Tuesday, June 18, 2024

Companies losing money to dissatisfaction

Nearly nine in ten Australian say they were dissatisfied with their experiences as customers in 2021, according to the Qualtrics 2022 Global Consumer Trends launched this week.

This dissatisfaction could be costing businesses in Australia a combined total of up to US$69 billion annually, according to the experience management company.

Based on insights from 1,000 consumers in Australia, Qualtrics found:

  • 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
  • 49% said businesses need to care more about them
  • 47% said companies need to get better at listening to feedback.

Improved experiences boost spending

The research also revealed 52% of customers would buy more from a company if it treated them better.

Vicky Katsabaris, Director of XM Solutions Strategy, Qualtrics says customer experience will be in the spotlight in 2022 as consumers will demand higher quality support and services in response to the higher costs or longer wait times they might be facing They will also 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,” she says. 

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, after a good customer experience consumers are 3.1 times more likely to purchase again, 6.6 times more likely to recommend a friend, and 5.3 times more likely to trust the brand. 

Bruce Temkin, Head of Qualtrics XM Institute says the last two years have pushed consumers to re-evaluate many of their relationships and actively look to do more with organisations that put their needs first.

“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,” he said. “Those that can make ongoing use of customer insights will differentiate themselves going forward.”

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