Retail corporations have recognized the significance of customer segmentation for decades, using insights about the needs of various groups to tailor products and pricing to better meet consumer expectations. Governments can do the same. In fact, with a base of constituents broader than any company, governments arguably have a greater incentive to understand what people want before they roll out their digital services.
To understand these customer needs and motivations better, the Deloitte Center for Government Insights surveyed 5,800 individuals across 13 countries (see “Appendix” for details on the survey methodology). The analysis aimed to assess respondents’ attitudes, behaviors, and preferences with regard to accessing government’s digital services and uncovered four broad categories of users (figure 1).
Segmentation helps describe the desires, motivations, attitudes, and behaviors that can be drivers of or challenges to adoption of digital government services.
The largest single segment of respondents is the digitally engaged. Making up 37% percent of all respondents, this group regularly uses and is most satisfied with government’s digital services among all groups. They also trust government more with nine out of 10 people in this segment reporting high trust in government.
A similar pattern emerges for digital explorers. Although the smallest segment with only 15% of all respondents, this segment is looking to make use of emerging technologies and exhibits higher willingness to share data with government to do so. The cohort tends to be younger, more educated, and more urban than other segments. With 63% of digital explorers reporting anticipating an increase in their use of government digital services in the future, this segment can be a strong driver of growth in digital public services.
While satisfaction and eagerness are the dominant sentiments in the aforementioned segments, traces of skepticism and mistrust were found in the other two. The digital skeptics, comprising 28% of the respondents, reported data security concerns that limit their interactions with government agencies. Only 20% of them have frequent digital interactions with governments. This cohort has people of all age groups in almost equal measure. Over half of the skeptic respondents lack a bachelor’s degree, and a quarter of them are unemployed or underemployed, the highest among all cohorts.
The digitally discontent account for 20% of respondents and reported similar patterns of infrequent interaction with government. While the skeptics are concerned about data security and privacy, the discontents are more mistrustful of government in general. The group reported also being the least satisfied among all the four groups. People in this cohort are generally older than those in the other groups, are from rural areas, and with lower incomes. Due to these reasons, it’s often difficult to reach people in this cohort through digital services.
It is also important to remember that these segments are not rigid. Culture and geography can act as differentiating factors. Take the digitally engaged segment, for instance. While the global average of this group is 37% of respondents, the group constituted nearly half of respondents in Singapore and the United Kingdom, but was as low as 15% of respondents in Japan.
Government leaders could begin by focusing on something they have in common: a desire for better government services. Prioritizing value-based service delivery can help them give their best shot at achieving their digital transformation goals. After all, it is hard to overlook services that make lives easier.
In many ways, this is how commercial technology solutions are adopted. Our research shows that even though respondents don’t trust commercial tech companies as much as the government when it comes to data protection, they are highly satisfied with services like shopping on e-commerce websites, interacting on social media, and watching internet streaming content.1 Notably, even discontents respond positively in this area. When it comes to accessing government’s digital services, however, 50% of digital discontents surveyed cite complex websites as the biggest barrier. Our research has shown that reducing the friction and improving the customer experience of those websites can help improve trust in government, and by extension their interaction with government’s digital services.2
A next step for government leaders could be to tailor their approach to address the varied needs of each segment. Here’s how they can go about it:
Offering tailored digital public services can make service delivery more responsive, citizen-centric, and seamless. Implementation should include governments understanding the needs, preferences, and behaviors of their users; and tailor the communication, data collection, data-sharing and channel of service delivery based on the preferences. Thanks to advances in digital technologies, insights from behavioral science, and new data management tools, governments can take significant strides to make this happen.
In November and December 2022, Deloitte surveyed 5,800 individuals to understand their use of government digital services in 13 countries. The survey results are weighted for age, income, and gender (figure 2).
We summarized numerous ordinal scales (Likert scale questions) of individuals’ attitudes toward and behaviors concerning government digital services into combined scales that more closely resemble interval and scale data. We used a series of cluster analysis methods to classify four digital citizen segments from the summary scales. Analyses were conducted in Statistical Package for the Social Sciences using the hierarchical cluster function to explore clustering options, scree plot to decide on the optimal number of clusters, and k-means cluster to classify each respondent to their respective digital citizen segments.