Despite ongoing cost-of-living pressures impacting 85% of Australians, consumers are still willing to invest in a superior customer experience, with 35% indicating they would pay a premium for it. This is one of the key findings from KPMG’s Customer Experience Excellence 2024 Australia Report, released today. The report highlights how non-grocery retail brands are setting the standard for customer excellence, capturing seven of the top 10 spots in this year’s rankings.
Mecca leads the pack in 2024
Mecca claimed the number one position in 2024, followed closely by Specsavers and ING. Demonstrating consistency, Mecca was one of five brands maintaining a top 10 position since 2021, alongside Bendigo Bank, Bunnings, Chemist Warehouse, and Specsavers. Making a return to the top 10 for the first time since 2020 were IKEA, Kmart, and RACV.
Carmen Bekker, lead partner, KPMG customer, noted, “Retailers are leading the pack in terms of driving innovation and customer experience. They are delivering value through lower prices, exceptional service, and unique customer experiences. However, customer experience excellence is not confined to one sector; the top 30 brands span 15 different subsectors.”
Top 10 Brands for Customer Experience Excellence in Australia (2024, 2023 and 2021).
Trust and Integrity Drive Customer Advocacy
One of the standout findings this year is a shift in what drives customer advocacy. Trust and integrity have overtaken personalisation as the top factors influencing consumers to recommend brands — a notable change from previous years. This shift reflects a heightened demand for transparency and ethical practices, especially as consumers grow more discerning in their brand loyalty.
AI’s role in shaping customer experience
The report also underscores how artificial intelligence is reshaping consumer interactions. However, attitudes towards AI vary significantly by age group:
- Younger consumers express concerns about AI displacing human jobs and reducing entry-level opportunities, leading to long-term career apprehensions.
- Older consumers tend to value human interaction over AI, especially in complex or sensitive scenarios. They are also more concerned about data security, fearing potential breaches and misuse of personal information by AI systems.
“There are clear generational divides in consumer expectations,” Bekker explained. “Understanding these differences is crucial for businesses looking to navigate these complexities. While younger generations are cautious about job impacts, older demographics prioritise security and a personal touch. Brands that can balance technology with trustworthiness are better positioned to build stronger customer relationships.”
A focus on empathy and customer connection
KPMG’s research found a positive shift towards empathy in customer interactions. According to Bekker, “Last year, low-cost, minimal-contact interactions were eroding customer perceptions. This year, businesses appear to be investing in more empathetic and meaningful engagements, which is resonating with consumers.”
Bekker emphasised that brands integrating technology with human-like qualities and demonstrating transparency will strengthen customer bonds. “By combining trustworthiness with advanced technology, organisations can enhance satisfaction and foster deeper customer loyalty.”
Methodology
KPMG’s Customer Experience Excellence research is based on insights gathered since 2010, involving over 385,000 consumers globally and evaluating nearly 3,500 brands. For the 2024 Australia Report, a nationally representative sample of 2,500 Australian consumers was surveyed. Respondents were asked to rate brands they had interacted with in the past six months, providing a comprehensive view of the evolving landscape of customer experience.