Findings at a glance
Finding 1
A threshold issue
Ensuring all customers are treated with basic levels of respect and fairness is not viewed as high a strategic priority as expected. Only1 in 2 customers surveyed agreed that ensuring all customers are treated respectfully is a priority for organisations.
Less than half of those surveyed (41%) believe that organisations treat customers respectfully, regardless of their personal characteristics.
Finding 2
Different experiences (and not in a good way)
Similar to the experiences for diverse employees, customer experiences are better for some and worse for others based on an irrelevant personal characteristic.
Surveyed customers from Non Anglo-Celtic backgrounds, with a disability or identifying as lesbian, gay or bisexual were significantly more likely to say that they had experienced discrimination by one or more of the organisations they interacted with in the last 12 months.
Negative customer stories reveal a combination of overt stereotypes and unconscious biases, combined with a lack of awareness and/or focus, which create subtle (and, in some cases, not so subtle) acts of exclusion.
Finding 3
Misunderstood and underserviced
Diverse customer groups are more likely to represent a lost sale, with far too many reporting that organisations do not provide the products or services they need.
1 in 3 surveyed customers from Indigenous or Non-European backgrounds, and people with a disability, and nearly 1 in 2 customers who identify as lesbian, gay or bisexual and people who practice a noticeable Faith (42%), say their customer needs were often unmet over the past 12 months.
Despite this, the majority of these customers (80% or more) often do not provide feedback to organisations about how to better meet their needs, suggesting information gaps.
Finding 4
Abandon, avoid and detract
If diverse customers are not treated respectfully or fairly as a person, they are much more likely to just walk away. Plus a lack of organisational support for diversity/equality triggers some diverse customers to actively dissuade others from using the organisation’s products or services.
1 in 5 surveyed customers ceased a transaction in the past 12 months because they were not treated respectfully or fairly, and 1 in 3 ceased a transaction in the past 12 months (because they were not treated respectfully or fairly), if they were from an Indigenous background, identifying as lesbian, gay or bisexual, with a disability or who practice a noticeable Faith.
Surveyed customers from an Indigenous background, with a disability or identifying as lesbian, gay or bisexual were x 3 as likely to avoid an organisation and twice as likely to dissuade others because of an organisation’s negative diversity reputation.
Finding 5
Extra selling power
There’s extra selling power in communicating an organisation’s commitment to equality, beyond the target diversity group. 1 in 2 customers surveyed who identify as lesbian, gay or bisexual or who practice a noticeable Faith, say that their buying choices were positively infl in the last 12 months by an organisation’s reputation as supportive of gender equality, marriage equality, people with a disability, older people or cultural diversity.
Surveyed customers who identify as lesbian, gay or bisexual or who practice a noticeable Faith, were about twice as likely as comparator groups to recommend an organisation to another person based on its reputation as supportive of gender equality, marriage equality, people with a disability, older people or cultural diversity.
Part A of Missing out deep dives into each of these five findings. Overlayed with the demographic shifts and the purchasing power of specific groups in Australia, it tells a story of hidden risks as well as significant opportunities for organisations.
Supplemented with examples from best practices, Part B will help organisations to make changes to improve customer experiences and reap the rewards through a greater focus on diversity and inclusion.
Two final words before we move on regarding:
- Male/female, younger/older and transgender and intersex customers
- The role of partner organisations.
Male/female, younger/older and trangender and intersex customers One of the principal aims of the Customer Diversity research was to compare and contrast the experiences and expectations of people based on specific demographic characteristics, namely gender, cultural background, age, sexual orientation, disability and noticeable Faith. The data discussed in Missing out focus on meaningful differences between groups of customers (as revealed by the data).
What this means is that most of the findings relate to cultural background, sexual orientation, disability and noticeable Faith. Rarely is their comment about gender or age. With respect to gender, the survey data revealed that the experiences, expectations and attitudes of male and female customers were largely consistent, and when significant differences between groups were identified, this concerned a very small number of questions only. A notable exception to this relates to ethical consumerism; with women having a significantly stronger preference towards buying goods and services from organisations that are known for their commitment to gender equality (Finding 5).
With respect to age, while there is much hype about millennial customers and grey power, few differences emerged based on these age categories. Having said that, there were a couple of significant differences between younger and older customers. Generally speaking, older customers (aged 65+ years) responded more positively to questions about their experiences than younger customers (aged 25 years and younger). Conversely, younger customers were more vocal and active than older customers, with their buying behaviours (both positive and negative) more significantly influenced by their experiences and perceptions of diversity and inclusion. Given these trends, this report highlights age-based differences only where meaningful variances exist.
Finally, the sample sizes of transgender and intersex customers were too small to analyse for significance, but the responses indicated greater alignment with those who identified as lesbian, gay or bisexual than those who identified as heterosexual.
The role of partner organisations
This research was conducted with financial assistance and guidance from Qantas, QBE, SBS and Westpac Group. The research findings contained in Missing out, however, are not based on customer data from these specific organisations. Rather, the quantitative findings are based on a survey of over 1,200 individuals across Australia administered via an independent online survey panel.
