Research shows what SA consumers want most when buying products and services

South African consumers do not mind spending more on services and product offerings that they preserve as reliable.

The  South African Customer Experience Report released on 23 July shows that 71% of the 2,000 people surveyed want to spend money on reliable service or product offerings, while 63% will buy a product or service because of its price.

When it comes to the 75 business leaders across various sectors which were surveyed, 71% believe consumers keep coming back due to trust that has been established, however, only 54% of consumers say they go back to the same business because of trust.

Is price driving demand in the current cost-of-living crisis?

Research business Ovatoyou founding director Amanda Reekie says it is true that price is driving demand in the current cost-of-living crisis. The report reveals that is the reason why 63% of consumers will buy from a brand again. However, consumers still want to be made to feel special by brands, and when this is done, consumers do not mind paying more.

Julia Ahlfeldt, a Customer Experience Professional (CCXP)from Julia Ahlfeldt Consulting says because money is tight, brands consumers consider alternatives. “What brands are offering must be so-called moments set brands far apart from one another and it is this extra (last) mile mindset that is winning the war of the wallet.”

ALSO READ: How South Africans have adjusted spending habits amid rising costs

Consumers want brands that are easily found

The report reveals that 66% of consumers want a brand that is easy to find when online shopping, while 61% want a brand that has a range of secure payments, and 60% value an easy checkout process. “These should all be provided as standard by brands; what truly sets them apart however is delivering delight,” says Ahlfeldt.

When taking the three aspects into consideration, Takealot was selected by consumers as an organisation with great customer experience, while the second place went to Checkers Sixty60 and the third place was the Chinese retail brand Shein.

Are brands offering what they should?

Charlie Stewart, CEO at Rogerwilco says it is surprising how low the customer experience bar is because most consumers said they are thrilled when their online purchase arrives as promised. “Is this not what brands are meant to be doing as a matter of course though?”

He says they have found that consumers are always looking at the review channels before making a purchase. 66% of the surveyed people look at the company’s website for these reviews, 64% refer to the brand’s social media platforms, and 61% would rather ask family and friends for recommendations.

“On the other end of the scale influencers – who have been making big names for themselves in recent times – scored a dismal 30%, demonstrating how little faith consumers have in these paid partnerships.”

ALSO READ: SpendTrend24: A glimpse into SA’s economic resilience and adaptability

Most consumers prefer to be helped by a person

The report shows that 24% of consumers prefer to send an email when there is a problem with a product or service, with 19% preferring to use a call centre for problem-solving, followed by Google with 18% and a chatbot at 12% while social media came in at last place with 7%.

Ahlfeldt says they have noticed that there has been a shift in the use of WhatsApp as a business channel, with businesses rating it as their third communication channel of choice, while consumers list it as their least favourite in terms of effectiveness.

 “Branches or stores have the added advantage of the human element. Customers like speaking to a person, and not a bot.”

Mind the gap: South African Customer Experience Report

The 2024 report shows that 24% of people claim to have not had a poor brand experience, as compared to the 2023 report that showed 13%. “Businesses need to deliver a differentiated brand experience and garner brand love among consumers to imbue faithfulness and loyalty in repeat purchasing,” adds Reekie.

While Ahlfeldt says businesses have an opportunity to turn the findings of the report and look at each point in their customer journey. “This is an opportunity to delight and connect with customers by offering that little bit extra. Those that do, will win, converting over R12 billion lost opportunity cost into customer conversions and repeat sales.”

ALSO READ: How SA consumers are trying to survive cost-of-living crisis