Research Shows NZ Brands Are Failing To Deliver On Promises

What: Research shows NZ brands are failing to deliver on promises

When: 27 May 2024

Where: Auckland, New Zealand

A first of its kind study has revealed more than 71% of New Zealanders feel brands are not making good on their promises.

The Brand Experience Gap Study, commissioned by Accenture Song, the tech-powered creative group of Accenture, revealed a gap between what brands say they do and the experience of Kiwi customers. The study was conducted across eight sectors and 80 of New Zealand’s largest brands.

The travel & tourism sector fared the worst, with 78% of New Zealanders saying airlines, airports and booking agents are not fully delivering to promise. 22% of people believe that offering the lowest fares / prices is the single most important area for travel brands to improve.

New Zealanders consistently rated brands as falling short on pricing. Despite Financial Service brands scoring the best of all sectors on living up to promises, 21% of New Zealanders who used financial services in the past 12 months felt brands did not have reasonable fees and interest rates.

Low prices were rated as most important by 24% of telecommunications customers, and 21% of energy customers.

Insurance and media companies were the second-worst performers across all sectors, with 72% of New Zealand users saying providers don’t fully deliver on their promises.

“Having confidence the provider will pay out” was the single most important area for insurance customers, while media and entertainment customers wanted brands to do better at refreshing content.

Ease of interactions, good customer service, and security of personal details were the attributes most valued by customers.

The study asked 2,479 New Zealand respondents to rate their interaction and experiences with brands in financial services, telecommunications, insurance, utilities, travel and tourism, retail and grocery, and media and entertainment.

Quotes from Storm Day, Chief Business Officer at The Monkeys, Aotearoa & Accenture Song:

“Kiwi brands are failing to deliver the very thing their business is built on – its promise to the customer.

“There are multiple factors that influence this: businesses are scrambling to cut costs and protect profits against a strained economic backdrop.

“But when customers see such a vast gap between a brand’s promise and the experiences they encounter, their trust for the brand erodes.

“This insight also corroborates findings in Accenture Song’s Life Trends report where 37% of customers globally think that companies are prioritizing higher profits over better customer experience.

“It is critical that organisations unify brand and experience if they want to remain relevant to their customers and grow sustainably. Promising one thing and letting customers down when it comes to the experience is detrimental.

“When you put a meaningful purpose at the heart of an organisation it becomes the north star and guides a cohesive brand and experience.

“Technology offers enormous potential to help companies live up to their promises. We’re helping clients use Generative AI to personalise the customer experience.”

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