Accenture: Australia's product switching consumers worth $200 million

New report shows brands are not responding quickly enough to always-on consumers even as they embrace digital, risking customer losses as a result

Australian organisations are chasing digital opportunities but failing to respond quickly enough to always-on consumers, raising the risk of customer churn, a new report claims.

According to Accenture’s tenth annual Global Consumer Pulse Research, Australia’s “switching economy”, or the potential revenue available in the local market due to changes in consumer spending patterns and switching rates, has lifted to US$151.4 million ($198m) this year.

Globally, Accenture estimates the switching economy was worth $6.2 trillion in 2014.

More than two-thirds of consumers surveyed said the number of brands they consider has increased in the past 10 years, and 60 per cent are more likely to switch providers compared to 10 years ago. One in five Australian consumers feel very loyal towards their providers, and just 22 per cent are willing to recommend them to others.

In contrast, 40 per cent were open to purchasing products and services offered by non-traditional providers. And in a sign of support for the peer-to-peer, sharing economy, 37 per cent would consider making purchases through consumer-to-consumer channels for housing/accommodation, transportation or money lending.

The Accenture report found 88 per cent of consumers surveyed used at least one online channel when they go seeking a new provider, up from 78 per cent five years ago. In the global report, seven in 10 consumers also claimed to be making much more informed decisions about providers today than 10 years ago, and over half are listening and relying on other people’s experiences and reviews to inform purchase decisions.

However, 34 per cent of Australian consumers would consider returning to a previous provider if they offered attractive pricing and a superior product or offering. Just shy of one-third of respondents also wanted more digital interaction from products and services suppliers.

Read more: The many ways of tackling customer engagement

Accenture strategy lead for A/NZ, David Mann, claimed that while many companies have been chasing the digital opportunities, they’ve not addressed the root causes of the problems exposed as a result of poor execution.

“Companies have been focused only on ‘doing the same things better’ when these issues really require them to ‘do things differently,” he said.

Alarmingly for many Australian marketers, only 11 per cent of consumers strongly agreed that companies are effectively converging digital, mobile, social and traditional channels.

Among the top frustrations for consumers are customer service not solving an issue during the first interaction (87 per cent), lengthy hold times (87 per cent) and interacting with service representatives who cannot answer questions (85 per cent).

The Global Consumer Pulse Research was based on a survey of 23,665 customers across 34 countries about marketing sales and customer service practices, including just over 1200 Australian consumers.

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

Join the newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Why doing your job well is the key to innovation

The words ‘power company’ and ‘innovation’ probably don’t seem like a natural combination. In fact, when I first went for a marketing role with an electricity company, I semi-dreaded the work I thought I’d be doing.

Catherine Anderson

Head of marketing, Powershop Australia

The great unlearning: How brands can assist with the adoption of voice

Mainstream adoption of voice technology will be all about what consumers are learning not to do.

Ash Mustchin

Director, digital and experiences, Principals

Why getting intimate is key to creating a great customer experience

According to CMO’s State of the CMO 2017 research, 83 per cent of CMOs believe customer experience to be central to their role. An interesting stat considering few of us experience great brand experiences.

Pip Stocks

CEO and founder, BrandHook

Amazing work Nadia. I believe chatbots still have ways to go and are still in Generation 1, the exciting future of transactional and conv...

Giridhar Prathap Reddy

Climate Council pitches at youth engagement with chatbot debut

Read more

This is a great read. Chatbots are going to be the face of customers. Every sector is investing time and money in designing intelligent b...

Giridhar Prathap Reddy

From tacos to HR, chatbots make it personal

Read more

Very interesting article about chatbots. Chatbots are growing day by day and emerging winners in all the industries including Healthcare....

Giridhar Prathap Reddy

​Chatbots, messaging and refining the art of mobile commerce

Read more

'to lesson screen time'LOL someone needs a lesson on how to lessen typos.

Andrew Ward

Golden Circles invests in content play to drive brand purpose

Read more

Hey Nadia, interesting read. We have all read about what your chatbots should offer or have but haven't came across with anything about w...

Ashish K Jain

What not to do when building chatbots and voice-based brand interactions

Read more

Latest Podcast

More podcasts

Sign in