If there’s one thing I’ve learned over the years, it’s that customer expectations rarely stand still.
The last couple of years have been telling. People have grown used to real-time visibility across almost every area of their digital lives. From tracking parcels in real-time, monitoring ride arrivals to the minute, to receiving instant confirmations for everything from food deliveries to bank transfers.
Australian Consumers now expect the same visibility from their bank, insurer or superfund or healthcare provider. According to Smart Communications 2026 Benchmark Report, 93% of Australian consumers say customer communications are important to their overall experience with an organisation.
Now that expectation is spilling into every sector, including those that have historically relied on formal processes and long communication gaps, such as insurance, healthcare and financial services.
Sure, insurance claims, mortgage approvals, medical referrals and policy updates may not be as simple as a food delivery, but customers now expect them to be just as transparent. And above all, they just want to know what happens next.
This change is leading to the emergence of ‘Status-as-a-Service’, the concept that real-time progress updates, contextual guidance and continuous visibility are essential to the service experience itself.
From notification to reassurance
For years, organisations have treated communications as a compliance checkpoint or an operational necessity. A form is submitted. An automated acknowledgement is sent. Weeks later, a decision arrives. Poor communication doesn’t just frustrate customers; it also creates unnecessary operational costs.
From the organisation’s perspective, the boxes are ticked. But from the customer’s perspective, he or she is expected to sit patiently in the dark.
More than half (54%) of Australians say they regularly want to know the status of a financial services submission after it has been lodged. This includes having instant confirmation that their information has been received, along with real-time progress updates and clear timelines for next steps. Yet many brands still rely on sporadic, one-way messages: a ‘Do Not Reply’ email, a generic SMS, a portal update that requires proactive checking.
That gap between expectation and experience is where trust begins to erode.
More and more, customers don’t see touchpoints as isolated steps. Instead, they perceive the whole journey – from submitting a form to making a final choice – as a continuous conversation. In fact, while 95% of Australian consumers expect information to carry across different channels, 62% still find themselves submitting repeating information. When this occurs, it tends to create a sense of anxiety. That means your customer or patient is actively associating your brand with a feeling of dread.
The hidden cost of transactional CX
The financial impact of this disconnect is often underestimated. Customer experience is often treated as a ‘soft’ metric: important, but secondary to price or product features.
When communication falls short, customers walk away. They switch providers and share their frustrations publicly. Most importantly, they become more receptive to competitors promising greater transparency.
In regulated industries, where products can appear similar on the surface, communication becomes a key differentiator. Two insurers may offer comparable cover or two banks may offer similar rates. But the one that provides clear, proactive and contextual updates throughout the lifecycle will feel easier to do business with.
By contrast, organisations that cling to fragmented, transactional messaging risk creating friction at scale. 9 in 10 Australians believe proactive communications are an important trust factor, highlighting that transparency is appreciated but also expected. Each unclear status update creates unnecessary inbound enquiries, and each confusing interaction leads to abandonment.
Why 2026 is a turning point
he coming year will be pivotal because technology now makes Status-as-a-Service achievable at scale. Advances in real-time data processing and AI-powered automation mean organisations can surface live case statuses and dynamically guide customers through complex processes.
But technology alone is not enough. Three quarters (75%) of Australians would abandon an interaction if the forms or data collection process became too difficult. Poor implementation and automation can amplify the very problems it is meant to solve. A stream of robotic updates, devoid of context or empathy, can feel neither reassuring nor human.
Status-as-a-Service does not mean flooding customers with notifications. It’s about designing experiences that feel like conversations rather than broadcasts.
That could mean:
- Providing a live claim tracker that explains not just which stage has been reached, but what that stage actually means
- Replacing static HTML and fillable PDFs with guided digital experiences to reduce errors and clarify requirements before submission
- Offering proactive updates when timelines shift, rather than waiting for customers to chase progress
- Clearly signalling when a human adviser is available and when AI is supporting the process behind the scenes.
Transparency as a competitive advantage
As such, transparency is fast becoming the new currency of customer relationships.In sectors where decisions affect finances or health, being opaque feels like the old way of doing business. As organisations rapidly adopt artificial intelligence into customer interactions, transparency is becoming even more important. Nine in ten Australians believe organisations should disclose when AI is being used during customer interactions. Customers expect organisations to communicate what is happening, why it is happening and what steps they should take next.
That expectation is not unreasonable. It has been shaped by experiences in retail and entertainment, where real-time tracking and personalised updates are standard. The challenge for more complex industries is to translate those principles into environments governed by regulation and risk controls.
Increased transparency in regulated industries could become a competitive differentiator. Embedding transparency into service delivery enhances compliance and builds trust. Providing clear status updates minimises misunderstandings. Guided processes help prevent mistakes. Real-time confirmation decreases disputes over submission details and timing.
The brands expected to succeed won’t necessarily have the flashiest apps or the most aggressive AI strategies. Instead, they will be the ones who recognise a simple truth: customers want to feel informed and in control.