CPM Australia has released its annual State of Customer Experience Report, in partnership with Swinburne University’s CXI Research Group. The report reveals that, despite ongoing efforts by companies to enhance customer experience (CX), a significant gap remains between consumer expectations and service delivery. Notably, the research shows that brands excelling in CX are not only strengthening customer relationships but also building trust and turning satisfied customers into advocates, creating a powerful competitive edge.
The report finds that positive customer experiences have a greater impact than negative ones, reinforcing CX as a critical business differentiator. After a great service interaction, 70 per cent of consumers feel satisfied, and 69 per cent are likely to repurchase, demonstrating the direct connection between CX excellence and revenue growth.
However, the consequences of poor service remain high, with 94 per cent of consumers ceasing to purchase from at least one company after a negative experience. “Delivering positive experiences is a powerful strategy for driving customer loyalty, advocacy and sustained revenue growth, while mitigating the lasting damage of negative experiences,” said Paul Crummy, managing director of CPM Direct Sales.
Australian consumers have become increasingly discerning, with expectations around service quality continuing to rise. Today, Australian consumers expect service interactions to be not only accurate and efficient, but also consistently human-centric. The top three drivers of service excellence remain information accuracy (91 per cent), access to knowledgeable representatives (84 per cent) and consistency across channels (79 per cent).
Even in an increasingly digital environment, human connection remains central to the customer experience. While 46 per cent of consumers prefer digital self-service channels, such as company websites or FAQs, for simple enquiries, 77 per cent still prefer speaking with a person over the phone for more complex issues. The AI vs human debate continues, with 24/7 availability cited as the greatest benefit of AI-powered chatbots (67 per cent). However, customer uptake remains limited. The research confirms that
most consumers still favour human interaction for resolving complex enquiries, highlighting the need for a balanced CX strategy that combines the efficiency of AI with the empathy and nuance of human support.
Despite improvements in service perceptions, two-thirds of consumers still believe companies place no or moderate importance on delivering outstanding service. This presents a clear opportunity for brands to differentiate through CX. “Our findings highlight the critical role customer experience plays in driving satisfaction and long-term business success. The future of CX requires balancing human interaction with AI-powered tools to deliver both efficiency and customer connection. Companies that invest in service excellence will be best placed to lead in the years ahead,” said Crummy.
The 2025 State of Customer Experience in Australia Report offers deeper insights into evolving customer expectations, industry performance and strategies for CX success.
