Customer experience after COVID-19
Customer Experience Group and Wisely Insights present insights of Chinese Customer Sentiment After COVID-19
- Luxury purchases will continue to increase locally in Mainland China as Chinese customers do not intend to travel abroad in the coming months, even if travel bans are lifted.
- Even though online purchases will strengthen post-COVID-19, Chinese customers still consider visiting the physical store to purchase luxury goods. One of the key reasons is the human interaction with Sales Advisors which is missing when shopping online.
- More than ever, Sales Advisors have a key role to connect the brand with customers however, their role may change. They will not only connect with customers in the store but also interact with them across various digital platforms.
Shanghai, China 21st July 2020– How have Chinese customers appreciated the communication from brands during COVID-19? What about their intention towards travel now and the impact on their luxury purchases? What has changed in Chinese customer’s luxury purchasing habits and their relationship with luxury retail stores in particular?
To answer these key questions, Wisely Insights, the customer research agency of the Customer Experience Group, conducted a survey interviewing Mainland Chinese citizens who are consumers of premium and luxury goods. The research was conducted in May 2020.
Customer Experience Group CEO, Christophe Caïs shares: “We wanted to understand what matters most to Chinese customers now that they are recovering from COVID-19. What are the new trends and opportunities arising from this crisis? How can we better assist our clients to deliver greater customer experience to their Chinese customers?”
How has brands’ communication been perceived during the outbreak?
The Customer Experience Group and its agencies strongly believe that the most successful brands are those who manage to create a memorable and emotional connection with customers. The Chinese customers surveyed validate this point as 73% said they expected brands to keep in touch during the crisis. However, there is a gap between what was expected by customers and the reality as only 51% remember having been in touch with brands during this period. Customers shared mostly positive feedback about the messages sent by brands (‘caring’, ‘appropriate’) but half of them regret that some messages were more sales-centric than customer-centric (‘message of support’).
What are Chinese customers’ intentions towards traveling now?
Chinese travelers played a huge part in driving the luxury industry’s revenue in previous years. With the COVID-19 outbreak, what are the travel intentions of Chinese customers and which country do they intend to visit?
The majority of Chinese customers feel safer in their country than anywhere else: 83% of respondents stated that they felt the worst of the pandemic was over in China, and 94% believe that living in China is safer from the virus than the rest of the world.
Consequently, Chinese customers prefer to travel domestically (within Mainland China) even when travel bans are lifted. Due to this, luxury purchases will continue to increase locally as domestic traveling is favored among Chinese customers.
How are Chinese customers adapting their purchasing habits?
Chinese customers (93%) are fully confident in China’s economic recovery. However, when it comes to their personal financial situation, roughly one-third of them raised concerns about their financial situation in the near future. Customers stated they will decrease their spending across most categories. There are two categories however that are less impacted with consumers expecting to spend the same than before on luxury beauty and high-end technology.
During the COVID-19 period, many customers purchased luxury goodsonline, mostly from luxury beauty brands (78%) and they will consider purchasing online more regularly post COVID-19. Some of these notable online platforms used included the brand’s own website; Tmall.com; JD.com; and WeChat Mini Programs. Accordingly, brands need to further enhance their digital reach across these key shopping platforms.
What do Chinese Customers expect and what have they experienced so far when visiting stores?
Although online purchases will increase post-COVID-19, it does not mean that Chinese customers will give up on visiting stores for luxury purchases. Customers still report a much higher sense of luxury when purchasing in-store versus online.
Feeling safe is a prerequisite for customers visiting a store. Safety measures highlighted as the most important by respondents are masks worn by both staff and customers, as well as continuous sanitizing of the store after each visitor.
These safety measures should not be taken lightly by brands. Our report found that customers would immediately leave the store (98%), assess their loyalty to the brand (86%) and spread poor word of mouth among peers and on social media if brands did not meet health and safety expectations.
Furthermore, customers are highly interested in hybrid services where brands link their online and offline experiences. These hybrid services combine the benefits of both platforms: convenience, human interaction, less time spent in-store and safe environment with less crowded spaces.Initiatives such as in-store reservations and one-on-one shopping appointments can further enhance the customer experience.
To get the full report, please contact [email protected].
About Customer Experience Group
Founded in 2017, the Customer Experience Group is the alliance of five leading agencies, Wisely Insights, Activate Experience, Albatross CX,SmartCX, and FACE2FACE, offering together with a platform that elevates customer experience.
The Group caters to 200 of the world’s iconic premium and luxury brands and helps them transition from a transactional model towards a personalized relationship and emotional model through research, consultancy, experience feedback, training and coaching. Learn more about Customer Experience Group by visiting www.customerexperiencegroup.com
About Wisely Insights
Wisely Insights is a global customer research agency that helps premium and luxury brands make informed decisions for profitable growth. Wisely Insights is specialized in customised research programs (both qualitative and quantitative) to deliver relevant insights and actionable recommendations that positively impact its clients’ business. Insights that impact! Visit www.wiselyinsights.com
