Digital Experiences in New Zealand Making or Breaking Business Performance
SAP research shows poor digital experiences provided by some of New Zealand’s largest and best-known brands are closely
tied to loss of customer loyalty, advocacy and insights
• Assessment of over 6,500 digital interactions in New Zealand shows 37 per cent of consumers are unsatisfied with their
• Strong correlation evident between delightful digital experiences and improved loyalty, advocacy and consumers’
willingness to share private data
• To improve their digital experience scores, top performing brands offer services that establish a deeper emotional
connection with customers
Auckland, New Zealand – 11 July: SAP New Zealand
today launched its inaugural New Zealand Digital Experience Report, revealing how some of New Zealand’s largest brands perform in delivering the digital experiences their customers want
. The study also uncovers a strong correlation between the digital experience and business outcomes, including customer
loyalty, Net Promoter Score®
, and consumers’ willingness to share private information.
SAP’s New Zealand Digital Experience Report offers detailed insights on New Zealander’s digital expectations and the ability of brands to meet them. Capturing
results from 2,500 consumers who rated over 6,500 digital interactions against 14 digital-experience attributes, the
report found over a third (37 per cent) were unsatisfied with the digital experiences delivered. In contrast, 31 per
cent of respondents were delighted with the digital experiences provided.
Two New Zealand brands that bucked the trend and that performed at the top of their industries included Bank of New
Zealand in the banking sector and AA Insurance in the insurance sector. Netflix scored highest in the media and
entertainment sector and highest among all industries.
The study shows that New Zealanders who are delighted with their digital experience are over four and a half times more
likely to remain loyal to a brand than those who are unsatisfied. The Net Promoter Score for this segment was an
impressive 69 per cent.
However, among New Zealanders unsatisfied with the digital experience, business outcomes took a dramatic turn. The
research found just 17 per cent of consumers that are unsatisfied with the digital experience would remain loyal, while
the NPS score for this segment is a staggering -54 per cent.
The link between the digital experience and business outcomes was also apparent in the report’s examination of New
Zealander’s data privacy and personalisation preferences. Analysis showed New Zealanders who are delighted with the
digital experience are more willing to share private data than those who are unsatisfied. The results varied across
different types of data:
• 40 per cent of delighted consumers would disclose their buying preferences
• 28 per cent their social media usage
• 25 per cent their health records
• 21 per cent their web browsing history
These figures fall among unsatisfied consumers: 13 per cent; eight per cent; four per cent; and four per cent
New Zealand’s digital-experience performance by industry
Of the eight industries assessed for the report, banking was the top performer, closely followed by insurance. Both
sectors returned positive digital experience scores, with more delighted than unsatisfied customers. Retail groceries
was the next best performing industry with a score of zero, meaning they have an equal amount of both delighted and
unsatisfied customers. Telecommunications, consumer goods retail and government were the three lowest scoring sectors;
however, with New Zealand performing best in government among mature markets across the Asia-Pacific region.
“For many digital banking has become an arms race to be the first to market with the latest new widget, which is why
it’s great that SAP have taken the time to understand the impact that poor quality digital experiences can have,” says BNZ’s Head of Digital Stephen Bowe. “At BNZ we strive to put the customer at the core of everything we do. We’re focused on creating highly personalised,
engaging banking experiences that put our customers in control and help them to be good with money.”
“This report provides both valuable and helpful information for New Zealand government agencies and broadly aligns with
our own research about customer experience of government services,” says Colin MacDonald, Government Chief Information Officer.
“We are committed to placing our customers at the centre of our online service design and delivery. I am pleased to see
the New Zealand government performing ahead of our counterparts in the Asia Pacific region, however there is always more
to be done to keep up with developments both in technology and customer expectations.”
“We’re delighted to be rated among New Zealand’s leading brands at the forefront of digital technology; the research
validates our focus on creating a culture of digital connectedness,” says Justine Burn, Head of Distribution and Business Systems, AA Insurance. “It’s the CEO and Executive team’s role to ensure a focus on a digital culture through the entire company, which means
that each area of the business is looking at how digital initiatives can add value to our customers’ experience.”
At an individual brand level, 13 of the 38 organisations
assessed by consumers delivered positive digital experience scores. The banking industry provided four of these brands,
with two each from the insurance, retail grocery, and media and entertainment sectors. The final positive scores came
from the consumer goods, telecommunication, and government sectors. The utilities industry was the only sector where an
individual brand did not post a positive score.
New Zealanders rated their satisfaction with the digital experience from individual brands across eight industries based
on 14 attributes, including security, engagement, personalisation, responsiveness, simplicity, among others.
Safe and secure was by far the most important digital experience attribute to consumers, with 72 per cent of respondents ranking it as
one of the most important components of a delightful digital experience. The next most important attributes were
services that are available anytime on my terms (42 per cent), and cohesive, integrated, and simple (42 per cent)
. However, those brands that performed well particularly also scored significantly higher in the more emotional
attributes, such as predicts my preferences and excites and engages me.
“These findings demonstrate the strong connection between the digital experience and business outcomes in New Zealand,”
said Graeme Riley, Managing Director, SAP New Zealand. “The vast differences between consumer loyalty, advocacy, and
willingness to share personal information highlights the urgency with which the country’s brands must prioritise
improving the digital experiences they deliver for their customers, and demonstrates the rewards available to those that
“With SAP’s New Zealand Digital Experience Report, we’re offering a framework to help organisations measure and manage their digital experience performance from their
customers’ perspective. Whilst these frameworks might differ by industry, the central component will always be the
customer. Brands that perform best in this new digital marketplace are those that unite their people and processes on a
single system to deliver on their customers’ ever increasing demands.”
To download SAP’s New Zealand Digital Experience Report visit http://www.sap.com/australia/nzdxr
 In the research, the digital experience is defined as how a brand digitally interacts with its customers during the
discovery, transaction, delivery and support of a product or service.
 SAP asked consumers about their propensity to recommend the brand to a friend (applying Net Promoter Score®
methodology) and their loyalty to the brand.
 Of the many brands that were analysed to derive the national and industry-level analysis, 38 received a
statistically significant sample for SAP to conduct an organisation-level analysis.
 Importance based on consumers scoring each attribute on a scale of 0 (not important) to 10 (most important), with
the most important attributes defined by a score of 9 or 10.