According to the latest Centrix Credit Indicator data, New Zealand businesses are under growing pressure, with company liquidations rising 26% year-on-year.
The combination of macroeconomic challenges and operational issues has pushed many businesses into survival mode.
New Zealand Lags Behind Australia in Customer Experience Investment
Research by Concentrix reveals that Kiwi companies are significantly underinvesting in customer experience (CX). The survey, which questioned 108 businesses in New Zealand and 401 in Australia, found that 32% of Australian businesses were classified as “CX leaders,” more than double New Zealand’s 14%.
49% of New Zealand businesses were categorised as “CX laggards”—those with little to no CX vision or investment plans. “Compared to Australia, New Zealand has almost triple the rate of laggards,” says Chris Caldwell, President and CEO of Concentrix.
The Financial Impact of Underinvesting in CX
84% reported revenue growth, compared to just 46% among laggards. “We also know that 80% of CX leaders are growing at superior levels, but only 40% of laggards are growing,” Caldwell explains.
The Role of AI in Enhancing CX and Staying Competitive
“Without investing in CX technology, local businesses are vulnerable to being left behind as innovation scales up exponentially,” Caldwell warns. Smaller businesses are already capitalising on these advancements, offering multilingual and 24/7 support at a lower cost than large enterprises.
How to Improve CX: The Importance of a Clear Vision
“Having a clearly articulated vision means you can make decisions with the perspective of the customer in mind,” he advises. Leaders are also encouraged to engage directly with their customer service teams to gain insight into how their business is perceived. “The vast majority of C-suites have never called into the call centre and tried to sign up or disconnect from their services,” Caldwell observes.
Urgent Action Needed to Prioritise CX Investment
New Zealand companies must prioritise CX investment, as businesses increasingly face challenges in adapting to the demands of a tech-savvy consumer base.
As Caldwell predicts, “Over the next couple of years, we’re going to see power in the hands of consumers in a way that we’ve never seen before.” Companies that don’t adapt may find themselves struggling to maintain their market position.