VMware: Consumers remain underwhelmed despite big ‘digital switch’

Only 29% of consumers around the world believe the companies they interact with now deliver an improved digital experience compared to before the pandemic. The stark findings from a new study from VMware of more than 9,000 consumers, reveal that while there has been a seismic digital switch, businesses have not captured the attention of customers, who are feeling largely underwhelmed.

This should act as both a warning and opportunity for businesses, with nearly 49% stating they would switch to a competitor if their digital experience doesn’t live up to expectations – just 12% would remain loyal.

Matthew O’Neil, Industry Managing Director, Advanced Technology Group, VMware said, “There is no question that the development of new digital experiences has been integral to many businesses’ very survival over the past 12 months. However, while many companies successfully made the digital switch, our consumer insight shows that many have not delighted their customers with these new online experiences. Businesses who fail to focus on improving digital experiences are likely to lose customers – but those that do it well have everything to play for.”

Consumers’ digital expectations should come as no great surprise: they are seeking a high level of security and protection of their data (65%), ease of use across all their devices (44%), and simple and effective applications (39%). What is clear is that consumers want companies to get things right the first time. Even in this difficult climate, only 30% of respondents feel more forgiving when trials for new digital services, aimed at improving the customer experience, go wrong.

There is also appetite for more digital-first experiences for those organisations that want to truly impress their customers. Almost half (46%) would welcome an increased use of virtual reality by retailers to better understand how products might look in their homes, and 43% see their phone as more important than their wallet for financial transactions – rising to over half (51%) in 18–24-year-olds surveyed.

Matthew O’Neil added, “2020 was the year of the digital switch. In 2021 digital services will need to live up to consumer expectations. That means creating, delivering and protecting great applications, services and experiences for digitally hungry consumers. And a move from digitizing to becoming digital.”