Glitchy apps, deal disparity: Here's what's upsetting customers

A recent survey by Accenture Song revealed that 69% of New Zealanders feel companies are failing to meet their expectations. Media and entertainment, groceries, utilities, telcos, insurance, and banking were the sectors where the biggest gaps were found between what brands promised and the reality customers experienced. One major complaint is the "loyalty tax," where new customers receive better deals than existing ones.

Jessica Day, from Storm Day, highlighted this as a significant frustration among customers. Additionally, people are questioning whether their bills are intentionally difficult to understand and whether promotional offers are as advantageous as they appear. In the utilities sector, there has been considerable disruption, particularly with the introduction of AI-powered apps.

These apps, while helpful, make it easier for consumers to decode complex policies and compare prices. However, many feel that policies and pricing structures are too convoluted to compare effectively. With the increasing use of AI, consumers are now able to decode policies, translate jargon, and find better deals. Brands that leverage technology like AI to simplify customer experiences while maintaining a human touch are more likely to gain trust and loyalty.

Consumer NZ spokesperson, Jessica Walker, noted that while customer satisfaction has improved in most sectors, the energy sector is lagging behind. She also pointed out that the average savings for electricity customers through switching is around $470 annually. Despite this, many New Zealanders assume their electricity providers offer the best prices, unaware that they may be paying a "loyalty tax."

Bundled deals can also lead to higher costs if consumers remain loyal to a provider, as it can be psychologically challenging to switch. Walker advised consumers to carefully assess the terms of bundled deals and be vigilant when considering renewing their contracts.