Although Caribbean citizens are online in droves, countries have been experiencing relatively low take-up of new online products and services. We discuss key reasons that have been holding citizens back.

 

Without a doubt, Caribbean people are using the internet. According to recent research, as much as 97% of a Caribbean country’s population is online in 2021, with the regional median and average being 68% and 64%, respectively (Source:  Statista). We also know that social media use is high across the region, with Facebook having the highest percentage of users in most countries, which is closely followed by Instagram, and at a distance, LinkedIn and Twitter.

Further, and although statistics may not be publicly available, online shopping has also exploded. Some online shopping is occurring in-country, but a considerable portion is from outside the region, which also is evident by the number of local firms that are offering international (inbound) cargo services to help consumers import and clear their goods.

However, over the past week or so, there have been news reports that either directly or indirectly discussed why digital adoption is not as high as it should be. To be fair, this is not the first time such issues have been raised. Recently, it emerged with respect to the take-up of Central Bank Digital Currencies (CBDC), which we responded to in an article.

Having said this, the issue continues to rear its head, which suggested not only that it persists but more importantly, appropriate measures to address it may not yet have been taken. We thus highlight four issues which we believe underpin the lukewarm adoption of digital services in Caribbean countries.

 

Lack of trust

When something new arrives on the market, it is not a given that everyone will flock to it – especially when the new product or service is supposed to be replacing an existing one or optimising a process. People are accustomed to the familiar, even though it may be inconvenient. So may not welcome changes they do not understand, but more importantly, do not trust.

The issue of trust is one that should not be underestimated. Many government ministries, departments and agencies have not truly fostered a relationship with the people they are there to serve. Yes, parts of their operations may be customer-facing, to provide the various publics with certain services, but their approach and culture are not customer-oriented. In other words, there is still a wide chasm between the government and the people. Hence, when a service is digitised and new processes are implemented, consumers are more likely to be wary of the changes, and are prepared to continue to do things as they always had, if that process still exists.

 

No investment in public education

Building on the previous point is the fact that very little public education is usually done when a new digital product or service is introduced. Although there may be some fanfare when it is launched, with a flurry of ads, flyers and social media posts, often, there is little or no emphasis on teaching consumers how to use the new product or service.

More importantly, the consumer education effort has to be sustained. It cannot occur for just a week or two as part of the initial launch. A concerted effort and a comprehensive programme over several months are usually needed to ensure people understand how to use the new process that has been introduced and to address many of the inherent, or even subconscious, fears or concerns they may have.

 

Services not robust or comprehensive enough

This situation tends to arise when parts of a process have been digitised or are available online, and then an alternate modality must be used, or when adoption is still too low to make the effort worthwhile. Examples would include, being able to complete forms online, but the submission cannot be completed because the requisite payment cannot also be made online, or original signatures are needed. Or, a new application or platform is available, but the opportunities to use it are limited, and so the benefit is not there.

A good example of the latter is the recently launched CBDCs, which initially supported person-to-person transfers or payments, but businesses and organisations have either been still hesitant to adopt them, or they could not yet be properly accommodated on the platform. Also, in some instances, parts of the legislation needed to support wider deployment and use had been delayed, which in turn has affected whether people see the true value, so far, of the CBDC.

Thus the partial deployment of a system or process is likely to result in limited consumer interest and take-up. There should be greater emphasis on seamless, end-to-end and optimised processes that truly transform the experience consumers would typically have and open up new opportunities that would not otherwise have been possible.

 

Value or benefit to consumers is unclear

Finally, this point was discussed in our article on the relatively low take-up of CBDCs, but it is worth emphasising here as well, as it also sums up the reason why Caribbean citizens have not been embracing local digital services to the degree policymakers might have hoped. Essentially, consumers may not always understand the values or benefit THEY would be gaining by going digital in the way prescribed. Often, the benefit to the issuing organisation is clear – usually improved efficiency, greater effectiveness and increased savings. But that to consumers is not always as evident, and the new digital process, product or service may not highlight those benefits either!

Frequently, as mentioned earlier, products and services are not designed with consumers in mind, and to address any specific needs or bugbears they may be experiencing. As a result, it can be a challenge to genuinely articulate the value consumers will realise. But until that can be done, it may be an uphill battle to open the floodgates of consumer take-up. 

 

Image credit:  Jack Sparrow (Pexels.com)