Thailand Digital 5.0: is it time for a change?

Updated: Feb 12, 2020

Thailand Digital 5.0: is it time for a change?

 


In the age of 5G, the speed of digital disruption would only increase. We are going from the 4th generation of cellular network to the 5th, that will allow data to be transferred and consumed at an even faster rate with less delay.

Both aspects point to the same conclusion, people will consume more data at an even faster rate. This new level of speed and volume of data distribution and consumption opens up a whole new dimension on how business can and should interact with consumers.

Currently, an individual mobile user accesses over 250 website and applications per day. Unsurprisingly, the visit destinations are dominated by Social Media and Search Engines, accounting for almost 50% of on-screen time (see figure 1). Furthermore, only 6 types of platforms account for over 90% of total online time on mobile data. The top 3 platform types – Social Media & Blogs, Search Engine, and Instant Messaging – are platforms where information flows in both directions.

Not only are they becoming accepted sources of information, their unique positions in both reach and spontaneity have propelled them into the preferred choice of advertising. As a consequence, consumers are constantly bombarded with information through these platforms, whether desired or undesired as well as true or false. There is so much “noise” that it is becoming ever more difficult to cut through to the right consumers with the right messages and not get swallowed up in the massive flood of information.



Figure 1: Time spent online by website and application type via mobile internet, based on Q2 2019 TrueMoveH users nationwide

In a world where information are clicks away and everyone is always connected, many businesses face a real challenge in retaining consumer base and loyalty, not to mention acquiring valuable consumers. The traditional approach has always been to incentivize loyalty with some form of rewards, that with the right incentives the consumers will continue to buy from you. But with intensifying competition and everyone investing in a more and more aggressive loyalty programme, this is quickly becoming more and more costly and good deals can be found around every corner. Accenture Digital research finds that 71% of consumers says loyalty incentives programme does not make them loyal[1].


[1] - https://www.accenture.com/_acnmedia/pdf-43/accenture-strategy-gcpr-customer loyalty.pdf

 

If loyalty is no longer enough, what will it take? Would Marketing Mix 4Ps that has dominated marketing for the last several decades still suffice? Perhaps it is time to add another P into the model – Personalisation. A new kind of personalisation that harnesses the power of Big Data Analytics.



A new level of personalisation – introducing “Relevancy”

Every purchase decision starts with the inception of needs. A consumer is faced with a certain situation or a series of situations that calls for a solution, resulting in a need. By nature, situations are not permanent and humans are not patient with problems. So, a need has a very specific time window, based on the priority the consumer assigns to it. Unless a business can provide a solution that suit consumer’s needs within that time window, the opportunities are lost, most like to a competitor who was able to move faster.

There are two key components at play here to satisfy any consumers’ needs: tailoring to the needs, and tailoring to the time window. Now personalisation not only mean delivering the right offer to the right customer, but also at the right time. In other words, personalisation has to be highly relevant to be successful.

But in the digital world where everyone is always connected and information flows freely at dizzying speed, how does one reach the right customer at the right time? The answer is to accept the change in the market place and adopt a new paradigm of growth, a customer-centric data-driven growth.



Big Data and a New Dimension of Insights

Big Data technologies has enabled access to a whole new dimension of consumer insights. Combined with Advanced Analytics, businesses can gain unprecedented insights into the demand dynamics. Before a consumer decides to make a purchase, a need must arise. But that is only the starting point. An intelligent consumer will always seek to find the best offer that satisfy the need. This process can be represented below, classified into 5 stages[1].



  1. Need: This is where a consumer recognised the need, resulting in a demand. At this stage, a consumer forms a basic evaluation framework of what would solve the problem.

  2. Search: With a framework established, a consumer begins researching available options that passes the fundamental evaluation criteria.

  3. Comparison: After a sufficient number of viable options has been collated, the consumer evaluates each option to find the “best” option. This can be across a number of factors, most commonly price, quality, and timeframe.

  4. Decision: After weighing the pros and cons of each options, a consumer selects the “best” option in his or her opinion and make the purchase.

  5. Feedback: The consumer then re-evaluates the purchase post-decision, mainly if the selected option meets the original expectation or not, determining whether the consumer will repurchase or recommend the option or not.Before the digital age, once a consumer recognised a need, window-shopping is the most common form of option searching. The consumer visits a few stores and collects relevant information. With physical mobility coming into the equation, the “Search” stage is costly and restricted by multiple factors such as free time and proximity to shopping area. This is why “Price”, “Promotion”, and “Place” were so important. If it is within a consumer’s proximity, the chances of the “Product” being purchased is much higher However, businesses only begin collecting real data after a purchase has been made. Therefore, businesses were blind to the earlier stages of the decision process, where demand occurred and search and comparison took place. Businesses were forced to react to consumers rather than proactively engage consumers with relevant offers. In the digital age, search engine has become the first go-to place whenever needs arise. From a search engine, a consumer is exposed to a myriad of options on the internet during the “Search” stage. “Comparison” can be done as easily switching between browsing windows. “Price” and “Promotion” can be compared almost without cost to the consumers. “Place” has been transformed from offline to include online marketplace and visibility. Now, the entire decision process is visible from end-to-end. Big Data Analytics allows businesses to analyse the market behaviour from the moment searches began, the comparisons took place, when decisions were made, to when the feedbacks being broadcasted and circulated. With near perfect information available at the fingertips of consumers, the one to win over the consumers is the one who is able to harness the power of data and provide the most relevant offer to the consumers.


Before the digital age, once a consumer recognised a need, window-shopping is the most common form of option searching. The consumer visits a few stores and collects relevant information. With physical mobility coming into the equation, the “Search” stage is costly and restricted by multiple factors such as free time and proximity to shopping area. This is why “Price”, “Promotion”, and “Place” were so important. If it is within a consumer’s proximity, the chances of the “Product” being purchased is much higher.

However, businesses only begin collecting real data after a purchase has been made. Therefore, businesses were blind to the earlier stages of the decision process, where demand occurred and search and comparison took place. Businesses were forced to react to consumers rather than proactively engage consumers with relevant offers.

In the digital age, search engine has become the first go-to place whenever needs arise. From a search engine, a consumer is exposed to a myriad of options on the internet during the “Search” stage. “Comparison” can be done as easily switching between browsing windows. “Price” and “Promotion” can be compared almost without cost to the consumers. “Place” has been transformed from offline to include online marketplace and visibility.

Now, the