Consumers in Southeast Asia are significantly reducing their spending with brands due to poor customer service experiences, according to a recent study by the Qualtrics XM Institute.

The research, which surveyed over 4,400 consumers across Indonesia, the Philippines, Singapore, and Thailand, reveals a concerning trend of consumers turning away from brands after negative interactions.

What you should know

• Thailand ranks second globally for reported poor customer experiences, with 19% of interactions falling short.
• Filipinos are most likely to reduce their spending with an organization (47%) after a bad customer experience.
• Organizations in Thailand face the highest sales at risk index (11%), emphasizing the direct impact of poor customer experiences on revenue.
• Indonesia and Singapore have seen reductions in reported poor experiences, indicating potential improvements in customer service efforts.

“Customer service is in the spotlight like never before, and our research reveals how consumers across Southeast Asia are increasingly voting with their dollars. All it takes is one bad experience or wrong move for an organisation to be punished, which is why in 2024 companies need to be more careful than ever not to mistreat customers,” said Moira Dorsey, Head of Qualtrics XM Institute.

With consumers increasingly willing to switch brands or reduce spending after negative experiences, organizations must focus on enhancing customer satisfaction and maintaining human connection, especially as AI becomes more prevalent in customer interactions. By addressing consumer concerns and prioritizing human connection, businesses can not only mitigate revenue loss but also foster increased sales and customer loyalty in the competitive Southeast Asian market.