Qualtrics has released its fourth annual Consumer Experience Trends report revealing customer feedback rates are dropping along with a a growing scepticism towards AI in which just 14 per cent of Australian consumers trust organisations to use AI responsibly.

For business and CX, the challenge of meeting customer expectations is rising as a growing number of consumers give brands the silent treatment - when they’re happy or annoyed. Since 2021, consumers in Australia are six percentage points less likely to say something about a bad experience. When people do say something, the most common response is to tell family or friends while less than a third share feedback directly with a company. They are least likely to post something on social media.

“Customers are giving brands the silent treatment and if organisations don’t find a way to fix this issue, we could see more disgruntled consumers in Australia,” said Isabelle Zdatny, Customer Loyalty Specialist at Qualtrics. “Customers are expecting a better experience, but simultaneously they’re not willing to share the insights brands need to deliver one. Overcoming this gap requires brands to rethink how they engage with customers and go beyond the traditional feedback survey.”

The report, which compiled responses from 23,730 individuals across 23 countries, including 1,201 from Australia

According to the Consumer Experience Trends report, only 14 per cent of Australian consumers trust organisations to use AI responsibly. Major pain points for consumers include poor communication and service delivery issues. There is a tension between consumers' desire for personalised experiences and their concerns about privacy and data misuse.

Trust is identified as a key factor in customer loyalty, with consumers prioritising accurate information over speed or convenience. The report suggests that brands need to reliably deliver on their promises to maintain customer trust. Comfort levels with AI have dropped 9 per cent over the last year in Australia. The leading cause of poor customer experience in Australia is communication problems (46 per cent), followed by service delivery issues (44 per cent), and pricing concerns (39 per cent).

Qualtrics said 54 per cent of consumers cut spending after receiving a poor experience. Sixty per cent of Australian consumers prefer to buy from companies that tailor their experience, but 52 per cent are concerned about the privacy of giving up their personal information to get one. Only 25 per cent of Australian consumers trust companies to use their data responsibly.

Zdatny said: "Consumers in Australia are some of the biggest sceptics anywhere in the world when it comes to AI. Companies are more excited than consumers about using AI, and there’s a lot of work to do to persuade people of the benefits. The best uses of AI right now in customer experience are when it’s focused on solving issues or problems people care about."

Zdatny also highlighted the importance of getting the basics of customer experience right. "There is no excuse for getting the fundamentals of good customer experience wrong, but too often consumers are saying this is what’s happening with poor communication and service issues. Nice-to-have industries continue to raise the bar on what good customer experience looks like, and with more than half of bad experiences ending in a spending cut, businesses and governments can no longer afford to fall behind."