Consumers in Singapore are thinking more critically about where they will spend their money this year, with 84% saying they will reassess their budget over the next 12 months.
Travel and hospitality providers are most at risk, as 83% of Singapore consumers say they will reassess their spending on holidays and eating out over the coming year. Retail, as well as media and entertainment, also face the potential for lowered spend, with 81% and 74%, respectively, reporting reassessment plans in those sectors.
The Salesforce study – conducted in partnership with Survey Monkey in December 2022 – also reveals that personalised customer experiences are no longer ‘nice to have' but essential to competing in a changing economy.
In fact, six in 10 Singapore consumers expect a better experience from their favourite brands as a result of the current economic climate. They will remain loyal to companies that deliver faster service (77%), and offer a more personalised experience (72%). Bolstering trust can also be an opportunity for loyalty, with 81% saying that companies that provide data security will encourage their loyalty.
On the flip side, 54% of Singapore consumers are less likely to make a repeat purchase after receiving poor customer service. Top frustrations include disconnected experiences (46%), not getting answers to their questions quickly (39%), and being offered products that are not relevant to them (37%).
“With the GST hike this year and inflation keeping prices high, it is no surprise Singaporeans are being more cautious and selective with their spending. In a market with abundant options, consumers can be easily lured away by better alternatives if companies do not offer personalised, connected, fast and trusted experiences that keep them coming back. Companies that are adapting their customer experiences by actioning on real-time data insights will be the ones that win the favour of consumers, even as they become more spend-conscious,” says Cecily Ng, Senior Vice President and General Manager of Salesforce Singapore and Taiwan.
