Poor digital experiences ‘damage NZ business’

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SAP research shows poor digital experiences provided by some of New Zealand’s largest and best-known brands are closely tied to loss of customer loyalty, advocacy, and insights.

Assessment of over 6500 digital interactions in New Zealand shows 37% of consumers are unsatisfied with their digital experiences.

The report found a strong correlation evident between delightful digital experiences and improved loyalty, advocacy, and consumers’ willingness to share private data.

To improve their digital experience scores, brands must offer services that establish a deeper emotional connection with customers, the inaugural NZ Digital Experience Report – released in Auckland this morning – found.

SAP’s New Zealand Digital Experience Report captured results from 2500 consumers who rated over 6500 digital interactions against 14 digital-experience attributes.

It found that 37% were unsatisfied with the digital experiences delivered – but in contrast, 31%r cent of respondents were “delighted”.

The study showed that New Zealanders who are delighted with their digital experience are almost five times more likely to remain loyal to a brand than those who are unsatisfied.

Dramatic turn
The Net Promoter Score for this segment was an impressive 69% – however, among New Zealanders unsatisfied with the digital experience business outcomes took a dramatic turn.

The research found just 17% per cent of consumers that are unsatisfied with the digital experience would remain loyal, while the NPS score for this segment is a staggering –54%.

The link between the digital experience and business outcomes was also apparent in the report’s examination of New Zealanders’ data privacy and personalisation preferences. Analysis showed New Zealanders who are delighted with the digital experience are more willing to share private data than those who are unsatisfied.

The results varied across different types of data:

  • 40% of delighted consumers would disclose their buying preferences
  • 28% their social media usage
  • 25% their health records
  • 21% their web browsing history

“With SAP’s New Zealand Digital Experience Report, we’re offering a framework to help organisations measure and manage their digital experience performance from their customers’ perspective,” said Jennifer Arnold, Sydney-based vice president of marketing at SAP ANZ.

“Whilst these frameworks might differ by industry, the central component will always be the customer.

“Brands that perform best in this new digital marketplace are those that unite their people and processes on a single system to deliver on their customers’ ever increasing demands,” she said.

“Findings from the report show consumers want brands to understand them better as individuals and address their unique needs. For instance, three attributes of the digital experience that are important for consumers are experiences that fit in with their lives effortlessly, that brands are respectful and dedicated to their needs, and being sent relevant offers without infringing privacy.”

Banking & Insurance lead the way
“Across the eight industries ranked in the report, the banking and insurance sectors are leading the way in satisfying consumer expectations against these attributes.

“:Consumers are aware that brands can collect data about their lives and preferences, so are increasingly expecting that brands tailor solutions, services, experiences and marketing to the individual level.

“With consumers more willing to share personal information when they are delighted with the overall digital experience, there’s a massive opportunity for marketers to expand and improve the products and services delivered.

A virtuous circle
“It creates a virtuous circle whereby brands can constantly improve their customers’ omnichannel experiences.

“For instance, understanding buying preferences, previous purchases, and behaviours online and in the physical environment enables marketers to better target and tailor offerings and outreach to boost engagement, sales and satisfaction, which leads to more delighted consumers sharing more information.”

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