New research from Genesys has revealed a gap between consumer expectations and delivery of customer service by companies in Australia and New Zealand (ANZ).
The fourth edition of "The State of Customer Experience in Asia-Pacific" surveyed more than 5,000 consumers and nearly 1,200 customer experience (CX) decision makers globally, with key findings specific to ANZ.
According to the report, 53% of consumers in ANZ identified first-contact resolution as the most valuable part of a customer service interaction, above the global average of 48% and ahead of fast response, which was cited by 43% as the next most important element.
While personalisation is clearly important to consumers in the region, only one in three CX leaders in ANZ believe their organisations deliver highly personalised customer service. Furthermore, just 30% of CX leaders indicated their organisations were extremely effective at understanding consumer accounts and history to deliver such experiences.
The report also found that 64% of consumers in ANZ value when brands demonstrate knowledge of their account history and current activities— the highest proportion recorded in the Asia-Pacific region. However, proactive service was valued by only 42% of ANZ consumers, the lowest rate across APAC. This suggests that ANZ consumers expect efficient and tailored service upon initiating contact, rather than companies pre-emptively predicting or reaching out about future needs.
The disparity is further evident in multichannel support, where just 20% of ANZ CX leaders felt their organisations excelled in allowing customers to communicate seamlessly across different channels such as social media, chat, and phone within a single service interaction.
Mark Buckley, Vice President, Australia and New Zealand at Genesys, commented on the findings: "There's a clear gap between what consumers in ANZ expect and what businesses believe their customer service teams can deliver. This is important, especially when our research shows 35% of ANZ consumers surveyed report having stopped doing business with a company because of a bad customer service experience within the past year, and 39% having recommended a company after receiving a positive customer service experience in that same period."
Personalised service and channel flexibility are considered significant differentiators in the ANZ market. However, only 33% of ANZ CX leaders feel they provide extremely personalised service experiences, compared to 42% globally. The value placed on service is further highlighted by 83% of ANZ consumers agreeing that "a company is only as good as its service," compared to a 76% average across APAC.
When it comes to waiting times, 54% of ANZ consumers say that waiting five minutes or more on hold is unacceptable. Nevertheless, the report found that one in ten consumers in the region had waited 90 minutes or more to reach a service representative—more than double both the global and regional averages.
Among CX leaders in ANZ, the most commonly cited internal obstacles to seamless customer journeys were siloed departments with separate engagement solutions (33%), lack of consolidated or shared data (33%), and the absence of continuity or carry-over of customer context between channels (30%).
Technology, particularly artificial intelligence, is expected to play an increasing role in improving customer experience. Globally, 64% of consumers believe AI will improve the quality and speed of customer service within two to three years. Despite this, only 30% of ANZ CX leaders said their organisations plan to implement an integrated customer experience platform in the next two years, compared with 44% globally and across broader APAC.
In terms of budget, ANZ businesses indicated they plan to allocate just 16% of their CX budgets to AI-powered technologies in the coming year. This figure is notably lower than the 33% average across APAC and globally.
Buckley highlighted the potential for technology to help close the gap in customer experience: "For organisations looking to close the gap between the experiences they're delivering today and the services that consumers want, a technology-based platform approach and the integration of AI into their CX strategies can represent a clear path forward. When it comes to giving consumers what they want, a strategic technology-based approach can enable experience orchestration, crafting the ideal end-to-end journey for each customer."
The research also identified preferred channels for engaging with customer service. In ANZ, 58% of consumers listed email as a top channel, the highest rate in APAC, while 62% preferred speaking with a live agent by phone. Across Asia Pacific, 53% reported that phone calls remain a top method for customer service interaction.
Empathy is particularly valued among ANZ consumers. Seventy-nine percent of respondents cited CX teams who listen and understand what they are trying to achieve as a valuable attribute—higher than the global average and nearly every other APAC country except South Korea. Additionally, 31% listed listening, understanding, and empathy as priority attributes for customer service interactions.
The data suggests that businesses have only a limited number of chances to meet consumer expectations. Nearly 60% of ANZ consumers indicated they would switch brands after two to five negative experiences, compared with 53% globally. Furthermore, unresolved minor issues can have a significant impact, with 23% of respondents saying repeated small problems during service were a leading reason to switch to a competitor.
The survey was conducted in September and October 2024, with responses from more than 16 countries, including 173 consumers and 40 CX leaders in Australia and New Zealand.
