Businesses in Australia are risking 7% of their revenue due to poor customer experiences (CX) – putting $56 Billion in consumer spending at risk in the country – according to Qualtrics XM Institute. Based on analysis of data from the Qualtrics 2023 Global Consumer Trends report, which includes insights from over 1,100 respondents in Australia, consumers say they have very poor CX 19% of the time – a 6-point increase on 12 months previously (13%).
What were the findings of the survey?
After receiving a poor customer experience, more than a third (37%) say they reduce their spending with that brand or stop spending with them altogether. After another year of change and disruption for consumers, the study – conducted between July to September 2022 – reveals higher education institutions (45%), airlines (38%), and property insurers (35%) have the highest percentage of consumers who had a “very poor” customer experience.
In contrast, supermarkets (6%), streaming services (6%), and department stores (7%) have the lowest percentage of consumers who recently had a “very poor” CX.
What are the CX Trends to prioritise in 2023?
The Qualtrics 2023 Global Consumer Trends report pinpoints key trends organisations must prioritise in 2023 to ensure customer expectations are met:
Customer loyalty will be won through personal connections
A personable service agent has a bigger impact on consumer satisfaction than a short wait time during customer interactions. For example, when a consumer talks to an empathetic agent, they are 4.2 times more likely to be happy with the experience than those who aren’t satisfied with how empathetic the agent is. Consumers with a short wait time are 2.4 times more likely to be happy with the overall interaction than those dissatisfied with wait times.
Efficiency still has an important place in the customer experience, and there are tasks where people would rather self-serve than speak to a representative. Firms will need to understand what their clients want in a given situation to leave them with a positive experience.
Brand switching likely to increase in 2023
As consumers think more carefully about their spending, companies that exceed expectations with how they listen, understand, and act on customers’ needs can build long-term loyalty.
With 45% of Aussie consumers saying they’ve had customer service issues go unresolved, and 31% not satisfied with the empathy they received from a customer service agent, there is a significant opportunity for organisations to exceed expectations and win loyalty. When consumers have a five-star experience, they are 3.6 times more likely to trust and 3.5 times more likely to recommend the company, compared to those receiving a poor experience.
Unstructured feedback essential to understanding consumer needs
Nearly half (48%) of consumers say firms need to do a better job of listening to them. This is relatively unchanged from last year (47%), showing there is still room for improvement.
At a time when consumers are talking about brands on social media and in reviews, one way firms can improve their listening is by using insights from chats and qualitative responses to understand a consumer’s specific situation and how to respond appropriately in real time.
What do the findings mean for brands?
“While there has been a slight reduction in the revenue at risk in Australia due to poor CX compared to last year, consumers say there has been a rise in how often they receive poor service,” commented Vicky Katsabaris, Director of XM Solutions and Strategy, Qualtrics.
“No organisation can afford customer churn, which is why addressing this widening gap by deeply tuning into the needs of customers must be a top priority in 2023 – and those that get it right stand to make market gains,” Vicky Katsabaris further commented.
Commenting on the survey, Bruce Temkin, Head of Qualtrics XM Institute, said, “Delivering on brand promises to keep customers coming back is essential for the long-term success of a business, and this research shows the actual impact on the bottom line when customer experience misses the mark. In tighter economies, shoppers will be more careful about their spending, and a single negative experience could be enough to lose them as a client forever.”