Australian brands falling down on digital experience: SAP

digital experience

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By Freya Purnell
New research from SAP shows that 47 per cent of Australian consumers are unsatisfied with the digital experience they have with 34 of the country’s largest organisations.

The findings come from SAP’s Australian Digital Experience Report, which asked 3000 consumers to rate a total of almost 7000 digital interactions against 13 core attributes of a “delightful” digital experience, including engagement, personalisation, responsiveness and simplicity.

The research shows that there are three key consumer preferences that brands should focus on to improve their digital experience score:

  1. Be who I am: Respondents want experiences that are dedicated to them as individuals, experiences that appeal to or even predict their preferences, but without infringing on their privacy.
  2. Engage me: An engaging digital experience is one that responds to consumers and allows them to interact with and control the experience when needed. It also triggers an emotional response from the customer, which builds a stronger connection to the brand.
  3. Simplify my life: Consumers expect simple service that just works from the brands they interact with. A digital experience should be cohesive, integrated and easy. It has to fit in with the consumer’s life effortlessly, available any time, anywhere.

SAP has also used the research data to compile a Digital Experience Index, showing all brands assessed by industry and their digital experience score.

Analysed by industry, the research showed the grocery retail industry was the top performer, though still overall had more unsatisfied consumers than delighted ones. Banking and insurance were the next best performers, with telecommunications and utilities scoring the lowest.

Looking at individual brands, Suncorp Insurance scored positively across 11 of the 13 attributes, and had a higher than average percentage of digitally influential customers at 13 per cent. The company also scored highest for attributes, ‘available any time on my terms’ (50 per cent), and ‘respectful and dedicated to my needs’ (34 per cent).

Among consumer goods retailers, online player Kogan.com beating eight other large retail players to score highest on digital experience in this category, and clocking the third-highest score overall.

Unfortunately for those brands providing poor digital experience, the research also identified a clear link between the digital experience and business outcomes – particularly loss of customer loyalty and advocacy.

Only 17 per cent of consumer unsatisfied with their digital experience said they would remain loyal to the brand, while on the flip side, 73 per cent of consumers delighted with their digital experience would remain loyal.

And it also showed the importance of digital influencers – those who are highly engaged and vocal on social media and online commerce. Though making up only 9 per cent of all respondents, they delivered a significant positive digital experience score of 33 per cent across all industries, meaning there were far more delighted consumers in this category than unsatisfied.

John Ruthven, president and managing director, SAP Australia and New Zealand, said brands need to have a much deeper understanding of their digital experience performance in order to hold onto their customers and remain competitive.

“With our research, we’re helping Australian organisations not only identify the link between digital experience and business outcomes, but offering a framework that helps them measure and manage their digital experience performance from their customers’ perspective,” said Ruthven.

He added that the perfect digital experience requires brands to understand and engage in a relevant way with their individual customers, and align their processes and people to deliver.

“Consistent across the best-performing brands in our research is a data-driven approach to the digital experience that brings the front and back office together to delight the customer. This sets them apart from their competition.”

The Australian Digital Experience Report and accompanying case studies can be accessed at www.sap.com/australia/ausdxr, and an infographic can be accessed here.

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