Oz Online Spend Plunges 35 Percent

A recent StollzNow Research survey has found that since the economic downturn 35% of Australians have decreased their online spend.

Commissioned by customer solution provider RightNow, the survey also found that retailers were struggling with customer relations with almost 50 percent of respondents saying they had suffered a negative experience while shopping in the past six months.

Others stats to come out of the survey included:

• 79% of consumers have stopped doing business with an organisation because of a bad experience
• 71% tell others about their negative customer experiences with the main aim (69%) being to prevent other consumers doing business with the company at fault
• In the next six months another 35% are likely to decrease spending in retailers and 29% will decrease online spending
• 36% will buy the same number of Christmas presents as last year but at a lower spend per person, 27% will try to buy fewer presents

“With consumers reigning in their spending, good customer service as a competitive differentiator becomes increasingly important for businesses if they are to weather the economic turmoil,” says Brett Waters, RightNow’s vice president, Asia Pacific-South. “The provision of ‘outstanding service’ remains the number one reason why Australians recommend companies to others and, even in an economic downturn, 28% of consumers will remain loyal to companies that provide them with the best service.”

The survey also found that the Federal Government’s ‘Economic Security Strategy’ whereby families, pensioners and carers will receive one-off payments, may not help stimulate the economy; when asked what they would do with $1,000 if they were given it tomorrow – 61% of Australian’s would save it, only 17% would spend it.