New dunnhumby research finds trust in Aussie grocery retailers is high due to COVID-19, but loyalty remains low

24 June 2020

Survey Methodology: dunnhumby surveyed 400 consumers in Australia around their shopping attitudes, behaviours and satisfaction between in May 2020. Results from this survey are compared to results from our global survey conducted in April 2020 in 19 countries.

Sydney, 24 June 2020 – dunnhumby, the global leader in customer data science, today released a consumer pulse survey revealing that trust and satisfaction with grocery retailers in Australia has surged following the COVID-19 global pandemic.

The dunnhumby COVID-19: Australia – Attitudes and Behaviour report, which surveyed the shopping attitudes, behaviours and satisfaction of 400 consumers in Australia, showed more than two-thirds (69%) of Aussie shoppers agree that grocery stores are doing a good job managing the pandemic – a significantly higher rate than the average of 54% worldwide. Interestingly, this figure is even higher than the trust in government, with 64% of Aussies agreeing that the government is doing a good job. Globally, the benchmark average of shoppers who think that their government is handling the COVID-19 situation well is only 41%.

Despite 83% of Aussie consumers surveyed saying they are practicing social distancing, the findings show Aussies still prefer to purchase their groceries in store, with only 20% of grocery trips being done online (compared to the global average of 30%). The Australian average is also well below other APAC markets. For instance, in China and Korea, 60% and 52% of grocery shopping is now being done online, respectively. 

Kylie Gleeson-Long, Managing Director at dunnhumby Australia, commented, “Australian shoppers are exhibiting less changed shopping behaviour than what we’re seeing in other markets because of how well retailers have identified the need to keep people safe balanced with a good shopping experience . The only exception is that Aussies appear to be spending more on groceries per trip, but this is probably because they are making fewer trips in total.”

Customer satisfaction with in-store experiences remains significantly higher in Australia (23%) than the rest of the world (16%). The majority of survey respondents also agreed with a number of actions implemented by grocers in Australia to help manage the spread of the virus compared to global respondents, including special hours for certain people (90% vs. 81% globally) and limiting the number of quantities purchased (85% vs. 79% globally).

Gleeson-Long added, “In light of these findings, it’s important for retailers not to become complacent, even though the extraordinary actions they have taken over the past couple of months have been praised. Customer satisfaction is strong but we know that loyalty among Australians is historically low, with the majority shopping across multiple supermarkets. If anything, the pandemic has highlighted how critical the shopping experience both in-store and online really is.”

Other key findings:

  • Australians are most likely to notice quantity limits imposed on certain items at 73% - a rate significantly higher than elsewhere in the world at 44%
  • While Australians are more likely to notice out of stocks in stores, they are less likely (50%) to blame retailers for this and are 56% more likely to blame other customers
  • 63% of Australian customers say their personal finances are “not so good” or “poor” at this time, reflecting the real need for retailers to leverage their customer data to price and promote items accordingly

According to Gleeson-Long, “We can’t know for sure what will happen as restrictions ease, but COVID-19 has certainly helped to reinforce the relationship between customers and their local store experience. Retailers need to prepare for the new normal and ensure the best ongoing customer experience to maintain and secure that loyalty.”

“In addition, retailers must continue to recognise and protect their dedicated employees, all while providing relevant and personalised communications, ranges and offerings to ensure they are meeting their customers’ changing needs.”

For more information on dunnhumby and Customer First data, visit the company’s website at www.dunnhumby.com.

 

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About dunnhumby

dunnhumby is the global leader in Customer Data Science, empowering businesses everywhere to compete and thrive in the modern data-driven economy. We always put the Customer First.

Our mission: to enable businesses to grow and reimagine themselves by becoming advocates and champions for their Customers. With deep heritage and expertise in retail – one of the world’s most competitive markets, with a deluge of multi-dimensional data – dunnhumby today enables businesses all over the world, across industries, to be Customer First.

The dunnhumby Customer Data Science Platform is our unique mix of technology, software and consulting, enabling businesses to increase revenue and profits by delivering exceptional experiences for their Customers – in-store, offline and online. dunnhumby employs over 2,000 experts in offices throughout Europe, Asia, Africa, and the Americas working for transformative, iconic brands such as Tesco, Coca-Cola, Meijer, Procter & Gamble, L’Oréal.