Australian Digital Experience Report

AUST RA LIA N
DI G I TAL E X P E R IE N C E R E PO RT
CO N T E N TS
Executive Summary
The Digital Experience Gap
02
06
Understanding the Gap

Why the Gap Matters
Business Impact of the DigitalExperience
What Matters to Consumers
The Australian Digital Experience Index
07
08
09
11
13
The Digital Experience Gap: Industries at a Glance
15
Who Leads? Who Lags?

16
Whats Important to Consumers byIndustry18
Industry Overview: Banking
19
Industry Overview: Utilities
20
Industry Overview: Telecommunications
21
Industry Overview: Retail: Groceries
22
Industry Overview: Retail: Consumer Goods
23
Industry Overview: Insurance
24
The Rise of the Digital Influencer
26
What Matters to the DigitalInfluencer

Creating Delightful Digital Experiences
28
30
Technology Enabling the Great Digital Experience
32
Know Your Customer

Engage Your Customer
Case Studies
32
33
Suncorp Insurance
37
Kogan.com42
References and Further Reading
43
Acknowledgements
44
01
A U S T R A L I A N D I G I TA L E X P E R I E N C E R E P O R T
EXECUTIVE SUMMARY
Australians are some of the most enthusiastic
adoptersof digital, cloud and mobile technology
globally. Smartphone penetration sits at upwards
of80per cent, while more than half of Australians
(53per cent) own a tablet, laptop and smartphone1.
But recent research by SAP and AMR shows that

manyAustralian consumers have been overlooked.
Some of our biggest and bestknown brands are
alienating consumers due to poor digital experiences.
This isnt just bad for consumers; its bad for business.
Digital experiences that fail to delight consumers can
negatively influence customer advocacy, lead to a loss
of loyalty and ultimately affect revenue.
The digital experience how a brand digitally

interacts with its customers during the discovery,
transaction, delivery and support of a product or
service is everywhere. It has rapidly become one
of the most important components of the overall
customer experience.
These are some of the major findings from SAPs

firstAustralian Digital Experience Report.
RESPONDENTS COMPLETED A 15
MINUTE ONLINE SURVEY RATING 2 TO
3 BRANDS ACROSS 6 INDUSTRIES
QUESTIONNAIRE
COVERAGE
SATISFACTION WITH
DIGITAL EXPERIENCE
(GENERAL)
SATISFACTION WITH
DIGITAL EXPERIENCE
(BY INDUSTRY)
x 3,000
SATISFACTION WITH
DIGITAL EXPERIENCE FOR
INDIVIDUAL COMPANIES
NET PROMOTER SCORE
LOYALTY
02
This reports findings will be uncomfortable for many.

They show:
This report draws on research with 3,000 Australian

consumers who rated core aspects of the digital
experience from two to three brands they regularly
interact with. The results offer detailed insights on
consumer expectations of the digital experience and
the ability of brands to meet them.
Australian brands arent delivering the digital

experience consumers want. There is a significant
digital experience gap in Australia meaning there is
a large discrepancy between the digital experiences
that delight consumers and what Australian brands
are actually delivering.
Uniquely, the report assessed consumers direct ratings

of 34 brands across six consumer-focused industries,
including retail (groceries and consumer goods),
telecommunications and Internet service providers,
insurance, banking and utilities. From these ratings we
compiled industry and brandlevel assessments of the
digital experience, and the first-ever Australian Digital
Experience Index, which represents ratings of nearly
7,000digitalinteractions.
There is a strong correlation between the size

of this gap and Net Promoter Score (NPS) and
customer loyalty. Customers delighted with a
digitalexperience are four times more likely than
those who are unsatisfied to remain loyal to a brand.
On average, customers delighted with the digital
experience delivered a net promoter score of 63 per
cent compared to a score of -55 per cent from those
who were unsatisfied with the digitalexperience.
While this systematic assessment of the digital

experience provides many organisations with a strong
reference point for improvement, the killer finding is
the link between the digital experience and customer
loyalty and advocacy two metrics with significant
impact on revenue.
BANKING
INSURANCE
Just one brand from the 34 ranked in the

Australian Digital Experience Index attained a
positive score. Those brands that performed best
understood what attributes of the digital experience
were most important to their customers and focused
their investment and resources in those areas.
RETAIL
(CONSUMER)
RETAIL
(GROCERY)
03
UTILITIES
TELCO
SAP is a trusted innovator to over 3,000 Australian

organisations across 25 industries and has developed
and delivered solutions for more than three quarters
of the ASX Top 50. With the results of this research as
well as the local and global experience accumulated
over the past 43 years, we are laying the facts bare.
Theobjective is not to point out poor performance, but
to help Australian organisations make decisions on how
they can better serve their customers and compete in
an increasingly digital and global economy.
The report also highlights the important role the

digitally savvy consumer plays in driving a positive
digital experience score for brands. The more
influential consumers are in the digital world, the
better they rate a brands digital experience. Brands
need to harness this finding by appealing to and
nurturing this segment of their customer base.
SAP has taken the research a step further by
interviewing the brands with the highest digital
experience scores to identify the processes and
culture behind best practice in Australia. Consistent
across these case studies is the depth to which
leading brands consider and incorporate the digital
experience throughout the value chain. In other words,
the digital experience is not just a channel owned by
the marketing function. Rather, the digital experience
is a differentiating element of the offering itself in which
the entire organisation and its network invests, from
inception to delivery.
DELIGHTED
Finally, the report delivers recommendations based

ondirect consumer input and best practice in Australia
and other markets on how organisations can improve
top-line performance by delivering a superior digital
experience from awareness to advocacy. Leading
brands achieve a distinct advantage by investing in
simple, data-driven platforms and organisational
structures that bring the front and back office
togetherto understand and engage their customers
better than anycompetitor.
There is a signicant
digital experience
gap in Australia
meaning there is a
large discrepancy
between the digital
experiences that
delight consumers
and what Australian
brands are
actuallydelivering.
UNSATISFIED
Just one brand from the 34 ranked in the

Australian Digital Experience Index
attained a positive score.
04
05
T H E A U S T R A L I A N D I G I TA L E X P E R I E N C E R E P O R T
T H E D I G I TA L E X P E R I E N C E G A P
Providing a great digital experience can drive loyalty
and advocacy among customers, and ultimately
greater revenue. But are Australian brands getting the
digital experience right?
This gap is quantified by a digital experience score

calculated by subtracting the percentage of customers
unsatisfied with the digital experience from the
percentage of those who are delighted.
Three thousand Australian consumers rated almost

7,000 digital interactions with 34 of the largest and
best-known brands in Australia.
Across the nearly 7,000 digital interactions assessed,

the brands achieved an average digital experience
score of -25 per cent.
Just 22 per cent of consumers were delighted with
the digital experience brands offer
The core finding from these ratings was a wide digital

experience gap. It suggests the vast majority of
Australian brands do not deliver the digital experience
consumers desire.
47 per cent were unsatisfied with their

digitalexperience
31 per cent were ambivalent
ACROSS A VARIETY OF INDUSTRIES

MORE AUSTRALIANS ARE
UNSATISFIED THAN DELIGHTED WITH
THEIR DIGITAL EXPERIENCE
47%
UNSATISFIED
THE DX SCORE
- 25%
31%
AMBIVALENT
06
22%
DELIGHTED
U N D E R S TA N D I N G T H E G A P
Those with an overall score of 7 were regarded as
ambivalent and are neither satisfied nor dissatisfied
with the digital experience a total of 31 per cent of
the survey respondents
Consumers rated their satisfaction with the digital

experience from individual brands based on 13
attributes, on a scale from 0 (not at all satisfied) to 10
(extremely satisfied). An average of the ratings was
then calculated, with each consumer assigned an
overall digital experience score between 0 and 10.
Those with an overall score between 8 and 10

wereregarded as delighted with the digital
experience atotal of 22 per cent of respondents
To determine the level of customer satisfaction with

the digital experience, SAP used a format similar to
the NPS methodology. Each consumer rating of the
digital experience with the brand was placed into the
followingcategories:
The digital experience score was calculated by

subtracting the percentage of consumers unsatisfied
with the digital experience from the percentage of
thosedelighted.
Those with an overall score between 0 and 6 were

regarded as unsatisfied with the digital experience
a total of 47 per cent of the survey respondents
A brand that provides a delightful digital experience will

have a positive digital experience score; that is, there are
more delighted than unsatisfied customers.
DERIVING THE DIGITAL EXPERIENCE (DX) SCORE

DELIGHTED
WITH THE DIGITAL EXPERIENCE
AMBIVALENT
THE DX SCORE IS DERIVED BY

SUBTRACTING THE PERCENTAGE
WHO ARE UNSATISFIED FROM THE
PERCENTAGE WHO ARE DELIGHTED
UNSATISFIED
THE
DELIGHTED
UNSATISFIED
07
DX
SCORE
W H Y T H E G A P M AT T E R S
The research shows a strong link between digital
experience and loyalty. If consumers are delighted
withtheir digital experience, they are over four times
more likely to remain a customer. A strong digital
experience is also linked to stronger customer
advocacy, measured in this research through NPS.
Of those identied as
unsatised with their digital
experience (0-6):
Of those identied as
delighted with their
digital experience (8-10):
Just 17%
would remain
loyal to
the brand
would remain
loyal
Loyalty and NPS can ultimately impact a brands

top line. For example, according to Bain & Company,
NPS leaders tend to grow at more than twice the
rate of their competitors2.
As an example, a recent survey found that Australian
consumers will spend 12 per cent more with brands
that provide an excellent customer service. With
digital now a key component of the overall customer
experience, this goes to show that revenues of a brand
can be impacted by how simple and engaging the
digital interaction on offer is3.
On the other hand, a poor digital experience can do a
lot more harm than just a lost sale or lost customer.
Everyone loves to share a bad experience, so one such
episode can lead to multiple losses across multiple
customers within a short timeframe. SAPs study
shows this is happening in some of Australias biggest
organisations today.
73%
At the same time, the

net promotor score
(NPS) from this segment
is a staggering
Similarly, customers delighted

with their digital experience
delivered an NPS of
-55%
63%
08
B U S I N E S S I M PA C T O F T H E
D I G I TA L E X P E R I E N C E
Our research shows 47 per cent of Australian
consumers are unsatisfied with their digital experience.
But, importantly, how many within this segment plan to
switch to a competitor in the future? Additionally, how
many would recommend that brand to a friend based
upon the digital experience?
To understand the impact of the digital experience,

SAPasked consumers about their:
Loyalty: How likely they would remain a customer
ofthe brand in the future
Advocacy: How likely they would recommend a
brand to a friend or colleague, as with the NPS
methodology
The findings are once again startling and deeply
concerning for brands failing consumers with their
digital experience.
THE EFFECT ON BUSINESS OUTCOMES - LOYALTY
73%
DELIGHTED
LOYALTY
34%
AMBIVALENT
UNSATISFIED
LOYALTY
17%
LOYALTY
09
Of those identified as unsatisfied with their digital

experience (0-6):
Almost three quarters (73 per cent) would

remainloyal
Just 17 per cent would remain loyal to the brand
Similarly, those delighted with the digital experience

delivered an average NPS score of 63 per cent
acomplete about turn
At the same time, the NPS from this segment is a

staggering -55 per cent
Its clear great digital experiences matter. They foster

greater loyalty and advocacy from a brands customers,
and can ultimately impact revenue.
If a brand can provide a strong digital experience,

thepicture is completely different. Of those who
ratedthemselves as delighted with the digital
experience (8-10):
THE EFFECT ON BUSINESS OUTCOMES - NPS
63%
DELIGHTED
AMBIVALENT
-55%
NPS
NPS
3%
NPS
UNSATISFIED
10
W H AT M AT T E R S T O C O N S U M E R S
The 13 attributes of the digital experience ranked
by consumers in this study show brands what is
important. These attributes reflect both functional and
emotional aspects of the digital experience.
Brands can then pinpoint exactly what they need to

improve upon to build greater loyalty and advocacy
from their customers. These rankings can vary by
industry and by influencer segment.
ATTRIBUTES IN ORDER OF CONSUMER PREFERENCE
COHESIVE, INTEGRATED
AND SIMPLE
13
12
PREDICTS MY
PREFERENCES
MAKES ME
FEEL UNIQUE
AVAILABLE ANYTIME
ON MY TERMS
10
11
ASSOCIATES WITH
MY IDENTITY
CUSTOMISED AND
TAILORED TO MY
PREFERENCES
RESPECTFUL AND DEDICATED

TO MY NEEDS
MAKES ME LOVE
THE BRAND
FITS IN WITH MY LIFE

AND IS EFFORTLESS
RELEVANT OFFERS WITHOUT

INFRINGING ON PRIVACY
MAKES ME FEEL
IMPORTANT
EXCITES AND
ENGAGES ME
RESPONSIVE AND
INTERACTIVE
THE 13 ATTRIBUTES WERE DEFINED IN COLLABORATION WITH AMR AND ARE BASED ON
EXISTING RESEARCH AND FINDINGS FROM THIS REPORT, AS WELL AS FROM FOCUS GROUPS.
11
THE 13 ATTRIBUTES FIT INTO THREE GENERAL PREFERENCE AREAS
SIMPLIFY MY LIFE
Service thats simple just works,
and consumers expect this from
the brands they interact with.
A digital experience should be
cohesive, integrated and easy. It
has to fit in with the consumers
life effortlessly, available
anytime, anywhere.
BE WHO I AM
Consumers want experiences
that are dedicated to them
as individuals, experiences
that appeal to or even predict
their preferences, but without
infringing on their privacy.
Brands need to appeal to a
customers individual identity,
making them feel important
andunique.
ENGAGE ME
An engaging digital experience
is one that listens to consumers
and allows them to interact with
and control the experience when
needed. It should be interactive
and responsive, triggering
an emotional response from
thecustomer.
12
T H E A U S T R A L I A N D I G I TA L E X P E R I E N C E I N D E X
SAPs Australian Digital Experience Report takes its
analysis deeper by presenting all brand-level digital
experience scores as an index. This index anonymises
the brands; however provides the additional context of
how brands performances are distributed by industry.
Across the entire index, just one brand, an insurance

company, managed a positive digital experience score.
In second place was a grocery retailer with a digital
experience score of -6 per cent, while in third was a
consumer goods retailer with -7 per cent. Utilities made
up the three lowest scores in the index.
To qualify for the index, brands had to be rated by at

least 60 respondents.
SAP intends to expand on this index each year and help

provide a living picture of the development of the digital
experience in Australia.
THE DIGITAL EXPERIENCE INDEX

20%
BANKING
13
INSURANCE
RETAIL
(CONSUMER)
RETAIL
(GROCERY)
UTILITIES
TELCO
10%
0.0%
-6
-10%
-7
-9
-11
-11
-12
-12
-12
-15
-20%
-15
-16
-16
-19
-20
-20
-21
-21
-21
-23
-23
-24
-25
-25
-30%
-27
-28
-30
-31
-33
-34
-34
-38
-40%
13
-40
-40
14
T HAEUASUT S
RTARL A
I AL N
I AD
NI G
DI T
GAI TL AELX EPXE PREI ER N
I ECNECRE ERP EOPROTR T
T H E D I G I TA L E X P E R I E N C E G A P :
I N D U S T R I E S AT A G L A N C E
A digital experience gap was evident across all
industries that make up the Australian Digital
Experience Report, with the negative digital experience
scores varying across each.
products and services these industry players provide

are more functional and transactional in nature.
Regardless, the findings of the Australian Digital
Experience Report illustrate that the digital experience
should be pushed to its full potential to maximise
loyalty and advocacy. Digital disruption has already
occurred across many industries it would be nave
tosuggest it wont happen to all sooner than later.
A correlation between the digital experience score

and the level of digital disruption in each industry is
evident. Industries that achieved the higher digital
experience scores are those further along a journey
ofdigitaldisruption.
The research provided much more rich data on how

each industry performs, which will be thesubject of
subsequent vertical-specific reports.
Those with the lower scores are yet to be hit by mass

disruption. Dominated by a few major brands, the
WHERE AUSTRALIANS INTERACT DIGITALLY

100
80
84%
66%
60
62%
50%
40
47%
32%
20
BANKING
TELCO
RETAIL
(CONSUMER)
UTILITIES
INSURANCE
RETAIL
(GROCERY)
Banking is the industry most Australians interact with digitally followed by telecommunications, consumer retail and government.
15
W H O L E A DS ? W H O L AG S ?
Disruption has also occurred in the retail banking sector.
Consumers now look beyond the big four banks for their
banking services. Transactional relationships no longer
suffice, and consumers choose banks based upon a
multitude of factors, not just the ability to access money.
Top performing industries included:

Retail groceries (-10 per cent)
Banking (-18 per cent)
The common thread among these industries is the
huge amount of change in recent years driving the need
for digital experiences that go far beyond just OK to
delightful.
Insurance is another sector grappling with increased

competition a prime example of an industry now
challenged by non-traditional competitors. Brands
are bundling everyday services from across industries
to make life easier for the consumer. When grocery
shopping online, a consumer may be only one tap away
from also switching insurance providers.
The arrival of overseas brands as well as niche providers in

the retail groceries sector has increased the competition
faced by the big local providers. Customers demand more
control over the experience, and retailers are competing
based on their ability to deliver that control via the digital
experience just as they compete on factors such as
price or supplychain optimisation.
DIGITAL EXPERIENCE SCORE BY INDUSTRY

-10%
RETAIL (GROCERY)
BANKING
-18%
INSURANCE
-19%
-20%
RETAIL (CONSUMER)
-26%
TELCO
UTILITIES
-33%
16
Industries with lower digital experience scores included:
Utilities is aprime example. As smart devices and the

Internet of Things become more pervasive in Australian
households, consumers will have a greater level of
visibility and control over how they consume energy
and resources. Utilities will need to provide digital
experiences that enable this visibility and control based
on real-time data, and will compete with one another
increasingly solely on this basis. The days of quarterly
statements are numbered.
Telecommunications and ISPs (-26 per cent)

Utilities (-33 per cent)
Competition in these sectors is limited. While these
industries do, on the whole, provide functional digital
services after all, many consumers may simply
wish to pay a bill and be done with the matter there
remains plenty of room for innovation.
-10%
-18%
BANKING
RETAIL
(GROCERY)
LEADING
LAGGING
-26%
-33%
UTILITIES
TELCO
17
W H AT S I M P O R TA N T T O C O N S U M E R S
BY I N DUST RY
terms. Only the telecommunications industry differed
in its top two, with respectful and dedicated to my needs
of slightly higher importance than in other industries.
The two most important attributes of the digital

experience were consistent across industries: cohesive
integrated and simple and available anytime on my
THE TOP DIGITAL-EXPERIENCE ATTRIBUTES BY INDUSTRY
BANKING
AVAILABLE
ANYTIME
ON MY TERMS
INSURANCE
RETAIL
(CONSUMER)
RETAIL
(GROCERY)
RESPECTFUL
AND DEDICATED
TO MY NEEDS
COHESIVE,
INTEGRATED
AND SIMPLE
18
UTILITIES
FITS IN WITH
THE REST OF
MY LIFE AND IS
EFFORTLESS
TELCO
BANKING
Compared to most, the banking sector performed well.
It is also the most digitally engaged 84 per cent of
respondents in the study have interacted digitally with
theirbank.
Customer engagements need to be consistent across

all digital channels. The same rich experience a
customer achieves on an ATM should also register on a
mobile bank app or an online banking portal. Regardless
of the channel or device chosen, the user must still
receive focused service and productrecommendations.
Importantly, on average banks scored positively

onthe three attributes of the digital experience
mostimportant to their customers, but
underperformed especially in digital experiences
tailored to theindividual.
Australian banks can continue to improve their score by

investing in these areas.
WHEN IT COMES TO AREAS OF THE DIGITAL

EXPERIENCE BANKS COULD IMPROVE ON:
Available anytime on my terms
Cohesive, integrated and simple
Fits in with my life and is eortless
BANKING
ATTRIBUTES BANKS SCORED WELL ON ARE:
Respectful and dedicated to my needs
Responsive and interactive
Relevant oers without infringing on privacy
19
UTILITIES
Conversely, the utilities industry struggled to score
positively. More importantly, it scored low in the areas
most relevant to its consumers. Also, it ranked low
in terms of digital engagement: only 50 per cent of
consumers indicated they had interacted digitally with
their utilitycompany.
The industry in Australia is ripe for disruption.

Evenmarginal innovation to the top digital experience
attributes could quickly put a first-mover utility ahead
of its competition.
UTILITIES INDUSTRY STRUGGLED

TO SCORE POSITIVELY
ONLY 50 PER CENT OF CONSUMERS INDICATED THEY HAD
INTERACTED DIGITALLY WITH THEIR UTILITY COMPANY.
Available
anytime
on my terms
Cohesive,
integrated
and simple
Responsive and
interactive
Respectful and
dedicated
to my needs
20
Fits in with my
life and is
effortless
Relevant offers
without
infringing on
privacy
T E L E C O M M U N I C AT I O N S
The telecommunications industry fared better than
utilities, scoring positively for being available anytime
on my terms. It also scored well for digital engagement
with 66 per cent of respondents interacting with a
telco digitally.
Excites and engages me
TELCO
Available anytime on my terms
However, the results indicated that the industry is still of

the one-to-many mindset for its digital engagement as
opposed to offering a tailored experience. In Australia,
the telecommunications industry stands to make
fast gains by investing in tools that allow it to better
understand and deliver better control to its consumers.
Respectful and dedicated

to my needs
Fits in with my life

and is eortless
Relevant oers without

infringing on privacy
21
R E TA I L : G R O C E R I E S
The grocery sector achieved the best overall digital
experience score. However, it had the lowest level of
engagement, with only 32 per cent of respondents
doing their shopping online. This suggests that
Australias online grocery shoppers are still a small yet
engaged group of digitally savvy consumers. Telling as
well, the retail groceries industry scored positively in the
three attributes its consumers hold most dear.
Nonetheless, there are numerous attributes where the

industry scored negatively, and where the relatively few
players in this industry in Australia could quickly invest
to gain market share.
PERFORMED POSITIVELY FOR BEING:
Cohesive, integrated
and simple

and is eortless
Available anytime
on my terms
BUT REQUIRED ATTENTION FOR THESE ATTRIBUTES:
Relevant oers
without
infringing on
privacy
Responsive
and
interactive
Customised and
tailored to my
preferences
Makes me love
the brand
Makes me feel
important
22
Excites and
engages me
Associates
with my
identity
R E TA I L : C O N S U M E R G O O D S
Similar to its groceries counterpart, the consumergoods retail industry scored positively for the three
digitalexperience attributes most important to its
customers. Unlike groceries, it is one of the most
digitally engaged, with 62 per cent of respondents
confirming an interaction.
Connected consumers are redefining the shopping

experience. A vast majority of shoppers start
purchases on a PC or mobile device and want to be
digitally engaged in their shopping experiences4.
Expectations have never been higher for retailers to
deliver consistent shopping experiences through online
channels, mobile technology and social networks.
CONSUMER GOODS RETAIL INDUSTRY SCORED POSITIVELY FOR:
Available anytime
on my terms
and simple

and is effortless
BUT REQUIRED ADDITIONAL FOCUS FOR:
Respectful and
dedicated
to my needs
Responsive and
interactive
Relevant offers without

23
Excites and
engages me
INSURANCE
The insurance sector in Australia scored positively for
two of the digital-experience attributes most important
to its consumers. It is also one of the better performing
sectors. Its digitalengagement, however, is one of the
lowest, at 47per cent.
Tosucceed, insurers must provide customer care

and not just financial services. This approach also
helps ensure that a company doesnt lose hard-won
customers to a more responsive competitor. The ability
to understand customer needs and quickly respond
with the right products delivered through the right
channels earns customer loyalty.
Available anytime
on my terms

to my needs

and is eortless
and simple
Predicts my preferences
24
25
T HAEUASUT S
RTARL A
I AL N
I AD
NI G
DI T
T H E R I S E O F T H E D I G I TA L I N F L U E N C E R
Prioritising and improving the 13 attributes of the
digitalexperience are critical for a brand to increase
itsnumber of delighted customers. However, the
research uncovered another extremely important factor
that can help a company boost loyalty and advocacy:
thedigitalinfluencer.
engagement. Based on their responses they were

categorised into four groups:
Influencers: Those who frequently posted content,
received a high volume of responses and had a large
following of people who read their posts and comments
Contributors: Those who contributed content on
digital media and received responses from others
A digital influencer is someone who demonstrates the

ability to change opinions and behaviours, and drive
measurable outcomes online. Effectively harnessing
and expanding this segment of the customer base is
essential for a brand to improve satisfaction with its
digital experience.
Observers: Those who frequently viewed content

posted by others on digital media but seldom
activelyparticipated
Passives: Those who had little engagement with
digitalmedia
To provide insight into the digital influence of Australian

consumers, respondents rated their level of digital
PERCENTAGE OF RESPONDENTS BY INFLUENCER SEGMENT
INFLUENCERS
CONTRIBUTORS
9%
16%
37%
38%
OBSERVERS
PASSIVES
26
The study shows that as people become

increasingly influential in the digital arena,
thehigher they rate their digital experience.
Those identified as contributors delivered a digital

experience score of -3 per cent, observers fared far
worse with a score of -33 per cent, and finally passives
scored -41 per cent.
Influencers delivered a significant positive digital

experience score of 33 per cent across all industries,
meaning that there were far more delighted consumers
in this category than unsatisfied.
The message for brands seeking to improve loyalty

and advocacy is to harness the power of the digital
influencer, while also helping to educate the other
consumer groups and bring them along the digital
journey from passive through to influencer.
DX SCORE
BY INFLUENCER SEGMENT
33%
AS PEOPLE BECOME INCREASINGLY
INFLUENTIAL IN THE DIGITAL ARENA,
THE HIGHER THEY RATE THEIR
DIGITAL EXPERIENCE
INFLUENCERS
-3%
CONTRIBUTORS
OBSERVERS
-33%
PASSIVES
-41%
27
W H AT M AT T E R S T O T H E D I G I TA L I N F L U E N C E R
Contributors, observers and passives all rank available
anytime on my terms and cohesive, integrated and
simple as their top two digital experience attributes.
Influencers, however, rank fits in with my life and is
effortless and respectful and dedicated to my needs
as their top attributes. Rather than being more
functionally led, digital influencers preferred attributes
reflecting a tailored, emotive experience.
Additionally, two emotional attributes creep into the

influencers top five which are not seen in the other
groups; namely relevant offers without infringing on
privacy and excites and engages me. This again points
to the fact that influencers seek out the emotional
attributes of the digital experience.
WHAT MATTERS TO INFLUENCERS
INFLUENCERS
CONTRIBUTORS
OBSERVERS
PASSIVES
AVAILABLE
ANYTIME
ON MY TERMS
COHESIVE,
INTEGRATED
AND SIMPLE
RESPECTFUL
AND DEDICATED
TO MY NEEDS
FITS IN WITH
THE REST OF
MY LIFE AND IS
EFFORTLESS
28
RESPONSIVE AND
INTERACTIVE
The impact of influencers on the overall digital

experience score is reinforced through analysis of
the brand index. Only one brand in the entire study
managed a positive digital experience score. The
consumer profile of this insurance business highlighted
an above average number of influencers (13 per cent
vs. 9 per cent) and a below average number of passives
(30 per cent vs. 38percent).
A number of lessons around the digital influence of

consumers can be taken on board by brands, namely:
Focus on gaining more influencers as part of the
brands overall customer base, as well as work to
help bring other customers along the digital journey
to move them up the chain
Ensure the business performs well in the important
digital attributes that help their company to
fit around the lifestyle of the consumer, but
importantly, look to more of the emotional and
exciting engagement strategies that attract
digitalinfluencers.
This provides further evidence to suggest that the more

digitally engaged a brands customer base is, the more
likely it will obtain a positive digital-experiencescore.
DIGITAL INFLUENCERS BY INDUSTRY
BANKING
INFLUENCERS
CONTRIBUTORS
OBSERVERS
PASSIVES
9%
16%
37%
38%
7%
INSURANCE
10%
RETAIL (GROCERY)
14%
RETAIL (CONSUMER)
9%
TELCO
7%
UTILITIES
8%
18%
15%
36%
39%
36%
39%
19%
38%
17%
15%
18%
28%
35%
39%
37%
41%
36%
37%
29
C R E AT I N G D E L I G H T F U L D I G I TA L E X P E R I E N C E S
This report has illustrated the business impact of digital
experiences both great and poor. However, thefindings
also point to where organisations can begin to assess,
improve and optimise the digital experience they deliver
for their customers. In this assessment, representatives
from across an organisations functions (Marketing,
Service, IT, Finance and even HR) and
DISCOVER
In discussions with several brands
assessed in this report, even
top performers didnt have a
complete view of their customers
preferences when it comes to the
digital experience. The first step to
developing competitive advantage
through the digital experience is
for a brand to understand what
its specific gap is or at least what
the gap is for its industry. Then,
by breaking down the digital
experience into its attributes
and how these attributes rank
among their customers, a brand
can identify where it should most
effectively invest to bridge the gap.
preferably those organisations customers need

to be involved. As Forrester has claimed and as our
interviews with leading Australian brands support,
thedigital experience is not just a channel owned by the
Marketing function5. Rather, the digital experience is a
differentiating element of the offering itself in which the
entire organisation invests, from inception to delivery.
DEVELOP
Examine how the digital experience
gap influences your customers
NPS and loyalty scores and
prioritise how you improve your
digital experience accordingly.
Not all attributes of the digital
experience are cherished equally,
so focus on which ones strike a
chord with your customerbase.
Also, help your customers develop
as digital influencers. As the
research findings suggest, the more
digitally influential a customer, the
more likely they are to be delighted
by the digitalexperience.
DISRUPT
Especially in industries grappling
with significant disruption,
choosing the right attributes to
invest in may not be obvious. Often
a brand and its consumers wont
know what they dont know until
a disruptor comes by and shows
them. To fend off disruptors or
better yet to become disruptors
themselves, brands can also
invest in those digital-experience
attributes that appeal most to
digital influencers.
30
31
T HAEUASUT S
RTARL A
I AL N
I AD
NI G
DI T
TECHNOLOGY ENABLING
T H E G R E AT D I G I TA L E X P E R I E N C E
Today, organisations can leverage structured data
(asinspreadsheets) and unstructured data (as
in audio or video content). They can make use of
obvious sources such as point-of-sale data, and
they can use less traditional sources such as thirdparty and social media data, as well as signal data
from sensors or machine-to-machine data from
networkedautomationsystems.
Moving from a transactional digital experience to one

that engages and delights takes more than a new app
orfresh digital presence. It also takes more then simply
putting a physical process online. As noted in the
previous section, experts from across the organisation
need to contribute to design and deliver a delightful
digitalexperience.
Instrumental as well is a thorough understanding of
the value technology holds as the foundation for the
digital experience, helping organisations know their
customers better and thereby engage with them better.
How the organisation manages the data is as important

as the data itself. Organisations must break down their
data silos: The architecture of the systems and tools
that collect, store and display data must be integrated
across sales, service, financials, supply-chain and
other systems to ensure that every role within the
organisation can make decisions based on the single
view of the customer.
KNOW YOUR CUSTOMER

As digital services first expanded in the market,
manyconsumers didnt mind the less personal
natureof the experience. It worked, and that was it.
Now, as consumers have become more digitally active,
they once gain desire the level of personalisation many
had received when the experience was exclusively over
thecounter.
Knowing your customer also means building the right

teams and honing the right skills internally to engage with
the data and deliver business insights. Datascientists,
line of business analysts and IT architects who understand
the business and who can design systems that integrate
data sources from across functions are instrumental in
developing an effective digital strategy.
As the research shows, Australian consumers are

increasingly demanding digital experiences that not
only work but also trigger an emotional affinity to the
brand. This level of engagement requires a deep level
of personalisation, which in turn requires data lots of
data to have the clearest possible view of a customer
and his or her preferences.
However, its not enough for the view of the customer

to be complete; it also has to be in real time. In retail,
forexample, there is tremendous value in making
an offer to a customer at the opportune moment.
Montreals public transport agency Socit de
Transport de Montral (STM) has developed an app
32
ENGAGE YOUR CUSTOMER
that runs on real-time data to personalise the commute

of thousands of residents. STM and its network of
entertainment providers, food and beverage outlets
and retailers, offer special discounts and one-off
promotions to commuters as they move in and out
of the transport system. Bookstores are able to offer
commuters moving toward its store the opportunity to
download a sample chapter of a book that is on sale,
the Montreal Opera House offers special prices on
unsold seats for the coming afternoons performance.
Supermarkets offer their specials on bus routes for
commuters who are likely to be thinking about what to
cook for dinner. All of this is accomplished in real-time
and without infringing on commuters privacy6.
The focus of this research has been on the digital

experiences brands deliver to their customers in
Australia. However, although the digital experience is
rapidly dominating the overall customer journey, it is
of course not the only way consumers interact with
brands. Important to the overall customer experience is
an integration of all channels to the consumer, digitally
online and physically in store, to deliver a consistent
experience and meaningful customer engagement.
Customers are seizing control of the marketplace.
They are more digitally connected, socially networked
and better informed than ever before. They have
become savvy consumers in their personal lives and
sophisticated buyers at work. When they finally decide
to interact with a business, they expect to be able to do
their research, make a purchase and get assistance on
any channel they choose. They expect that each new
interaction will be personalised and occur within the
context of the last one. Their tolerance for fragmented
experiences is lower than ever, and they are very much
in control of their own journey.
In Australia, Fire and Rescue New South Wales

has recognised the significance of real-time and
implemented SAPs in-memory database platform
SAP HANA so internal users can understand
instantaneously the location of assets and the skill
level of their employees and volunteers so as to best
deploy resources in times of emergency7. Organisations
must lay the real-time foundation for these types of
differentiating capabilities not at the application level,
not even at the business intelligence level, rather at the
data platform level.
Ultimately, successful integration of these channels

leads to omnichannel commercethe seamless
integration of systems that allows shoppers to browse,
buy and take possession of goods more flexibly and
conveniently, leading to more sales. For example,
research from IDC shows that omnichannel shoppers
spend 3.5 times more than single-channel shoppers 8.
KNOW YOUR CUSTOMER

Capture data from traditional and
nontraditional sources
Break down data silos
Harness the power of real-time data
33
Take Lorna Jane for example. To succeed in Australia

and overseas, the womens sports apparel retailer
invested in an ecommerce platform that aligns
channels and delivers a consistent and integrated
customer experience across its mobile, Web and call
centre instances as well as across its bricks and mortar
stores. Online conversion via mobile devices has since
grownby 200 per cent9.
The greater proportion of interaction that is digital

relative to other channels, the less suited a traditional
CRM solution, where a brand enters opportunities
and leads. Rather best suited is an omnichannel
platform that goes beyond CRM to help a brand serve
its customers on their terms by integrating not only
salesforce automation, but customer and employee
collaboration, quote-to-cash processes, commerce,
support, fulfilment and marketing.
The customer is in full control. To compete and

win in todays digital world, brands have to create
an environment where true, digital engagement
with customers is possible. And to meet customer
expectations and fend off rivals, brands must be able to
respond to them in real-time, whenever, wherever and
on whatever device they choose to use.
A digitally native business such as Uber is an extreme

case, but one that clearly illustrates the need for brands
to go beyond just CRM to engage their customers. A
location-aware mobile app finds the user when you
launch the app, immediately makes you an offer based
on your preferred vehicle, fulfils the order based on
credit card data on file, learns your preferences as you
use the service and integrates behavioural feedback
into every feature to optimise the experience. Without a
fleet of sales and marketing professionals, this is simply
impossible without the right technology.

Align digital experience to other channels
(omnichannel)
Personalise the experience
Go beyond CRM
34
LO
EC
UNSTRUCTURED DATA
GY
PE
RF
E
BY T EC H N
STRUCTURED DATA
CE PO
W
OMNICHANNEL ENGAGEMENT
SALES
MARKETING
FINANCE
HUMAN
RESOURCES
B U S I N E S S I N T E L L I G E N C E P L AT F O R M
R E A L-T I M E D ATA P L AT F O R M
35
PROCUREMENT
KNOW YOUR
CUSTOMER
KNOW YOUR
CUSTOMER
IEN
ED
ER
I G I TA L
EX
TD
DATA-DRIVEN CUSTOMER ENGAGEMENT
36
T HAEUASUT S
RTARL A
I AL N
I AD
NI G
DI T
C A S E S T U D Y: S U N C O R P I N S U R A N C E
they now want the experience to be tailored and
meaningful, Owide says.
Suncorp Insurance has the distinction of being the

only brand in the research to attain a positive digital
experience score. Insights into the organisations digital
practices help explain why.
The ability of the team at Suncorp Insurance to

accommodate these more nuanced digital demands of
its customers is evident in the companys exceptional
scores across the majority of digital-experience
attributes. In fact, Suncorp Insurance scored positively
in 11 of the 13 attributes. Our digital philosophy is
underpinned by the notion that the customer should
think more highly of the brand after the experience than
before, Owide says.
Over the past five years, Suncorp has experienced

a significant increase in digital interactions with
its insurance customers. According to Head of PI
eCommerce & Specialist Brands, Ivan Owide, the digital
experience is now their customers preferred window
to the organisation. Increasingly, customers want much
more from the digital experience than functionality.
Yes, they want it to be convenient and timely, but
SUNCORP DX SCORE
WHO IS DELIGHTED WITH THE DIGITAL

EXPERIENCE PROVIDED BY SUNCORP
INSURANCE AND WHO IS NOT?
28%
UNSATISFIED
THE DX SCORE
13%
31%
AMBIVALENT
37
41%
DELIGHTED
Suncorp Insurance tallied by far the highest percentage

of delighted customers, at 41 per cent. Across all
segments Suncorp Insurance enjoys higher-thanaverage loyalty and NPS.
As the research shows, digital influencers tend to

deliver a higher digital-experience score, and for
Suncorp Insurance this segment makes up an aboveaverage percentage of the brands customer base
(13 per cent vs. average of 9 per cent). Similarly, the
organisation had a lower than average percentage of
passives (30 per cent vs. average of 38 per cent).
The high scores also demonstrate Suncorps ability

to excel not only in the functional attributes, but also
in the more emotional specifically: responsive and
interactive, respectful and dedicated to my needs, fits
in with my life and is effortless and customised and
tailored to my preferences. These attributes are valued
especially among digital influencers, an important
driver behind Suncorp Insurances high digitalexperience score.
The digital experience has significantly shaped

Suncorp Insurances business over the past five years.
It hasnt necessarily reduced the number of calls the
organisation receives, rather more importantly
itschanged the type of conversations customers
arehaving with the brand during these calls.
AFFECTING SUNCORPS BUSINESS OUTCOMES - LOYALTY
73%
DELIGHTED
LOYALTY
45%
AMBIVALENT
LOYALTY
28%
UNSATISFIED
LOYALTY
38
Our digital experience allows our consultants to

focus on immediately helping our customers rather
than spending the first 10 minutes of the conversation
gathering information, Owide says. The omnichannel
experience here is key: There is no online customer.
We look to integrate our online experiences with our
offline conversations to build a similar experience
across channels.
Suncorp relies on an in-house team of digital experts

to work with the departments, process owners
and customers, iteratively testing and challenging
the experience so that it best complements the
customerjourney.
Its not about replicating the offline online. Its about
enhancing a process and making it more valuable in
a digital context, Owide says. Customer experience
is the battle ground in our industry, and digital is such
a massive enabler for a delightful experience. Digital
is an enabler for organisations to exceed customers
expectations like never before, he concludes.
Suncorp prides itself on recognising the evolving

demands of its customers early and investing ahead
ofthem. Digital isnt any one persons job, its a highly
collaborative process across the business, Owide says.
AFFECTING SUNCORPS BUSINESS OUTCOMES - NPS
65%
DELIGHTED
AMBIVALENT
-44%
NPS
NPS
10%
NPS
UNSATISFIED
39
WHATS IMPORTANT TO SUNCORP CUSTOMERS?

INSURANCE DX RANK
50%
50
RANK 1
34%
DIGITAL EXPERIENCE SCORE (%)
40
27%
30
RANK 3
RANK 2
14%
20
RANK 4
17%
RANK 5
16%
14%
RANK 8
RANK 6
5%
10
RANK 7
6%
RANK 9
5%
5%
RANK 10
RANK 11
RANK 12
-10
-6%
RANK 13
-20
-13%
Available anytime
on my terms

Makes me love the brand
and simple
Customised and tailored

to my preferences
Excites and engages me
Fits in with my life and

is eortless
Makes me feel important
Makes me feel unique

to my needs
Associates with my identity
40
WHAT SHOULD SUNCORP FOCUS ON?
IMPROVE
MAINTAIN
40%
I M P O R TA N C E
35%
30%
25%
20%
15%
10%
-60%
-40%
MONITOR
-20%
0%
THE
DX
20%
40%
COMMUNICATE
THE VALUE
SCORE
Available anytime
on my terms

Makes me love the brand
and simple
Customised and tailored

to my preferences
Excite and engage me
Fits in with my life and

is eortless
Make me feel important
Makes me feel unique

to my needs
Associates with my identity
41
C A S E S T U D Y: K O G A N . C O M
Kogan.com is widely recognised in Australia as a
disruptor to the retail industry. As a complete online,
direct-to-consumer business, Kogan.com relies nearly
exclusively on the digital experience when it comes to the
overall customer experience.
The findings of the Australian Digital Experience Report
reflect Kogan.coms thorough understanding of what
makes a strong digital experience: The organisation
scored the highest among consumer-goods retailers,
besting eight other large consumer-goods retail players
and delivering the third-highest score across industries.
Unique to Kogan.com is that the ambivalent segment is
the largest among the top performing brands assessed,
suggesting potential to further improve with relatively
little investment.
Kogan.com has achieved its leadership standing through
relentless focus on simple and beautiful ways to buy tens of
thousands of products at the worlds best prices, according
to David Shafer, Executive Director, Kogan.com. The team at
Kogan.com continually improve the shopping experience on
its Web site, but importantly the systems and processes at
the backend that power their operations.
From an engagement standpoint, Kogan.com applies smart,
measurable marketing to attract customers, and a leading
digital experience to drive loyalty. Kogan.com carefully
analyses how customers interact with their brand at every
point of engagement from its very robust searching
and filtering system through to its intelligent checkout
process, which remembers a customers key details. Kogan.
com hires coders and designers who are encouraged to
challenge the status quo. They develop ideas for the digital
experience based on fact, not emotion based on what

customers actually do rather than what they feel customers
ought to be doing.
This digital experience is backed up by rapid delivery
achieved through strong operational systems and
procedures in the backend reliant on timeliness and
accuracy of data. The business is highly data driven. Shafer
describes Kogan.com as a statistics business first and
foremost, rather than a retailer. He adds, We see a big
difference at the frontend based on our optimised backend.
At 78 per cent, Kogan.com enjoys strong loyalty among
customers delighted with the digital experience.
Thisillustrates the particular importance of the
digitalexperience for Kogan.com as the dominant
point of engagement with customers. According
to the Australian Digital Experience Report, Kogan.
coms leadership is defined by its superior ability
to provide service anytime and on the customers
terms, the attribute most important to customers of
consumergoods retail. Strong, too, was Kogan.coms
capability todeliver on the attributes most important to
the digital influencer: fits in with my life and is effortless
andrespectful and dedicated to my needs.
Early 2015, Kogan.com introduced its retail grocery
offering, launching it into the grocery retail sector
withavery established set of competitors. From
a digital experience perspective, Kogan.com is in
a uniqueposition to activate what has made it so
successful in the consumer-goods space for the grocery
space and further define the delightful digitalexperience
inAustralia.
42
REFERENCES
1. Media Consumer Survey 2014: Australian Media
and Digital Preferences 3rdEdition
Deloitte, Marchand April 2014.
6. An Instantly Rewarding Ride

SAP.
7. Customer Snapshot: Saving Lives and
PropertywithData
SAP.
2. Measuring Your Net Promoter Score

Bain&Company.
3. 2014 Global Customer Service Barometer
American Express, 2014.
8. IDC Retail Insights, John Lewis: The Path

toOmnichannel
IDC, May 2012.
4. The 3 New Realities of Local Retail

Google, Ipsos Media CT and Sterling Brands,
October 2014.
9 hybris and Lorna Jane, A Growing Success Story

hybris software.
5. The Forrester Wave: Digital Experience Delivery

Platforms, Q3 2014
Forrester Research, Inc., 2014.
FURTHER READING
Creating the Customer Experience
SAP and Oxford Economics, 2014.
Delivering New Levels of Personalization in

Consumer Engagement
Forrester Consulting and SAP, November2013.
43
AC K N OW L E D G E M E N TS
SAP Australia would like to thank customers Suncorp
Insurance and Kogan.com for sharing their best
practice and leadership with the digital experience in
this research report, as well as addressing this topic
openly and in detail for the benefit of organisations
across Australia.
SAP Australia extends its deep appreciation to Ray

Kloss, Director of Marketing, CISCO and former Head
of Marketing for SAP Australia and New Zealand for his
leadership in building the framework for the research.
The development of this whitepaper benefited from
the input and support provided by our partners
TheFactuary and Howorth Communications.
We also thank former SAP Australia and New Zealand

President and Managing Director Andrew Barkla forhis
input into the conceptualisation and execution of
thisresearch.
44
www.sap.com/australia/ausdxr
Join the conversation #ausdxr
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an
SAP affiliate company.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only without representation or warranty of any
kind and SAP SE and its affiliated companies shall not be liable for errors or omissions with respect to the materials.
Copyright 2015 SAP SE or an SAP affiliate company. All rights reserved.
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AUST RA LIA N

Understanding the Gap

The Digital Experience Gap: Industries at a Glance 

Who Leads? Who Lags?

What Matters to the DigitalInfluencer 

Technology Enabling the Great Digital Experience

Know Your Customer

But recent research by SAP and AMR shows that

The digital experience how a brand digitally

These are some of the major findings from SAPs

This reports findings will be uncomfortable for many.

This report draws on research with 3,000 Australian

Australian brands arent delivering the digital

Uniquely, the report assessed consumers direct ratings

There is a strong correlation between the size

While this systematic assessment of the digital

Just one brand from the 34 ranked in the

SAP is a trusted innovator to over 3,000 Australian

The report also highlights the important role the

Finally, the report delivers recommendations based

Just one brand from the 34 ranked in the

This gap is quantified by a digital experience score

Three thousand Australian consumers rated almost

Across the nearly 7,000 digital interactions assessed,

The core finding from these ratings was a wide digital

47 per cent were unsatisfied with their

ACROSS A VARIETY OF INDUSTRIES

Consumers rated their satisfaction with the digital

Those with an overall score between 8 and 10

To determine the level of customer satisfaction with

The digital experience score was calculated by

Those with an overall score between 0 and 6 were

A brand that provides a delightful digital experience will

DERIVING THE DIGITAL EXPERIENCE (DX) SCORE

THE DX SCORE IS DERIVED BY

WITH THE DIGITAL EXPERIENCE

Loyalty and NPS can ultimately impact a brands

At the same time, the

Similarly, customers delighted

To understand the impact of the digital experience,

THE EFFECT ON BUSINESS OUTCOMES - LOYALTY

Of those identified as unsatisfied with their digital

Almost three quarters (73 per cent) would

Just 17 per cent would remain loyal to the brand

Similarly, those delighted with the digital experience

At the same time, the NPS from this segment is a

Its clear great digital experiences matter. They foster

If a brand can provide a strong digital experience,

THE EFFECT ON BUSINESS OUTCOMES - NPS

Brands can then pinpoint exactly what they need to

ATTRIBUTES IN ORDER OF CONSUMER PREFERENCE

RESPECTFUL AND DEDICATED

FITS IN WITH MY LIFE

RELEVANT OFFERS WITHOUT

THE 13 ATTRIBUTES FIT INTO THREE GENERAL PREFERENCE AREAS

Across the entire index, just one brand, an insurance

To qualify for the index, brands had to be rated by at

SAP intends to expand on this index each year and help

THE DIGITAL EXPERIENCE INDEX

products and services these industry players provide

A correlation between the digital experience score

The research provided much more rich data on how

Those with the lower scores are yet to be hit by mass

Understanding the Gap

The Digital Experience Gap: Industries at a Glance

Who Leads? Who Lags?

What Matters to the DigitalInfluencer

Technology Enabling the Great Digital Experience

Know Your Customer