Local governments need to improve digital services: report

Local councils need greater investment in online services to meet growing demand for better digital services, as new research from SaaS solution provider ReadyTech reveals a gap between the services that are valued by community members and those prioritised by local government.

ReadyTech’s Customer Centricity Report 2024 shows community members are seeking faster, easier access to council services online. While 62% of community members accessed council services online in the past year, fewer than 50% of council executives believe their digital services are effective. ReadyTech’s Chief Executive of Government and Justice, Daniel Wyner, said the findings highlight a lack of alignment between the views of communities and councils regarding key digital services.

“While councils prioritise internal functions such as payroll and financial reporting, the community wants easy access to information and streamlined digital services,” he said. “One function highly valued by the community is a single customer portal where they can complete all their interactions online, whether that’s paying rates, submitting development applications, registering pets or requesting asset maintenance.”

More than two-thirds (69%) of community respondents said their council should invest in an online customer page or portal. In contrast, providing a customer portal was the least valued digital service by local government respondents (8%).

“People are becoming accustomed to being able to manage all their interactions with a service provider in the one place. This is a user experience that’s standard in a lot of industries, but not in local government,” Wyner said. “There is an opportunity for councils to invest in digital services that are valued by customers and that will enable them to better engage with and serve their communities.”

The Customer Centricity Report 2024 is based on the results of two surveys, commissioned by ReadyTech, on the attitudes, issues and needs of both communities and councils in relation to local government service delivery, challenges, opportunities and technology use.

Both community and council respondents agreed that investment in online access to council services is the best way to engage and serve their community, yet only 40% of council respondents said their council has a digital transformation plan.

“Councils need to be proactive about strengthening their digital services to keep pace with community expectations,” Wyner said. “There is a significant generational change happening and a large cohort of digital natives are becoming ratepayers and reaching a stage in their lives where they are engaging with their council.

“Our research showed councils face some challenges in delivering effective digital services, including cost, outdated systems and software, and staffing. This highlights the need for strategy and investment in technology that improves community connections and interactions.

“The purpose of councils is to serve their communities, and investing in digital transformation will enable them to do this better. By providing positive user experiences in areas that matter to customers, councils can create more connected, engaged and satisfied communities.”

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