As economies and internet penetration across Southeast Asia grow, we see a new type of consumer emerging. The digital consumer is one who purchases goods or services online. Their numbers have tripled in number in the last three years alone and will continue to grow exponentially with the availability of digital connectivity. Brands recognize that this is the new battleground if they want to be successful in Southeast Asia. Therefore, they must understand not just the market opportunity, but who these digital consumers are, how they behave and how to adapt their business model.
A recent study was conducted in July 2019 where Facebook collaborated with Bain & Company to reveal the spending behavior of consumers across the region. We are going to highlight some of the key components here in relation to the insurance industry.
1. The Market Opportunity
Southeast Asia as we know it is experiencing a high level of growth and digital adoption. This presents a huge potential as more and more people become digitally connected. With the middle class growing significantly, we see more digital consumers giving online spending a boost and adopting digital platforms and products. Simply, this means an increased number of digital consumers and increased online spending.
Therefore, insurers and even insurance agencies not only need to improve their online presence but implement digital solutions to elevate their customer experience in order to capture this market.
2. Introducing the Discovery Generation
This a generation made up of digital consumers whose purchasing habits are largely driven by inspiration and openness to digital discovery. Their purchase decisions are largely influenced by what they observe via social media channels.
Four Interesting Survey Results on the Discovery Generation:
70% of shoppers who do not know what they want or where to get it browse for items online.
75% of people in Singapore said that they are open and buying from multiple brands.
86% of shoppers compare products online and even offline before making a purchase.
54% of consumers learn about new products and brands online via social media
3. Redefining your Brand’s Future
The rules of the game indeed have changed with companies pivoting to digital marketing and online engagements from previously relying heavily on offline channels. Companies now need a multi-channel strategy that combines the best of both offline and online mediums in order to position themselves to capture the Discovery Generation.
Three Insights that Brands Need to be Aware of:
Fragmented markets means companies have the opportunity to win customer loyalty.
Discounts may help acquire customers but may not promote customer loyalty.
Build promoters with the right solutions in place. Promoters spend 3x more than Detractors.
Brands across all industries will need to re-evaluate their strategies to be able to target and attract this emerging type of consumers. Needless to say for a long-lived industry such as insurance, insurers need to work with agencies to build a seamless brand positioning and multichannel for consumers.