Brand loyalty linked to online interaction

Australians are four times more likely to be loyal to a brand if the company's digital presence is simple, personal and engaging, a report says.

Once upon a time, customer loyalty largely depended on the friendly and helpful shop assistant.

But in today's digital age, it is more about the quality of a company's online service, research by software giant SAP shows.

The report, based on a poll of 3,000 Australians, found shoppers are four times more likely to be loyal to a brand if their digital experience is "delightful".

Of those identified as being unhappy with their digital experience, only 17 per cent said they would remain loyal to the brand.

Poor digital experiences can lead to a loss in customer loyalty and ultimately a loss in sales, SAP's Australia and NZ managing director John Ruthven said.

He said simple, engaging and personalised digital experiences were identified as being key to engendering repeat business and customer loyalty.

"They want personalised service and for it to predict their preferences without infringing on their privacy," Mr Ruthven said.

"An engaging digital experience is one that responds to consumers and allows them to interact with and control the experience when needed.

"And thirdly, a digital experience should be cohesive, integrated and easy; it has to fit in with the consumer's life effortlessly, available anytime, anywhere."

He said the survey found there was a huge gap between what customers wanted compared to what 34 of the country's biggest brands were providing online.

While the purpose of the research was not to rank brands based on their digital offerings, there were two standouts, he added.

Suncorp Insurance scored highest when it came to being available anytime, being respectful and dedicated to customers' needs, while Kogan.com scored the highest among consumer goods retailers.