An interesting study by global workplace provider Regus reveals that physical proximity to customers is key to businesses success. It highlights the fact that locations closer to customers bring bumper benefits including more sales and increased visibility.
The study conducted on more than 44,000 people from more than 100 different countries, including 365 respondents in Hong Kong, found that operating out of locations closer to their customers helps firms resolve issues faster (74%) and 71%said that customer proximity improves customer satisfaction and retention rates. 63% of the respondents believe that firms with local offices understand customers and markets better because they are steeped in the local culture.
The results from Hong Kong respondents were even more positive, with 82% feeling that operating out of locations closer to their customers can help boost brand visibility, 78% believe they can respond to customers’ enquiries more rapidly and effectively and 75% agreeing that firms with local offices understand customers and markets better and can improve customer retention rate.
See: 14 Most Future-proofed Professions in Hong Kong You Should Notice
Prospects and Benefits of Physical Proximity to Customers
| Global Ave | HK | Mainland China | Japan | S’pore | South
Korea |
|
| 1. Boost sales | 67% | 72% | 65% | 58% | 74% | 69% |
| 2. Improve customer retention rates | 71% | 75% | 74% | 73% | 74% | 80% |
| 3. Improve customer satisfaction | 71% | 73% | 73% | 76% | 78% | 83% |
| 4. Respond to customer problems more rapidly and effectively | 74% | 78% | 84% | 82% | 81% | 85% |
| 5. Chase up customer payments | 37% | 46% | 48% | 41% | 52% | 44% |
| 6. Understand customers and markets better | 63% | 75% | 81% | 61% | 73% | 69% |
| 7. Improve our marketing effectiveness | 63% | 68% | 84% | 64% | 71% | 69% |
| 8. Develop better products | 40% | 48% | 60% | 44% | 49% | 39% |
| 9. Strike better deals with suppliers | 46% | 52% | 66% | 57% | 53% | 40% |
| 10. Increase our visibility | 74% | 82% | 70% | 65% | 83% | 57% |
| 11. Attract and retain top local talent | 64% | 62% | 68% | 54% | 59% | 48% |
| 12. Improve productivity | 65% | 68% | 80% | 59% | 77% | 65% |
(Source: Regus survey, 2014)
The survey further identified key drivers that make companies wanting to setting up offices close to customers. Hong Kong respondents believed that the top three are: Increasing demand for better work-life balance (67%), the need to create an agile organisation that can respond to ever-changing market (36%), increasing demand from employees to work closer to home (35%).
Additional statistics on the key drivers of flexible workings:
| Global Ave | HK | Mainland
China |
Japan | S’pore | South
Korea |
|
| 1. Increasing demand to work closer to home by employees | 48% | 35% | 44% | 35% | 44% | 23% |
| 2. Increasing demand for better work:life balance | 61% | 67% | 53% | 57% | 50% | 50% |
| 3. Rising cost of commuting | 32% | 23% | 35% | 11% | 23% | 15% |
| 4. Rising cost of urban housing | 16% | 20% | 29% | 13% | 14% | 10% |
| 5. Desire to attract staff from a wider talent pool | 29% | 33% | 30% | 32% | 33% | 24% |
| 6. Need to create an agile organisation that can meet changing market demands | 44% | 36% | 44% | 39% | 46% | 45% |
| 7. Reduce leasehold property under-occupancy | 17% | 22% | 27% | 4% | 22% | 17% |
| 8. Comply with best-practice employee flexibility standards | 31% | 29% | 47% | 34% | 30% | 33% |
(Source: Regus survey, 2014)
Also read: Hong Kong Home Workers Fear Getting Fat and Lonely
