DHL study says Asian consumers want more customer service

A new study commissioned by DHL on consumer behaviour and customer service in Asia Pacificrevealed that the region’s customer service standards do not always match customers’ demands and

Carried out by the Economist Intelligence Unit (EIU), the report entitled “Greater expectations:Keeping pace with customer service demands in Asia Pacific” uncovers the gaps between whatcompanies believe consumers want and what consumers actually say. It is based on two surveys withone interviewing over 300 senior executives and another over 700 consumers conducted in 10 marketsacross Asia.

The study confirmed that customer service standards as well as customers’ perceptions anddemands of service in Asia have changed dramatically in recent years, and not necessarily evenly.It further revealed that service, for example products, should be tailored to individual markets asconsumers in different parts of Asia have quite different service expectations.

The report highlighted the new trend in today’s Asia that price is no longer the only factor inpurchasing decisions. In parts of Asia, companies are still focused on price, but many consumersare willing to pay for better service. For instance, half of the Indonesian firms surveyed feelthat their customers are concerned only about price, not service. However, less than one-quarter ofthe Indonesian consumers surveyed agree to this perception. This suggests that firms which startcompeting on service will be more successful.

“These rising expectations amongst Asia’s consumers are driven by information and competition,not income,” said Yasmin Aladad Khan, Senior Vice President, Southeast Asia, DHL Express. “As theleading logistics company, we must be conscious of what our customers are aware of in order toprovide the best service and differentiate ourselves from the competition. And this study is justthe beginning.”

Roger Crook, the future CEO of DHL Express Asia Pacific, Eastern Europe, Middle East and Africawith effect from 1 January 2011, said: “Asia’s consumers are expected to increase their spendingfrom US$4.3 trillion in 2008 to US$32 trillion annually by 2030 equal to some 43% of globalconsumer spending by then.”

Sudhir Vadaketh, senior editor at The Economist Intelligence Unit, said: “The gap between whatcompanies are providing and what consumers say they want is an opportunity. As competition in theregion intensifies those companies who put more emphasis on customer service should gain anedge.”