Aussie Companies React Too Slowly To Consumer Demands, Says New Report

Aussie Companies React Too Slowly To Consumer Demands, Says New Report
SHARE
THIS



Australian companies are struggling to keep pace with the increasingly “always on” nature of their customers, their greater use of digital channels, and their growing acceptance of non-traditional providers, according to new research from Accenture.

As a result, the ‘Switching Economy’ – the potential revenue available in the Australian market due to changes in consumer spending patterns and switching rates – has swelled to USD$151.4 million (approx. AUD$198 million).

Accenture’s ‘Switching Economy’ analysis is part of the company’s tenth annual Global Consumer Pulse Research, which gauges the experiences and attitudes of 23,665 customers about marketing, sales and customer service practices. The survey included 1,214 Australian consumers.

“Many Australian companies are reacting too slowly to the Switching Economy, resulting in customer losses and decreased revenue potential,” said David Mann Australia and New Zealand Accenture strategy lead. “While many companies have been chasing the digital opportunities, they have not addressed the root causes of the problems that are exposed through poor execution. Companies have been focused only on ‘doing the same things better’ when these issues really require them to ‘do things differently’.”

More than two-thirds of consumers (69 per cent) report that the number of brands they consider has increased significantly over the past 10 years, and 60 per cent believe they are more likely to switch providers compared to 10 years ago.

Almost nine out of 10 (88 per cent) surveyed use at least one online channel when looking for a new service provider, and 32 per cent want more digital interactions from providers. Only 11 per cent of consumers strongly agree companies are effectively converging digital, mobile, social and traditional channels.

“Today’s customer’s sense of loyalty to an existing provider is often eclipsed by a competitor’s personalised and tailored experience,” added Mann. “Our research shows non-traditional competitors are gaining market share through their willingness to do things differently – often offering prospective customers more opportunities for customisation.”

About one in five of Australian consumers (21 per cent) feel very loyal toward their providers and only one-fifth (22 per cent) are willing to recommend them to others, figures that have remained consistently low over the past several years. Exactly four out of 10 (40 per cent) are open to purchasing products and services offered by non-traditional providers and about the same amount (37 per cent) will consider making purchases through consumer-to-consumer channels for housing/accommodations, transportation or money lending.

Many of the common consumer complaints and habits identified by the research have been ever-present for a number of years, indicating that many companies are not addressing underlying issues effectively. The three top Australian consumer frustrations for customer service – not solving an issue during the first interaction (87 per cent in 2014 compared to 87 per cent in 2009); lengthy hold times (87 per cent compared to 88 per cent); and interacting with service representatives who cannot answer questions (85 per cent compared to 86 per cent) – have remained flat.

Despite high switching rates, the survey reveals a potential “switch back” opportunity for companies. Just over two-thirds (34 per cent) say they would consider returning to a previous provider. Top drivers of this trend include attractive pricing (54 per cent) and a superior product or offering (48 per cent).

Analog meets digital to help companies “do things differently”

Satisfaction with online customer service channels, including online text/video chat, mobile applications, third-party review of websites or forums and social media, is relatively solid compared with “traditional” channels with just over half of respondents reporting that they are satisfied with online text chat (60 per cent), as compared to just 52 per cent that were satisfied with traditional contact centre support.

However, despite the relatively high levels of satisfaction with digital channels, adoption of these technologies has remained low due to several barriers, including a lack of appropriate information provided by the channels, lack of trust in them, and lack of knowledge of how to access and use them.

Further, while most companies are aware of the value that digital brings, many have been slow to develop an overall strategy that incorporates these channels into their existing customer service offering.

“Many companies have suffered from two persistent customer service-related headaches that hindered profitable growth over the past 10 years: chronically high switching rates and decreasing spend by their remaining customers,” said Mann. “Companies that determine the right blend of digital and analog channels to improve the customer experience can reap huge benefits by retaining existing customers while luring more than their fair share of new ones away from competitors.”

 

Please login with linkedin to comment

Latest News

Salesforce Launches Data Studio With Southern Cross Austereo & Mamamia
  • Marketing

Salesforce Launches Data Studio With Southern Cross Austereo & Mamamia

Salesforce has announced the launch of a data sharing platform with partners Southern Cross Austereo (SCA) and Mamamia designed to connect data owners with buyers and create new marketing opportunities for audience discovery, sharing and activation. Part of the Salesforce Marketing Cloud, Salesforce Data Studio enables marketers to expand targeted reach with valuable audiences, provides […]

Pedestrian.tv Partners With Domain To Launch Home Content Vertical
  • Media

Pedestrian.tv Partners With Domain To Launch Home Content Vertical

Aussie youth-focused publication Pedestrian.tv has bolstered its lifestyle offering with the launch of its Home vertical, with Domain signing on as launch partner. Pedestrian Home will deliver content focused on homewares, hacks for sprucing up your space, a peep inside the amazing homes of well-known Aussies, as well as covering the real estate news and […]

Zenith Makes Two Senior Appointments
  • Advertising
  • Media

Zenith Makes Two Senior Appointments

Kylie Sneddon & Mark Johnson stamped Zenith 'movers & shakers' after promotion. Not like to their forehead or anything.

Photoplay Signs Director Frazer Bailey
  • Media

Photoplay Signs Director Frazer Bailey

Boutique production company Photoplay has announced the signing of award-winning comedy performance director Frazer Bailey for representation in Australia and New Zealand. Bailey won Gold for Direction at the BADC Awards for the hilarious Air Asia escapism campaign ‘Come Back Refreshed’ via Publicis and Silver for Millionaire’s Run ‘Prince of Nigeria’ through Brainheart. He has […]

Cornerstone OnDemand Appoints FORWARD Agency As PR Partner
  • Marketing

Cornerstone OnDemand Appoints FORWARD Agency As PR Partner

FORWARD Agency announced that they have been appointed by Cornerstone OnDemand as its PR agency of record for Australia and New Zealand. Cornerstone provides cloud-based human capital management software to help organisations realise the potential of the modern workforce. The appointment will see FORWARD working across all of Cornerstone OnDemand’s PR activities, including media relations, […]

Brisbane Agency P4 Group Celebrates Growth With A Rebrand
  • Marketing

Brisbane Agency P4 Group Celebrates Growth With A Rebrand

Brisbane-based PR and marketing agency P4 Group has today launched a new look and feel to align with its recent growth, with its team and client base almost doubling in the past year. Expanding its service offering to genuinely deliver on the integrated agency promise, P4 Group has grown its team of 15 to 26 […]

Retail Software Player Vend Moves Into AI As Part Of Platform Revamp
  • Marketing
  • Technology

Retail Software Player Vend Moves Into AI As Part Of Platform Revamp

Point-of-sale (POS) retail software company Vend has taken its first steps into AI to help retailers grow and compete as part of a major platform refresh. Dott aims to help retailers make better decisions about their stores and how to grow, bringing the much talked-about promise of AI to life for retail. Neither male nor […]

Enough With Your Shitty Videos Already
  • Opinion

Enough With Your Shitty Videos Already

Is a cat wearing a party hat filmed on your phone the extent of your video production? Read this for all our sakes.

Opinion

by B&T Magazine

B&T Magazine
Bauer’s Christian Fricke Resigns As MD Of Xcel Media
  • Media

Bauer’s Christian Fricke Resigns As MD Of Xcel Media

Further to today’s news that Bauer Media will close three of its magazine titles, the publisher has announced the resignation of Christian Fricke, managing director of Bauer Xcel Media. According to a statement sent to media, Fricke, who had been in the role a mere 18 months, will return to Germany for family reasons. Commenting on Fricke’s departure, Bauer Media […]

Former Aussie Cricket Captain and photography enthusiast Steve Waugh for SnapSydney.  Picture: John Appleyard
  • Campaigns
  • Media

News Corp Expands ‘Snap Australia’ Campaign To Regional Titles

News Corp’s award-winning Community Media’s ‘Snap Australia’ campaign continues to build momentum. ‘Snap Australia’ is a social media movement that celebrates what Aussies love about where they live. The feel-good factor of the initiative has extended into each capital city and into News Regional Media, with an additional 18 regional publications joining the initiative. Today […]

Virgin, Yellow Brick Road & GoSwitch Flock To Sports Content Platform PlayersVoice
  • Marketing
  • Media

Virgin, Yellow Brick Road & GoSwitch Flock To Sports Content Platform PlayersVoice

Six weeks after its launch, sports content platform PlayersVoice is winning the hearts and minds of consumers and brands. Established as a platform for rich and raw first-person sports storytelling, PlayersVoice has created an environment where elite sportspeople feel comfortable sharing their thoughts, hopes, dreams and fears, shining a light on ‘The Human Behind the […]

Red Agency Grows Partnership With The Whiddon Group
  • Marketing

Red Agency Grows Partnership With The Whiddon Group

NSW aged care specialists The Whiddon Group – a longstanding PR and social client of Red Agency – have widened their remit to include content, paid social and SEO in line with the evolution of the aged care sector. Whiddon, which celebrates its 70th birthday this year, delivers care services that enable quality of life […]

Image lead story Toby’s Estate Taps Influencers To Launch First Concept Coffee Range
  • Campaigns
  • Marketing

Toby’s Estate Taps Influencers To Launch First Concept Coffee Range

Toby’s Estate Coffee Roasters has launched its first ever concept coffee range – the Underdog Series. The series shines a spotlight on the world’s relatively unknown, but emerging specialty coffee producing regions. The Australian business leads the local market in selling specialty coffee from regions including Uganda, Malawi, Mexico and Myanmar. For the first time, […]

Image lead story Our Revolution Shows Off Packaging For New Smallgoods Player The Smokeman Brothers
  • Marketing

Our Revolution Shows Off Packaging For New Smallgoods Player The Smokeman Brothers

Locally-sourced Australian brand The Smokeman Brothers, has hit shelves with packaging mastered by independent creative agency Our Revolution. The Smokeman Brothers is different to your average deli meat. It is a range of premium crafted meats, made in Australia, and authentically smoked using sustainable timber sourced from the Victorian Highlands and The Riverina regions. Our […]

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign
  • Advertising
  • Campaigns

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign

Yarra Trams has appointed Icon Agency to deliver a new passenger safety campaign, following a competitive three-way pitch. The campaign aims to reduce the incidence of slips, trips and falls on trams via Melbourne’s latest safety ambassador, ‘Tram Coach’. Commencing today, Tram Coach will be travelling the Yarra Trams network throughout the week. His mission […]

The Red Republic Appoints New General Manager
  • Marketing

The Red Republic Appoints New General Manager

The Red Republic has strengthened its management team with the appointment of Mai Aristoteli (pictured above) as general manager. Aristoteli joins The Red Republic from Talk PR in London, where she has worked for nine years as a board director. The appointment of Aristoteli follows The Red Republic managing director Lynn Mooney’s relocation to head-up […]

PR Deadlines Inks Deal With GlobalCom PR Network
  • Marketing

PR Deadlines Inks Deal With GlobalCom PR Network

Sydney-based agency PR Deadlines has extended its global reach after inking a partnership agreement with the GlobalCom PR Network. The agreement gives PR Deadlines’ clients access to some 70 independent agencies covering all European Union states, as well as 60 more in countries worldwide. In turn, clients of affiliated agencies will have access to PR […]

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador
  • Marketing

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador

InstaReM, which offers international money transfers to individuals and businesses, has signed on Australian wicketkeeper Matthew Wade as the sports face of the brand. InstaReM lists Australia as its founding market, having begun life here in 2014. Since the company’s modest start in Australia, InstaReM has since successfully spread its wings to other corridors by […]

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?
  • Marketing
  • Opinion

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?

As Australia continues to grow and the population becomes more ethnically diverse, it is important that marketers ensure digital environments are more inclusive, especially for those who don’t speak English as a first language, writes Siteimprove’s Haley Doel (pictured below). Having a readable and accessible website is no longer just a high priority for large […]

Opinion

by B&T Magazine

B&T Magazine
Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign
  • Advertising
  • Campaigns

Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign

Pepsi MAX has partnered with PHD and Time Out to not only inspire Australians, but also enhance their ability to ‘MAX’ out their summer this year. Through the use of a live dynamic data feed, consumers will be served ads by the brand on events taking place around them that are relevant to their personal […]