Are the doldrums of winter impacting Australian customer satisfaction?

July 27, 2011

This story started in early July 2011 as we were putting together a report for one of our clients looking at their June customer satisfaction results. We witnessed an unexplained drop in customer satisfaction and reached out to the broader Ipsos team to explore what might be causing this drop. Our exploration uncovered similar “unexplained” drops in customer satisfaction for other clients so we decided to do launch a proper investigation. What follows is the compilation of our findings – enjoy the read!

With Australian consumers concerned about the government, taxes, natural disasters and the end of financial year, to say nothing of changing in attitudes towards spending, it’s no wonder consumers have become so frugal. Not only are they more critical of the services that they are receiving, they are also more closely assessing value for money in all aspects of their spending.

The result? A fussy customer that will be critical of their experience with your business

  • Production of energy, and the cost of energy consumption
  • Our dwindling natural resources
  • The proposed carbon tax, taxes in general, and how it affected them personally
  • The government’s decision making abilities, with calls for an early election
  • The nation’s ability to deal with natural disasters

None of these issues in isolation is extraordinary but with all of these concerns on the minds of Australians it is no surprise that the Consumer Confidence Rating was at its lowest point since 2009, when the effects of GFC were really starting to hit home. The GFC has made consumers more cautious with their spending. They are now better at managing debt, they eat and entertain at home more often, shop at discounted grocery stores, and are shopping online more than ever. The GFC has triggered a bit of consumer soul searching amongst Australians as we reflect on our excessive consumerism and change our spending behaviors and attitudes. Questions we’re asking ourselves include:

  • Do I need to eat out every second night?
  • Do I really need a new TV entertainment system?
  • Can I make do with my current car rather than buying a new one?

Consumers are behaving differently in June 2011. There are outside forces that are having uncontrollable impact on your business and the way your customers rate their experiences with you.

Is there a silver lining? Perhaps. It is likely your competitors are experiencing the same issues with their customers and at worst your pain is shared with your competitors. However current consumer unrest might represent an opportunity for you to do some conquering. Are you well equipped with the knowledge to engage the enemy?


For more information visit www.ipsos.com

For further information contact:

Brett Tucker
Managing Director
Ipsos Loyalty – Australia
T: 02 9900 5130
E: brett.tucker@ipsos.com

About Ipsos
Ipsos is the second largest global survey-based market research company, owned and managed by research professionals that assess market potential and interpret market trends for over 5,000 worldwide clients to develop and test emergent or existing products or services, build brands, test advertising and study audience responses to various media, and, measure public opinion on issues and reputation. With over 9,100 employees working in wholly owned operations in 64 countries, Ipsos conducts advertising, customer loyalty, marketing, media, and public affairs research.