What Drives Loyalty In Australian Consumers? | Teleperformance
What Drives Loyalty In Australian Consumers?

Each year, the Teleperformance Customer Experience Lab (CX Lab) speaks to consumers all over the world to understand more about how customers interact with companies, what their preferred channels would be to interact and the impact the interaction had on the company brand and what this does for their loyalty.

In 2018, the CX Lab interviewed over 200,000 consumers across 14 different markets using services from companies in 18 different industrial sectors. We gather this feedback and analyse the information to determine trends, behaviour, and customer expectations. The most recent interviews were performed between April and June 2018 and 14,981 of those interviews were with consumers exclusively in Australia. So as we close out 2018 I wanted to take a look at the Australian 2018 CX Lab data.

Looking across all industries in Australia, overall customer satisfaction was fairly stable compared to 2017. The best improvement was in Pay TV (+6%) and games consoles (+3%), while automotive (-3%) and Credit Cards (-3%) were the industries with the most rapid decline in customer satisfaction. Electric Utilities has the worst customer satisfaction rating of any industry in Australia, with only 7.4 out of 10 customers satisfied, compared to games consoles who had 8.6 out of 10 customers satisfied.

So it would come as no surprise that customer loyalty had also stayed fairly stable compared to last year. Pay TV increased their customer loyalty score by 5% and Credit Cards dropped by 5%, both showing the most significant rise or decline in customer loyalty. E-retail has the highest loyalty score across all industries, indicating that many e-retail customers are so satisfied they will purchase again from the same retailer. With the e-retail channel increasing in Australia, the competition for the consumer dollar is strong.

56% of the consumers included in the research have contacted a brand in the past year to ask questions about a product or service. Breaking this down by industry is quite revealing – just 16% of Consumer Electronics purchasers had a need to contact customer service, but 87% of customers using an online travel agent needed to get in touch.

This is fascinating data because in an ideal world the customer should not need to get in touch with a brand – the assumption is that if they need to contact the brand then there is a problem. Clearly most consumer electronics work easily right out of the box, yet travellers often have to ask questions about a booking.

Although the best situation is clearly when the customer has no need to contact a brand for support, however when they do, it’s a great opportunity to deliver a good customer experience that reflects positively on the brand. The CX Lab data found that if a customer interacts with a brand and the experience is positive then they are 13% more likely to remain loyal to that brand. However, if they reach out for help and have a negative experience then they are 30% more likely to move to another brand. That’s an enormous 43% difference in loyalty feedback comparing a positive to negative customer experience. This highlights many areas I will explore next year.

The final comment I’ll make is that there were three customer service attributes that are most important to Australian consumers; fast resolution (19%), effective communication (15%), and listening ability (14%). These preferences are by no means ground breaking in what it reveals, put in an Australian way “listen to my query, communicate simply and honestly and let’s not waste anyone’s time”. However the results show that many organisations still grapple with delivering this in a consistent and friction-less way.

This data is a brief snapshot of almost 15,000 Australian consumers in 2018. I’m going to explore channel preferences further in my next blog so look out for that early in 2019. 

In the meantime, I hope you all manage to get some time away from work to spend quality time with family and friends.

If you have any questions about the CX Lab data and analysis then please feel free to leave a question here or get in touch with me directly via my LinkedIn profile.

Photo by Nick Webb licensed under Creative Commons.


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