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!

Error: Please check your email address.
Show Comments

Blog Posts

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

And to add after looking at event pictures plus, observing all AU's visible Blonde Bimbos (think Julie Bishop to this Georgie Gardnerare)...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

CMO 50 2017 announcement mentioning "innovation". I checked date and its November not April so its wasn't an April Fools' Joke. Australia...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

Latest Podcast

More podcasts

Sign in