Opportunity knocks for Europe’s digital consumer: Digital trends show big gains and new opportunities

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When COVID-19 was at its peak, digital was the only option for Europe’s consumers to get their necessities. But with the worst of the pandemic over, Europe’s consumers are not only venturing more into the analog world but also asking more from the digital world. Companies need to pay heed, especially as new concerns stemming from economic and geopolitical uncertainties create more unease among consumers, businesses, and governments alike.

Our third annual Digital Sentiment Survey in Europe1 found that, despite some expected growth in offline activity following the end of COVID-19-related quarantines, digital adoption remains strong. But with uncertainty increasing, companies need to focus on becoming more digital, a capability that past experience has shown leads to greater resilience by opening new markets, improving efficiency, and enhancing decision making. These uncertainties are underscoring a need to double down on three key areas of digital opportunity that our survey revealed: user experience, mobile, and revenue-generating interactions.

This year’s survey also brings a strong message: companies need to invest differently in digital offerings. While IT investment has surged the past two years to enable growth in digital adoption, these investments were not fully directed at the areas consumers themselves value most today. The nine exhibits that follow tell the story behind the trends and how companies can act.

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1. Digital adoption has settled down, but usage jumped overall

Post-COVID, digital activity cooled, but usage is still high overall.

2. Countries are converging on digital adoption

Slow adopters are catching up.

3. There are significant variations in digital adoption by sector and country

There are broad decreases in average digital adoption, though this varies significantly by country.

4. Despite high adoption rates, customer satisfaction lags on design and experience

Satisfaction in digital channels is going down.
What’s next for digital consumers

What’s next for digital consumers

5. External factors also threaten to hamper digital growth

Digital users perceive negative impacts on the economy, in particular inflation and slowing economic growth.

6. Digital can protect against softening markets

Historically, highly digitized industries have been resilient in the face of decreases in digital use.

7. Significant opportunities exist for companies to create more revenue-generating interactions

The majority of digital interactions are simple and don’t generate revenue.

8. Mobile is a primary on-ramp to digital adoption

Industries with higher mobile penetration are, in general, growing more in digital adoption than other sectors.

9. Clear opportunities exist for better allocation of IT investments

Companies are not focusing their improvement efforts on the main reasons for user dissatisfaction.
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