The 2024 Qualtrics Consumer Trends Report reveals a significant shift in Filipino consumers’ priorities, valuing superior product or service quality and customer support over pricing. Even amid a high cost of living, consumers emphasize seamless digital experiences and patronizing brands contribute positively to society.
“Consumers in the Philippines expect more than ever from the organizations they engage with,” said Moira Dorsey, principal XM Catalyst, Qualtrics XM Institute.
Dorsey noted that brands should aim to aggregate and harness valuable customer feedback from diverse sources like surveys, social media, call transcripts, chat logs, and review sites. This wealth of information, when combined with operational data like average spending and visit frequency, becomes a powerful tool for understanding consumer behavior.
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“By integrating these insights, companies can gain a comprehensive understanding of their customers and tailor their services to meet their needs more effectively,” she said.
Challenges in enhancing customer service
However, enhancing customer service faces hurdles, especially the declining morale among frontline employees like cashiers and servers, crucial for outstanding customer interactions. Qualtrics’, an experience management company, research highlights their dissatisfaction with pay, development opportunities, and support, posing a challenge exacerbated by a lack of priority — only 38% of CX leaders emphasize frontline training.
The Qualtrics research also saw some emerging key trends in Filipino consumer behavior in 2024:
Human Connection and AI: Consumers increasingly demand human connection despite AI’s prevalence in customer interactions, emphasizing the need for a balanced strategy leveraging AI for transactions while empowering frontline staff for elevated service levels.
Evolved Feedback Dynamics: Direct customer feedback on negative experiences has decreased by 11% since 2021, shifting to indirect channels like call center conversations, online chats, and social media. Companies must adeptly capture feedback from varied sources to glean authentic customer insights.
Digital Support Challenges: While digital channels contribute significantly to revenue, consumers exhibit lower satisfaction with digital support compared to human-assisted service. This presents a critical hurdle as brands increasingly rely on digital platforms, expecting 40% or more of their revenue from these channels, despite customer dissatisfaction.
Addressing these challenges requires a nuanced approach:
Prioritizing Employee Support: Elevating frontline employee satisfaction and training is crucial to deliver superior customer experiences despite the rise of AI-driven interactions.
Adapting Feedback Strategies: Companies need to evolve feedback mechanisms, attuning to indirect feedback avenues for a comprehensive understanding of customer sentiments.
Enhancing Digital Support: Despite digital channel growth, improving customer satisfaction in these platforms remains paramount, given their increasing contribution to overall revenue.
The report underscores the need for a customer-centric approach, balancing technological advancements with a human touch. Understanding evolving consumer behavior and adapting service strategies accordingly will be pivotal for sustained customer loyalty and business success in 2024.