Australian consumer loyalty hinges on trust & service quality

Australian consumers' expectations for customer service remain high amid shifting economic pressures and increased focus on trust, according to new commentaries from industry experts marking this year's Customer Experience (CX) Day.

Recent research highlights that brand loyalty may hinge on the quality of the support experience, with a growing number of consumers more likely to abandon brands after poor interactions.

Consumer expectations rising

Lukas Carruthers, Head of CX for Asia Pacific at Zoom, referenced studies showing that 86% of Australians would stop buying from a brand if support failed to resolve their queries. Additionally, 77% reported they would share negative experiences through word of mouth, indicating the potential scale for reputational impact.

"Delivering exceptional customer experience can make or break a brand. Morning Consult research recently commissioned by Zoom found that 86% of Australians were likely to stop purchasing from a brand if customer support failed to resolve their queries and most (77%) would share negative experiences via word of mouth."

He noted that customers expressed little preference for whether their issue is resolved by a human or artificial intelligence (AI) agent, focusing instead on the efficiency and outcome of the support interaction. Fewer respondents chose speaking to a human as important when compared with agent speed, knowledge, and satisfactory resolution.

According to Carruthers, businesses should leverage AI-driven customer service alongside integration with existing systems to ensure faster and more accurate solutions. In his view, knowing when to escalate queries-while preserving the full context-can help minimise customer frustration and repeated explanations, leading to stronger brand advocacy.

Adapting to economic realities

Paul North, General Manager for Asia Pacific at UserTesting, drew attention to the cost-of-living pressures currently reshaping consumer behaviour. Data from UserTesting found that 42% of global consumers are now buying fewer products, 27% are switching from preferred brands to generics, and 18% are seeking second-hand options. Within Australia, 55% reported experiencing price increases driven by tariffs, and 82% said transparency is key to retaining their trust.

"These shifts go beyond price sensitivity, they represent a fundamental recalibration of trust, loyalty, and value at every interaction," North commented. "For brands, the path forward lies in capturing authentic human insight and translating it into action."

North highlighted the importance of analysing customer feedback to understand the motivations behind purchasing decisions, identifying friction points and designing user experiences that demonstrate empathy and care. He argued that loyalty is not built on pricing strategies alone but through prioritising listening and transparent communication at every touchpoint.

Trust at the core

Trust and security concerns are also rising in significance for consumers interacting with brands online. Simon McNally, Cybersecurity Expert at Thales, referenced the 2025 Thales Digital Trust Index, which revealed 82% of global consumers abandoned a brand in the past year due to digital experiences that were deemed clunky, insecure, or intrusive.

He noted that nearly two-thirds of consumers feel brands place too much responsibility on them to protect their own data. Complex consent processes and frequent password resets are seen as barriers, adding to customer frustration. McNally indicated that most customers want both convenience and security, with 75% expecting passwordless logins and 86% seeing multi-factor authentication as essential.

"Customers aren't rejecting security, they're demanding seamless, invisible security that fits into the flow of their lives. The message for brands is blunt: every poor login, every excessive data grab, every glitch that makes people feel unsafe is a CX failure - and a trust failure."

He suggested that the brands who integrate privacy, security, and ease of use throughout the customer journey can convert trust into a clear competitive advantage.

Technology's supporting role

Technology platforms are evolving to support these demands. For instance, AI-based tools such as Zoom's AI Companion aim to assist sales and service teams by automating routine tasks, updating records in real-time, and offering faster resolutions across integrated systems. Such developments aim to reduce wait times for customers while enhancing the quality of their interactions, whether with machines or personnel.

The consensus among industry leaders is that the successful future of customer experience lies in the intersection of efficient problem-solving, the authentic integration of human insights, and consistent, trustworthy digital interactions.