Aussies Banks & Telcos Aren’t Getting Digital Right Making Them Ripe For Disruption: Survey

Aussies Banks & Telcos Aren’t Getting Digital Right Making Them Ripe For Disruption: Survey
SHARE
THIS



Banks and Telcos in Australia overwhelming believe they are doing a good job getting to know their customers. However, new research says their customers disagree rather strongly.

That is on of our key take outs from a new study by Redshift Research and Pegasystems into how well equipped local banks and telcos are for dealing with consumers in an era of ever rising customer expectations.

The Australian survey of more than 1,000 participants and 100 business decision makers also sheds further light on the perception gap between how well businesses think they perform versus what their customers actually experience.

According to the report accompanying the study, “While 82 per cent of responding telco and banking companies claim they deeply know their customers, only 18 per cent of telco customers and less than a third (27 per cent ) of banking customers believe the same. Another 18 per cent and nearly 10 per cent of customers respectively, feel these businesses don’t know their preferences at all.

clueless

Fortunately for the banks, there is more inertia around their service offerings and less of their clients indicate a willing to swap service providers in the next 12 months. Telcos however could see one in five of their clients churn over the next year.

Mirroring findings of the recent CommBank study into retail, the redshift research suggests that the study also suggests that only 10 per cent of businesses are working on developing omni-channel integration capabilities. The study’s authors argue this indicates  that most organisations are focused on mastering the basics at the expense of services that can help them better engage with customers.

Crisis. What Crisis?

Incumbents are still underestimating the threat of disruption from new market entrants, according to the study and the threat is worse in the telecommunications sector where a third of of telco customers said they would consider a new innovative service provider in the future. But even in banking, where the threshold for change is considered higher doe to the sensitiveity of the product – money – one in four said they would consider a new innovative provider in the future.

Across both banking and telecommunications the vast majority of respondents focused their concerns on traditional, incumbent competitors.

According to  Scott Leader, managing director, Australia and New Zealand, Pegasystems which sponsored the research: “While service organisations in Australia have certainly come a long way to adapt to changing customer needs, this research indicates that more work still needs to be done to enhance the customer experience.”

He said technology has now progressed so far that the guesswork involved in creating the perfect customer experience has been removed. “CRM can now not just track customers’ movements but also anticipate their needs, adapt as those needs change, and provide an exceptional experience every time. This is where the future of service industries lie, and organisations in this space should take heed.”

This article originally appeared on B&T’s sister site www.which-50.com

Latest News

Sugar Agency Wins Fairfax’s ‘Ads Are Better Rich’ Competition For 2018
  • Advertising
  • Media

Sugar Agency Wins Fairfax’s ‘Ads Are Better Rich’ Competition For 2018

Digital player Sugar Agency has been crowned the winner of this year’s ‘Ads Are Better Rich’ competition by Fairfax Media. Launched by Fairfax’s chief revenue officer, Matt Rowley, at the company’s 2018 Agency Symposium, the challenge aims to encourage agencies to push creative boundaries by using rich media formats to develop a campaign that promotes their agency. […]

Former APN Outdoor Sales Boss Launches OOH Consultancy
  • Advertising
  • Media

Former APN Outdoor Sales Boss Launches OOH Consultancy

An ex-sales director from APN Outdoor is trying his hand at consulting to advertisers looking to spend some coin in the out-of-home market. After 13 years at APN leading its national direct sales and then its NSW agency sales teams, Tim Rose resigned from the business in shortly before it had agreed to be sold […]

Melbourne Agency Taska Media Wins Exhibition Events Australia Media Account
  • Media

Melbourne Agency Taska Media Wins Exhibition Events Australia Media Account

Independent media agency Taska Media has secured the entire national media business of Australia’s largest consumer events company Exhibition & Events Australia (EEA). The deal that will see the agency deliver a full suite of television, radio, out of home, digital, partnerships and publisher-focused media buying. The boutique agency said it won the account for EEA […]

US Culture Consultancy Opens Australian Office
  • Marketing

US Culture Consultancy Opens Australian Office

Consulting firm Ministry of Culture (MoC) has announced the expansion of its US-based business to Australia with a new office in Sydney. It is the first international office for the US group, which will focus on providing cultural transformation, consumer insights and culture creation to Australian and Asia-Pacific clients. MoC’s Australian founder, David Art Wales […]