South African consumers are not embracing ChatGPT, a large language model (LLM), for brand engagement as much as their global counterparts, according to a survey conducted by Rogerwilco, ovatoyou, and Julia Ahlfeldt CX Consulting. The survey, which reached over 30,000 South African online consumers, found that while online engagement has increased in recent years, consumers are now displaying a sense of apathy and disappointment towards brands that fail to meet their expectations.
The report highlights that while local firms are using technology to cut costs and improve systems, consumers still prefer human interaction over automated bots for initial contact resolution. Email remains the most popular form of contact, followed by call centers. The use of website chat and consulting FAQs has decreased, indicating a shift in consumer preferences.
The survey also focuses on the potential of large language models, with OpenAI’s ChatGPT being the most prominent. However, only 15% of the South African customer panel had tried ChatGPT, compared to 47% in the US and 68% globally. While 46% of organizations are considering using ChatGPT to enhance customer experience, only 30% believe it will be effective.
The report emphasizes the importance of consumer reviews and recommendations. It reveals that 67% of South African consumers either post or read reviews and recommendations online, which can have a significant impact on businesses. Positive reviews are actively sought by consumers during the purchase journey, driving purchasing decisions worth R516 billion. Conversely, negative experiences are more likely to be shared with friends and family or posted on social media, which can result in lost sales for brands.
Another topic addressed in the report is consumer data acquisition. Despite companies collecting a massive amount of data, only 14% of businesses surveyed said they consistently use it. However, 69% of consumers believe their data is being utilized to enhance their customer experience. This disconnect between businesses and consumers regarding data usage could lead to a lack of trust in the future.
In conclusion, South African consumers are not fully embracing ChatGPT for brand engagement compared to their global counterparts. They still prefer human interaction and value customer reviews and recommendations. Additionally, there is a need for better utilization of consumer data to enhance the customer experience.
