Despite 85% of Australians feeling the squeeze from rising living costs, 35% are still happy to pay a premium for exceptional customer service.
Quality experience is still king—even when the wallet’s a little lighter! According to KPMG’s Customer Experience Excellence 2024 report, digitisation is reshaping how brands connect with Aussie consumers, and non-grocery retailers are leading the charge, occupying 7 out of the top 10 spots.
Top of the list? Mecca, followed by Specsavers and ING. Mecca has remained a top contender since 2021, alongside other big names like Bunnings, Bendigo Bank, and Chemist Warehouse. Returning to the top 10 this year are IKEA, Kmart, and RACV, showing how brands continue to evolve to meet diverse consumer needs.
Retailers are outshining other sectors, with KPMG’s Carmen Bekker noting that they’re driving innovation by offering value in ways that go beyond price—think top-notch service, exclusive experiences, and more. But, she adds, customer experience isn’t just a retail thing—brands from 15 industries made the top 30, reinforcing that great customer experience is crucial across the board.
In a twist, integrity and trust have now overtaken personalization as the top factors influencing customers’ decisions to recommend brands. As consumer expectations shift, customers are looking for transparency and honesty, with more emphasis on genuine care and trustworthy relationships.
The rise of AI has also sparked generational divides. Younger consumers are worried about AI displacing entry-level jobs, while older generations prefer human interactions, especially when dealing with complex issues, and are more concerned about data privacy. Bekker highlights that businesses need to balance technological advancements with a personal touch, meeting the evolving needs of all customers.
Lastly, customer expectations are shifting. Where low-cost, minimal-contact service once sufficed, Australians are now valuing empathy and meaningful interactions more. Brands that show genuine care and go beyond transactional service are winning customers’ hearts. “As brands embrace AI, they must do so with integrity,” Bekker advises. “Infusing AI with human-like qualities will strengthen customer relationships and boost satisfaction.”
KPMG’s Customer Experience Excellence 2024 report reveals Australia’s top 10 brands for customer experience, with Mecca leading the pack, followed by Specsavers, ING, and Bunnings. These brands have maintained high standards while adapting to evolving consumer needs. Notable newcomers to the top 10 include IKEA, Kmart, and RACV. The report highlights the importance of consistent customer experience and the ability of brands to meet changing expectations over time.
Here’s the full list:
- Mecca
- Specsavers
- ING
- Bunnings
- Chemist Warehouse
- Bendigo Bank
- Apple
- RACV
- IKEA
- Kmart
Mecca’s magic
Mecca has transformed from a beauty retailer into a leading beauty authority, blending luxury, innovation, and a deep sense of community. Their stores aren’t just retail spaces; they offer immersive, sensory experiences designed to make customers feel like they’ve entered a beauty haven. Mecca’s curated product selection stands out in a crowded market, offering only the best from the beauty industry.
Their messaging, full of wit, charm, and authenticity, encourages customers to embrace their individuality, making them feel empowered rather than pressured. With initiatives like Beauty Loop, a loyalty program offering exclusive perks, Mecca keeps customers engaged while rewarding their loyalty.
Their social media presence amplifies beauty trends and user-generated content, staying consistent with their distinct brand voice. Celebrity partnerships have further elevated their appeal, making Mecca synonymous with aspirational beauty. Through a blend of experiential retail, expert education, and innovative marketing, Mecca continues to lead and redefine beauty retail.
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Forget the cost-of-living crunch—Australians are still willing to splurge for a top-tier customer experience. News, Brand Dynamic Business