NZ businesses delivering dodgy digital experiences, says SAP

SAP says NZ business falling shore on digital, omnichannel

SAP has said New Zealand companies are failing to exploit technology to provide satisfactory “digital experiences” to customers, and failing to fully exploit the potential of omnichannel customer interaction. However, SAP says Australian businesses have improved significantly.

SAP New Zealand managing director, Graeme Riley warned New Zealand companies that they risked falling behind global competitors and digital native brands entering the market.

“We’ve seen the importance of digital experiences for brands in Australia and New Zealand and the results show that the business benefits of having a positive digital experience cannot be ignored,” he said.

“Similarly, having a negative digital experience can significantly impact customer advocacy and loyalty and with businesses in New Zealand at a standstill, there should be a concerted focus to delight their customers in the year ahead.”

SAP’s conclusions come from its 2017 New Zealand Digital Experience Report, based on assessments by more than 2,000 New Zealander’s of nearly 6,000 interactions, and contrast starkly with its assessment of Australia.

SAP said that, overall, the proportion of consumers unsatisfied with their digital experience had dropped only one percentage point since 2016, from 37 percent to 36 percent, while the percentage of those delighted remained consistent at 31 percent, and overall “performance remained static.”

SAP said: “These findings suggest that organisations in New Zealand are struggling to keep pace with consumers’ growing expectations for simple, engaging digital experiences when they browse, shop or get help online, via an app or through other digital channels.”

Reporting its Australian study, announced a week earlier, SAP said: “Australian businesses have significantly improved the digital experience they provide, closing the gap to what consumers expect.”

Of the 4000 Australian consumers surveyed the percentage unsatisfied with their digital experiences dropped from 40 percent in 2016 to 35 percent, while the number delighted ncreased from 26 percent to 31 percent.

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Despite New Zealand’s poor performance SAP reported three industries posting positive results overall, compared to only two in 2016.

“The banking industry led the way for the second year in a row, with a combined digital experience score increasing by one point year on year, from nine in 2016 to 10 in 2017,” SAP said.

 “Insurance and air travel also returned positive digital experience scores overall, while all other industries remained consistent year on year.”

Mighty Ape gets a gong

Online retailer Mighty Ape was singled out by survey participants as having the best digital experience among all brands with a score of 35. Other leaders include ANZ Bank New Zealand (18), AA Insurance (21) and Netflix (17).

This year’s report for the first time looked at the impact of omnichannel interactions, and found more consumers engaging with brands through multiple channels than via one channel, with 89 percent of respondents using two or more channels and 40 percent of consumers use at least five channels to engage with brands.

The list includes physical stores, contact centres, mail, websites, live chat, social media and mobile apps. Websites scored the highest satisfaction rating (39 percent) followed by email (31 percent) and mobile apps (24 percent).

Respondents rated these as providing better experiences than shopfront/in-store/branch (21 percent), telephone/contact centres (20 percent) or mail (17 percent). Newer technologies such as social media (7 percent) and live chat (-8 percent) offered the lowest levels of satisfaction for digital channels with more unsatisfied customers than happy ones for live chat in particular.

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