72% Hong Kong Businesses Believe Physical Proximity to Customers is Key to Growth

October 26, 20158:32 am415 views

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

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