Bunnings tops customer excellence chart as major supermarkets and banks fail to make the cut

One Aussie brand has emerged as the clear leader when it comes to a new customer experience report for 2023, and none of the Big Four banks or leading supermarkets made the cut.

Australian shoppers have bypassed the nation’s largest supermarkets and banking institutions, with major supermarket chains and the big four banks absent from the list of 2023’s top brands for customer excellence.

Australia's four big banks Commonwealth, Westpac, NAB, ANZ. Picture: NCA Newswire

Instead, the hardware giant Bunnings has secured the top spot in the latest KPMG Customer Experience Excellence Report, marking a significant shift in Australian consumer preferences.

The report, compiled through a survey of over 2,500 Australian consumers, has become a barometer for customer satisfaction across industries, revealing that Aussies are now gravitating towards brands that offer more than just products or services.

According to the report, Australians are demanding more value, more seamless experiences, and more personalisation from their shopping experiences. Picture: NCA NewsWire/ Dylan Robinson.

According to KPMG’s report, they seek a blend of economic value, purpose, personalisation and digital integration in their shopping experiences, especially since the Covid-19 pandemic.

“In 2023, Australian customers are becoming savvier and demanding more from their brands: more value for their dollar, more seamless, omnichannel processes and more personalised experiences,” the report read.

“Interestingly, despite dealing with the effects of higher living costs, Australians, like their global counterparts, remain willing to pay more for brands whose values align with their own.”

This shift has left traditional retail and banking giants lagging behind in the race for customer loyalty.

Woolworths supermarket failed to make the top 10 list in the latest KPMG Customer Experience Excellence Report. Picture: NCA NewsWire / Roy VanDerVegt

Carmen Bekker, Partner-in-Charge at KPMG Customer, told news.com.au that there has been an evolution in the retail landscape.

“2023 has presented Australian brands with challenging conditions. Inflationary pressures are reducing consumer spending, so retailers are treading a delicate balance between delivering the exceptional experiences that maintain customer loyalty, while consolidating costs,” she said.

“Those in the top 10 have a customer centric culture, have simple and easy to use digital products and services and use technology to help enable resolution of questions or complaints.”

The top 10 list is dominated by non-grocery retail brands, with Bunnings leading the pack for the first time, followed by The Body Shop and Mecca.

Hardware giant Bunnings has secured the top spot in the latest KPMG Customer Experience Excellence Report. Photo: Supplied.

The omission of Australia’s big supermarket chains signals a potential disconnect between these chains’ strategies and the evolving expectations of Australian consumers.

Similarly, the absence of the big four banks – Commonwealth Bank, Westpac, ANZ, and National Australia Bank – suggests a need for these financial institutions to rethink their approach to customer engagement and satisfaction.

Woolworths supermarket failed to make the top 10 list in the latest KPMG Customer Experience Excellence Report. Photo: NCA NewsWire / David Geraghty.

Ms Bekker noted that while some large financial institutions and grocery stores are making progress in personalisation and customer resolution, it is not enough to secure a top spot.

“Interestingly, compared to 2021 we’ve seen some of Australia’s large financial institutions and grocery stores making inroads, in particular around personalisation; knowing their customer, and resolution; helping customers resolve questions,” she added.

”It’s worth noting that Bendigo Bank has traditionally rated amongst the highest of any financial services providers, perhaps due to the long-established position as a brand that puts the customer at the heart of everything they do.”

Top 10 Brands for Customer Experience Excellence in Australia for 2023.

1. Bunnings

2. The Body Shop

3. Mecca

4. Specsavers

5. Chemist Warehouse

6. The Iconic

7. Bendigo Bank

8. Dan Murphy’s

9. Apple

10. JB Hi-Fi

Originally published as Bunnings tops customer excellence chart as major supermarkets and banks fail to make the cut