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

Designing for a cashless society

More movement has been made toward a cashless society recently, and already we are starting to see enormous implications across our society.

Katja Forbes

Founder and chief, sfyte

Setting advertising objectives for financial performance

I’ll often be talking to clients and at some point say, ‘the most important thing is justifying price’. Then moments later, ‘the most important thing is increasing the size of your customer base’.

Kyle Ross

Strategist, TRP

5 common mistakes to avoid in scalable customer experience

CX is about future-proofing your business by ensuring that your commercial model is always looped into your customers' needs, perceptions, values, beliefs, motivators, and detractors.

Tom Uhlhorn

Founder and strategy director, Tiny CX

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Australian Open chalks up strong ticket sales with chatbot

Read more

Hello, where are the explanations of all the levels explained? I'd like to review this with a couple of colleagues. Thanks.

Melinda Gonzalez

CMO launches CMO CX, debuts customer experience maturity assessment

Read more

A great and accurate commentary - today we rarely get true personalisation. On web journeys cookies or logins remember who we are, what w...

Ian Moyse

Salesforce: Personalisation is a long way off what consumers now expect

Read more

Very nice information !! We provide almost every indian satta matka games with fast results. Online Matka play becomes easy with genuine ...

rsgame

Image intelligence:10 must-see infographics for marketers

Read more

One of the best example for email marketing!!This post has completely explained the power of email marketing and how it is beneficial to...

Abhinav Mohan

How email marketing automation is helping this Aussie electrical wholesaler enter the digital age

Read more

Latest Podcast

More podcasts

Sign in