Digital Experiences Making or Breaking Business Performance

Digital Experiences in New Zealand Making or Breaking Business Performance

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 6,500 digital interactions in New Zealand shows 37 per cent of consumers are unsatisfied with their digital experiences

• Strong correlation evident between delightful digital experiences and improved loyalty, advocacy and consumers’ willingness to share private data

• To improve their digital experience scores, top performing brands offer services that establish a deeper emotional connection with customers

Auckland, New Zealand – 11 July: SAP New Zealand today launched its inaugural New Zealand Digital Experience Report, revealing how some of New Zealand’s largest brands perform in delivering the digital experiences their customers want[1]. The study also uncovers a strong correlation between the digital experience and business outcomes, including customer loyalty, Net Promoter Score®[2], and consumers’ willingness to share private information.

SAP’s New Zealand Digital Experience Report offers detailed insights on New Zealander’s digital expectations and the ability of brands to meet them. Capturing results from 2,500 consumers who rated over 6,500 digital interactions against 14 digital-experience attributes, the report found over a third (37 per cent) were unsatisfied with the digital experiences delivered. In contrast, 31 per cent of respondents were delighted with the digital experiences provided.

Two New Zealand brands that bucked the trend and that performed at the top of their industries included Bank of New Zealand in the banking sector and AA Insurance in the insurance sector. Netflix scored highest in the media and entertainment sector and highest among all industries.

The study shows that New Zealanders who are delighted with their digital experience are over four and a half times more likely to remain loyal to a brand than those who are unsatisfied. The Net Promoter Score for this segment was an impressive 69 per cent.

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 per cent.

The link between the digital experience and business outcomes was also apparent in the report’s examination of New Zealander’s 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 per cent of delighted consumers would disclose their buying preferences

• 28 per cent their social media usage

• 25 per cent their health records

• 21 per cent their web browsing history

These figures fall among unsatisfied consumers: 13 per cent; eight per cent; four per cent; and four per cent respectively.

New Zealand’s digital-experience performance by industry

Of the eight industries assessed for the report, banking was the top performer, closely followed by insurance. Both sectors returned positive digital experience scores, with more delighted than unsatisfied customers. Retail groceries was the next best performing industry with a score of zero, meaning they have an equal amount of both delighted and unsatisfied customers. Telecommunications, consumer goods retail and government were the three lowest scoring sectors; however, with New Zealand performing best in government among mature markets across the Asia-Pacific region.

“For many digital banking has become an arms race to be the first to market with the latest new widget, which is why it’s great that SAP have taken the time to understand the impact that poor quality digital experiences can have,” says BNZ’s Head of Digital Stephen Bowe. “At BNZ we strive to put the customer at the core of everything we do. We’re focused on creating highly personalised, engaging banking experiences that put our customers in control and help them to be good with money.”

“This report provides both valuable and helpful information for New Zealand government agencies and broadly aligns with our own research about customer experience of government services,” says Colin MacDonald, Government Chief Information Officer.

“We are committed to placing our customers at the centre of our online service design and delivery. I am pleased to see the New Zealand government performing ahead of our counterparts in the Asia Pacific region, however there is always more to be done to keep up with developments both in technology and customer expectations.”

“We’re delighted to be rated among New Zealand’s leading brands at the forefront of digital technology; the research validates our focus on creating a culture of digital connectedness,” says Justine Burn, Head of Distribution and Business Systems, AA Insurance. “It’s the CEO and Executive team’s role to ensure a focus on a digital culture through the entire company, which means that each area of the business is looking at how digital initiatives can add value to our customers’ experience.”

At an individual brand level, 13 of the 38 organisations[3] assessed by consumers delivered positive digital experience scores. The banking industry provided four of these brands, with two each from the insurance, retail grocery, and media and entertainment sectors. The final positive scores came from the consumer goods, telecommunication, and government sectors. The utilities industry was the only sector where an individual brand did not post a positive score.

New Zealanders rated their satisfaction with the digital experience from individual brands across eight industries based on 14 attributes, including security, engagement, personalisation, responsiveness, simplicity, among others.

Safe and secure was by far the most important digital experience attribute to consumers, with 72 per cent of respondents ranking it as one of the most important components of a delightful digital experience. The next most important attributes were services that are available anytime on my terms (42 per cent), and cohesive, integrated, and simple (42 per cent)[4]. However, those brands that performed well particularly also scored significantly higher in the more emotional attributes, such as predicts my preferences and excites and engages me.

“These findings demonstrate the strong connection between the digital experience and business outcomes in New Zealand,” said Graeme Riley, Managing Director, SAP New Zealand. “The vast differences between consumer loyalty, advocacy, and willingness to share personal information highlights the urgency with which the country’s brands must prioritise improving the digital experiences they deliver for their customers, and demonstrates the rewards available to those that do.

“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. 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.”

To download SAP’s New Zealand Digital Experience Report visit http://www.sap.com/australia/nzdxr.

[1] In the research, the digital experience is defined as how a brand digitally interacts with its customers during the discovery, transaction, delivery and support of a product or service.

[2] SAP asked consumers about their propensity to recommend the brand to a friend (applying Net Promoter Score® methodology) and their loyalty to the brand.

[3] Of the many brands that were analysed to derive the national and industry-level analysis, 38 received a statistically significant sample for SAP to conduct an organisation-level analysis.

[4] Importance based on consumers scoring each attribute on a scale of 0 (not important) to 10 (most important), with the most important attributes defined by a score of 9 or 10.

ends

© Scoop Media