Customer Service Sucks & It’s Costing Aussie Businesses $122 Billion A Year: Report

Customer Service Sucks & It’s Costing Aussie Businesses $122 Billion A Year: Report
SHARE
THIS



New research from marketing consultancy firm Accenture suggests the estimated cost of customers switching due to poor service in Australia is $122 billion.

Attempts by companies to shuffle their customers into new digital channels are also coming unglued with 81 per cent of Australian consumers prefer dealing with human beings over digital channels to solve customer services issues, according to new research from Accenture.

Retailers, banks and internet service providers are the worst offenders in a market where retailers, banks and internet service providers being the worst offenders.

According to Luca Martini, managing director for Accenture Strategy in Australia and New Zealand, “Companies have lost sight of the importance of human interaction and often make it too difficult for consumers to get the right level of help and service that they need. The beauty of the possibilities offered by today’s technology is that the human touch can be blended into the digital experience (and vice versa) allowing companies to deliver amazing customer service across all channels, whilst removing the usual pain points.”

Accenture’s consultants argue there are four ways companies should look to rebalance service channels;

  1. Put the human and physical elements back into customer services: Rethink your investment strategy. The focus should be on delivering satisfying customer experiences – not methods of interaction. Ensure your channel management approach delivers integrated experiences.
  2. Make it easy for customers to switch channels to get the experiences they want: Build customer service channels that enable consumers to fluidly move from digital to human interaction to get the outcomes they desire.
  3. Root out toxicity: Define and address the most toxic customer experiences across all channels. These experiences can directly impact profitability. Identify the experiences that have the greatest potential downside and leverage those insights to guide an investment strategy.
  4. Guarantee personal data security: Some 88 per cent of consumers say it is extremely important that companies protect the privacy of their personal information. By not selling or sharing customer data with other companies, and guaranteeing that safeguards are in place to protect it, consumers will be more willing to hand over personal information which can be leveraged to deliver better experiences.

The study reveals that human interaction remains a vital component of customer satisfaction, even in the ‘digital age’. “The majority (81 per cent) of Australian consumers prefer dealing with human beings over digital channels to solve customer services issues and get advice. Nearly half (48 per cent) of consumers say they are even willing to pay a higher price for goods and services if it ensures a better level of service.”

The authors also note that t physical or in-store experiences are also rates amongst consumers. “Specifically, 64 per cent agree that in-store service is the best channel for getting a tailored experience, and over half (52 per cent) say they are more willing to be sold new or upgraded products when receiving a face-to-face service compared to online. Nearly half (45 per cent) say they would rather go to a store first than use digital channels to get advice on the best products and services.”

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

 

Please login with linkedin to comment

Latest News

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.
  • Opinion

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.

In this guest post, CEO of content marketing agency Edge, Fergus Stoddart (pictured below), says brands would do well to play on their customer’s loyal tribalism… Normally over Christmas, any downtime is spent asleep on the sofa, mildly lubricated with a belly full. This year, with the Ashes in the background, I managed to stay awake […]

Opinion

by B&T Magazine

B&T Magazine
Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour
  • Marketing

Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour

Red Bull Holden Racing team took the covers off its 2018 Holden Commodore Supercar today. Floating on a barge in Farm Cove, the harbour provided a stunning backdrop for the reveal. Teammates Jamie Whincup and Shane van Gisbergen have won the past two championships for the squad. Whincup, now the greatest of all time with seven Supercar’s titles, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]

SpotX Appoints Gavin Buxton As Asia MD
  • Advertising

SpotX Appoints Gavin Buxton As Asia MD

Video advertising platform SpotX has announced it has appointed Gavin Buxton as managing director of Asia to lead the company’s expansion in the region. Buxton has over 17 years’ global experience in the digital advertising space, having worked in leadership roles at tech and publishing companies, including Microsoft, Turner Broadcasting, and LinkedIn, with the last […]

Big Mobile Doubles Down On Ad Tech & Rebrands
  • Advertising
  • Technology

Big Mobile Doubles Down On Ad Tech & Rebrands

B&T Awards 2017 finalist Big Mobile has unveiled a fresh look to reflect its new ad tech credentials. The company successfully pivoted its business from ad network to mobile ad tech vendor when it announced a joint venture (JV) with Widespace in October last year. As a result of the business changes, Big Mobile wanted […]

March One Appoints New Senior Account Manager
  • Advertising

March One Appoints New Senior Account Manager

Independent ad agency March One has appointed a fresh face to the team, with Melanie Tozer to reinforce its mission to put humans first as a senior account manager. Tozer (pictured above), an up-and-coming talent from New Zealand, will align her extensive experience in FMCG marketing with March One, having worked on accounts for Bunnings […]