Nearly nine in ten Aussies say they were dissatisfied with their experiences as customers in 2021, according to the Qualtrics 2022 Global Consumer Trends launched today. This could be costing businesses in Australia a combined total of up to US$69 billion annually.
Based on insights from 1,000 consumers in Australia, Qualtrics found that 86% of people believe customer experiences need to be better. Customer service support was the second most common area consumers wanted businesses to improve, behind prices and fees. Making products and services easier to use was also called out for improvement. Roughly half of Australian respondents said businesses need to care more about them (49%) and get better at listening to their feedback (47%).
“The coming year is critical for organisations across Australia as they continue to navigate macroeconomic issues - from talent shortages through to supply chain disruptions and rising costs - caused by the pandemic,” said Vicky Katsabaris, Director of XM Solutions Strategy, Qualtrics.
“Customer experience will be in the spotlight as consumers will not only demand higher quality support and services in response to the higher costs or longer wait times they might be facing, they will actively seek out and reward those companies able to meet and exceed their expectations. It’s a reality that means businesses across Australia will have to continually address customer service gaps that might emerge by finding new and sustainable ways to deepen relationships with customers,” added Katsabaris.
The economic impact of poor experiences
The implications of shifting market dynamics can impact bottom lines. A recent Qualtrics XM Institute study found that 52% of Australian consumers have cut spending after a single bad experience with a company.
In contrast, 42% of consumers said they would buy more from a company if it treated them better. After a good customer experience consumers are also 3.1x more likely to purchase again, 6.6x more likely to recommend a friend, and 5.3x more likely to trust the brand.
"The last two years have affected just about everyone at home and at work, pushing consumers to re-evaluate many of their relationships. They are actively looking to do more with organisations that put their needs first,” said Bruce Temkin, Head of Qualtrics XM Institute. “Given this shift, it’s more important than ever for businesses to continually listen to and understand the needs of their customers, and then rapidly adapt to those signals. Those that can make ongoing use of customer insights will differentiate themselves going forward.”
Read the full 2022 Global Consumer Trends report to learn more, including how businesses can create better experiences for their customers moving forward.
Qualtrics, the leader and creator of the experience management (XM) category, is changing the way organizations manage and improve the four core experiences of business—customer, employee, product and brand. Over 13,500 organizations around the world use Qualtrics to listen, understand and take action on experience data (X-data™)—the beliefs, emotions and intentions that tell you why things are happening, and what to do about it. The Qualtrics XM Platform™ is a system of action that helps businesses attract customers who stay longer and buy more, engage employees who build a positive culture, develop breakthrough products people love and build a brand people are passionate about. To learn more, please visit qualtrics.com.