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 CMO newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

3 ways customer data can increase online sales conversion

Data has been an increasingly critical factor in improving the efficiency and effectiveness of marketing and business operations.

James Bennett

Chief experience officer, Kalido

Our sharing future is both terrifying and exciting

Discussing the future in a realistic fashion is often a disappointing prospect. For all the talk of hoverboards, jetpacks and lightsabers changing the way we do things, the reality tends to end up being something as mundane as a slightly cheaper way to get around the city.

Jason Dooris

CEO and founder, Atomic 212

Queue experiences that are distinctive, memorable and shareable

Customer service that’s quick, easy and convenient has been shown to boost customer satisfaction. So it’s an odd juxtaposition that customer queues have become a sharable customer experience.

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Thanks for the article Jennifer, you raise some interesting points. The supermarket and shopping centre examples particularly struck a c...

Jill Brennan

Why marketers should take note of social robots

Read more

Winning the retail game is really tricky at this point in time. Many retailers have declared themselves as bankrupt. But yes harnessing t...

Vanessa.M.Magers

​Bricks and clicks: Balancing digital and physical to win the retail game

Read more

Excellent article, Thank you.

Steve Beards

How Aprimo hopes to help marketers tackle distribution of content, funds and data

Read more

Thank you for a great article, Matt.

Andrey

Top tips to uncovering consumer insights for business innovation

Read more

Latest Podcast

More podcasts

Sign in