ISPs top rankings for the worst customer service in Australia – report

Sean Cao

13th Feb 2024

Internet service providers (ISPs) are among the businesses with the poorest customer service in Australia, research from the Qualtrics XM Institute shows.

Government agencies, mobile phone providers, utility companies, and property insurers also fall into this category.

Meanwhile, streaming providers, department stores, supermarkets, online retailers, and electronics makers deliver the least amount of poor experiences.

The research, which studied 1200 responses in late 2023, found that consumers cut spending with a brand more than half the time (55 per cent) after receiving bad customer service, about 18 per cent higher than the previous year.

Australian consumers reported 11 per cent of their interactions with brands results in a very poor customer experience, which is lower than the global average of 14 per cent.

The study also highlighted that businesses risk more than $74 billion annually due to bad customer service, as consumers reduce spending after 41 per cent of bad experiences, and stop entirely after another 14 per cent.

“All it takes is one bad experience or wrong move for an organisation to be punished, which is why in 2024 companies need to be more careful than ever not to mistreat customers,” said Moira Dorsey, principal XM catalyst at Qualtrics XM Institute.

The report added 41 per cent of consumers believe AI will improve customer service by resolving complaints/queries and offering faster service and deliveries.