Despite an overwhelming 85 per cent of Australians being impacted by cost-of-living pressures, 35 per cent of consumers say they would be willing to pay a premium for a better customer experience. Non-grocery retail brands dominated Australia’s top brands for customer excellence this year, according to KPMG’s Customer Experience Excellence 2023 Australia Report.
Mecca topped the table in 2024, followed by Specsavers and ING. Mecca was one of five brands to maintain a top 10 placement consistently since 2021, alongside Bendigo Bank,
Bunnings, Chemist Warehouse and Specsavers. Appearing in the top 10 for the first time since 2020 were IKEA, Kmart and RACV.
“Retailers are leading the pack in terms of driving innovation and customer experience. They are focused on delivering value to customers in many ways, including lower prices, superior service, great experiences, exclusive access and more. That said, excellence in customer experience is not limited to any single industry – the top 30 performing brands span 15 different subsectors,” said Carmen Bekker, lead partner, KPMG Customer.
When it comes to customer advocacy, integrity and trust have emerged as the top driver of consumers recommending their preferred brands, overtaking personalisation for the first time since 2020.
Consumer expectations are also evolving as AI continues to play an increasing role in customers’ day-to-day experience with brands. Younger demographics fear AI displacing human jobs, leading to worries about the reduction of entry-level positions and the long-term impact on career opportunities. Older consumers value the personal touch and find AI interactions impersonal and less satisfactory, especially when dealing with complex or sensitive issues.
They also have pronounced concerns about the security of personal data, being wary of potential data breaches and the misuse of their personal information by AI systems.
“There are notable generational divides in attitudes and concerns – and understanding these differences is crucial for businesses aiming to navigate these complexities to deliver what people want. Brands in Australia are facing inherently more demanding consumer expectations. Last year, we saw that low-cost, minimal-contact interactions were notably diminishing consumer perceptions of brands. This year our research has found higher levels of empathy in customer perceptions, suggesting that Australian businesses are making concerted efforts to improve their customer interactions,” Bekker added.
“By demonstrating integrity and trustworthiness when implementing new technology, and infusing AI with human-like qualities, organisations can not only enhance user satisfaction but also strengthen the bond between customers and AI systems”.
