Qualtrics, a customer experience brand, today launched research revealing how the COVID-19 pandemic is impacting consumer spending habits in Singapore.
According to the research, almost half of Singaporeans (42%) are watching every dollar they spend right now, and 56% of respondents agreed they have consciously bought cheaper brands during the pandemic. A similar amount (57%) said they are more likely to buy items on promotion, while half (51%) have bought different brands due to availability.
Over the next six months, Singaporeans expect to spend more on food items and services. Half of the respondents to the study said they will spend more on takeaways and home delivery services, followed by fresh food (42%) and packaged groceries (37%). Consumer spends on utility bills and services (47%) and cleaning products (35%) are also likely to increase. In contrast, almost two-thirds of consumers (60%) expect to spend less on luxury brands and products, entertainment and travel (60%), eating out at restaurants (55%), and alcohol (48%).
“While we know consumers will always value cost, quality, and convenience, findings from the Qualtrics study highlight the major extent to which people are actively seeking out alternatives. In fact, a third of respondents said they have tried at least one different brand since the pandemic began,” said Lisa Khatri, Research & Brand Experience Lead for Qualtrics in APJ.
“The levels at which consumers are willing to try different brands right now is a huge opportunity for businesses to grow market share and increase loyalty among existing customers – across all industries. Using Qualtrics, organizations can develop a constant pulse of consumer behaviors, preferences, and attitudes. This provides them with insights to optimize and personalize their go-to-market strategies for current market needs,” added Khatri.
The Qualtrics study revealed the availability and ease-of-use of digital services are having an increasing impact on consumers in the banking industry.
Almost a third of respondents (30%) said they want to be able to conduct their banking online all of the time, with another 45% wanting to use these services most of the time. Alongside increased usage, the study revealed the quality of digital platforms is having a greater impact on consumer trust in financial services.
Despite the preference and shift to digital platforms in financial services, only half (54%) said they felt online banking is extremely safe.
Cost is the main factor influencing consumer spend on telecommunications.
While the majority of consumers agreed they will likely stay with their current provider for the next six months (across pre-and post-paid), 47% would consider switching providers offering better prices or offers. Other factors influencing consumer loyalty in telco are increased fees (46%), better product quality and features (40%), unexpected fees (38%), and convenience to switch (33%).
While travel has decreased as a result of the pandemic, businesses looking to draw customers back are advised to focus on cost, hygiene, and security. Singaporeans listed price (54%), cleanliness and hygiene (50%), and safety and security (45%) as the top factors impacting their choice.
*Qualtrics surveyed 328 Singaporeans (aged 18-65) in early September 2020.
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