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Your customers' digital experiences define you

Divina Paredes | July 11, 2016
...or why Netflix, Bank of New Zealand and AA Insurance are New Zealand’s top performing large brands in providing digital experiences.

Netflix, Bank of New Zealand and AA Insurance are New Zealand's top performing large brands in providing digital experiences.

This is according to the inaugural New Zealand Digital Experience Report by SAP.

The study interviewed 2500 consumers on their experiences with brands in eight industries, says Graeme Riley, managing director, SAP New Zealand.

Riley says the respondents rated more than 6500 digital interactions against 14 digital experience attributes.

In Australia, where the survey has been held for the second year, Netflix also came out on top, followed by Suncorp and Coles.

Over a third (37 per cent) of consumers are not satisfied with the digital experiences delivered by some of New Zealand's largest and best known brands.

In contrast, barely a third (31 per cent) of respondents were pleased with the digital experiences being provided.

The report shows Kiwis who comprise the above group above are four and a half times more likely to remain loyal to a brand than those who are unsatisfied with their digital experiences.

"These findings demonstrate the strong connection between the digital experience and business outcomes in New Zealand," says Riley.

"Consumers will pay a premium for a better digital experience," he says.

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.

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

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 negative (-)54 per cent.

The link between the digital experience and business outcomes was also apparent when the report examined the respondents' views on data privacy, and personalisation preferences.

The respondents who said they are delighted with the digital experience, are more willing to share their data than those who are unsatisfied.

The results, however, varied across different types of data.

The report notes of the delighted consumers, 40 per cent would disclose their buying preferences; 28 per cent their social media usage; 25 per cent their health records; and 21 per cent their web browsing history.

With unsatisfied customers, the figures decline for these four areas: 13 per cent; eight per cent; four per cent; and four per cent respectively.

"This suggests that as a company you can take that data [from the satisfied customers], personalise it even more and have a better experience and lock them in," says Riley. "It is almost self-fulfilling; the better you do, the more they share, the better it gets."

 

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