), followed by airlines (9%)
- The Philippines: Streaming media (8%), followed by health insurers (9%)
- Singapore: Banks and supermarkets (4%), followed by public utilities (6%)
- Thailand: Department stores (11%), followed by supermarkets (12%)
According to Moira Dorsey, Head, Qualtrics XM Institute, which commissioned the survey: “Customer service is in the spotlight like never before, and our research reveals how consumers across SEA are increasingly voting with their dollars. All it takes is one bad experience or wrong move for an organization to be punished, which is why in 2024 companies need to be more careful than ever not to mistreat customers.”
* Argentina, Australia, Brazil, Canada, China, Colombia, Finland, France, Germany, Hong Kong (China), India, Indonesia, Italy, Japan, Mexico, the Netherlands, New Zealand, the Philippines, Singapore, South Korea, Spain, Sweden, Thailand, the United Arab Emirates, the United Kingdom, and the United States.
How poor customer experiences impacted businesses in SEA