Brands must create outstanding customer service to win loyalty, finds report

New Optus Future of Business report finds only 39 per cent of consumers reporting a good experience are likely to remain a customer of that organisation

Optus Business president, John Paitaridis
Optus Business president, John Paitaridis

A new Optus report has found only 12 per cent of Australian organisations are delivering outstanding customer experiences despite the fact that 95 per cent of consumers will remain loyal to organisations that do so.

The fourth Future of Business report, which was released during the Optus Vision conference in Sydney on 18 June, found only 39 per cent of customers reporting a good experience are likely to remain a customer of that organisation, compared to 95 per cent of customers who reported an outstanding one.

Customers with an outstanding experience were also five times more likely to become brand advocates compared to customers with good experience.

By contrast, nearly 80 per cent of customers who reported a bad experience said they took some form of action such as complaining to friends or via the Internet.

The Optus report was based on surveys of 550 organisations across enterprise and government, as well as more than 5000 customers.

It also found customer experience and advocacy were the first or second top priority for nearly half of all organisations surveyed, although only 45 per cent said they understood the impact of customer experience on profits and revenue.

Top hurdles to better customer engagement were budget constraints (47 per cent), competing internal agendas or priorities (38 per cent), and lack of department alignment (33 per cent).

Speaking at the Sydney event, Optus Business president, John Paitaridis, urged businesses to strive for more than "good" customer experiences if they want to meet expectations.

“We should not be surprised that ‘good’ is not ‘good enough,” he told attendees. “However, you may be surprised with the difference between what good means and what outstanding means, because that has a massive impact on customer loyalty and retention.

“The key point here is the majority of our customers are at risk if the only level of service we’re providing is only ‘good’. Only outstanding customer experience creates advocates.”

Key things consumers want from brands include engaging with staff that are friendly, meet their needs and are knowledgeable. They also want to interact with real people as often as they can and feel valued, Paitaridis said.

According to the report, 60 per cent of customers can tell when an employee doesn’t have the information and tools to be able to deal with their request, and more than one-third notice when staff members make them wait.

“We can’t hide – customers can see what’s happening and their expectations are high. And as we are listening to customers and trying to get better, the bar keeps moving higher,” Paitaridis continued. “Customer expectations will rise over the next one to two years.”

A key reason is the rapid adoption of technology, which is enabling customers with more choices than ever before, he added.

The Optus report also found 51 per cent of organisations surveyed claimed customer experience is driving technology investments, but are failing to put the right amount of value on the human element of the equation.

For instance, organisations delivering an average customer experience lack in-house skills (43 per cent) buy-in or engagement from staff (38 per cent) and a clear customer experience strategy (32 per cent).

Additionally, organisations with well-aligned departments were far more likely to deliver strong customer experience.

Read more: Guest opinion: Why you need to revaluate and 'pivot' your Facebook strategy

More from CMO on the importance of becoming customer-centric:

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Is your content marketing missing the mark?

Does it ever seem like the content you create falls flat on its face or that the leads you’re generating aren’t worth following up?

Dan Ratner

managing director, uberbrand

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

Thanks for helping me putting those threads of thoughts together. Simplification and connection - neat idea.

Mark Bayly

Tips from IAG on how to craft human-centred design

Read more

The problem with Box is that they made a couple of big mistakes - they first hired a bunch of unprepared kids and gave them big roles and...

Tim Woods

CMO interview: Why Box's marketing chief is rewarding staff for failing

Read more

At this point, being hit hard will also be subject for a detailed study. In honesty, too early to tell but there are precedents to follow...

Sean Lindeman

Australian Government to abolish 457 visa program

Read more

Latest Podcast

More podcasts

Sign in