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Reliable service, customer experience, price the main drivers for consumer choice

2nd August 2024

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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The 'South Africa Customer Experience (CX) Report 2024' shows that 71% of consumers, even during the cost-of-living crisis, prioritise a reliable service or product offering that they can depend on and will buy from again, followed by the best price at 63% of respondents.

“Price is driving demand in the current cost-of-living crisis, but the research shows that consumers want to be wooed by their favourite brands and made to feel special and, in many cases, they are willing to pay more,” says research company Ovatoyou founding director and report co-author Amanda Reekie.

“Spending is currently careful and considered. This means the brands consumers choose to use are offering something different through memorable moments of delight. These moments set brands apart from one another and it is this extra-mile mindset that is winning the war of the wallet,” adds CX services company Julia Ahlfeldt Consulting CX strategist and report co-author Julia Ahlfeldt.

Delivering a reliable experience is the number one reason why consumers repeatedly buy from a brand, according to the 2024 report, says digital marketing agency Rogerwilco CEO and report co-author Charlie Stewart.

“Interestingly, given the financial climate we are living in, this year’s data indicates that, among consumers, having the best price ranked as the second most important factor when purchasing from brands.

“Consumers want the best experience at the lowest price. Simple,” he emphasises.

Meanwhile, consumer respondents to the 2024 report indicated that a good customer experience is when their purchases are delivered as promised, on time, quickly and reliably, and are of a good quality.

There is a significant opportunity and need for businesses to deliver a differentiated brand experience and thereby garner among consumers faithfulness and loyalty in repeat purchasing.

“This can lead to them sharing of their positive experiences online and via social media, as well as among friends and family, keeping brands top-of-mind and ahead of their category and cross-category peers,” says Reekie.

When a consumer has a good experience, such as if the purchasing process was reliable and the value good, they are increasingly using review channels to share what happened.

Consumers are researching these testimonial-style reviews in great detail before purchasing to ensure that what they buy is what they will get, or even something extra.

“Their preferred channels to do this is by turning to a company’s website, at 66%, referring to their social media channels, at 64%, or asking friends and family for recommendations at 61%,” says Stewart.

Meanwhile, email remains the preferred problem-solving channel for consumers at 24%, followed by call centres at 19%, Google at 18%, and then a chat function at 12%. Social media ranked poorly with 7% of respondents saying they use these channels to address pain points.

There has also been a shift in the use of WhatsApp as a business channel, with businesses rating it as their third communication channel of choice, while consumers list it as their least favourite in terms of effectiveness, the report highlights.

“Branches or stores have the added advantage of the human element. Customers like speaking to a person, compared to a bot. They seek help in-store because it is not only a learned behaviour but offers the opportunity for human connection that contributes to an ease with the brand and immediate issue resolution.

“There is also a sense of efficiency and effectiveness in-store, trust and familiarity, a good business nature and professionalism,” says Ahlfeldt.

However, there is a disconnect between what motivates consumers and what businesses believe drives repeat business online and in person.

Businesses, at 71%, believe repeat purchases are owing to customers trusting them, but only 54% of consumers concurred in the report.

“Businesses have an opportunity to look at each point in their customer journey as an opportunity to delight and connect with customers by offering that little bit extra. Doing so will translate into customer conversions and repeat sales,” concludes Ahlfeldt.

Edited by Creamer Media Reporter

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