The New Zealand Herald

Banks, airlines top for customer service

Survey reveals consumers are least happy with telcos

- Aimee Shaw

Consumers rate banks and airlines as the organisati­ons with the best customer service, well ahead of retailers and telcos at the bottom of the pack, according to a new report.

The Customer Experience Index, commission­ed by digital agency Track, compares the performanc­e of Kiwi companies in creating loyalty and delivering customer service.

The research pulls together insights from more than 1000 Kiwis’ interactio­ns with organisati­ons in different industries.

Track chief executive Rob Limb would not name the companies involved but did note there were some clear gaps in performanc­e across the sectors.

At the bottom of the list were telecommun­ication and broadband providers.

Limb puts this down to the impact of outside influences, saying that a lot can go wrong with the infrastruc­ture that makes these services possible.

For example, if a phone line dies or internet connectivi­ty drops, it’s often the provider that gets the earful, despite this being outside the control of the company.

“If you’re a broadband provider you are rather more reliant on people outside of your control,” said Limb.

On the other side of the spectrum are the banks, which have become the masters of controllin­g customer experience.

“Banking is right ahead of the game,” Limb said. “Over the last five to 10 years, large banking organisati­ons have put a lot of investment into improving customer experience and can control more of the experience.”

Aviation also scored well, but there was a marked gap between airlines perceived as providing good customer experience and those seen as downright poor, indicating some players are perhaps not doing enough to keep their customers happy.

Fast food, grocery and online TV/ streaming were other highperfor­ming categories.

In light of the results, Limb said businesses need to start using data for more than just surveillan­ce.

“New Zealanders don’t want to be targets,” he said. “The reality is customers do have the keys now and they expect their data to be used to help make better decisions not just be cross-sold effectivel­y and I think that’s a shift all organisati­ons across all sectors have to make.”

He points to luxury-car manufactur­er BMW sending a video to customers during a service to keep them involved in the process, or retailers such as Macpac emailing receipts to customers for convenienc­e.

French cosmetics chain Sephora has a mobile app that uses customer data and facial recognitio­n to help shoppers virtually test make-up, using video content to follow up with consumers.

“They are letting customers play with their technologi­es and data to make better [shopping] decisions and make their experience come to life, and not just in their stores,” Limb said.

“If customer experience and satisfacti­on is important then organisati­ons need to start thinking about how they use data to help customers and enable them in their lives, not just sell them the next best product.”

Other examples of using data to create effective customer service include Air New Zealand’s wearable Airband for children travelling alone, which sends updates and tracking informatio­n to their guardians.

And banks using customer data to analyse spending habits to provide warnings, such as those that send alerts that a customer will be overdrawn by the end of the month.

Limb said New Zealand was around two to three years behind the rest of the world in using data effectivel­y to enhance customer experience­s.

Retail NZ general manager of public affairs, Greg Harford, said brands needed to recognise that good customer experience starts before a customer is in-store.

“One of the opportunit­ies for retailers and a number of businesses to improve is on that emotional connection to their customers,” Harford said. “You want consumers to think of your brand as part of their family and part of their daily life.”

He said the retail sector should be using such data to build an emotional connection with consumers.

“One of the challenges and opportunit­ies for the sector is to make use of data to build that emotional connection,” he said.

“The more you understand your customer the better you are able to develop the marketing to build that emotional connection. Customers are looking for convenienc­e, they want businesses to make it easy and they don’t appreciate when there are hurdles in the way of them getting on with what they want to do.”

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 ?? Photo / 123RF ?? The research finds clients dislike businesses using their data as a commodity.
Photo / 123RF The research finds clients dislike businesses using their data as a commodity.

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