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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Cannes 2018: The Big Not Easy

This year’s Cannes Lions program is packed full of data, robots, algorithms, voice technology, blockchain, virtual reality, artificial intelligence and machine creativity. But I’m just as interested in more subtle trends and insights.

Richard Brett

CEO, opr

CMOs are talking the CX talk, but not yet walking the walk

Customer experience is eclipsing product as a competitive differentiator. CMOs are recognising this shift and talking the talk. But are they also walking the walk?

Will our manners go the same way as texting when robotic servants take over?

Much of the talk in the industry is focused on the limited amount of time that screens have left in our lives.

Katja Forbes

Founder and chief, sfyte

My father had ALS (amyotrophic lateral sclerosis) for 3 years His first symptoms were weakness in his hands and losing his balance which ...

Janice Tollis

Why Gartner thinks brands are too uptight about strategy

Read more

The things who have mentioned are very convincing and will certainly work.

Lunna Walker

Xero evolves to fit a changing marketplace

Read more

The use of the virtual reality and the additional reality in marketing are only the first steps to the unlimited possibilities. When you ...

Viri VR

Treasury Wine Estates ramps up consumer engagement with augmented reality app portfolio

Read more

Personally, I know about using virtual reality in VR games or when watching movies. I live in Melbourne and often visit a club - https://...

Rafe Frost

3 brand new virtual reality experiences in action

Read more

Infographics are quick and easy to understand! Pictures indeed speak better than words. SEO in Mumbai

Tanushree

Image intelligence:10 must-see infographics for marketers

Read more

Latest Podcast

More podcasts

Sign in