[Sydney, 18 February 2025] – Australian consumers are increasingly dissatisfied with the service they receive, with a significant gap emerging between their expectations and actual experiences, according to a groundbreaking new study by SOCAP Australia and Deakin University’s Better Consumption Lab.
The research, which surveyed a nationally representative sample of 1,500 Australians in June and July 2024, found that two-thirds (66%) of respondents believe service quality has declined over the past five years. Across key service sectors—including mobile, banking, electricity, home insurance and government services—customers consistently reported that organisations are failing to meet their expectations.
“This study provides a critical snapshot of shifting consumer sentiment in Australia. Consumers are telling us that they are experiencing a decline in service quality, with reliability, responsiveness, and transparency being the most valued and yet most frequently unmet expectations,” said Melanie Lawrie, CEO of SOCAP Australia.
According to Dr Jeff Rotman, Co-Director of the Better Consumption Lab at Deakin University, “At Deakin University's Better Consumption Lab, we focus on finding solutions that benefit both consumers and organisations. This research reveals that consumer expectations have risen while perception of service quality has deteriorated, creating a perfect storm of customer frustration. By identifying this gap between expectations and experiences, we hope to help organisations improve the quality of service they provide to their customers.”
SOCAP Australia has released the key findings in the report Exploring the service expectation versus service experience gap. These findings include:
- Banks ranked highest in customer satisfaction.
- Over half of customers reported making a complaint when they encountered a service issue, yet complaint handling remains a major pain point, particularly in terms of speed, ease and resolution outcomes.
- Customers expected quick responses, with 69% anticipating a reply to emails within 24 hours and 79% expecting the same for social media queries.
- Financially vulnerable consumers were more likely to feel powerless and dissatisfied with service interactions.
- Complaint resolution and apology were more important than compensation; unsurprisingly, virtually all (95%) respondents saw fixing the problem as 'very' or 'extremely' important and almost two-thirds (63%) also viewed an apology as 'very' or 'extremely' important.
- Older Australians (60+) were more likely to remain with their service providers despite dissatisfaction, but also more likely to complain when things went wrong.
“It’s not just about customers having higher expectations—our research indicates that businesses are genuinely struggling to keep up with what consumers consider basic service standards,” Lawrie continued. “The findings highlight the importance of businesses prioritising reliability, transparency and responsiveness in their service delivery, particularly in handling complaints effectively.”
“At SOCAP Australia, we are committed to helping organisations bridge this service expectation gap through comprehensive resources, industry-leading training, and our Complaints Professional Certification program. By equipping businesses with the right tools, skills, and knowledge, we are empowering them to improve service quality, enhance their complaint resolution processes, and ultimately rebuild consumer trust. Our education initiatives ensure that professionals stay ahead of evolving customer expectations and complaint related regulatory requirements, making a tangible impact across industries,” said Lawrie.
SOCAP Australia and Deakin University’s research underscores the urgent need for businesses to bridge the expectation-experience gap, with evidence-based recommendations provided to help organisations improve their service strategies.
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About us:
ABOUT SOCAP AUSTRALIA
The Society of Consumer Affairs Professionals (SOCAP) is where Australian and New Zealand complaint professionals come to connect, develop and train for skills, and advance the complaint management industry. Established in 1991, SOCAP Australia has trained complaint professionals from all industries – including utilities, financial services, government, FMCG, education, telecom, healthcare and technology. SOCAP Australia’s Corporate Members include ANZ, Commonwealth Bank, NAB, Optus, Suncorp, AGL, Telstra and Westpac. For more information, visit: https://www.socap.org.au
Contact details:
FURTHER INFORMATION, INTERVIEWS & COPIES OF THE REPORT
Sally Wood on 0434 442 687 or sally@wordly.com.au
