The majority of 18-24 year olds are likely to switch providers if not provided with mobile apps or secure and transparent data handling, according to new research.
The study, from EMC, quizzed youngsters on their standards over their suppliers in retail, financial services and technology, media and entertainment sectors.
Key findings:
• Lack of brand loyalty for 18-24 year olds in the UK & Ireland when providers can’t meet their needs
• Lack of control of personal data most likely to drive consumers to another brand (54%), followed by if their supplier suffered a data breach (50%), or didn’t provide mobile services (37%)
• Financial Services organisations are faced with the greatest pressure to innovate and meet growing customer demands around data security and transparency
The youth (18-24 year olds) of the UK & Ireland’s Information Generation, have demonstrated exacting standards over their suppliers in retail, financial services and technology, media and entertainment sectors, research undertaken by Opinium reveals today. While data breaches often dominate the headlines, today’s technology driven Information Generation are more concerned about personal data controls, with 54% of respondents suggesting they’d switch providers if their current provider didn’t give them control over their personal data (defined as the information the provider holds about an individual and is displayed to them via an web or mobile app).
Across the three sectors surveyed, it’s the financial services industry that appears to be faced with the greatest pressure when it comes to customer loyalty: 58% of 18-24 year olds would be willing to switch to a competitor if their current provider didn’t give them control over their personal data, although the retail sector isn’t far behind with 57%, and 51% in the Technology, Media and Entertainment (TME) industry.
When it comes to data breaches both financial services and retail industry faces challenges to retain customers if a breach occurred – over half (53%) would be likely to switch providers. TME again is closely followed with 47% likely to switch.
A failure to provide mobile services will also lead to customers deserting their provider, with 46% of respondents claiming they would leave their current supplier in the TME industry if they didn’t provide mobile services. Financial services organisations (40%) and retail (36%) follow closely behind.
While the pressures facing business to cater for these consumers are becoming clear, the reality is that many of today’s businesses struggle to cope and able to fulfil these demands. Based on input from 3,600 Director-to-C-Suite business leaders across 18 countries, EMC’s study The Information Generation: Transforming The Future, Today, identifies the fundamental business attributes critical for organisations to successfully compete and thrive in this new landscape.
Some 93% reported that recent technology advancements are resetting customer expectations, and nearly all say this will accelerate over the next decade. The top reported customer expectations are faster access to services, 24/7 and “everywhere” access and connectivity, access on more devices, and a more unique personalized experience.
While companies brace and prepare to meet evolving customer expectations, the world is evolving at an equally rapid pace. Institute For The Future has forecasted major macro shifts in how technology will continue transforming the world by 2024. There are strong signals of a move toward a world in which nearly every element of life will be data-driven. Individuals and corporations will sell, donate and trade information on open exchanges.
“Youth in the UK & Ireland are demanding customers; born into the Internet Era, immersed in social media and generally unfamiliar with any phone that isn’t ‘smart’, they have more exacting requirements of their providers, whether it’s a bank or an online store. What may perhaps be shocking from our study is the high propensity to change suppliers if their data isn’t being looked after, which shows how agile businesses must be to engender loyalty in this new generation of consumers” comments Ross Fraser, senior vice president and Managing Director for EMC in the UK & Ireland.
Fraser concludes: “As consumers we are all making new digital demands of the businesses with which we deal. This Information Generation, where brand loyalty is a thing of the past, is forcing mature businesses to transform and adapt to meet these new consumer expectations shaped around accessing services and resources at the touch of a button. For those organisations redefining themselves for this new world, transformation needs be focused, purposeful and company-wide.”
“Our mission is to provide practical foresight for a world undergoing rapid change – and to help turn insights into action,” said Rachel Maguire, Research Director at Institute for the Future. “It’s critical that we systematically explore the longer-term implications of an age in which information is at the center of everything we do, continually re-conditioning us in ways we still have yet to imagine. The world’s most information-savvy organizations – if they ready themselves – will lead one of the most significant transformations in history.”
Methodology
The research was conducted by Institute for the Future & Vanson Bourne on behalf of EMC. Vanson Bourne surveyed 3,600 business leaders across 18 countries from mid-size to large enterprises in nine industries to determine top business imperatives required for success today and over the next decade. Institute for the Future led the creation of the study to identify and forecast the imperatives and shifts in the new digital world. The research questionnaire and imperatives are based upon in-depth interviews and workshops with 40+ influential global decision-makers and experts across multiple industries, with a diverse mix of academic, industry, nonprofit, and think-tank leaders.
The poll of 18-24 year olds was conducted by Opinium online, on behalf of EMC. Opinium surveyed 1006 individuals between April 2nd and 10th, including representative samples of the youth populations of the Republic of Ireland, Scotland, England and Wales.