The customer is driving digital transformation; but is digital transformation delivering for the customer? By closely examining national, industry and brand level performance – as reported directly by Australian consumers – SAP’s Australian Digital Experience Report uncovers some answers.
The reports finds that Australia is getting better at digital. Where last year only 22 per cent of consumers were delighted with the digital experience, this year the figure is 26 per cent. Where 47 per cent were unsatisfied last year, 40 per cent are this year. To put it in a single figure, Australia’s digital-experience score in 2016 is -14 per cent, compared to last year’s score of -25 per cent.
The findings of the report state that across all industries and all brands assessed, Australia has clearly gotten a better hold on delivering the basics of a delightful digital experience. However, there is clearly room for improvement across all attributes – especially those that appeal to consumers’ emotions. In short, despite improvements, there is still a significant digital-experience gap.
— SAP Australia and NZ (@SAPANZ) June 14, 2016
There is still a gap between the digital experiences Australian consumers want and the digital experiences they get. And this gap matters now more than ever. The correlation between digital experience performance and customer loyalty has intensified. Of those consumers delighted with their digital experience, 76 per cent said they would remain loyal to that brand. Conversely, of those unsatisfied with their digital experience, only 16 per cent said they would remain loyal.
In short, consumers delighted with the digital experience are nearly five times more likely to remain loyal than those who are unsatisfied. Across the discovery, transaction, delivery and support of a product or a service, more and more of the customer experience happens in a digital environment. So it follows that the digital experience has an increasing bearing on business outcomes, specifically on customer loyalty and advocacy. A poor digital experience can do a lot more harm to a brand than a lost sale.
Insurance has a significantly low digital experience score as reflected in the reports industrial digital experience comparison. You can access the report here.