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Aussie brands fail on digital loyalty

News, 05 August 2015

SYDNEY: Consumers are four times more likely to remain loyal to a brand if they find their digital experience to be "delightful", yet almost half (47%) are dissatisfied with the digital experiences currently offered by 34 of Australia's largest brands.

This is one of the core findings in the Australian Digital Experience Report, a survey of 3,000 Australian consumers by software company SAP Australia.

Respondents rated a total of nearly 7,000 digital interactions against 13 core attributes of a delightful experience, including engagement, personalisation, responsiveness and simplicity.

As well as finding that nearly half of Australian digital users are unsatisfied with many of the country's leading organisations, the report also revealed that just 17% of these unsatisfied consumers would remain loyal to a brand that digitally disappoints.

According to SAP Australia's methodology, that translates into a Net Promoter Score (NPS) of -55% for this group of consumers.

By contrast, of those consumers left delighted with their digital experience, nearly three-quarters (73%) say they would remain loyal to a brand and their NPS is a positive 63%.

"Brands need a much deeper understanding of their digital-experience performance if they are to keep their customers and stay competitive," said John Ruthven, president and managing director of SAP Australia and New Zealand.

He added that brands could improve their perception among consumers if they deliver digital experiences that are simple, engaging and personalised.

Consumers want experiences that are dedicated to them as individuals, the report said, and for this personalised service to predict their preferences without infringing on their privacy.

They also want an engaging digital experience that allows them to interact with and control the experience when needed.

Thirdly, a successful digital experience should be cohesive, integrated and easy. "It has to fit with the consumer's life effortlessly, available anytime, anywhere," the report said.

Although the survey did not rank brands in terms of their digital experiences, it did identify Suncorp Insurance and online retailer Kogan.com as two strong performers.

Suncorp Insurance scored highest for being available anytime, respectful and dedicated to consumers' needs, while Kogan.com scored the highest among consumer-goods retailers.

Data sourced from SAP; additional content by Warc staff