Lack of consumer trust cost Singapore businesses $19 billion

Sri Narayanan

trust

Poor personalisation and lack of trust cost Singapore businesses $19 billion last year, as 45 percent of consumers switched companies, according to new research from Accenture. The survey was fielded in June - July 2017.

The thirteenth annual Accenture Strategy Global Consumer Pulse Research gauged the attitudes and expectations of more than 25,000 consumers around the world, including 357 Singapore consumers, about their appetite for more intuitive, technology-driven brand experiences.

The study revealed Singapore consumers are locked in a vicious circle with brands over customer experience. While 48 percent are frustrated when companies fail to deliver relevant, personalised shopping experiences, 53 percent are concerned about personal data privacy. The data highlights a significant digital trust deficit that must be addressed before true customisation can be delivered.

"Companies are creating new touch points, offerings and services that intelligently anticipate and flex to their customer's precise needs. Those that succeed will hit a 'sweet spot' where customers will be willing to share more personal insights into their world in return for greater value and the confidence that their data is protected," said Alison Kennedy, managing director, Accenture Strategy, ASEAN.

 

Digital trust deficit

Digital trust remains a critical barrier to enabling hyper-relevant experiences. Forty-two percent of consumers in Singapore are more likely to shop with companies that always personalise experiences, as long as their trust isn't compromised. 

accenture-consumerpulse

Expectedly, a clear majority (85 percent) of Singapore consumers say that it is extremely important that companies protect the privacy of their personal information. Another 72 percent say it is frustrating to realise that some cannot be trusted to use it appropriately.

Half of Singapore consumers fear intelligent new services will come to know too much about them and their family. While the vast majority (81 percent) are satisfied with the experience, 47 percent say it can feel slightly creepy when technology starts to correctly interpret and anticipate their needs. Overall, 61 percent want companies to earn their trust by being more open and transparent with how their information is being used.