Customer Engagement Trends in Indonesia 2020
Indonesia's massive digital penetration and young affluent middle class is forcing brands to rethink their engagement strategy. Read the top 5 customer engagement trends in the region.
· A rapidly growing segment of Middle-class Affluent Consumers (MACs)
· Young population – the median age in Indonesia is 30.2 years and 66.5% of the population is between the age of 15 and 64 years.
· Increase in internet & mobile penetration – 80% of Indonesians prefer to use smartphones to access the internet
· High Ecommerce adoption rates – 90% of Indonesia's 152 million internet users have purchased online before.
· Rapid Ecommerce growth – Indonesia's ecommerce market stood at a whopping USD $21.0 billion in gross market value (GMV) in 2019
Customer Engagement & Brand Experience as a Competitive Advantage
The retail sector in Indonesia remains one of the most promising markets among Asian countries and is expected to grow to $42.34 billion by 2023.
According to a study by SurveySenum, '67% of customers in Indonesia switch brands not because of the price or the features, but because of the lack of good customer experience'.
Indonesia is a Gold Mine for Omnichannel Marketers
With over 170 million internet and social media users, Indonesia is home to one of the largest digital audiences in the world. As of January 2020, online penetration in the country stood at a whopping 60%.
For most Indonesians, social media is a convenient way to contact families in remote locations of the archipelago, allowing them to stay in touch with friends and also keep up-to-date with the daily news. The most popular social networks in Indonesia in terms of adoption rates are YouTube (88%), WhatsApp (83%), Facebook (81%), Instagram (80%) and Line (59%). However, Indonesia's social media audience isn't merely large, they are also very active. The average Indonesian spends 3 hours and 26 minutes on social media every day. This is a significant spike compared to the global average of 2 hours and 22 minutes.
Top 5 Customer Engagement Trends in Indonesia
· The blurring lines between social media and commerce
· Indonesians have a higher distaste for Ads
· The rise in demand for personalized, real-time, cross-channel engagement
· Gamified loyalty programs will be key to drive deeper engagement
· Location-based mobile interactions
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