While Australians say they’re having fewer bad customer experiences, according to the Qualtrics XM Institute, more are cutting spending with a brand after just one bad interaction.
Local consumers surveyed in new research say one in ten (11%) of their interactions with brands results in a ‘very poor’ customer experience. Australians are said to be reporting fewer poor customer experiences than the global average (14%), though, and fewer than they did in 2022 when they said 19% of brand interactions were negative.
Surveyed consumers are, however, cutting spending with a brand more than half the time after receiving bad customer service (55% of negative experiences). This figure is 18% points higher than 12 months previously.
Streaming providers, department stores, supermarkets, online retailers, and electronics makers deliver the least amount of poor experiences, according to consumers in Australia. In contrast, government agencies, internet service providers, mobile phone providers, utility companies, and property insurers provide the poorest experiences.
“Customer service is in the spotlight like never before, and our research reveals how consumers in Australia are increasingly voting with their dollars,” says Qualtrics XM Institute Principal XM Catalyst Moira Dorsey.
“All it takes is one bad experience or wrong move for an organisation to be punished, which is why in 2024 companies need to be more careful than ever not to mistreat customers.”
Nearly half of the consumers surveyed (41%) believe AI will improve customer service levels through faster service times, resolving complaints/queries, and faster deliveries.
To ensure the success of AI in customer experience, Qualtrics says organisations must first ensure it prioritises human connection in the engagement, with consumers’ biggest concerns with the technology being a lack of human connection, misuse of personal data, the possibility people will lose their jobs, and service quality.
“Customers are placing a premium on human connection, and the most successful AI strategies are designing for this,” says Ms Dorsey.
“By understanding how customers and their employees want to use AI, organisations can tailor their offerings and models for their preferences, and those that do will be rewarded with increased sales, more satisfied customers, and highly engaged and productive employees.”