Customer Experience in the New Reality

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Customer experience in the new reality

Global Customer Experience Excellence research 2020: The COVID-19 special edition

home.kpmg/customerfirst 1 Customer experience in the new reality Foreword

The impact of COVID-19 on customer behavior was immediate and widespread across all industries, countries and demographics. Expectations have heightened as priorities have shifted to health and safety first, which have in turn changed decision making and buying behavior.

As a result, what was previously considered to be a great customer experience has no longer been good enough and almost all businesses have been thrust into reorganizing their approach to customers.

Customers are the lifeblood of every organization and the money they spend is the oxygen that enables the business to exist, grow and thrive. There is a commercial cadence — a rhythm — associated with how the customer and organization transact and interact with each other over time. With this cadence comes the opportunity to deliver experiences that in turn establish and sustain enduring relationships and drive value for both sides.

This is KPMG’s 3rd Global Customer Experience Excellence report. It brings the need for commercial cadence to the fore. Looking at the research findings in the light of COVID-19, we see that companies that were able to maintain this commercial cadence with their customer were ranked higher than those who did not.

Their success emphasizes the application of The Six Pillars of experience excellence: Integrity by acting ethically and demonstrably in their customer’s best interests; a focus on Resolution and proactively addressing customer problems; the accurate setting of Expectations; reducing the Time and Effort customers need to expend by enabling frictionless interactions and then delivering a Personalized experience with Empathy and compassion.

COVID-19 has brought forth a The migration to these digital consumer that is more thoughtful relationships poses something of and selective in their decision a challenge for organizations, even making. Part of this is a result of those with a strong digital presence. customers seeking out businesses As digital usage increases so do that demonstrate and build trust. concerns about personal data and Additionally we are seeing a shift how it is used and protected. towards ‘buying into companies’ rather than simply ‘buying from’ Online experiences in the new reality them. Factors such as brand, need to be immersive, emotive and, purpose and reputation are coming above all, safe. into the decision-making process in The CX leaders in our research equal measure to safety, security, lead from the front to support their convenience and certainty. These are colleagues in these extraordinary all now parts of a new value equation times and build an organization which that customers hold to account within is connected — where every part of the price of a product or service the business is symbiotic and aligned, which has changed the economics of from the front office through to the experience delivery. back office, to deliver an intentional Many purchases have had to shift customer experience. from in-person to online channels, I encourage you to review the creating a more digitally savvy findings of our research in this consumer that demands easy and report to help you to decide how to effortless interactions. adapt your approach to customer Consumers of all ages have experience and align to a new reality. discovered that the internet makes A dynamic economic environment, their daily routines more efficient and a shift in values and newly expected these behaviors are likely to stick. standards of customer and corporate Many organizations had to accelerate, behavior are rapidly changing the augment and promote their original rules of the game. Firms will need to customer interaction investments. know this new customer intimately For the leaders in our research this if they are to succeed in the was a minor adjustment to existing new reality. Julio Hernandez operating models allowing them Head of Global Customer to maintain continued transactions Our global network of KPMG Center of Excellence and commercial cadence with their consultants is here to help you KPMG International customers. Indeed, the shift to digital navigate the challenges ahead. enabled greater value to be created US Customer Advisory Lead by lowering costs to serve. KPMG in the US

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 3 Customer experience in the new reality Contents

The new reality customer 7

The Six Pillars 9

The new reality experience 11

A connected enterprise for the new reality 13

How to succeed in the new reality 16

2020 hall of fame 20

Industry views 25

Airlines 27

Banking 29

Grocery retail 31

Hotels 33

Insurance 35

Logistics 37

Telecoms 39

Market overviews 41

Australia 43

Austria 45

Belgium 47

Brazil 49 Singapore 73

Czech Republic 51 Slovakia 75

Germany 53 Spain 77

Hong Kong (SAR), China 55 Sweden 79

Ireland 57 Taiwan 81

Italy 59 Thailand 83

Japan 61 United Arab Emirates 85

Luxembourg 63 United Kingdom 87

Mexico 65 United States 89

The Netherlands 67 Vietnam 91

Romania 69 Methodology 93

Russia 71 Thinking ahead 95

80% While 88 percent still buy brands as per their needs, 80 percent of people prefer buying from and into the brands whose actions align with their beliefs and values.

The quality of customer experiences are improving around the world. All countries researched have seen an uplift in their overall Customer 63% 76% Experience Excellence (CEE) score this year. Value is the differentiator on of customers expect firms product or service choice for they deal with to provide The average increase of all markets 63 percent of consumers as a e-commerce services. together is 3 percent. result of COVID-19.

Overall non-grocery retail is the strongest % performing sector for 3% 81 CX in 2020, followed by Brands are perceived to be financial services. of people are concerned providing greater value for about a recession/ money. There has been a 3% economic situation. uplift since 2019. 7 92% of the 19 markets which of customers are expecting featured previously, 7 companies to keep them and other brands retained their customers safe. The logistics sector has seen the number 1 spot. highest increase in performance in 2020 of 6 percent.

Source: KPMG International Research, February 2020 — August 2020

49 percent of consumers are focused on saving rather than spending.

Personalization is the strongest pillar in driving 56% 58% customer loyalty in 19 Over half of consumers say the Over half of consumers of the 27 markets, while environmental and social practices are worried about climate Integrity leads across of a company has an impact when change. 6 markets. choosing to buy from them.

Integrity is the strongest Financial services driver of Advocacy (NPS) dominates the first place 55 percent of consumers want across 18 of the 27 markets rankings. 12 out of 27 companies to keep their data safe while Personalization leaders are financial as a number one priority. leads across 8 markets. services brands.

11% Average performance has risen across all Six Pillars this year, with expectations seeing the greatest increase globally (+4 percent on average).

Customer experience (CEE metric) for the top-ranked brand in each market is an average of 11 percent 90% higher than its respective market average. of customers are willing to pay more for ethical retailers.

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 7 Customer experience in the new reality The new reality customer

Purchasing patterns are also changing as consumers shift from discretionary spend to essentials and it is likely to stay that way as the finances come under pressure and they seek to rebuild their financial safety net.

Value and price are becoming equals for customer loyalty

Consumers’ spend is impacted by both the decrease in disposable income and the psychological impact of COVID-19. We see new segments arise, separated by a need to group products and services into categories Globally, consumers believe they will be living their lives of necessity, with spend moderated by financial attitudes. very differently for the foreseeable future. They feel more vulnerable, less secure and less in control than ever before. Consumers in Germany, France and Hong Kong (SAR), China feel more They expect the brands they have to interact with — digitally calm and secure, fitting into the or, as lockdown eases, physically — to deliver better, safer, financially comfortable category. and more seamless interactions at a lower cost. In Brazil, Japan, Italy and Spain, consumers have stopped all non- essential purchases and are more They are financially constrained, As a consequence, we see some selective, feeling more financially want touchless experiences and are new and different behaviors because overwhelmed and giving their more thoughtful and selective in their of the way that we have had to financial recovery priority. Value for decision-making giving preference to adapt to life in lockdown. Some money, and its corollary price, is brands they trust. They have a deeper were already present and have the single most important factor in appreciation of family, friendship and been accelerated or sharpened but decision-making and our research health and are keen to see COVID-19 many are new and likely to remain this year shows that it has become a as an opportunity to reset their values and indeed impact customers’ significant driver of loyalty. in the world while getting value in all purchase behavior. they experience.

Source: KPMG International Research, June 2020

In addition, in previous years of our Use of chat technologies and social CX study we have seen that Cost or media has grown with a threefold Key takeaway Value has had little impact on how increase in consumers claiming they Integrity and trust are a customer’s assessment of their will use social channels, webchat, anchored in an organization’s experiences translates into advocacy messenger apps and SMS chat as purpose. It sets an ethical and loyalty. This year, however, for their main means of communicating those countries experiencing severe with organizations in the new reality . standard that the business economic impact at the time of must live up to. Like the CX the study, we have seen that Value leaders in our research, firms as a determinant of loyalty is second Key takeaway who have demonstrated only to Personalization. In addition, resilient, moral principles and a Organizations will need to brands are perceived to be providing commitment to humanity, the invest in new digital methods of more value for money with the results environment and social aims communication and payments. revealing a 3 percent uplift. are those that consumers are Prioritizing digital security will gravitating towards. be key.

Key takeaway Trust becomes multi-dimensional Organizations will need to rethink their business and operating Trust underpins the commercial As the effects of models. The consumer’s search cadence between customers and for value for money is much organizations. Integrity and trust are COVID-19 reshape our more than just short-term margin therefore two sides of the same economies, organizations dilution. It is a fundamental coin. Integrity is how the organization will need to strategically thinks and behaves and trust is the change in purchase priorities and re-engage with their will be prevalent for 12 months outcome gained as a result from its customers. or more. customers. While During lockdown customers behaviors and spend have become more aware of levels have already environmental and corporate Consumers have become more behaviors.They are more questioning changed dramatically, digitally savvy as to whether brands behave it is the evolution COVID-19 has amplified the need for credibly when it comes to their of customer needs, easy access to products and services environmental and social obligation. attitudes and values that and information. Most customers They have added further dimensions are now comfortable using online such as safety and support of the will most disrupt how channels to buy what they need. local community. businesses compete.” They are reducing physical purchase occasions and are gravitating towards Tim Knight touchless shopping and contactless Partner, Customer Advisory payments. 82 percent of consumers KPMG in the UK stated that they are more likely to use digital wallets or cards in the future.

Source: KPMG International Research, June 2020

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 9 Customer experience in the new reality The Six Pillars

Eleven years of research have shown that every outstanding customer relationship has a universal set of qualities — they are The Six Pillars of experience excellence. They are inextricably intertwined and, in combination, provide a powerful mechanism to help organizations understand how well their customer experience is delivered across channels, industries and company types. Leading organizations demonstrate mastery of these pillars and are outstanding at all of them.

In our research this year, all the top ranked brands exceeded the market average on each of The Six Pillars. Indeed, the top-ranked brand in each market typically outperforms the respective market average score for each pillar by between 10 percent and 12 percent.

Integrity Acting with integrity and engendering trust. Trust is an outcome of consistent organizational behavior that demonstrates trustworthiness. There are trust building events where organizations have the need to publicly react to a difficult situation, and trust building moments where individual actions by staff add up to create trust in the organization as a whole. Behavioral economics holds that as humans we trust people we like. The ability to build rapport at a basic human level is therefore critical in creating trust with customers.

— Do the right thing for me personally — Have not been associated with negative —B e seen to be doing the right things for stories on the TV, internet or in the customers in general newspapers — Stand for something more than profit — Are recommended by my friends or family —T ake corporate social responsibility seriously — Contribute to my local community

Resolution Turning a poor experience into a great one. Historically when it comes to resolution, organizations have majored on service recovery. COVID-19 has driven rapid innovation because customer problem solving has come to the fore. This mindset in turn has accelerated a focus on solutions rather than products and driven engagement.

—O wn the resolution and fix with urgency — Go the extra mile if required —K eep me fully informed of issue —P rovide a temporary solution while trying to resolution progress resolve the problem — Offer a warm and sincere apology —A ssume my innocence

Expectations Managing, meeting and exceeding customer expectations. Customers have needs and they also have expectations about how these needs will be met. Customer satisfaction is the difference between expectation and actual delivery. Understanding, delivering and, if possible, exceeding expectations is a key skill of great organizations. Shaped by COVID-19 customer expectations have become more fluid. Understanding these changing expectations is a vital component of designing the right solutions and experiences. Proactive expectation setting communications will now be expected as standard.

— Do what they said they would —K eep me informed as to what is happening —P rovide a consistent service every time I use when I have a query or place an order them — Check whether I’m happy with their product/ — Use plain English — no jargon services — Set my expectations accurately

During COVID-19, customers have perhaps for the first time seen organizations put their customers and their people’s wellbeing before profit. Leading organizations have acted compassionately and sensitively to the factors that affect trust. Going into the new reality firms will need to be careful they do not undermine this newly acquired trust.”

Amanda Hicks Partner in Charge, Customer, Brand and Marketing Advisory KPMG in Australia

Empathy Achieving an understanding of the customer’s circumstances to drive deep rapport It is time for all firms to show that they care, that the safety and wellbeing of their employees and customers is their prime concern. Corporate kindness are two words not usually put together, but they are now fundamental to how a company operates from within.

— Understand my particular situation — Invest time to understand me and my needs — Explain things in a way I can easily understand —P rovide the right emotional responses for — Demonstrate they care my situation —A cknowledge how I’m feeling and — Are willing to bend the rules to help me out act appropriately

Personalization Using individualized attention to drive emotional connection. Demonstrating that you understand the customer’s specific needs and circumstances and will adapt the experience accordingly is now the expected norm. Customers during the crisis described the feeling of being in an infinite present and unable to see beyond tomorrow. Our CX leaders have been focused on ensuring that, as far as possible, customers can take control over their lives by providing experiences that are more strongly tailored to their circumstances, that make them feel valued and important and put them back in control.

— Offer products or services relevant for me — Know who I am from my customer history — Understand my specific personal needs when I’m dealing with them — Make me feel valued — Make me feel in control —T reat me as an individual — Show an interest in me

Time and Effort Minimizing customer effort and creating frictionless processes. Customers are time poor and increasingly are looking for instant gratification. Removing unnecessary obstacles, impediments and bureaucracy to enable the customer to achieve their objectives quickly and easily have been shown to increase loyalty. COVID-19 has amplified the need for easy access to products and services, convenience and relevant information. Home delivery has become a way of life.

—P rovide information/answers I need when I — Explain exactly what I need to do next at all contact them points in my task or purchase — Minimize waiting times — Make my time investment feel worth it — Manage queues/call waiting effectively — Offer alternative ways to complete my task or make my purchase

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 11 Customer experience in the new reality The new reality experience

They show business leaders specifically what they need to create in order to compete for the new reality customer and become or remain high performing CX leaders. This year however we have seen that Value as a determinant of loyalty is second only to Personalization. It has seen an overall shift of 11 percent in importance since 2018.

This year’s research shows that The Six Pillars of Experience are more relevant than ever, but now have additional requirements and priorities attached.

As companies demonstrate their commitment to a safe and secure Investing in the customer relationship in times of difficulty environment and seek to adapt to will be repaid by enduring customer loyalty. Firms that customers’ unique circumstances Integrity and Personalization now play maintain their ethics during periods of catastrophe grow a particularly strong role in in driving and prosper. both advocacy and loyalty.

— Integrity is the strongest driver of Eleven years of research with 4 In normal times, they are powerful Advocacy (NPS) across 18 of the million customer evaluations of tools for creating successful, 27 markets, while Personalization c.3,500 brands globally have shown sustainable and ethical businesses. that there are six dimensions of When faced with the unprecedented leads across 8 markets. customer experience that firms challenges of new reality, they need to excel at if they are to reap provide an invaluable guide to — Personalization is the strongest the financial rewards that result navigating the changes that will pillar in driving Customer Loyalty from loyalty and advocacy. These are be required by defining excellence in 19 of the 27 markets, while Integrity, Resolution, Expectations, in both customer and employee Integrity leads across 6 markets. Time & Effort, Personalization experiences. and Empathy.

Global performance has increased Those that do, start with the design The CX leaders in our research across each of The Six Pillars of a competitively superior customer go to great lengths to ensure this year. experience and then design the that employees experience their culture, skills and behaviors that will organization in the same way a Overall customer experience enable frontline employees to deliver customer would. For the leading hotel performance rose by 3 percent such an experience. This is because and travel companies for example globally in 2020. innovation, creativity, passion, the induction of new employees commitment and the desire to do involves experiencing the brand The Pillar with the highest growth great things for the customer start as a guest. The target employee (4 percent) is Expectations. We and finish with the employee. experience across journeys and their surmise that this increase is due to employment life cycle is carefully consumer expectations having been The Six Pillars can be universally crafted to ensure the target customer reset due to COVID-19. The reaction applied to both customer and experience naturally emerges. and innovation of many organizations employee relationships. By have given the increased ability to seeing all people (and their digital For leading retailers ordinary retail wow and exceed expectations. counterparts) through this singular roles are elevated through stringent lens, organizations can remove recruitment and training to become Our leaders demonstrate that disconnection and unify their consultants, trusted advisors to consistent delivery across each of colleagues around common ways customers who not only sell products The Six Pillars remains critical. All of thinking. but guide customers to exactly the the top ranked brands exceeded the right solutions for them. Even more market average on each of The Six In short, transforming the customer important as countries globally ease Pillars. In fact, the top-ranked brand in experience (CX) requires that out of lockdown measures and each market typically outperforms the organizations adopt an equally want to feel safe and secure in their respective market average score for methodical approach to the employee physical purchase experiences. each pillar by between 10 percent and experience (EX). 12 percent. For online retailers it is how staff can The experience an organization replicate human interactions online Connecting customer and employee delivers to customers reflects the and make an emotional connection experience organization and its employees. digitally. This is an area many Employees who are motivated, Companies around the world are organizations have been thrust into empowered and enabled with the attempting to transform their over the last few months and will information, tools and technology businesses but only a small need to be careful to maintain and they need to deliver on the brand number have made energizing their improve as customers will not be promise can make or break the frontline people a central part of forgiving if the experience slacks off. customer experience. This goes their transformation journey. These beyond employee engagement. The unifying factor across each of leading companies are embracing This means taking the design these companies is that employees the concept of the “workplace as an and measurement of employee and customers alike are infused and experience”, where every aspect of experience just as seriously as the enthused by an abiding sense of work is carefully designed, arranged, design and measurement of the purpose which, when coupled with and controlled to energize and inspire customer experience. The Six Pillars, provides a set of employees to deliver the prescribed implementation principles that aligns customer experience. Perception of an employee’s both employees and customers experience is now an important This requires a new covenant behind a desire to make a difference decision point for customers. between front-office and people to the customer and the world they 41 percent of customers say that leadership, connecting the worlds live in. it is now more important to them of customer, HR and general because of COVID-19. Customers management in a way that most want to be assured that employees operating models resist. are well treated, safe and enjoy their jobs.

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 13 Customer experience in the new reality A connected enterprise for the new reality

Companies that were agile, responsive and digitally Insight- enabled were able to better Innovative Experience- driven navigate the effects of products and centricity by COVID-19 and lockdown. strategies services design and actions

These connected enterprises have high levels of synergy between eight core capabilities across the organization where each capability has Seamless Responsive a mutually beneficial, self re-enforcing interactions 2X operations effect. This is critical to compete in the new reality. and and supply commerce impact chain

Digitally- Integrated Aligned and enabled partner and empowered technology alliance workforce architecture ecosystem

Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018

Insight driven strategies Seamless interactions 01 and actions 04 and commerce Connected enterprises harness data analytics to generate The Connected Enterprise is a relationship business, actionable insights. They are equipped to develop a engaging with prospects and customers at multiple real-time, multi-dimensional view of their customers, touchpoints and ensuring an integrated experience across allowing them to shape meaningful and effective customer them. Whether the customer’s entry point is marketing, strategies and a personalized approach to executing them. sales or service, the business delivers a joined-up They use insights to make integrated business decisions. experience and provides the opportunity to buy across the marketing, sales and service lifecycle while making the Connection points customer feel valued. The business works together across — Do your D&A capabilities give you a holistic functions to achieve measurable results. understanding of your business ecosystem? Connection points — How do your data practices help you to provide a real- time, 360 view of your customers? — Is your experience joined up and connected? — Do you have detailed policies in place to ensure — How does your organization harness data and information security and privacy? analytics to deliver a relevant, seamless experience across marketing, sales, service and commerce? — Can your platform integrate internal systems with partners and third-party providers to provide the desired experience?

Innovative products Responsive operations 02 and services 05 and supply chain A connected enterprise develops compelling customer Connected enterprises know they must have the right value propositions including price, products and services operations practices and supply chain in place if they are to engage the most attractive customers and drive to actually execute on the promise to customers. They profitable growth. It innovates with the needs and operate the business with efficiency and agility to fulfil priorities of customers in mind and, by anticipating where the customer promise in a consistent and profitable way. demand is moving, builds competitive advantage. They have the right enterprise decision analytics, operating models and procurement services in place. Connection points Connection points — Does your strategic planning process balance value to customers with value to the organization? — Are your operations able to respond and adapt to — Do your customer insights help you target customers changing market requirements? and prospects with the right products? — Does your supply chain bring you the consistent — Do you design new products and services leveraging performance that you need? deep customer insights and anticipating future needs? — Do you leverage Data & Analytics across the full value chain to drive enterprise improvement?

Experience-centricity Aligned and empowered 03 by design 06 workforce Many businesses invest heavily in new technology and operations — but don’t base it around the actual impact A Connected Enterprise has an agile organizational on their customers, employees or business partners. structure ready to adapt. The company attracts and recruits Connected enterprises step back and ask what experience the right type of people; it builds and instils a customer- they want to deliver to these audiences and then centric culture; it inspires people to deliver on the intentionally create it through design, supporting the value customer promise and drive up business performance. propositions and delivering on business objectives. Connection points Connection points — Do you foster an innovative, forward-looking and — Do you approach experience design from both the customer-centric culture? inside-out and the outside-in? — Do your employees have the right skills and training to — Can you respond to rapidly evolving customer, help them deliver to customers? employee and marketplace dynamics? — Are you able to attract and retain the right digital — Do you measure customer, employee and partner and entrepreneurial talent with the right mindset for interaction across different products and services, customer centricity? delivered across various channels, using multiple KPIs?

Digitally enabled 07 technology architecture Connected enterprises have the ability to architect, engineer enable and operate intelligent digital services, technologies, and platforms to deliver on the customer promise in an agile, cost-effective and scalable manner while maintaining security. They develop secure, scalable and cost-effective solutions that also support customers, employees and partners to work effectively. Connection points — Are you incorporating and optimizing the integration of today’s and tomorrow’s technologies to support high performance? — Are you automating business and technology processes to respond to customer needs more effectively? — Is the necessary security in place to protect your data, systems and products?

Integrated partner and 08 alliance ecosystem No business does it all themselves. Every business relies on its partners. Connected enterprises successfully engage, integrate and manage third parties to increase speed to market, reduce costs, mitigate risks and supplement capability gaps to deliver the customer promise. They develop trusted relationships with their partners and build a competitive edge together. Connection points — Are you able to identify partners, alliances and vendors to fill any capability gaps? — Do you have a defined, efficient and risk-reducing onboarding process? — Do you monitor partners’ performance and ensure it’s helping you meet your business objectives?

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Customer experience in the new reality 16 How to succeed in the new reality

There are a number of key considerations that can help organizations make faster progress.

Keep close to what your customers want The ability to think “outside in” is key in building a customer-centric business. Ensure that you are not 01 deviating from your original goal of delivering on what your customers want, need and are willing to pay for; keep continually looking up and outside of the organization to ensure this mission is at the fore.

Do things in an agile way Becoming a connected enterprise is a transformation — but that doesn’t mean the business needs to 02 revolutionize itself overnight. Break changes down into specific steps, sequence them and implement. Keep standing back to assess whether the change has been successful in a ‘test and learn’ approach. It’s about a series of small changes that together add up to a significant and impactful transformation.

Build in resilience 67 percent of CEOs say they have had to rethink their global supply chain approach given the disruptive 03 impact of COVID-19, driven by the desire to become more agile in response to changing customer needs.1

Keep it human While embedding new technologies such as AI and automation are likely to be critical in developing 04 more seamless interactions for customers, remember that you also need to keep the experience ‘real’. Don’t lose the human touch; make sure that your customers are still being served by humans — your employees — at the key moments.

Make use of new technologies 80 percent of CEOs say that COVID-19 has accelerated digital transformation.2 Make sure that you are 05 continually looking at what new technologies are becoming available that could help you serve customers better or connect your business up more seamlessly. Are you utilizing cloud effectively? Are you building in appropriate automation and AI? Are your teams empowered with collaborative tools so that they can better work together and share key information and data easily?

1, 2 2020 Global CEO Outlook, KPMG International

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 17 Customer experience in the new reality Signals of success

A focus across the eight capabilities delivers higher performance for customers, employees and the organization as a whole.

Capability What good looks like What good looks like What good looks like for customers for employees for organizations

Insight-driven Personalized, authentic and Evidence based mindset, Leverage real-time insights and strategies & contextual experiences with a openness to challenge and learn data to optimize the enterprise. actions brand. from failure.

Innovative Connection to the brand, Innovation is everyone’s job: all Products/services, pricing and products & relevance of product employees contribute and there promotions are differentiated services and experience. is a robust innovation harvesting and constantly optimized to process. meet demand.

Experience The experience is the brand Employee experience is of equal Experience centricity is at centricity by promise and it is consistently importance and is designed to the heart of the organization design delivered across all interactions. support and mirror the desired and customer and employee customer experience. experiences are optimized to deliver economic value.

Seamless Seamless and secure Employees have the tools to Preference-driven interactions interactions & interactions with a brand across enable them to freely operate, and integrated payment commerce all transactions. collaborate and interact across mechanisms across the brand. organization boundaries.

Responsive Receive and return products and Awareness of end-to-end Leverage innovation-driven operations & services when, where and how value chain and individual’s demand, inventory management supply chain it is most convenient. contribution to customer and distribution. outcomes.

Aligned & Seamless and consistent Everyone a leader and Empowered employees, empowered experience received across all everyone an innovator mindset inspired leaders and a culture workforce teams and departments. throughout the workforce. that embraces change with an Teams and individuals know organization truly aligned to the how they contribute to the value it brings to customers strategy and the customer & and stakeholders. business outcomes.

Digitally-enabled Technology enables a Courage to experiment and act Culture of innovation and agility technology frictionless, contextual and quickly. High levels of digital driving speedy, high quality tech architecture personalized experience. acumen, harnessing the power implementation and adoption. of emerging technology.

Integrated Are able to access a rich and Seamless collaboration and Identify and leverage synergies partner & alliance diverse set of products /services interaction between all parties with third parties to overcome ecosystem from a single brand. throughout the ecosystem. enterprise barriers and execute on the desired experience.

Getting connected takes foresight, planning, commitment, agility and perseverance — and the evidence corroborates the effort.

The business won’t only benefit from good customer balance between what customers expect and what outcomes — it will capture the economic benefits too. makes financial sense to deliver. It is value engineering that comes from mastering the economics of customer This means generating maximum economic value on the experience. Simply stated, enterprises need to manage most profitable services that customers value most and both experience expectations and experience delivery and not wasting undue effort on areaas that customers don’t execution, recognizing the power of the eight connected value or have merely functional expectations around in the enterprise capabilities working together to execute in a first place. connected manner. Connected organizations and many of the CX leaders in our research are more successful at striking the right

Economic value is lost EXPERIENCE DELIVERED when experience fails to meet expectations resulting in missed revenue and share. +1x CUSTOMER EXPECTATION

-2x Economic value is lost when experience signiﬁcantly exceeds expectations resulting in higher than necessary operating costs. Economic value is maximized when customer expectations and experience are in alignment.

Source: KPMG International

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 19 Customer experience in the new reality Global CX leaders

The leaders in this year’s global CX research are well adapted to respond to new and emerging customer requirements. Many are recently established organizations which already have customer problem solving cultures, flexible employee policies, progressive workplaces and have invested in digital tools designed to make their customers’ and colleagues’ lives easier.

Half of the companies featured in the research were also in the top one or two companies listed in 2019. Their customer-oriented approach enabling them to weather the recent unprecedented times better than their competitors.

12 of the leading companies are financial organizations, the majority provide traditional services, however none of these companies operate in a ‘traditional’ way. They have a single unifying objective to put their customer first. They focus on making a difference to the customer’s life; they are driven by ethical and sustainable objectives and they are harnessing digital technologies to benefit the customer in new and inventive ways.

7 brands retained their number 1 spot from the previous year. 3 brands were new to the rankings, while 13 were featured previously as a top 10 brand, 15 as a top 20 brand, and all featured within the top 30.

Each of the companies in this year’s hall of fame are Consistency is key. Customer united by their desire to continually improve and innovate. They realize that digital services require a human touch experience (CEE metric) for the top- and are mastering the art of highly personalized service ranked brand in each market is an across channels. average of 11 percent higher than its respective market average.

2020 hall of fame

Australia Austria Belgium Brazil First Choice ÖAMTC Argenta Sodiê Doces Liquor

Czech Republic Germany Hong Kong Ireland Air Bank Fielmann (SAR), China Credit Union Adidas

Italy Japan Luxembourg Mexico Leading Tokyo Disney LALUX Marriott online retailer Resort

Netherlands New Zealand Poland Romania ASN Bank The Co- iSpot ING Bank operative Bank

Russia Singapore Slovakia Spain Nike American Martinus Apple Store Express

Sweden Taiwan Thailand UAE Apotea Richart AIA Emirates

UK US Vietnam first direct USAA Vietnam Airlines

Australia Czech Republic First Choice Liquor Air Bank

First Choice Liquor was created when parent company Air Bank prides itself on “Simplicity, Courage, Truth, Coles Liquor merged their Liquor Market stores with First Friendliness.” With a clear vison to create a bank that Choice. They have award-winning store design, exclusive serves people it is simple and clear in its communications products not available from any other Australian retailer meeting customer needs first. Air Bank introduced a and exceptional service which has elevated them 19 “deferral of payment” program for those in financial places to number one in Australia. They responded quickly distress as a result of COVID-19. to COVID-19 with safe “no contact” home delivery and click and collect. Germany Austria Fielmann ÖAMTC Fielmann stands for eyewear fashion at a low price. They ÖAMTC is the largest automobile club in Austria with more are Europe’s largest optician. Their user-friendly services than 2.2 million members. Referred to by its customers shape the company’s history and “The customer is as “yellow angels”, customers are typically attended to in you” forms the underlying principle of their customer 30 minutes and the vast majority are able to drive away oriented corporate philosophy. As COVID-19 struck afterwards. Throughout the lockdown period customers Germany Fielmann donated 20,000 pairs of protective were able to access up to date information and travel and glasses to hospitals and medical services. Observing mobility restrictions across Europe. the rapid development of the coronavirus crisis, they altered their supply chain for plastic frames in favor of Belgium protective glasses. Argenta Hong Kong (SAR), China Argenta Bank is a bank and insurance company for families Adidas with 1.7 million customers. It supports its customers with “leading healthy financial lives by providing clear, honest Adidas approaches product development and customer and close-at-hand financial services”. Argenta responded engagement through innovation. Their focus on digital to COVID-19 with specific support programs for the encompasses production, e-commerce and customer “financially distressed” and sought to improve ease of communications. Through research and data analytics, access (via digital and remote channels) for vulnerable their understanding of sports as well as fashion customers. enthusiasts enables Adidas to target their products, communications and apps. The experience is embodied Brazil in the Brand Centre within Hong Kong’s most central Sodiê Doces districts. Adidas has also taken steps to support business partners and workers in the supply chain by fulfilling commitments to their business operations and liquidity, Cleusa Maria went from a child laborer to owner of and providing early health and safety guidance for Brazil’s most popular cake shops. The firm’s name is a suppliers. combination of her childrens’ names Sofia and Diego and translates as Sweet Sodie. With 300 owned and franchised outlets the business has built a strong reputation for Ireland quality and service. Credit Union

Credit Union Ireland offer a face to face customer experience at a time when other financial institutions are moving away from physically meeting customers. Customers talk about the ethics of a Credit Union that exists solely for the benefit of its members, not to profit from them. Credit Union Ireland responded rapidly to COVID-19 with its “people helping people” philosophy. Remote delivery of cash, helping members who hadn’t previously used remote and digital access, “helping hand loans” and flexible repayments (forbearance) as well as systematically contacting the more vulnerable members to ask how they are coping, whether anyone has checked in on them and whether they have supplies.

Italy Mexico Leading online retailer Marriott

This leading online retailer continues to offer a unique Marriott in Mexico have examined the minutiae of a customer experience. Central to this is the ability for customer’s end-to-end journey and set perfection as their customers to find what they want in an instant with expectation at each stage. They infuse their brand pillars personalized recommendations and search results. This is all into the journey design to deliver a distinctive experience. presented with curated web content and efficient delivery. Marriott Mexico’s senior staff responded to COVID-19 by They responded quickly to COVID-19, prioritizing essential cutting their own salaries to subsidize keeping staff on goods for delivery and rapidly increasing its workforce to furlough while hotels are closed. cope with demand. Netherlands Japan ASN Bank Tokyo Disney Resort ASN Bank has a strong sense of environmental and social Tokyo Disney Resorts (TDR) is one of the world’s leading purpose as part of its mission of sustainability. ASN Bank theme parks with over 30 million visitors every year and is wants to help create a world that is safe and healthy for number one for customer experience. The first park, Tokyo people to live in, and where the environment is respected, Disney Land, was established in 1983, and Tokyo Disney both in the present and in the future. ASN along with other Sea followed in 2001. Over the last 30 years, both parks Dutch banks developed a set of support measures for have built strong trust and loyalty through exceptional individuals and companies that were financially distressed service and new and evolving services and attractions that as a result of COVID-19. continue to exceed expectations. New Zealand Their mantra is “enriching hearts and energizing people”, The Co-operative Bank while maintaining a customer perspective. TDR is loved by all types in Japan, young and old, with brand loyalty The Co-operative Bank is customer owned and has sought amongst one of the strongest in the entertainment and to demonstrate an ongoing commitment to 'doing right' leisure sector. by New Zealanders by sharing profits with its customers. The bank introduced a range of measures designed to help alleviate the impact of COVID-19, including repayment The hospitality at TDR is now the benchmark for customer holidays, emergency loans and support for those in service in Japan, with convenient services that tailor to all financial hardship. segments and a focus on rewarding returning visitors and ensuring an amazing experience every time. Poland iSpot (Apple) Tokyo Disney Resorts responded to COVID-19 by closing the parks at the end of February, ahead of official iSpot describes itself as “the largest Apple Premium recommendations. This early closure, combined with the Reseller in Poland” and specializes in iPhones, iPads, clear communications to protect customers and staff, saw and Macs. iSpot offers repair and education services to customers praising Disney for their decisive action. customers, making Personalization a key pillar for this retailer. Being able to offer a personalized experience relies Luxembourg on the training of its employees — such is the breadth Lalux of knowledge that’s required to cover several complex scenarios, many of which will be unique to a particular Lalux is an insurer that keeps ‘Customer closeness’ and customer. To keep Apple customers operating during the a sense of place central to the customer experience. Its lockdown, iSpot expanded their online support services reputation is built on resolving customer claims rapidly enabling email access to helpful support staff. and with great empathy. Staff and agents maintain a close personal relationship with its customers throughout the process.

Romania Slovakia ING Bank Martinus

ING Bank Romania, like many companies, is looking to Martinus bookshops are purpose led, wanting to “sell use technology to remove barriers and make life easier stories”. In designing their customer experiences Martinus for its customers. to meet its purpose of “Empowering follows four core principles: “Passion — because we love people to stay a step ahead in life and in business”. 3 ING what we do. Personal approach — because we want to bank’s response to COVID-19 has included loan relief understand each other even though we are completely (holidays), providing expert advice, implementing national different. Wow effect — because we deliberately do little schemes and supporting companies to alleviate those things that together create a unique experience. Strive concerns. Advising people to use online banking channels for improvement — because we appreciate curiosity, and contactless payments to prevent spread of the virus. initiative and progress”. Already an online retailer, Martinus In Romania loan repayment holidays can be granted up to extended their online capability to respond to COVID-19 by 9 months. enabling their customer service agents to advise shoppers with their book selections in video chat sessions. Russia Nike Spain Apple Store Nike retail staff are selected based on their interest and involvement in sports, and their ability to convey their Apple Store staff in Spain understand the difference passion to customers. Positioned as “consultants” between selling products and building relationships. Their they regularly undergo training to provide customers focus is on the latter following the Apple mantra that with valuable advice and product recommendations, building relationships is the way to sell more products. based on their knowledge and experience. Globally Nike They realize that customers want to buy from someone have assembled their expert scientists, engineers, and who makes them feel special, someone who takes the designers to create full-face shields and powered, air- time to give them a unique and personalized experience purifying respirator (PAPR) lenses to support healthcare and tries to make their lives better. Apple Spain recognized workers. They have donated more than 140,000 pieces of “that Customers may need support from Apple during footwear, apparel and equipment globally to communities this challenging time and we’ll ensure our online and in need. They have also committed more than 25 million phone support, as well as online store, remain open for US dollars (USD), including more than USD2 million in customers.” employee donations, to support COVID-19 response efforts worldwide. Sweden Apotea Singapore American Express Apotea is Sweden’s largest online pharmacy. It has built its reputation on innovation and sustainability. The CEO’s American Express ensures it delivers world leading philosophy is to make online shopping as convenient customer experiences through a focus on speed, empathy, and appealing as possible. That includes everything from education and efficient, empowered, customer service information about the products to payment solutions professionals who can connect with their customers and delivery. Its offices generate more power than they personally. Amex response to COVID-19 has been to waive consume and each aspect of their business is analyzed interest and late fees, as well as providing support to through the sustainability lens. COVID-19 has rapidly those in difficult circumstances. accelerated the need for Apotea’s services and their delivery approach direct to the customer’s door.

3 https://www.ing.com/About-us/Profile/Strategy.htm

Taiwan UK Richart first direct

In Taiwan, Taishin Bank developed Richart with the goal of first direct have been number one in the UK for customer providing the best financial customer experience through experience 5 times in the last 11 years. Their mantra is mobile banking. A particular favorite of young Taiwanese, “Pioneering amazing service”. Proactive engagement, Richart has as its goal to teach young Taiwanese residents strong communications and a highly committed team how to effectively manage their wealth at an early means their customers continue to receive outstanding age. Richart has been conducting campus lectures in service. first direct responded to COVID-19 with a range of universities and schools across the country. Richart is the financial and non-financial initiatives. As well as payment first digital banking product in Taiwan to undergo the Social holidays and help for customers struggling financially, they Return on Investment (SROI), an internationally recognized recognized there were other aspects they could help with project performance evaluation approach, to provide insight too, including support for bereavement, managing money into Richart’s influence on the society. It showed that every from home and domestic and financial abuse and claiming 1 New Taiwan dollar (TWD) of investment into Richart has refunds on credit or debit cards. the potential to create TWD5.5 of societal value — which is 1.5 times greater than the global SROI average of 3.77.4 US USAA Thailand AIA USAA serves millions of military members and their families with competitive rates on insurance, banking and AIA is an insurance company that has been in existence investment services. They seek to demonstrably act in for over 100 years whose purpose is “to play a leadership their customers’ best interests. In responding to COVID-19 role in driving economic and social development across and based on a steady trend of reduced driving and fewer the region. That is our service to societies and their accident claims by members, they returned a proportion of people”. their profits to members. Their focus is on providing solutions to problems that occur across the customer’s life stage. They focus on Vietnam supporting customers through life events with both reactive and preventative initiatives. AIA has set up the Vietnam Airlines first COVID-19 digital clinic in Thailand enabling those who think they may be affected to get in contact with Vietnam Airlines have been on a progressive journey to a health professional digitally. It is a free telemedicine improve the quality of their customers experiences. They service enabling real-time interactions between patients are firmly committed to equaling the service levels of the and doctors. The service enables callers to avoid visiting world’s leading airlines. Central to their approach has been hospital unnecessarily, thereby reducing the risk of further customer listening. The continual aggregation of customer COVID-19 infection. feedback to drive improvement which incrementally adds value at each stage of the customer journey. It has inspired several changes to the customer experience from food and UAE drink through to conversations at check-in. Emirates

With an intention to become a digital airline they Emirates have exported outstanding customer service have invested in an IT infrastructure that has driven all over the world. The airline recruits from 140 countries the digitization of flight management documents, the but each employee, regardless of origin, must have a application of artificial intelligence (AI) and the use of big strong service ethic, a desire to please customers, and data in business, operations and fleet management which act as an ambassador for the brand. Emirates is one has accelerated automation and customization to enhance of the first companies in the world to “industrialize” the customer experience. They are known locally for their customer journey mapping. Every step along the customer warm hospitality and a commitment to great customer journey is skillfully designed to be memorable. COVID-19 service which characterizes Vietnam’s rich culture greatly restricted Emirates but their response was to put and identity. customers first, Emirates has a single COVID-19 travel waiver policy in one simplified approach for rebooking and refunds on tickets issued.

4 https://asianbankingandfinance.net/retail-banking/exclusive/how-taishin-banks-richart-captivated-taiwans-youth#:~:text=It%20showed%20that%20 every%20NT,management%20habits%2C%E2%80%9D%20Shang%20said.

Industry views

Due to COVID-19 restrictions, many purchases have had to shift from in-person to online channels, creating a more digitally savvy consumer that demands frictionless interactions. Many organizations had to accelerate, augment and promote their original customer interaction investments. For the leaders in our research, this was a minor adjustment to existing operating models allowing them to maintain continued interactions with their customers on a regular basis — maintaining a commercial cadence. Indeed, the shift to digital enabled greater value to be created by lowering costs to serve. The migration to these digital relationships poses something of a challenge for organizations, even for those with a strong digital presence, because online experiences in the new reality need to be immersive, emotive and, above all, safe. Over the next few pages, we take a deep-dive into some key industries to look at how they have pivoted to meet customers’ changed expectations.

Organizations which are most likely to prosper over the long term are those that adapt their business models and embrace the right type of partnerships to respond to the new reality; rethink their cost of doing business across multiple facets; demonstrate their purpose and prioritize personal safety for their employees and customers and understand who their customers are, that their needs are changing quicker and brands will need to adapt faster to meet their expectations.”

Gary Reader Global Head of Clients and Markets KPMG International

With IATA predicting it will be 2024 before air travel returns to pre COVID-19 levels and over 30 percent of the world’s 26,000 aircraft grounded the air travel industry faces a crisis like no other. The passenger experience is set to change dramatically as airlines grapple with the twin issues of cost and passenger health. Central to its recovery is the restoration of passenger confidence.

With a lengthy period of recovery proof that a passenger has tested predicted, airlines are having to deal negative for the virus before a flight, with a structural change in air travel using a digital certificate downloaded economics. The nature of the airline to a mobile phone.6 industry is that costs of idle aircraft run to thousands of US dollars every Much greater investment in self- day. Full-service airlines depend on service can reduce staff passenger the business traveler to make their interactions and self-protective economics work and low-cost airlines pouches, a package that includes a depend on utilization and passenger mask, gloves, hand sanitizer, alcohol density. Both are under threat. wipes and an information leaflet with tips on how to prevent the virus COVID-19 has ushered in a new era spreading, will replace amenity kits. of air travel experience. One that differs dramatically from what has Critical areas for getting aviation back gone before. Over and above ensuring on its feet include the development of that effective sanitization measures agreed protocols between countries are in place, airlines are finding regarding safe travel. This requires ways to keep passengers safe while co-ordination of the whole ecosystem encouraging air travel. Emirates for that impacts the customer journey, example were the first airline to offer including pre and post flight rapid COVID 19 insurance.5 Several airlines testing regimes, predictable border have collaborated on the introduction controls and effective treatment of of COVID-19 health passes. This will any of those impacted by COVID-19 standardize a globally recognized while traveling. Airlines

5 https://www.bbc.com/news/business-53563276 6 https://www.ft.com/content/8d603248-6884-4081-9256-8c5b2f2827ba

The industry faces extensive — How can we keep our staff disruption for the next few years and motivated and engaged during the Airlines hall of fame there are several strategic questions right sizing activity? Alaska Airlines US to be answered clearly: — How do we continue to ANA (All Nippon Japan differentiate in a touchless Airways) — How do we make every aspect of environment? the passenger journey contactless Emirates UAE and touch free? Ultimately, whether passengers JAL (Japan Airlines) Japan will feel confident enough to take — How do we respond to the rapidly to the skies depends on consumer JetBlue Airways US growing environmental and confidence as recovery measures KLM Netherlands sustainability concerns? are put in place by governments, airports and airline operators and S7 Airlines Russia the sense amongst passengers — What other standards of of whether airlines and the whole Singapore Airlines Singapore passenger safety do we need travel ecosystem have adequately to adopt (e.g. QR codes, health addressed their concerns regarding Southwest Airlines US assessments etc.)? COVID-19 and its bearing on air travel. Vietnam Airlines Vietnam

— Given the state of the industry in 2022, 2023 and 2024, how do we manage our economics and right Sector hall of fame based on brands’ Customer Experience Excellence performance relative size decisions? to their market, according to consumers in the market specified.

COVID-19 will usher in a new era of air travel experience. It will be more digital however with potentially more points of friction for customers in the whole travel journey from what has gone before. The airlines featured in our hall of fame are often the ones working hard to establish passenger trust during COVID-19 and demonstrate that they care about their customers, their people and the world they operate in.”

Malcolm Ramsay Global Head of Aviation KPMG International

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. © 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 29 Banking Customer experience inthenew reality 1. the bankingindustry: trends which willshapethefuture of Our research suggeststherearethree comes intoquestion. and often unintegrated channels traditional bankingmodelofseparate first”acrossallagegroups the “digital technologies. As customersbecome them toconsidernew toolsand consumers’ behaviors, pushing demands. Ithasalsochanged COVID-19 isacceleratingthese particularly frombigtechnology firms. competition fromnew entrants, and increasingthelikelihood of into productcreationandfulfilment industry, splitting thevalue chain was apotentialdisruption tothe applications accesstobankaccounts) Open Banking (allowing thirdparty ratios. Meanwhile, systems such as anddecreasecost-income capital for bankstoboosttheirreturn on as well asincreasingpressures need for moreefficient operations This shift alsoreflected apractical differentiate theirofferings inthelongterm. and AI canhelpbanksweather these changes and efficiencies. Cloudtechnologies, applications digital need for new bankingtechnologies andcost-cutting entrants.COVID-19and digital hasacceleratedthe and increasedcompetitionfromchallenger banks persistently low interestrates,extended regulation being challenged pre-COVID-19 by threetrends: The traditionalbankingmodelwas already banking transformation over the Ne © 2020Copyright owned by toclients. oneormoreoftheKPMGInternational entities.KPMGInternationalentitiesprovideAll rightsreserved. noservices w technologies willdrive 2. activities away fromthesector. This and theshift over themediumtermof will likely acceleratethedigitalization Nevertheless,financing. COVID-19 the safety netandaccesstodeposit They alsoenjoy theprotection of to theircustomersduringthecrisis. revitalization asthey continuelending In thenearterm,banksmay enjoy a 3. with theirfintech competitors. andspeedusuallyassociated agility allowed bankstooperatewithan next 5 years. CloudandSaaShas experience throughpersonalization. focus onimproving thecustomer of usesfor AI, withagrowing banking the winnersfromlosersin Artificial intelligencewillseparate these platforms. and makingthebankcenterof ecosystemsmodels intodigital players transforming theirbusiness withthekeyplatform ofservices banking willbecomepartofa ecosystems. Inthenew world, business modelstocreatedigital B anks willoverhaul their . There areadiverse range Customer experience in the new reality 30

prompts some fundamental strategic — How do we harness the data we Banking hall of fame questions: have to increase personalization and build longer and more Air Bank Czech — Big Tech companies have many sustainable relationships across Republic of the ingredients to get ahead the customer lifecycle? Argenta Belgium in the post- COVID-19 world. — How do we integrate digital They are digital natives; they across the retail estate? What is ASN Bank Netherlands have the technology, customer the role of branches in the new Credit Union Ireland base and brand recognition, as reality? well as vast amounts of data first direct UK and deep pockets so how do we The banking industry was already ING Bank Romania protect our customer base from facing extensive disruption and new entrants? change. COVID-19 provides a burning Navy Federal Credit US platform to reset the role of banking in Union — How do we use open banking the mind of the customers and align it to play a wider and more with providing solutions not products. Starling Bank UK indispensable part in our Integration, proactivity and purpose The Cooperative New customers’ lives? are the new watchwords. Bank Zealand USAA US

Sector hall of fame based on brands’ Customer Experience Excellence performance relative to their market, according to consumers in the COVID-19 has accelerated the need for new banking market specified. technologies and cost-cutting efficiencies. Cloud technologies, digital applications and AI can help banks weather these changes and differentiate their offerings in the long term.”

Judd Caplain Global Head of Banking & Capital Markets KPMG International

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. © 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 31 Grocery retail Customer experience inthenew reality 7 but 80percentofthosewhohave of bothemployees andcustomers focused onthehealthandsafety zero risk.Supermarkets arevery shoppers. Butnoprocesshas to asupermarket asitavoids other food thanatrip dropislessrisky for theforeseeable future. A home consumers andislikely tobeso be uppermostinthemindof Trust andsafety continueto demand. meet theincreaseindelivery recruiting thousandsofnew staff to with largersupermarket chains creative ways toeffect homedelivery accelerating ecommerceandusing have rapidlyinnovated inresponse, outlets all demographics.Grocery embedded buying behavior across and curbsidepickup arenow homedelivery ordering, Digital customers preferred option. remainsthe profitability issueifhomedelivery offline shopping experience but face agrowing technologiesdigital tointegratetheonlineand immersive in-storeexperiences withadvanced leading foodinourresearch retailers have linked the roleofphysical spaceintoquestion. retail The COVID-19 hasdriven customersonlineandbrings KPMG COVID-19 Globaltracker, Consumersinthenew reality © 2020Copyright owned by toclients. oneormoreoftheKPMGInternational entities.KPMGInternationalentitiesprovideAll rightsreserved. noservices COVID-19 intendtocontinue moved toshoppingonlinebecauseof strategic questions: COVID-19 grocersnow face several continue doingso online for thefirsttimeintendedto of consumersthathadpurchased behaviors willlikely stick. 80percent behavior. Much ofthenew customer unprecedented change incustomer shoppingandan era ingrocery face retailers anew Grocery of homedelivery. others itinvolves minimizingthecosts customers for theexperience andfor within-storetoattractsyncing digital some organizationsthisinvolves of in-storeandecommerce.For is how tooptimize theeconomics The challenge retailers facing grocery 7 . As aresultof

d o i n g so. Customer experience in the new reality 32

— What is the role of physical stores — How do we harness technology to Grocery retail hall of fame in the customer experience? drive the in-store experience? Colruyt Belgium — Is it a channel or part of an — What are the new activities we integrated network of technology need to undertake to make the Consum Spain and experience? in-store experience more Costco Wholesale US immersive and compelling? — How do we integrate digitally Esselunga Italy front to back to meet changing First Choice Australia customer needs and behaviors? Liquor H-E-B US M&S Food UK Publix US Digital ordering, home delivery and curbside pickup Wegmans US are now embedded buying behavior across all Zaffari Brazil demographics. Grocery outlets have rapidly innovated in response, accelerating ecommerce and using Sector hall of fame based on brands' Customer Experience Excellence performance relative creative ways to effect home delivery. The leaders to their market, according to consumers in the in our research are using digital methods to support market specified. in-store attendance and give the customer options as to how they then want to make their purchases.”

Paul Martin UK Head of Retail KPMG in the UK

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. © 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 33 Hotels Customer experience inthenew reality to touch the guestroomphoneorstop withouthaving amenities andservices guests toengagewiththehotel becoming widespreadenabling services. Voice are assistants while stilldelivering important butlers tominimize guestinteraction Some hotelsareusingrobotsas guests whilekeeping themsafe. innovation asaway ofattracting Increasingly hotelsareturning to confidence andincreaseoccupancy. processes andprotocolstorestore near-term experience asthey change Hotels arepreoccupiedwiththe forcurtailed theforeseeable future. business travel tolargehubcities,is leisure, andinparticularlong-haul a difficult astravel state business, has however left thehotelsectorin where itwas needed.COVID-19 and providing mealsandsupport homeless andvulnerablehadshelter for key workers, ensuring thatthe during theepidemic,providing beds andsocialconscience great integrity Many hotelgroupshave actedwith 8 standards maintained by maintained hotels. standards confidence inthesafety, health and hygiene hotels willhave toovercome isregainingguest people. Oneofthemostsignificantobstacles continue tofear travelling andmeetingother toloseifpeople stands industry hospitality industry. Essentiallya‘people’ industry, the enormous impactonhotelsandthehospitality There isnodoubtthatCOVID-19 hashadan https://www.wsj.com/articles/hotel-robots-get-second-life-as-industry-adapts-to-covid-19-11597147201 © 2020Copyright owned by toclients. oneormoreoftheKPMGInternational entities.KPMGInternationalentitiesprovideAll rightsreserved. noservices control. needing totouch aswitch oraremote withouttheguest lights, thermostats controls ofthein-roomtelevision, with anassociate. They alsofacilitate by thefrontdeskfor aface toface — strategic questionsemerge: that meanfor ourbusiness?Several COVID-19 for sometime,whatdoes world willhave tolearn live with case scenariosmaterialize andthe business models.Iftheworst- companies needtoreassesstheir Undoubtedly hotelsandhospitality checkout proceduresdigitally. spaces andcompletecheck-in and more easilyopendoorsinpublic accelerated quickly soguestscan several years, butthepacehas piecemeal fashion over thepast been implementedinasomewhat Check-in anddoor-key appshave

confidence? by bringingback consumer How dowe stimulatedemand 8 Customer experience in the new reality 34

— What do we need to do to — What further digital Hotel brands hall of fame show we overtly care about the transformation is required wellbeing of our customers and in order to meet the level of Fiesta Americana Mexico staff? personalization that guests will demand? Fiesta Inn Mexico — How do we create a touchless experience, that delivers the Out of necessity hotels have had to Hilton Germany warmth and passion that typifies focus on reducing costs as much as Hilton Mexico our unique experience? possible, but in the coming weeks and months, this situation is the new Hilton US — How do we transfer that offline “normal” and hotels will have to begin Hilton UK experience online in a way that implementing measures that not only continues to promote our brand increase reservations but also assume Holiday Inn Mexico and differentiators? that COVID-19 is with us for some time to come. It is a unique situation Marriott Mexico — What change initiatives are where hotels must react quickly and required to secure our business Premier Inn UK in a socially responsible way, while model and economic drivers? always being on the lookout for the Van der Valk Hotels Netherlands — How do we introduce new safety of guests and employees. levels of flexibility that reflect the sudden changes guests Sector hall of fame based on brands' Customer may need to make to their travel Experience Excellence performance relative arrangements? to their market, according to consumers in the market specified.

The very nature of the hotel experience will need to change in response to COVID-19. One of the most significant obstacles hotels will have to overcome is regaining guest confidence in the safety, health and hygiene standards maintained by hotels. The use of digital tools to empower customers across the life cycle of a hotel stay could be the answer to meeting customer’s demands.”

Will Hawkley Global Head of Leisure & Hospitality KPMG International

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. © 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 35 Insurance Customer experience inthenew reality have constructive long-termeffects, or onlinevideoservices. This could topatientsviaphone consultancy offeringrise intelehealthservices, continue, we arelikely toseea protocols and socialdistancing As thepressureonhealth services proposition. personalization oftheinsurance on customerexperience andgreater This isleadingtoafar greaterfocus thatwillexistreality post-COVID-19. they adjustandrespondtothenew looking torethinkandinnovate as needs andbehaviors, insurersare As aresultofchanging customer COVID-19. insurers’ responsetotheimpactof trend couldbefurtherheightenedby than, perhaps,any othersector. This isacceleratingmorerapidly industry The digitizationoftheinsurance settle claims. increased preference for channels usingdigital to financial situation. Customersalsohave an have severe implicationsfor customers’ personal current environment wheredelays inpayouts may processing remainscritical,especiallyinthe Where customersneedtomake aclaim,efficient desire tosecureagainstunforeseen events. COVID-19 hasledtoanincreasedcustomer © 2020Copyright owned by toclients. oneormoreoftheKPMGInternational entities.KPMGInternationalentitiesprovideAll rightsreserved. noservices companies: and productquestionsfacing There aresomestrategictechnology threats. efficiency andprotectagainstcyber working toensuregoodgovernance, and securingtheirnew modelof should focus onreviewing, testing now, andfor thefuture. Insurers working off-site andinflexible ways tosupportmorestaffconnectivity that theirbusinesseshave enough opportunity for insurerstounderstand COVID-19 hasprovided the COVID-19. learnings andactionstaken during small way, societiesmay benefit from and accessiblemeansthat,insome Making healthcaremoreavailable including theunder- or un-insured. remote andlessaffluent populations helping healthcarereach more Customer experience in the new reality 36

— What do we do with operational organizations, to become more Insurance hall of fame areas that have high concentrations agile, responsive and a more of human capital support such as connected enterprise? AA Insurance New Zealand call centers, claims and shared Insurance companies must rapidly service centers? AIA Thailand adapt to the changing circumstances — Have we maximized the use of introducing new digital tools, finding Centraal Beheer Netherlands new ways of interacting and the digital workflow tools, virtual or HUK-COBURG Germany mobile workstation capabilities or transparent management of claims, communication technologies? while at the same time providing an John Lewis UK outstanding experience. Finance — Do we need to accelerate the digital transformation of the LALUX Luxembourg Prudential Vietnam Prudential Hong Kong (SAR), China As a result of changing customer needs and behaviors, Union Slovakia insurers are looking to rethink and innovate as they Univé Netherlands adjust and respond to the new reality that will exist post-COVID-19. This is leading to a far greater focus on Sector hall of fame based on brands' Customer Experience Excellence performance relative customer experience and greater personalization of the to their market, according to consumers in the insurance proposition, which many of our hall of fame market specified. companies are already implementing.”

Laura Hay Global Head of Insurance KPMG International

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. © 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 37 Logistics Customer experience inthenew reality 10 10 9 will likely alsobeacatalystfor businessmodels.COVID-19retail fostered new hybrid online/offline marketslogistics andretail and driven theconsolidationof COVID-19 hasaccelerateddigitization, routes usingdata. can andneedstobedoneoptimize arrangements. Butthereismorethat arrival andoptionstochange delivery customers abouttheprecisetimeof effective atcommunicatingto Logistics companieshave become technologies ascriticalenablers. and their operations,withdata have realized they needtooptimize logistics landscape,companies In fact, acrosseverypartofthe for 2026now looklikely by 2023 by threeyears. Shipmentvolumes projected intothefuturein demand.Ithasbeencatapulted customers whileflexing tothepeaksandtroughs challenges ofCOVID-19, protectingstaff and hasrisentothe The globallogisticsindustry sustainability. optimized aroundcostandtheneedfor safety and operationneedstobe every aspectofdelivery https://atos.net/en/blog/logistics-challenges-and-opportunities-in-the-post-covid-19-world KPMG International Research June 2020 © 2020Copyright owned by toclients. oneormoreoftheKPMGInternational entities.KPMGInternationalentitiesprovideAll rightsreserved. noservices channel intend tocontinueusingthat new topurchasing ontheinternet, home care.80percentofcustomers online categorieslike groceriesand experiencing soaringgrowth innew structural changes, with e-commerce term disruptions andlonger-term COVID-19 isgeneratingshort- putting addedpressureoncities. technologies,autonomous delivery unattendedcontactless, and strategic questions: COVID-19 now face somelongerterm the structural changes associatedwith pivoted theirbusinessestodealwith Logistics companieswhohave 10 9 . . Butnow Customer experience in the new reality 38

— How does our delivery ecosystem, — What role will autonomous vehicles Logistics hall of fame particularly the last mile, need to or robots play in our delivery balance increasing demand and portfolio? An Post Ireland environmental concerns? The changes in customer buying Budbee Sweden — What does this mean for the habits are here to stay. The response DHL Vietnam supply chain and technology of the logistics industry needs to interventions we need to make and balance the potentially conflicting DHL UAE their potential impact on emissions, needs of different stakeholders. congestion, and delivery cost? DHL Brazil Logistics providers have stepped — What are the COVID-19 up to the challenge of making FedEx UAE implications for vehicle change (EV) deliveries safer for employees and InPost Poland and contactless delivery? customers. Contactless last mile delivery solutions have been crucial PPL Czech Republic — Cities will face increased to the industry’s COVID-19 response. congestion and backlogs due Zásielkovnˇa Slovakia However, safety and sustainability will to even more delivery vehicles. Zásilkovna Czech Republic Customers are turning to private be the critical business drivers for the vehicles rather than public transport industry, especially given the urgency to commute and while this will be of environmental challenge. Sector hall of fame based on brands' Customer partially offset by working from Experience Excellence performance relative to their market, according to consumers in the home, what does this mean in market specified. terms of delivery schedules and congestion?

Across every part of the logistics landscape, companies have realized they need to optimize their operations, with data and technologies as critical enablers — gaining greater visibility across the supply chain.”

Steffen Wagner Global Head, Transport & Leisure KPMG International

plans. sectors implementremote-work effect ascompaniesacrossvarious quality,service creatingaripple networks which couldaffect mobile andcommunications risks for customersandtelcos. andinfrastructureincrease security remote working, which may well network providers. telecoms tobemorethansimply provides new opportunities for home andtheInternetof Things their devices with5Gcapabilities. manufacturers alreadyequipping he accelerationoftheconnected eep pacewithphone espond totheaccelerationin xcessive demandon Customer experience in the new reality 40

Many companies in our research — How can we build stronger Telecoms hall of fame this year have seen COVID-19 as an customer relationships through opportunity to examine every aspect partnerships? As the world moves Ben Netherlands of their business and use the crisis as to retail platforms, what role do a springboard for change, adopting a these play in telecoms and what giffgaff UK ‘never the same again mantra’ as they partnerships and alliances are Halebop Sweden dissect the implications of COVID-19 necessary to meet emerging for them. For telcos the next stage of customer needs and wants. Ho. Italy development requires first addressing some strategic questions: — How can we win the hearts and HOT Austria minds of our customers? Globally Iliad Italy the telecoms industry is one of the — How far do we go beyond network lower performing sectors when it Pepephone Spain connectivity? In mature markets comes to customer experience. In connectivity is becoming fully a saturated market customer loyalty Skinny Mobile New Zealand commoditized and regarded as an is critical. Outstanding customer Tesco Mobile UK invisible on-tap experience. experiences are the only way to Consumer IoT and content secure loyalty and advocacy. Viettel Vietnam provision could open new revenue streams. As the pace for change continues to accelerate and consumers seek Sector hall of fame based on brands' Customer — With 98 percent of consumers Experience Excellence performance relative faster connectivity, telecoms still have to their market, according to consumers in the concerned about data security how considerable work to do, centralized market specified. do telcos build trust in a world of around the customer, if they are to 11 cyber security concerns? utilize new technologies intelligently and profitably. — How will we leverage customer data? AI offers the opportunity for a quantum leap in customer experience enhancement by utilizing the data to improve targeting and personalization.

Telcoms are at a strategic crossroads and success in the new reality requires putting consumers at the heart of their value propositions and designing seamless new solutions, backed up by meaningful data security.”

Alex Holt Global Head of Telecoms & Media KPMG International

11 KPMG International research, March 2020 — July 2020

Market overviews

Australia

In recent years, customers have been faced with smartphone app) to split purchases considerable uncertainty generated by natural into four instalments across four weeks. Indeed, at a time when disasters and health crises. Historically, Australians many Australians feel the financial have responded to this by looking to organizations for pressures applied by COVID-19, reassurance, and the arrival of COVID-19 has continued this has become a popular payment this trend; people have sought timely, reliable information method, and Afterpay has bolstered consumer confidence through which is free from ambiguity — something that can guide its clear setting of customer them through the chaotic uncertainty that sometimes expectations. Shoppers are in no engulfs their lives. doubt as to how the process works, and when late fees will be incurred. It’s perhaps unsurprising that In the latest round of research, it This organization scored highly for Afterpay landed at number three in is clear that a number of Australian Empathy, recognizing the growing this year’s research. brands have successfully embraced need amongst its customers to set Non-grocery retail brand IKEA ranks the challenge. This is certainly true up home gyms. This manifested second. Like Rebel, IKEA quickly for the gas and electricity provider in Rebel’s consistent availability identified the shifting needs of its Red Energy, which has landed of products and seamless customers, with many rushing to at number seven in this year’s online experience. set up home offices in the wake customer experience rankings. It’s of the COVID-19 outbreak. Many particularly strong in the pillar of Despite this, it’s the financial services depended on IKEA to deliver a fast, Integrity, and has fostered a healthy sector that has demonstrated the seamless customer experience degree of trust amongst its energy strongest performance across this and this was clearly in evidence in users, largely due to its responsive year’s research as a whole, and the brand’s digital offerings; many customer service and Australian although grocery retail leads for CX respondents described the transition heritage. in Australia, the achievements of brands such as Afterpay cannot be to online shopping as “relatively Similarly, the sportswear and apparel overlooked. straightforward” and pain-free, and a retail chain Rebel has performed well number even noted IKEA’s strengths in 2020, ranking at number five in It’s a payment platform that in the pillar of Personalization. this year’s study. operates in a similar way to a credit card, allowing customers (via a

The brand’s website became a place Leading CX brands in Australia of inspiration for many shoppers, Boost IKEA Afterpay with one describing it as an Juice “absolute lifesaver” for picking out 02 03 04 furniture. 01

Another noted that they “saw lots Red of cool ideas and stuff I would never Rebel PayPal Energy imagine myself.” First Choice Liquor 05 06 07 These qualities were echoed in Australia’s leading customer Dan Best & experience brand — the beverage ING retailer First Choice Liquor. As with Murphy’s Less IKEA, one of First Choice Liquor’s 08 09 10 biggest strengths was in helping shoppers to find products that were ideally suited to their preferences, with respondents citing its product meantime, Australian consumers are 2020 study indicated that they range and availability as determining looking to brands to help redefine were willing to pay more for factors. normal, and provide some much- ethical retailers. needed consistency. Shoppers Moreover, First Choice Liquor are reticent to hurry back to their So as Australia heads towards also offered an appealing in-store previous spending habits, wary 2021, the key focus must be on shopping experience. Respondents of the economy and the lingering Integrity and Personalization first praised the brand’s friendly, cheerful presence of COVID-19. and foremost. But it’s the uniting and helpful staff, as well as the power of all Six Pillars that will really outlets’ wide layouts that allowed When customers spend money, separate the customer experience for social distancing, helping they expect value, and 90 percent champions from the rest. shoppers to feel safe. As such, of respondents across the whole First Choice Liquor highlighted its person-centered approach to CX design — a quality that is shared amongst the top performers in this Faced with crisis, Australian consumers have year’s research. Services have been experienced a loss of confidence and control on mass. designed from the point of view of the consumer, such as its online Organizations that have excelled in this environment offering; First Choice Liquor fulfilled have played an important role in helping create a sense its internet orders through the of stability amidst volatility, helping customers retain Click & Collect service, which was a sense of routine through continuity of service. The positively received by consumers. Indeed, the brand’s overall digital challenge moving forward will be the role organizations proficiency is even more impressive play in helping Australians define a new normal and when it’s remembered that support customers to adapt their lives accordingly.” customer expectations towards digital channels have increased since Amanda Hicks the arrival of COVID-19. Partner in Charge, Customer, Brand and Marketing Advisory KPMG Australia And moving forward, the organizations that have provided the best support during COVID-19 may be the ones that customers remain loyal to on the other side. In the

Austria

Austria's organizations and customers were gripped by Indeed, many brands in the grocery uncertainty — an uncertainty that is likely to linger for retail sector showed how committed they were to customers’ safety by some time. People live under the constant threat of a distributing free face masks and another wave and remain cautious when it comes to their positioning hand sanitizing stations purchases. Brands, similarly, are trying to identify potential throughout its stores. customer markets, asking which will recover the fastest Non-grocery retailer Fressnapf — a and which investments will pay off. brand that specializes in pet food, ranks at number two in 2020. Fressnapf says that it “does not see At the same time, Austria has also special shopping hours (everyday itself as a pure specialist retailer for seen a digital acceleration throughout between 8am and 9am) for its more pet supplies, but an ally between 2020. Many consumers have been vulnerable shoppers, such as the humans and animals.” It says that forced onto digital platforms to have elderly, and supermarkets such as it wants to “make the coexistence their needs met. But it’s uncertain Ströck even started selling frozen between humans and animals easier, how lasting this change will be. The loaves of bread so that customers better and happier.” In addition, Austrian customer may return to a could bulk-buy and warm them up it explains that it “attaches great more multi-faceted way of doing as needed. importance to providing advice that is things in the post-COVID-19 world, as individual, competent and animal- or they may continue to rely more These kinds of initiatives proved friendly as possible.”12 heavily on digital channels. popular with customers, and it’s unsurprising that the pillar of Integrity As one customer noted: “I was Despite this uncertainty, leads for advocacy, while the pillar looking for a neck ruff for my sick dog COVID-19 did prompt a high of Personalization leads for Loyalty. and the saleswoman even went with degree of innovation in many This is symptomatic of a wider global me to the car, despite the rain, to try sectors, particularly in grocery trend amongst consumers — that it on the dog.” retail, which currently leads for of people ‘buying into’ organizations customer experience. that stand for a greater purpose than simply making a profit. The sector was quick to introduce

12 https://www.dm-drogeriemarkt.at/wirgebenaufeinanderacht-139444

DM, a pharmaceutical chain ranks Leading CX brands in Austria third in this year's research. It was particularly customer-focused during Fressnapf DM HOT COVID-19 and launched a special 02 03 04 campaign ‘We Look Out for Each 01 Other.’ This enabled DM to stress that it was taking care of visitors Raiffeisen Müller HOFER to its stores by implementing Bank social distancing measures and ÖAMTC 05 06 07 regularly cleaning surfaces, but the campaign also made ‘emphatic Leading calls’ to shoppers “to pay cashless if Erste Bank und possible and to observe the general Ströck online Sparkasse retailer hygiene regulations.”13 08 09 10 DM also saw a dramatic increase in its score in the Integrity pillar during this period, but its highest result is The app can also direct drivers since COVID-19 many organizations in currently in Time and Effort. As one towards the nearest — and Austria have been forced to begin this customer states: cheapest — refilling stations, as process from scratch, as consumer “During my last purchase at well as charging points for electric needs and expectations have risen DM, I quickly found everything I cars. In addition, it streams live sharply. The question now on the lips needed. Additionally, I discovered traffic updates which warn users of many Austrian brands is, “How can new, inspiring products in the about upcoming issues and possible we stay in touch with the customer 14 food section.” delays. through all sales channels?” They are trying to discern which will be the The highest-ranking brand in Austria COVID-19 isn’t necessarily most favored platforms in the future. is the financial services organization responsible for these initiatives. Many At the moment it’s digital, but will it ÖAMTC which, stands for the brands such as ÖAMTC had already remain so in the long term? Austrian Car, Motorbike and Touring implemented digital innovations. But Club. It achieves the highest score in five out of The Six Pillars in Austria, and it proved itself to be particularly conscientious at the height of the As consumers weigh expensive purchases carefully, COVID-19 crisis by providing regular updates about COVID-19 travel brands must stand out in the market by offering restrictions. a reliable value proposition. The question is how to win the consumers’ attention in the long run? ÖAMTC has its finger on the pulse of its digital channels, and has Only those who are flexible enough to consider designed a smartphone app which changed experiences as implication for adapting can be integrated into the user’s their own business (model), re-designing service and vehicle. It collects operating data product offerings and re-imagining customer-centric from the car itself and transmits it to the app, meaning that ÖAMTC organizations.” can offer individualized advice for Werner Girth troubleshooting. Partner, Advisory KPMG in Austria

13 https://www.fressnapf.com/de/%C3%BCber-uns/historie 14 https://apps.apple.com/app/oamtc/id329772634

Belgium

People having spent months confined to their homes Colruyt also put plans in place for have increasingly looked to digital channels to fulfil their those customers who preferred to shop in person. With the MyColruyt needs — a change that could well be permanent. With app, consumers were able to this comes an ever-greater expectation that value for organize their shopping lists based money will be delivered in each market, with customers on store layouts, helping them to being more selective as to which brands they’ll do maintain social distancing and keep ‘COVID-19-safe.’ And while this business with. aided the brand’s score in the pillar of Time and Effort, it also boosted its performance in the pillars of This has certainly been the case With the arrival of COVID-19, brands Personalization, Integrity and for grocery retail, one of the most worldwide scrambled to fine-tune Empathy, highlighting Colruyt as a competitive — and one of the most their online and app-based services grocery retailer that understood its successful — sectors in the Belgian for speed and efficiency, and this is shoppers’ needs. research. Indeed, four of its seven certainly true for organizations in the grocery retail brands have achieved grocery retail sector. The highest- The online retailer Zalando — a top 10 place in 2020. And because scoring of these — Colruyt — took although not a grocery retailer — was of the tight profit margins, it has the lead in the Time and Effort pillar similarly strong for Integrity, and become increasingly difficult for and ranked second overall. This result landed at number three in Belgium’s them to compete on price alone, was achieved through a number of CX rankings. Zalando ensured that nudging The Six Pillars into the initiatives, such as its Collect & Go a good level of communication was spotlight as the means to gaining a service which enabled shoppers maintained with shoppers throughout competitive advantage. to buy their orders online and COVID-19, alerting them to potential collect them from the supermarket, delivery delays and issues on a For many, the pillar of Time and Effort minimizing the amount of ‘contact regular basis — something that is one of the most important. time’ in the shops themselves. bolstered its score in the pillar of Expectations.

This approach filtered down to the Leading CX brands in Belgium individual customer, too. Colruyt Zalando Coolblue Many respondents reported that Zalando was quick to act when issues 01 02 03 04 arose during the order process, or even after a delivery, with the brand Vanden frequently offering discounts to make bol.com KBC Borre up for problems or mistakes. One Argenta consumer noted: “The products 05 06 07 that I ordered were always delivered quickly and correctly. [There is a] fast Albert and correct return policy which is free Lidl Aldi Heijn of charge.” 08 09 10 Because of this, it’s clear why Zalando also achieved a high score for Resolution — a pillar which is the most important for customer In addition, respondents said that But it’s not just Argenta that poses service, according to 90 percent of they truly felt as if Argenta had their a threat; e-commerce has grown in global respondents. best interests at heart. One customer importance in recent months, and noted: “When I have an appointment a number of international brands These qualities — displayed by both at Argenta, I immediately feel at are beginning to cause disruption. Zalando and Colruyt — also help to home, which makes me feel more If Belgian organizations are to humanize the customer experience, at ease and allows me to ask more compete effectively, they will need and in a way this sentiment is questions.” It’s worth noting, as well, to pay close attention to their digital summed-up by Belgium’s customer that the bank achieved one of the offerings, focusing particularly on experience leader: the financial highest Loyalty scores in Belgium. Time and Effort and Personalization services organization Argenta. to create human-feeling interactions Founded in 1956, the bank remains And with organizations such as that are fast and stress-free. Indeed, family-owned to this day, and Argenta raising the bar so high for a growing number of customers are this person-centered approach is customer experience — particularly coming to expect such finely-tuned prevalent throughout Argenta’s during COVID-19 — the biggest services as ‘the standard’ in Belgium, customer experience strategy.15 challenge for Belgium as a whole is to and — as time goes on — they find a way to match its proficiency. are showing a greater willingness For this particular brand, the pillar of to complain, or even take their Personalization is one of the most business elsewhere. important, and indeed Argenta achieved the highest Personalization score in the Belgian study. Personal contact and real-life interactions are key to its operations, and the In the Belgian market, COVID-19 has driven customers restrictions imposed by COVID-19 have forced Argenta to focus on to an increasing and lasting use of digital interaction other channels in order to maintain channels. We’re also seeing additional focus on this ethos. Its ‘human-powered delivering value for money through both assertive conversational banking,’ for example, pricing and delivering unique customer experiences. allows customers to interact with Argenta in a single conversation Using data and predictive modelling to improve thread — not unlike a WhatsApp customer service is becoming a standard practice.” message — helping the brand to Patrick Maes feel more like a family member or Head of Customer, Sales and Marketing Advisory close friend. KPMG in Belgium

15 https://www.argenta.eu/investor-relations/about-argenta.html

Brazil

Brazil has a ‘digitization and personalization’ paradox. On the C&C stands out for its omnichannel one hand, customers are clamoring for faster, more efficient offering. It recognizes that the customer of 2020 wants to interact digital experiences that will negate the need to leave their on a variety of platforms, depending homes. But on the other, they want to feel looked-after and on their circumstances at any given special; they appreciate it when brands communicate in a time. To this end, it even offers the WhatsApp messaging platform clear, straightforward manner — face to face. as a means of buying products, alongside the usual touchpoints such as its website and the C&C stores Because of this, the pillar of It’s imperative that every part of themselves. Personalization is the leader for the organization is united behind loyalty and advocacy. In Brazil, as this vision, and pulling in the same Grocery retail brand Zaffari, ranks at in many countries, brands are now direction — not broken up into number three and scores highly in charged with creating customer disparate, uncommunicative silos. the Integrity pillar. It acknowledges experiences that are digitally fine- COVID-19 in its latest advertising tuned, and retains the individualized In Brazil, one brand that clearly campaign, which is based on the care and attention. understands its customers is the theme of “life happens when you hardware retailer C&C (Casa & meet.” Zaffari describes these The only way to gauge this is to Construção) which has seen a videos as “stories with families who invest in customer insight. Across significant climb in the rankings. discovered new skills and talents the world, the strongest brands It has progressed the most in the when it comes to cooking, organizing are collecting large swathes of pillar of Personalization, with one their routine and facing all the data to help them understand their respondent saying, “For me, they challenges of the current situation customers’ needs, desires and prepared a very specific and difficult [the pandemic.]”16 emotions. This enables organizations color paint just in time and I still had a to ‘walk in their customers’ shoes’ good discount for buying two cans of Financial services organization and see which parts of the customer this paint.” Nubank ranks at number two. journey create the most pleasure, and which parts create the most pain.

16 https://www.youtube.com/watch?v=5gZOMmbxxzg

This brand’s highest pillars are Leading CX brands in Brazil Resolution and Empathy, as one O Nubank Zaffari customer explains: “My card was Boticário cloned and Nubank gave me full 02 03 04 assistance from the beginning, 01 explaining what would be done to solve the problem… Everything was Granado Starbucks Netflix done in a very clear and simple way, Sodiê Pharmácias facilitating my understanding.” Doces 05 06 07 Nubank also runs an internal Customer Service WoW program, Apple with each employee being given Natura PayPal Store a specific budget to “delight” its customers through personal touches 08 09 10 such as handwritten letters and gifts.

Brazil’s leading brand is Sodiê Doces from the restaurants sector, although The restaurants and fast food sector an important part of Brazilian culture, its main focus is on cakes and luxury leads for customer experience and there are no signs that this pillar desserts. And in 2020, Sodiê Doces in Brazil overall. COVID-19 may will wane in significance anytime leads in the Personalization pillar, have influenced this result as this soon. With 2021 fast approaching, giving customers the freedom to sector includes online food delivery brands will need to pay close customize their cakes to their liking, services, which have experienced a attention to the teachings of this pillar choosing from over 90 different major uplift during this period. if they’re to grow in the CX rankings. flavors. Personalization remains the leading As one respondent said: “There was pillar for loyalty and advocacy. a store next to my work. The quality Individualized care and attention is and variety of cakes attracted me, and it became almost a routine to go there at least once a week and buy a piece of cake, different from the COVID-19 demonstrates that companies which have ones I’d already tried. The cakes have historically put customers at the foundation of their no industrialized ingredients, so they strategies have outperformed those businesses that maintain the homemade taste and have not. Also, companies that are adapting faster to are very delicious.” this new reality will have better results in the short, Moreover, Sodiê Doces is able to medium and long term. Being able to predict customer serve customers at speed, giving behavior and respond to a whole new set of customer people the option of having their cake via take-out, if they prefer. The needs — more omnichannel than ever — will be the brand also has an app which allows key to building long-lasting, positive relationships.” customers to order their cakes ahead Augusto Puliti of time and collect them from their Head of Customer Experience Practice nearest stores, with some outlets KPMG in Brazil also offering a delivery service.

Czech Republic

‘Trust’ permeates customer experience in the Czech In addition to this, Tank ONO boasted Republic. Often consumers approach a brand with the dedicated employees who were eager to help out at any opportunity. expectation that they’ll be misled in some way. Similarly “I always prefer this company’s (and perhaps unusually) some organizations also have little products and services,” said one trust for customers. respondent. “This is definitely the most cordial company for me and I always like to return there.”

And while this unease can create COVID-19, contacting them over the Another company that performed a difficult situation in the Czech phone and through a variety of other well in the pillar of Time and Effort Republic, it also presents exciting channels, sometimes just to check on was the shipping brand Zásilkovna. opportunities. With the pillar of their well-being. This is perhaps unsurprising given the Integrity being the number one nature of Zásilkovna’s business and influencer for customer loyalty This ‘cordiality’ is also in evidence the often urgent need for packages to and advocacy, there is a clear goal amongst the Czech Republic’s reach their destinations within short for organizations to aim for. The strongest performers. Tank ONO, for timeframes. But this organization is restaurant brand McDonald’s, for instance, operates a network of filling also efficient; it offers approximately example, saw a strong boost in its stations throughout the country, 3,500 delivery points throughout Integrity score in the latest study. and takes third place in this year’s the country, and customers can This result was aided, in part, by study. In a marketplace that’s fueled collect parcels from these spots at the introduction of its new McWalk by distrust, Tank ONO managed to convenient times. service, which used specially- reassure customers by aspiring to adapted windows for pedestrian deliver the cheapest petrol in the As one customer explained: “We customers. These enabled them to country, without compromising on have several collection points in the maintain social distancing and remain quality — often by operating at very city. It’s fast, without any waiting safe in the more uncertain world low margins. and most importantly the prices are of COVID-19. good.” It should also be noted that Zásilkovna offers next day delivery on Similarly, the bank Cˇeská sporˇitelna the majority of its local shipments, saw a strong performance in 2020. and it also delivers to Europe and the USA, with plans to branch out to the This brand made the effort to stay in Middle East in the near future. touch with its customers throughout

The leading brand is from the Leading CX brands in Czech Republic financial services sector. Air Bank, Yves 17 Zásilkovna Tank ONO which was established in 2011, Rocher ranks in first place, benefitting from a 02 03 04 clear, customer-centric goal: to offer 01 simplicity, truthfulness, and not hide behind ‘small print.’ As such, one of its highest pillar scores is in the pillar Equa bank Spotify DM of Integrity, and one customer even Air Bank 05 06 07 described Air Bank as “probably the best bank I have experience with.”

Indeed, banking with this organization Adidas Tchibo Decathlon is a very personable experience. Visitors to its branches are often 08 09 10 plied with free cups of coffee, and they are free to bring their pets with them if they choose. But the If brands are to compete in a For the Czech Republic, the most arrival of COVID-19 gave Air Bank marketplace of more selective important of these will be Integrity. an opportunity to take its customer- customers, they will need to Brands need to operate more openly, centricity even further, creating capitalize on The Six Pillars. fairly, and in a way which respects a ‘deferral of payment’ program the customers’ needs. for those in financial distress as a result of COVID-19. Simply put, customers who were repaying loans or mortgages were able to defer COVID-19 directed the spotlight on digital channels, their payments up to a period of six communications, products. According to our research, months, and they were also given more control over the size of those companies are now aware of this, and are ready to payment amounts.18 invest. However, in our discussions with clients, we stress the very basic principle: it is great that we now This was a relatively easy procedure for Air Bank’s customers, owing have a chance to use digital to serve customers better. to the brand’s finely-tuned digital Different people have different needs. This perspective offering. And yet, throughout the needs to shape the approach to digital, and not just be country, the transition to a more digital for digital’s sake.” digital environment continues to be a challenge, and moving forward Tomáš Potmešil this will certainly be one of the Head of Customer Advisory biggest hurdles for Czech brands to KPMG in the Czech Republic overcome. They will need to be more agile, and more innovative — and they will need to move faster.

In addition, organizations are faced with a more wary customer, who’s more reluctant to spend due to the uncertainty created by COVID-19.

17 https://www.airbank.cz/o-air-bank/ 18 https://www.airbank.cz/novinky/splatky-si-muzete-v-pripade-zasazeni-koronavirem-odlozit-az-o-pul-roku/

Germany

COVID-19 caused many German consumers to look Similarly, the insurance company inwards. People developed a preference for local products HUK-COBURG scores highly for Time and Effort, and the brand and there was an increased reliance on services such as ranks at number three in 2020. Its weekly markets. online personal service area gives customers the opportunity to manage their own insurance policies, ‘taking The importance of the emotional If it’s an online purchase, the the wheel’ and side-stepping the bond has also gone up since consumer focuses more on the pillar arduous, cross-departmental journeys the arrival of COVID-19. German of Time and Effort, and there is a that can sometimes be found in consumers have come to expect a high expectation that these digital the less finely-tuned customer more personalized experience with experiences will be seamless and experiences. retailers, and indeed the pillar of stress-free. But Personalization is also key to Personalization is the most important HUKCOBURG’s strategy. The brand for driving loyalty in Germany. Often, This is certainly a pillar that the prioritizes individualized care and when consumers visit stores, they hardware retailer Hornbach has attention and wants its customers to expect to receive individualized mastered, and the brand has seen feel ‘looked after.’ Indeed, reliability attention and tailored advice, so that a significant rise in the German is part of the organization’s mission they can be guided towards making rankings since 2019. With its wide statement, and it says that it views the best purchase. range of delivery options, customers can pick the fastest and most customers as equal partners in the The Non-grocery retail sector is convenient solutions, giving people business, almost as if they were part 19 leading the way in this regard. the choice to have products delivered of the HUK-COBURG family. But Personalization isn’t always to their nearest stores, or brought This community feeling is also in the customer’s priority. Usually, it directly to their doorsteps. evidence at Germany’s second depends on the touchpoint. highest-scoring brand, the e-commerce retailer Zooplus, which specializes in pet-related products.

19 https://www.huk.de/ueber-uns/unternehmen/leitbild.html

On its website, there is an on-going Leading CX brands in Germany dialogue between the brand and HUK- Zooplus LEGO consumers via the Zooplus blog, and COBURG the retailer also hosts a forum where 02 03 04 pet owners can exchange ideas and 01 knowledge. As with HUK-COBURG, there is a sense of people ‘all being in it together,’ and it’s unsurprising that Nike Budnikowsky Flaconi Zooplus’ customers are some of the Fielmann 05 06 07 most loyal in Germany.

“Do you love your pets more than Techniker anything?” the brand asks on its Reformhaus DM Krankenkasse website. “For us there is nothing more important than fulfilling this 08 09 10 wish for you and your beloved pet — and has been for almost 20 years!”20

Zooplus also runs its own loyalty Over the last few years, Fielmann Looking ahead, German brands will program as a way of ‘giving back’ has also been improving its digital have to reach this level of digitization to consumers. With each purchase, capabilities and recently launched if they’re to remain competitive. participants accrue zoo points which an online shop, recognizing the The online platforms have grown can be exchanged for products omnichannel needs of the customer in importance since the arrival of or discounts in the Zooplus shop. of 2020. And despite being a relative COVID, and this is a trend that looks There is also an option for people to newcomer to this channel, Fielmann set to continue. But customers also donate these points to animal welfare has already created an efficient want to have the choice, and for charities. It should also be noted that online presence, with its strongest brands to be available physically or Zooplus scores particularly highly pillar being Time and Effort. For online depending on their needs. in the pillar of Time and Effort, with example, when shopping for glasses, customers praising the speed and customers can select their preferred efficiency of its online store. frames and then use the in-built map to find their nearest store, and book Taking first place in the rankings in an appointment to have them fitted. Germany is the optician Fielmann, which is perhaps one of the most customer-centric in the country. Fielmann places a strong emphasis Most German brands are continuously improving on the education and training of the customer experience. Top performers know its employees, ensuring that they how to create seamlessly connected digital and are fully equipped to meet a wide personal experiences as required by the customer range of customer needs with minimal hassle. and suitable for their product or service. This enables these organizations to rapidly respond to changing “‘You are the customer’ is the guiding customer expectations and constantly deliver principle of our corporate philosophy,” the brand says on its website. “Our outstanding experiences.” employees find the individual solution Tom Lurtz to the vision problem for each Partner & Head of Customer Advisory customer, always at a fair price.”21 KPMG in Germany

20 https://www.zooplus.de/info/about/aboutus_general 21 https://corporate.fielmann.com/de/ueber-fielmann/

Hong Kong (SAR), China

In Hong Kong, COVID-19 had a major influence on the Similarly, insurance has increased definition of a ‘good’ customer experience. Consumers, in importance as customers search for health and wealth protection even those who previously used few digital channels, for themselves and their families. now expect brands to enhance their online capabilities Across the board, financial services and deliver a consistent, seamless experience across all companies have accelerated digital investment, for example, providing channels. digital and video enabled onboarding and servicing. There is a recognition that ways of working and interacting As people become more digitally- digitalization is now the norm as are unlikely to ever be the same savvy, they are also more concerned they continue to invest in their digital again. about their personal data, and they capability enhancements, gravitating want to know that organizations towards seamless and hyper- COVID-19 has also left its mark are storing (and using) it ethically. personalized experiences leveraging on other sectors in Hong Kong, as COVID-19 and general economic customer data. customers have shied away from uncertainty has increased instances ‘luxury’ products and have instead of fraud in the market and this is Hong Kong’s customers are also focused their spending on essential weighing on consumers’ minds. For looking to brands that give them products such as groceries. This shift customers in Hong Kong, trust and that sense of community and trust. in buying behavior is also reflected security is critical as they expect This is also well represented by in the customer experience results, organizations to prioritize their financial services performance with the grocery retail sector leading digital security and protection of in this year’s study as ultimately, the rankings in 2020, replacing personal information. As a result, we customers value organizations that logistics which topped the rankings observe an increased expectation can provide transparency as well in 2019. For instance, some grocery that organizations will continue to as operating in good faith when shops received much customer enhance their capabilities, while engaging with customers across the praise at the height of COVID-19 by managing increased amounts of entire customer lifecycle. Banking introducing a per-customer quota customer data to offer seamless has also been front and center of system for facemasks, helping to experiences, often across a wider the customer’s mind as they are reduce panic-buying and long queues. ecosystem of businesses. For looking for financial security and instance, for sectors such as banking, protection in the light of COVID-19.

Other brands started introducing Leading CX brands in Hong Kong (SAR), China sustainable initiatives such as Hang Seng HSBC Mannings ‘plastic free’ trials in select stores, Insurance and conservation of power by fitting 02 03 04 kitchens with electrical appliances 01 to keep the temperatures low and reduce overall energy usage. Nike PARKnSHOP Prudential In the wider retail sector, sportswear Adidas retailer brands performed similarly 05 06 07 well in this year’s study and scored highly in the pillar of Integrity. Brands Standard such as Nike performed well overall UNIQLO Wellcome Chartered as shoppers appreciate the premium customer experience provided by 08 09 10 both the product and in-store and online service. Note: Brands are listed in alphabetical order. Similarly, Adidas performed well, especially in the pillar of Integrity where it was a regional top The world has changed this year in a way we could not performer — recognizing the effort that the brand has been placing into imagine. Society and social purpose will significantly social and sustainability initiatives. influence consumers, and this — alongside the need to go and be digital — will play a critical role in the brands Overall, it is clear that COVID-19 and economic uncertainty has impacted customers choose to buy from.” consumer behaviors and preferences Isabel Zisselsberger during the period. This is reflected in Strategy and Performance Partner the sectors that are front of mind and KPMG in Hong Kong (SAR), China also comes through in consumers’ desire for value, integrity and a sense of community. And no doubt it is even more important for brands to provide a seamless cross channel experience that is digitally enabled, thus, providing customers with the right choices and accessibility as COVID-19 continues to unfold.

Ireland

Like many countries that went into lockdown during were closed during lockdown and COVID-19, Ireland has had to adapt quickly with many does not operate an online store. So how did it stay connected with its Irish businesses forced to alter how they operate almost customers? overnight. Physical channels that remained open had to Like many Irish business Penneys implement new social distancing and safety precautions; rose to the challenge with its while digital channels were rapidly developed in employees packing over 6,000 care order to deal with the growing number of consumers packages containing over 45,000 Penneys products, which were interacting online. delivered to hospital patients and healthcare workers throughout the country. The brand also announced Many brands within the non-grocery The strongest organizations that it would be supporting global retail sector, which was the strongest recognized the importance of the suppliers by purchasing 370 million sector in this year’s study, benefited human connection which, on a basic Great British pounds (GBP) of from having already well-established level, meant being friendly and additional products from them, digital engagement and distribution helpful. But another aspect of this despite not being open.22 channels. This enabled customers was demonstrating an understanding to continue to do business with this of individual customer needs This ‘philanthropic’ sentiment was sector with minimal disruption and and providing solutions to these echoed by another high scorer — the may explain why the sector stood proactively (rather than reactively), delivery brand An Post. Although out for Time and Effort out of The Six like the hotel chain that gave their its highest pillar score was in Pillars. The sector was also ranked guests a complimentary takeaway Personalization, An Post also scored best for value, demonstrating how breakfast because they knew they highly for Integrity — a result that financial considerations are driving had an early morning flight. was aided by its strong community perceptions of customer experience focus. For instance, the brand’s in today’s Irish market. The fashion retailer Penneys (known postal workers checked-in on elderly as Primark in other countries) and vulnerable customers as they The pillar of Personalization proved remained communicative during the made their deliveries — a service to be the most important for driving lockdown period and was one of the that customers could request for customer loyalty and advocacy across strongest performers in this year’s themselves, or somebody they all sectors. research. Their rank is particularly knew. In addition, An Post delivered impressive given that Penneys stores 5 million postcards (free of charge)

22 https://www.primark.com/en-ie/primark-cares/newsroom/primark-extends-its-commitment-to-support-its-suppliers-agreeing-to-take-some-370m-of- additional-products-both-finished-and-in-production/a/9c99c7d9-6047-4615-a38d-cfe135d7dbe3

to over 1.8 million households to help Leading CX brands in Ireland people stay in touch with family and friends during lockdown. There was An Post Penneys PayPal also the #ImagineNation campaign, 02 03 04 which saw the brand publish a free 01 downloadable playbook for children, containing a host of fun activities. Dunnes Boots Aldi Retail Stores These people-centered measures Credit were also in evidence at An Post Union 05 06 07 branches. As one respondent explained: “I can’t praise An Post An Post highly enough… These days, the post M&S Netflix Money office mistress has everything laid out. X on the floor marks distance, 08 09 10 and there’s hand sanitizer as you enter and as you leave… Honest to God, they are wonderful.” Maintaining this ‘humanization’ of for organizations will be to harness The Irish League of Credit Unions, a the customer experience will be a Personalization more effectively member-owned affiliation of Credit key consideration for Ireland moving across digital touchpoints, making Unions, also performed strongly and forward. But brands will still need good use of webchats, chatbots clearly demonstrated they share to adapt. While the post-COVID-19 and social media platforms. And these values. Pre-COVID-19, Credit customer will continue to be multi- these touchpoints will need to be Unions were heavily focused on the modal, some will want to keep their ‘smart’ — to remember people’s experience of their members, putting digital interactions digital, and will queries and circumstances without a great emphasis on physical contact, be less comfortable moving out of the customer having to repeat empathy and accountability. They also those channels when they need to themselves. invested heavily in youth initiatives, speak to a human. The challenge charities and cultural events, integrating themselves within their communities. And while this ethos remained in It has been inspiring to see how so many organizations place during lockdown, Credit Unions also developed new ways of serving in Ireland have stepped up to support their customers their communities.Some branches and communities over the last few months. There transformed into drive-throughs to is a heightened level of appreciation and respect for facilitate social distancing, and they organizations who simply ‘kept things going’ during provided food to the homeless, elderly and frontline healthcare lockdown and it is no surprise to see our essential workers. For Credit Unions, these services sectors score so highly. Leading organizations weren’t publicity stunts; the initiatives have shown proactivity and innovation in how they stemmed from a deep-rooted desire have adapted their business models across their to enrich the lives of those around them, and customers appreciated human and digital networks to continue to meet the sincerity with which help was the needs of their customers, including the most given. One respondent noted that, vulnerable.” “You don’t feel like you are in a bank when you go.” Another said, “It really Owen Lewis fosters a sense of wider community.” Lead Partner, Management Consulting KPMG in Ireland

Italy

Italy was one of the first countries to go into lockdown actions helped the brand to achieve a after the outbreak of COVID-19. For many customers, this high pillar score for Integrity. had an impact on the emphasis they put on certain pillars. Like Esselunga, Apple Store scored Personalization and Integrity were the most important in highly in the pillar of Integrity, and ranked at number two in the Italian driving loyalty and advocacy respectively, and this was also research. It’s a customer-centric true in 2019. But the intensity has increased since. The organization, paying particularly close Italian customer has re-established their priorities in the attention to security and user privacy, performing 100,000 deep-checks on midst of fear and uncertainty, identifying Integrity as one of its smartphone apps every week.23 the most important qualities a brand can possess. Of course, being customer-centric has not been easy to maintain, with Apple Store having been closed This was a challenge that the grocery But COVID-19 also gave the retailer during the lockdown. But pre- retail sector rose to, proving to be new ways to demonstrate its care. COVID, the brand was noted for its the strongest in the 2020 study. For example, with its ‘ufirst’ app, personable and efficient customer Consumers valued how the sector shoppers could book their place in a experience, with ‘Geniuses’ on hand reorganized itself to cope with the supermarket queue before attending, to assist with any issues a person emergency situation, and worked receiving real-time notifications that might be experiencing. This is an to ensure that customers’ primary would tell them when to set off for example of the more experiential feel needs could be met — all the while the store. This helped to reduce wait that Apple Store strives to exude, helping them to remain safe. times outside the supermarket, and making a visit to one of its outlets facilitate social distancing. Indeed, 10 of Italy’s grocery retail more of an emotive, memorable brands ranked in the top 100 — Esselunga was sensitive to the needs occurrence — and not simply about one of which is Esselunga, which of its more vulnerable customers. selling products. ranked at number three. During the One respondent said: “Because lockdown period, Esselunga remained of the coronavirus I contacted focused on its ethos of looking Esselunga to bring the groceries to after customers and communities, my home, and I was pleased to find donating 2.5 million euros (EUR) that they do not charge me transport to hospitals. costs as I am over 65 years old.” Such

23 https://www.apple.com/app-store/

For Apple Store, the emphasis is Leading CX brands in Italy on forming deep relationships, and Apple Esselunga Netflix creating a lifestyle. Indeed, the brand Store achieved a strong score in the pillar 02 03 04 of Empathy, highlighting its ability to 01 understand customers, and act with their best interests in mind. Fineco Leading Adidas Zalando Bank A leading online retailer took online first place in this year’s rankings 05 06 07 performing equally strongly in the retailer pillars of Personalization and Time and Effort. Nike store PayPal Geox

It can be difficult for digital brands 08 09 10 to achieve high Personalization scores when there is little genuine human interaction. Their proficiency in this pillar comes through For organizations like Esselunga the both must be willing to adapt as the algorithmic learning. Simply put, emphasis has been on finding new, impacts of COVID-19 play out. the retailer ‘learns’ about shoppers’ creative solutions to problems within With this will come an increased past purchases and uses its own short timeframes, acting quickly need to look after customers — programming to make suitable and effectively in the midst of ever- literally — in terms of safety and recommendations for future changing needs. social distancing, and in addition, purchases. It also offers a range This will be an important every brand must be ready to deliver of delivery options which allow consideration for all Italian brands a strong digital offering, in the event consumers to pick dates and times as they head towards 2021. It’s of further lockdowns. that are most convenient for them. an uncertain period for both Speed and efficiency are also key organizations and consumers, and parts of their customer experience strategy. Its website features a 1-Click service which enables a shopper to complete a transaction within seconds, based on their previously- set preferences. There is also a locker service that negates the need for Customer experience is becoming an increasingly a customer to wait for a delivery at crucial aspect of business, confirmed by a general home. Shoppers can have their goods transported to special collection improvement of all sectors. However, the performance points and then pick them up at their gap between the more mature sectors and those with convenience, using a special code ample room for improvement is still marked. Brands which is sent by email. that have reacted excellently to the complications of Brands such as this as well as Apple the emergency have raised consumer expectations, so Store and Esselunga have made the future challenge will be to maintain the trust gained innovative use of technology in by the consumer and to meet the increasing demands 2020 — both before and during the COVID-19 outbreak. of the digitally-savvy consumer.” Paolo Capaccioni Head of Customer Advisory KPMG in Italy

Japan

Japan is a country with a strong work ethic, world-leading behind in Empathy. The focus on politeness and a unique form of decorum known as functional needs has made it difficult for Japanese companies to connect omotenashi, which translates as the ‘Japanese hospitality at a deeper level with customers and spirit.’ The virtues of relational consideration and honesty create premium brands. are valued highly, and Japanese customers often have high Indeed Empathy is crucial in expectations of a customer experience that reflects these today’s environment, particularly characteristics. when the online experience is rising in importance. Being able to connect personally online (including social media) while delivering an During COVID-19 Japanese airline ANA which found itself in the equally strong and consistent offline consumer buying behaviors shifted top 10 this year — perhaps because experience is the first step towards the towards digital channels at the of its long and established reputation creation of a bond that will ultimately peak of the crisis. As such there for customer centricity. strengthen the Empathy pillar. was a digital acceleration in Japan, As one customer notes: "ANA and while this was a welcome Integrity is also important in Japan. provides stylish and sophisticated development for consumers, Brands need to have a clear and services, but there is also this many companies struggled to well-communicated sense of sense of security you get from their fully align their offline and online purpose and values, ensuring that scheduled operations and safety offerings, creating barriers for some they put their promises into action procedures." customers. and take the initiative in times of crisis, being seen to act swiftly. And Despite this many organizations still And while Japanese brands are while Integrity is the most important rated highly with customers, largely valued for their functionality and pillar for advocacy for many because of their swift responses to convenience, they are not as countries in this year’s study, in COVID-19. valued for their ability to be close customers’ hearts. Japan’s scores Japan Personalization takes the lead. With customer expectations being as across The Six Pillars certainly In Japan it is vital that companies high as they are in Japan, there is the reflect this reality, exceeding global have a deep understanding of each oft-repeated saying that the ‘customer averages in Personalization and customer‘s unique circumstances is king.’ This was not a barrier for the Time and Effort, but falling slightly and can proactively provide services that are tailored to them.

There is one company that Leading CX brands in Japan encapsulates everything that ANA (All Apple Japanese consumers are looking Nippon Isetan Airways) store for in a brand and that is Isetan — a 02 03 04 department store that has been 01 operating since the nineteenth century. Following a merger with JAL (Japan the Mitsukoshi brand in 2008, Isetan Tokyo Airlines) Mitsukoshi Netflix absorbed Mitsukoshi's myriad Disney 05 06 07 hospitality skills, which it combined Resort with its own ability to sense trends.

The result was a company that truly Leading Tokyo Starbucks embraced omotenashi through its online retailer Metro staff, who were trained to deliver 08 09 10 an exceptional level of service, even going so far as to pre-empt customer needs. Note: Brands except Tokyo Disney Resort are listed in alphabetical order.

Looking ahead for Japan, it is likely consumers to scrutinize the ‘purpose’ to improve the way in which they that the digital acceleration will of many companies. Customers communicate their purpose — they continue. It will be crucial for service are questioning the value that must embody it and convey it in a companies that use both online some organizations provide to the way that people can perceive. and offline channels to continually environment, society, and to their evaluate their offerings, working to communities. This means that deliver a high level of consistency Japanese companies still have room across all touchpoints. Omotenashi will certainly help with this. It is a unique Japanese value which creates a genuine customer connection COVID-19 has revolutionized the mindset, buying that strengthens the pillars of Personalization and Empathy. behavior and experience for customers. Companies need to transform their customer experience to Some organizations had already tapped into this new reality. For adapt to the new normal. Japanese companies have these companies, the challenge will strengthened their relationship with customers be to maintain a pioneering energy, by carefully responding to their functional needs. continuing to innovate and constantly However, this alone is not enough to create a strong strive for a unique ‘one-of-a-kind’ experience, helping to differentiate relationship. Going forwards it will be important to them from their competitors. strengthen the emotional value, in addition to the functional value, and to make the customer experience The road ahead will be difficult for all. COVID-19 has prompted ‘the one and only experience.” Toru Furuya Partner KPMG in Japan

Luxembourg

Despite the dramatic changes that have come about in I also sent in invoices for 2020, Luxembourg has seen very little change — at least on consultations and received the reimbursements without the customer experience front. As with last year, financial any problems.” services leads for CX best practice, and almost half of the Similarly, the bank Spuerkeess has organizations in this year’s top 10 belong to this sector. performed well this year, ranking Indeed many of these brands ranked in the top ten in at number two. In fact, the brand 2019 indicating, that many organizations in Luxembourg has the highest score in the pillar of Integrity in the whole of Luxembourg, recognize that customer experience growth is a long-term with a spokesperson saying, “this undertaking. is a confirmation that our brand DNA is perceived and valued by our customers who always are our That is not to say that COVID-19 To achieve this brands have had top priority.” hasn’t had any impact on CX overall. to adapt quickly, and the financial Spuerkeess notes that its digitization With customers increasingly looking services sector has undoubtedly has been key to its success, for safety and security, the pillar of been the strongest in this regard. particularly during COVID-19. Integrity has become more important Brands such as the state health fund Overnight, the brand set up a new than ever. Indeed, it is the leading CNS, a legal insurance provider in online service center — in lieu of driver for advocacy, and consumers Luxembourg’s health care system, its physical branches — enabling are more likely to recommend brands are a good example, being quick to customers to keep in contact and if they show that they are taking attend to people’s changing needs. carry out their business, even to the the COVID-19 situation seriously CNS has seen a dramatic climb extent of ordering new credit cards. It and are working hard to protect in the rankings in 2020, with one also ensured a dedicated phone line consumers and employees. There respondent saying: “Just recently I was available for those consumers is also a hunger for organizations applied for family-related leave during without internet access. In addition, that are seen to be acting ethically, the COVID-19 period and had no Spuerkeess kept people up to date and invest in personalized customer problems. The form was pretty simple via its S-NET banking app, which also relationships. For this reason, the to understand. allowed people to carry out a range pillar of Personalization is the current of other banking operations such as leading driver of loyalty. money transfers.

This flexibility was also in evidence Leading CX brands in Luxembourg with the book retailer Ernster, which Raiffeisen Spuerkeess Ernster ranks at number three. As with most Bank brands, Ernster had to adapt during 02 03 04 COVID, relying entirely on phone 01 and email contact at the height of COVID-19. Each customer received a personalized response, and the Oberweis Naturata Guichet.lu brand went to great lengths to LALUX 05 06 07 deliver books to people’s homes, even by bike on some occasions. In addition, Ernster carried out deliveries Post Colruyt PayPal every day of the week, including Courrier public holidays. 08 09 10 “Our CX success is driven by our highly dedicated and passionate employees — one of their greatest future needs. It should also be noted They need to be willing (and passions being to meet their that the organization has achieved prepared) to change quickly, be it customers,” says company owner the highest Resolution score in the in response to COVID-19, or to the Fernand Ernster. He describes his Luxembourg study. shifting needs of their consumers. To workers as “very committed” people do this, they need to fully understand who “know their customers well.” As such, brands such as LALUX what is happening in people’s minds, epitomize customer experience Indeed, this focus on people (both and this is something that can only be best practice in Luxembourg, and employees and consumers) is achieved through close, and constant, they are a good example for other essential for customer experience customer experience insight. organizations to follow. best practice across the world. This is certainly the case for Luxembourg’s highest ranking brand in 2020 — the insurance company LALUX. Like Ernster, the brand is committed to personal relationships, fully focused on their safety and needs. Organizations that were quick to adapt in order to maintain a great customer experience during COVID-19 As LALUX explains: “The main reason for our success lies in the have established a unique connection with their client-oriented nature of our entire customers that will undoubtedly be the cornerstone organization. Our primary mission is of their growth going forward. And beyond that, to be at our customers’ sides when organizations that continue to demonstrate this type of needed, to reassure them and offer the right solutions.” empathy, that can put themselves in their customers’ shoes, that are there when times are rough, are very To do this, LALUX relies on customer likely to secure customer loyalty in the future.” feedback. The brand describes this as a daily process, owing to the fast Jean-Pascal Nepper and ever-changing nature of the world Head of Customer around them. An example of this can KPMG in Luxembourg be seen in its customer satisfaction surveys, which it conducts after every insurance claim. These help LALUX to continually adapt and improve, and to anticipate people’s

Mexico

In many ways, Mexico bucks the trend in this year’s study. The user can also pre-set the shoes While the pillars of Personalization and Integrity are key to adjust their fit depending on whether they’re in ‘chill’ mode or for building loyalty and advocacy (as is the case in many 'move' mode, and the trainers will markets), Mexico is unusual in that its leading sector is even respond to voice commands. travel and hotels. That is not to say that Mexico has been There is also an option for wearers to lace the trainers simply by pressing a unaffected by COVID-19 — far from it. But it is the way the button on their smartphones.25 sector has responded to the crisis that most resonates with It’s clear from such innovations Mexican survey respondents. that technology is becoming more integrated into Mexican customer experience. And with COVID-19 In practice, this meant that a number Similarly, the taxi service Cabify remaining a key part of many people’s of hotels changed their cancellation sought to continually adapt based lives and more and more people policies, and became overall more on customer feedback, constantly relying on the internet to connect flexible, recognizing that COVID-19 looking for new ways to improve the with brands, Mexican organizations was generating a lot of uncertainty overall experience. will have to innovate. They may not for guests. As well as this, several have to develop self-lacing shoes, but brands assisted the healthcare sector This was something the sportswear they’ll need to think ‘outside the box’ by giving rooms to health personnel, retailer Nike was particularly keen as customer expectations continue and providing cleaning services to on. Nike paid close attention to to grow. hospitals. the pillar of Personalization, going to extraordinary lengths to help The hotel brand Hilton is a good Indeed, ‘flexibility’ is a theme that shoppers find exactly the right example of this, and in Mexico permeates the 2020 study in Mexico. trainers. Its Nike Adapt footwear, ranks at number two in 2020. Its Outside of the travel and hotels for example, can physically mould smartphone app has been seamlessly sector, brands such as Omnibus itself to the wearer’s feet, based on integrated into its customer excelled because of the range of sensors which are connected to the experience; guests can use it to different transport options on offer, brand’s smartphone app.24 perform digital check-ins, and select tailored to passengers’ varied needs. their preferred room choices.

24 https://www.nike.com/adapt 25 Ibid.

The app is also linked to Google Leading CX brands in Mexico Maps, meaning that customers can Calvin Hilton Nike see where their room is located Klein within the hotel building. In addition, 02 03 04 customers can use their smartphones 01 as door keys, and complete the check-out process via the app without having to queue in the lobby or fill out Fiesta Inn Adidas Netflix any paperwork. Marriott 05 06 07 This sense of customer-centric Personalization is in evidence Fiesta amongst its staff, too. As one guest Guess Costco Americana said: “I loved staying at the Hilton because they were very cordial, and 08 09 10 it has a spectacular service. I love it; it is like being in a luxurious place where you can feel at home, but at As Marriott explained on its website Marriott was successful in the the same time it’s as if you were in to customers: “As we welcome you Mexican research in 2020 because another world.” back to our hotels around the world, of how deeply it understood However, it’s the travel and hotels we are committed to providing you its customers, and because of brand Marriott that takes the top with a safe environment that aligns its willingness to innovate and spot in Mexico. Like Hilton, Marriott’s with expert protocols for working to embrace new technologies. These customer experience in Mexico defeat COVID-19… We will actively characteristics will define Mexico’s is aided by exemplary staff who monitor and evolve our solutions leading brands in 2021; they will build are committed to the wellbeing to ensure a continued focus on the omnichannel experiences that meet of guests. As one respondent put health and safety of our guests and and exceed customer expectations, 26 it: “Marriott is my favorite hotel associates.” adapting to the ever-changing needs of brand in the world… All their staff the world around them. are extraordinary and spectacular. Excellent service and definitely the best hotel chain.” Mexican brands should build an experience that’s This sentiment certainly rang true customer-centric focused, and constantly learn when COVID-19 arrived, with about their customers to know how their needs and Marriott in Mexico being one of the expectations are changing. I doubt we will ever see first brands to introduce a flexible cancellation policy for customers, static customers again, so our front, middle and back meaning they could cancel up offices will need to have flexible structures with the to 24 hours before their arrival ability to adjust and improve customer relationships, with no extra charge. In addition, and build trust and loyalty throughout the epidemic Marriott made its hotels available to healthcare (and supermarket) workers period, and beyond.” for free, and it established a Global Manuel Hinojosa Cleanliness Council, working with Customer Solutions Partner experts to develop new hygiene KPMG in Mexico products such as electrostatic sprays to disinfect its facilities. There was also an ultraviolet light for the sanitization of guest keys.

26 https://clean.marriott.com/

The Netherlands

Typically, Dutch consumers know what they want, and The financial services sector was they want to be heard; services should be customized one of the quickest to respond to COVID-19, offering services such as to their particular needs, and they appreciate having payment holidays and emergency more control with self-service initiatives. It’s no longer loans. Companies such as PayPal possible for brands to get away with a ‘one size fits all’ also promised to refund customers’ shipping costs, which increased for approach to customer experience, and indeed the pillar of many at the height of COVID-19. Personalization is again the biggest driver of Loyalty and The leading organization in the Advocacy in the Netherlands. Netherlands is ASN Bank which is particularly concerned with sustainability, and indeed one of its With the arrival of COVID-19, this Brands that were able to highest pillar scores is Integrity. It presented a problem as digital demonstrate their brand values, builds its customer experience on channels rose in importance. integrity and their ability to move the principle of ‘sustainable banking,’ Consumers still wanted a personal quickly and stay connected with their believing that money can be used to connection with brands. It is of customers, in the midst of COVID-19 create happiness. The brand says: course possible to achieve this have been rewarded with strong and “With money you can exert a lot of with minimal human interaction but growing customer loyalty. influence to make the world a better requires a high level of consumer place. For ourselves and for future insight. Leading CX brands typically It is the relentless focus on generations. So the more people join draw on large pools of real-time data, Personalization and Integrity the ASN Bank, the stronger we stand for and analyze it to understand their financial services sector did best in a better world.” customers more thoroughly, leading 2020, and it currently dominates the to higher scores in the Personalization Dutch rankings. Customers valued ASN Bank also achieves a high score pillar. Consumers also aligned Value financial services more highly during in Personalization — a key factor for with Integrity. COVID-19 — as it represented Dutch consumers. security during a time of uncertainty.

During lockdown, ASN Bank has Leading CX brands in The Netherlands offered a wide range of contact Holland & Van der Rituals options for customers to choose Barrett Valk Hotels from such as a web chat touchpoint, 02 03 04 and a telephone service which many 01 employees managed from their homes.27 The brand was also flexible in its repayment services, offering Coolblue bol.com ANWB one-to-one consultations for people ASN Bank 05 06 07 struggling to cover their mortgage costs. ASN Bank promised not to let any customers lose their homes, if at Centraal 28 Univé KLM all possible. Beheer

That being said, non-FS brands 08 09 10 also responded well to the crisis. The health food retailer Holland and Barrett — which ranks at The retailer promotes the idea interactions. Moreover, at the time number three — decided to stay that even the smallest of changes of writing the COVID-19 continues to open during COVID-19, making its can make a huge difference, and it necessitate a 1.5m social distancing stores ‘destinations’ for people to describes much of the packaging rule, impacting every aspect of the get individualized advice and the that usually dominates people’s customer experience — including the necessary vitamins and minerals to bathrooms as “unnecessary.”31 experience of the employees, which stay healthy. Holland and Barrett’s is an integral part of CX design. ‘experience bars’ also played a part Undoubtedly, as Dutch brands head in this — designated sections of its towards 2021, Personalization is Despite this, COVID-19 also gives shops where customers could try going to be the key pillar for them to many Dutch brands the chance to new products and find the ones best focus on. As mentioned previously, re-evaluate their operating principles suited to their needs. this will be a difficult undertaking and discover what it means to be a with customers’ heightened sustainable, truly customer-centric As the brand explains: “Because dependency on digital channels, organization. everyone is different and therefore which typically offer few real human has different wishes and needs, we attach great value to providing customer-specific advice. We like to take the time with our customers, and tailor our advice to your As COVID-19 swept across the Netherlands, the personal situation.”29 true customer experience champions moved quickly

The retailer also performs well in to respond, reacting to their customers’ needs and the Integrity pillar, with Holland and challenging themselves to lead by example. With Barrett being particularly mindful a significant rise in the importance of the Integrity of sustainability. It was the first pillar in this year’s survey, it seems clear that Dutch brand to introduce a ‘zero waste’ beauty range30, with products such consumers are telling brands to go back to the basics: as unpackaged shampoo bars, the foundation of Customer Experience Excellence, washable cotton pads and bamboo where brands lay the groundwork for a personalized, toothbrushes. empathetic relationship.”

Edgar Molenaars Partner, Customer & Brand Advisory KPMG in the Netherlands

27 https://www.asnbank.nl/veelgestelde-vragen/contactmogelijkheden/corona/bericht-directie-wegens-coronavirus.html 28 https://www.asnbank.nl/hypotheek/mijn-asn-hypotheek/hypotheken-en-hulp-bij-betalingsproblemen.html 29 https://www.hollandandbarrett.nl/info/over-ons 30Retail Insight Network 31 https://www.hollandandbarrett.nl/shop/persoonlijke-verzorging/clean-beauty/zero-waste-beauty/

Romania

Like the rest of the world, Romania has had to deal with states that its mission is to make swathes of uncertainty brought about by COVID-19. It’s sporting equipment available to as wide a group of people as possible, been a deeply unsettling time for many people, but there without compromising on quality. are signs that it’s had a positive impact on customer “Every person deserves the chance experience. Many sectors in this year's Romanian research to enter the field, to shoot at the target, to climb a mountain, to swim, saw increased scores across The Six Pillars. to ride or to get as far as possible,” the retailer says.32

This is symptomatic of a wider global of information about consumers, To achieve these goals, Decathlon trend, with customers experiencing helping them innovate quickly acknowledges that the collection a heightened emotional response and find solutions to meet their of customer data is essential. It’s towards those companies that reflect evolving needs. committed to innovating, and the their core values, such as safety and brand registers dozens of patents 33 security. In concert with this, many At the same time, the sector is also every year for new products. At sectors ‘upped their game’ to deliver very competitive in Romania. The the same time, Decathlon knows better, more adapted and consistent increased pressure to win customers’ that there is much sensitivity around customer experiences, and it’s hearts has incentivized many brands this issue, and that the misuse of unsurprising that the pillar of Integrity to invest more heavily in customer data can seriously hinder consumer leads in Romania for customer loyalty experience management. They trust. For this reason, it has extensive and advocacy. recognize a focus on The Six Pillars explanations available on its website can help drive revenue growth, and which state how this information is Moreover, the non-grocery retail secure long-term customer loyalty. used in clear non-jargon.34 sector has been at the forefront of this success, seeing some of the The sportswear retailer Decathlon best Six Pillar scores in the country. is a good example of this, ranking at number three in this year’s study. This is partly because of how much It’s clear from the way the brand data has been collected; non-grocery presents itself that the customer is at retail brands tend to garner a lot the heart of its operations. Decathlon

32 https://www.decathlon.ro/identitate-decathlon.html 33 Ibid. 34 https://www.decathlon.ro/prelucrarea-%C8%99i-protec%C5%A3i-datelor-personale-pentru-servicii-efectuate-%C3%AEn-magazin.html

This customer-centricity can also Leading CX brands in Romania be seen with Romania’s second highest ranking brand — the book Carturesti Decathlon Dedeman retailer Carturesti. The brand sees 02 03 04 itself more as a cultural community 01 than a shop, saying “we are proud to bring you closer to what we love most — culture — and we invite Netflix Revolut eMAG you to join us.”35 ING Bank 05 06 07 And like Decathlon, customer insight plays a big part in Carturesti’s vision. Banca “Tell us what you think and you Zara H&M Transilvania will find that your feedback really matters!” the brand says.36 08 09 10

Carturesti certainly stayed true to this mission during COVID-19 recognizing the growing importance of its online There is also a feature called With COVID-19 driving many stores and the need to be efficiently Round Up, which rounds people’s consumers online, organizations need connected across all channels. At shopping totals up to the nearest to be ready, and available. Those that the time of writing, it offers a 24 figure, and adds the difference to have managed this transition to digital 39 hour delivery service on over 63,000 the customer’s savings account. It are the ones who have seen the best products, together with a range of also operates a 24 hour a day, seven performance across The Six Pillars. payment options including its own day a week phone line to handle The onus now falls on the other Culture Card service.37 In addition, customer enquiries. brands to do the same, and offer a Carturesti has an app which helps truly omnichannel experience which Looking ahead, the biggest challenge customers to feel part of the broader is ready to handle the uncertain world for Romanian brands is staying brand community. Via the app — of 2021. present and relevant. known as the Carturesti Passport — customers can accrue loyalty points for discounts, create and manage wishlists, and receive updates about upcoming events and workshops, Brands, and even entire sectors, that have previously as well as stay on top of emerging and historically scored poorly in our Six Pillar ranking, book trends.38 have now performed very well due to the clients’ However, the leading brand in dramatic change of needs due to COVID-19. For Romania is the financial services instance, logistics & delivery companies as well as organization ING Bank. It achieves its pharmacies have achieved record scores. While these highest pillar score in Time and Effort, and it offers a number of digital changes are intrinsically linked to the customers’ core services which are designed to save values such as safety / security, many companies time for the consumer. Its mobile managed to raise their game during this crisis and app, for example, allows people deliver better, more adapted and consistent customer to pay bills, and send money to individuals in the user’s contact list. experiences.” Dr. Victor Iancu Director, Strategy & Customer Advisory Lead KPMG in Romania

35 https://carturesti.ro/info/despre-carturesti-ro 36 Ibid. 37 https://carturesti.ro/ 38 https://play.google.com/store/apps/details?id=com.evolabs.cartumob&hl=en 39 https://translate.google.com/translate?hl=en&sl=auto&tl=en&u=https%3A%2F%2Fing.ro%2Fpersoane-fizice

Russia

Continuing the trend seen on the global stage, Russian For example, customers can brands were forced to re-evaluate during COVID-19. As receive individualized product recommendations, create their in most countries, customers flocked to digital platforms own Favorites tabs and carry out to carry out their business, and the brands that were product comparisons. At the height ‘omnichannel ready’ saw the best performance in the 2020 of COVID-19, Samsung Store implemented additional customer- rankings. centric measures, including the option for shoppers to pay for products in instalments — recognizing This was a particularly challenging Customers now have single, digital that many people had been financially for Russia as it currently has one of points of contact where they can self- impacted by COVID-19. the lowest levels of e-commerce serve with ease, adopting the highly capability in Europe. COVID-19 successful model most commonly Similarly, the cosmetics retailer has therefore been the catalyst seen in the financial services sector. Yves Rocher demonstrates its for some growth in this area, customer-centricity in this year’s with many organizations finally This likely contributed to Russia’s study, ranking at number two. For paying appropriate attention to overall pillar performances, with example, its employees are trained and assessing the availability and Personalization currently lthe greatest to memorize all of the ingredients efficiency of their on-line channels. driver of loyalty, and Integrity for for Yves Rocher products, allowing advocacy. Customers appreciate the them to make informed and bespoke One sector that has already mastered brands that can tailor the experience recommendations to customers. this is the public sector. In Russia, to their specific needs, and have their Respondents also noted that staff government services such as best interests at heart. These are the always give warm welcomes, and registering apartment ownership or ones they are most likely to return to, take the trouble to say goodbye. paying speeding fines have been and ‘promote’ among their peers. centralized onto simplified platforms, One customer said: “I like the such as Moi Dokumenty and Samsung Store is one such brand, experienced staff that help choose Gosuslugi, removing the arduous, ranking at number three in this year’s the exact product for my exact time-wasting customer journeys that study. Personalization is one of its needs! The quality of the products is formerly plagued this sector. best-performing pillars, and the at the highest level!” retailer has even mastered this on its website.

Yves Rocher’s strongest pillar score Leading CX brands in Russia is in Time and Effort, and in this Yves Samsung Adidas respect the retailer has emulated Rocher Store the approach of the public sector. It 02 03 04 aims to become a ‘one stop shop’ 01 for all-things beauty-related, creating a single platform where shoppers can quickly find what they want. Sony retail Detskii Mir Xiaomi It achieves this by offering a wide Nike 05 06 07 product range, and utilizing highly knowledgeable employees who can guide customers towards their goals. Leroy Shell Petrol Amway Its efficiency is also evident in its Merlin Station online services, with Yves Rocher 08 09 10 including samples with deliveries to help shoppers learn more about the products available. Nike also acknowledges its like Nike prove that consumers are Time and Effort is also a strong pillar responsibility towards the planet, still prepared to spend — if there for the sportswear retailer Nike — it’s and has launched a clothes collection is a premium customer experience the strongest Time and Effort score in made entirely of recycled materials on offer. Achieving this will require the Russian study, with Nike topping as part of its Move to Zero pledge. many organizations to redesign the rankings for 2020. A large part their customer experiences, paying of this is down to its omnichannel Undoubtedly, these are strong particular attention to digital channels offering; Nike is available across examples of CX excellence for other to create journeys that are fast, a wide range of digital platforms, organizations to follow in Russia. personalized, and simple. making it easy for the shopper to choose their preferred touchpoint, Despite the decline in customer and begin their journey. income following COVID-19, brands

An example of this can be seen with the Mercaux app — another integrated platform — on which To be consistently successful, companies need to customers can access real-time stock levels at any given store, and continually measure and reassess their operating use a feature where a bespoke dress models as well as their approaches to engaging and style will be created for them by an interacting with potential and existing customers. The employee, and stored within the app. impact of COVID-19 and the subsequent lockdown Nike also stands out in the pillar has further accelerated the importance of adoption of of Integrity, building its customer these trends in all companies. Customer expectations experience on the core values are increasing all of the time, and establishing loyalty of innovation, sustainability and diversity. The company promotes requires delivering consistent, engaging experiences a simple philosophy if a person aligned to brand values.” has a body, then they are already Paul Cushion an athlete; Nike wants to guide Head of Customer Advisory beginners towards healthier lifestyles, KPMG in Russia and CIS and also provide expert services for sports professionals.

Singapore

In Singapore, customer expectations have grown since More specifically, its staff members the arrival of COVID-19. Customers are demanding more, engage in conversations with customers, listening to their needs and are judging brands based on how ethically they’ve and making appropriate product responded to COVID-19. In turn, this mindset is affecting recommendations. This gives a customer advocacy. They are more likely to ‘promote’ sense of being ‘there to help’ — not just achieving quick sales. It’s worth organizations that meet these new, higher expectations. noting, as well, that Apple Store ranks at number three in Singapore, mirroring its success in Italy where it In addition, brands have to prove across the 2020 study; 90 percent ranked at number two. they can be trusted in the eyes of of respondents stated that they’d the consumer. For organizations such be willing to pay more for ethical Looking at brands such as Apple as the hotel chain Hilton — which retailers, while 79 percent admitted Store, it’s also apparent that the saw significant growth in the pillar to being concerned about the global employee experience is an important of Integrity in Singapore — this trust economic situation. There is a call for consideration for the highest- was won through initiatives like the brands to share these concerns, and scoring organizations. For instance, SG Clean trademark. This campaign show that they care. Apple Store employees tend to be was launched by the Singapore passionate brand advocates who Tourism Board in February 2020, And while Integrity is one of the enjoy helping others, and a number setting a high standard of cleanliness strongest pillars for the third highest- of organizations now recognize that for brands to adapt — something ranking brand in Singapore — Apple happy employees usually deliver the which Hilton embraced. The brand Store — the pillar of Personalization best customer experiences. received the SG Clean ‘stamp’ which has also been key to its success. helped to boost guests’ confidence, At Apple Store, it’s clear that every particularly after the outbreak of aspect of the customer experience COVID-19. It’s worth noting that has been designed with the Hilton’s cleanliness also helped the customer in mind, with its outlets brand in Mexico, where it ranked in being more akin to luxurious, sensory second place overall. experiences than shops. Even subtle touches like potted plants and Indeed, trust and the pillar of modular seats help to foster a sense Integrity have proven to be important of being ‘looked after.’

At Singapore Airlines — which Leading CX brands in Singapore ranks at number two in this year’s Singapore Apple Changi study, employees and their families Airlines Store Airport receive a free air ticket once a year 02 03 04 to any destination within the airline’s 01 network, and it also offers discounted travel throughout the year, and profit- Singapore sharing bonuses.40 Uniqlo POSB General American Hospital Singapore Airlines also has a frequent Express 05 06 07 flyers program called KrisFlyer. Members of this program accumulate ‘miles’ which can be exchanged for Esso Apple Pay DBS rewards such as flight discounts, or discounts in its own KrisShop. During 08 09 10 COVID-19, the airline introduced a further initiative called KrisPay It Forward, which allowed passengers Not only do they provide a human Looking ahead, brands in Singapore to donate their miles to buy treats for touch, they think from the customer’s will need to continually adapt to the frontline workers, such as healthcare perspective and I strongly feel they challenges presented by COVID-19. employees and public transport empathize with the customer’s Singapore is faced with a more operators. This initiative may have situation and problem when we digitally-savvy consumer, who has influenced Singapore Airline’s contact them. Even if they cannot heightened expectations around Integrity score, which is one of its solve it on the spot, they will advise what a ‘good’ experience looks like. highest in 2020. that you can do your other tasks and This is as much a challenge for the The leading brand in this year’s they will get back to you, and they higher ranking brands as everyone study is the financial services always do.” else, as online competition grows organization American Express. Like and intensifies. The ‘winners’ will For many customers, American Singapore Airlines, this organization be those who get to know their Express represents a lifestyle rather offers customer ‘perks’ such as air customers intimately through than a credit card. Respondents miles and airport lounge access, careful analysis, curating customer explained that they could rely on it to highlighting its customer-centricity. experiences that are highly be consistently efficient, empathetic personalized and efficient. But the brand’s strongest pillar and personable. Indeed, American score is in that of Resolution. Express is the highest-scoring brand Many respondents have praised in four of The Six Pillars for the whole its dedication to finding positive country. outcomes, with no request being too small. As one customer put it: “American Express provides the best customer experience out of all the Technology such as digital experience platforms, companies I have dealt with… artificial intelligence and chatbots is not the silver bullet for brands looking to elevate their customer experience — however it is a key enabler in facilitating connections between brands and consumers, by humanizing technology to create real connections.”

Guillaume Sachet Partner, Advisory KPMG in Singapore

40 https://www.singaporeair.com/en_UK/us/careers/why-join-us/

Slovakia

As in many countries, COVID-19 concern has gripped as offering personalized deals and Slovakia. Spending has deteriorated, with Slovakian free deliveries — help consumers to feel as if they are ‘buying into’ consumers putting off larger purchases and taking longer to organizations, and are becoming buy non-essentials. part of something bigger. The pillar of Personalization is also important in Slovakia, and is Understandably, personal health has that they could still conduct their the biggest driver for customer also been at the forefront of people’s business from the comfort of their advocacy. This is certainly minds. People have been reluctant own homes, and those sectors that something the retailer Tchibo to interact with brands in person and provided fast, seamless experiences recognizes, landing at number have, instead, leaned more heavily on were the ones that performed three in this year’s study. Having digital channels, severely impacting best for CX. In Slovakia, the non- begun life as a coffee shop and sectors such as travel and hotels grocery retail sector takes the lead café, the brand now sells a much which now need to find new ways to in 2020, combining quick deliveries wider selection of products and is survive in a world where COVID-19 with favorable return policies and praised by consumers for its relaxed is still a threat. Indeed, this is friendly services. atmosphere and helpful personnel. symptomatic of a wider global trend In addition, Tchibo works hard to in which 82 percent of respondents In addition, Slovakian customers surprise and delight, introducing have indicated that they’re more likely prefer organizations that show they new product ranges every Tuesday to favor digital wallets over cash in stand for more than just being a to keep people inspired and the future. This was further supported business. They favor brands that look engaged.41 by a study conducted in Slovakia out for their best interests, as well the interests of their employees and which indicated that over 50 percent One of the brand’s strongest pillars, the planet. of e-commerce businesses grew is Resolution. Customers speak or remained stable during the peak This is reflected in Slovakia’s highly of Tchibo’s returns policy, months of COVID-19. leading pillar for loyalty, which which allows people to return unwanted goods within 30 days of Undoubtedly, when COVID-19’s grip is now Integrity, and many non- purchase without having to give a was at its tightest in the first wave, grocery retailers stand out for their reason. customers needed the reassurance loyalty programs which — as well

41 https://www.nike.com/adapt

As one consumer explained: “We Leading CX brands in Slovakia have great experience with Tchibo. The staff are always helpful, IKEA Tchibo Panta Rhei and there are no problems with 02 03 04 returning products—no questions 01 are asked. Products are always high quality.” DM Drogerie Shell Zásielkov a Markt Slovensko ň Similarly, the retailer IKEA performs Martinus well in this year’s study, landing 05 06 07 at number two — mirroring its equally high rankings in Sweden and Australia. In Slovakia, the non- Dráčik Lidl Netflix grocery retailer is synonymous with high quality and affordability, and 08 09 10 customers often go to great lengths to shop with the brand, despite the fact it has only one outlet in the In addition, Martinus performs well Such initiatives reflect the growing whole country. in the pillar of Integrity. It even trend of customer-centricity in And like Tchibo, IKEA has blended manages to show Integrity through Slovakia, with more organizations dining with retail to create an its website, despite its lack of human recognizing the power of good CX. overall more pleasant customer interaction. For instance, it offers This trend has been growing for a experience, making its outlet special discounts whenever it’s a number of years, and it’s possible something of a leisure destination person’s name day — celebrating that COVID-19 will accelerate as opposed to a furniture once per year on a day associated the process as more brands get warehouse. It is also notable for with one’s given name which is to grips with a world that has its speed, which sets it apart from widely celebrated in Slovakia. It also changed considerably since 2019. other retailers in Slovakia. Many sends out birthday greetings with This will involve intimate customer of its products are available for discount codes, and its website has knowledge, and a desire to instant pick-up, and it has an equally a feature which allows shoppers to experiment and innovate — all the efficient returns policy which round their purchases up and donate while keeping the consumer at the stands out for its fairness; it offers the difference to charity. heart of the CX strategy. free protection for any goods that have been damaged in transit, or even during the assembly process (as many IKEA products require We have seen CX getting stronger traction over the customers to put them together themselves.) last couple of years, with companies changing in order to put the customer in the center of their activities. Slovakia’s leading brand for With COVID-19, companies need to again rethink customer experience is the book retailer Martinus, which ranks first their business models and find ways to connect for the third year running. Its Time with customers living in a new reality. Those with an and Effort score is the highest in advanced CX approach, and a deep understanding of the country. This is particularly their customers and their changing needs, will find that important for Slovakian customers who praised the brand for its they are best prepared to win their hearts and minds, delivery speeds. and create long-term, loyal relationships.”

Stanislav Sumsky Head of Advisory KPMG in Slovakia

Spain

Before the arrival of COVID-19, an important part of Spain’s learnings to deliver faster and more customer experience was the brick and mortar store — individualized experiences. a place that was more of an ‘experiential destination.’ They have created customer However, COVID-19 has changed this mindset. Consumers experiences that are truly omnichannel, allowing consumers still want outlets to exist, but increasingly as places where to switch between digital and they can have their needs met as quickly and efficiently as physical platforms seamlessly, with possible. few barriers between them and their goals.

One organization that does this Personalization is still of paramount With more emphasis being placed consistently well is Apple Store, importance. In previous years, on the commodity of time the pillar which tops the CX rankings in 2020. Personalization was often achieved of Time and Effort is the greatest through one-to-one interactions; driver of customer loyalty in 2020. Undoubtedly, COVID-19 had a customers would take time to Consumers want to feel as if they tremendous impact on Apple Store’s discuss their individual needs and are using their time well, be it in a operations, being a largely brick and allow themselves to be guided physical store, on a website, in an mortar operation. At the peak of towards the best purchases. And app, or in a webchat. And they are COVID-19 in Spain the organization while this desire still exists — with more committed to those brands shifted many of its services online, the pillar of Personalization being that are fast and efficient. making its online channels and the leading driver of customer phone services the main point of advocacy — people now expect to Most of these can be found in the contact for consumers. This was see it in their digital interactions non-grocery retail sector, which something of an effortless transition as well. COVID-19 has shaped dominates this year’s rankings. and in fact the brand saw some Spain into more of an omnichannel For the most successful Spanish growth in its customer base. market, with a heavy reliance on retailers — such as Zara or El Corte This may have been achieved digital. Physical stores are still Ingles — the key is customer through a focus on its employees part of the customer journey, but data, enabling these brands to who have always been a core a smaller one, with less emphasis better understand consumer component of the store's being placed on the pleasure of face priorities. Data and insights help experience. to face interactions. to understand what the customer values and deliver continuous

Second in Spain's study is the Leading CX brands in Spain online supermarket Consum, whose Leading highest pillar scores are in Time and Consum Pepephone online retailer Effort and Integrity. Consum says 02 03 04 that its core values are, “To listen to 01 the customers, the employees, the suppliers and to our environment; American El Corte Bon Preu to provide products, training, Express Ingles information, welfare, development Apple Store 05 06 07 and sustainability; and to be responsible through commitment, honesty and respect.”42 Leading grocery Nike delivery service Adidas One shopper made the following remark about Consum: “The orders 08 09 10 arrive quickly, in the indicated time frame, and if a problem arises, they are flexible in solving it, always In addition, with the role of the To do this, they will need to consider thinking of helping the customer.” physical store quickly evolving, how to inspire and engage their Following Consum is the brands need to understand how to employees (one of their most telecommunications operator incorporate a range of touchpoints valuable assets) mirroring the Pepephone, which ranks at number into a more omnichannel experience. approach of successful organizations three. “We believe in a world in like Apple Store. which your operator automatically improves your rates,” says Pepephone, “[and] recognizes when they have made a mistake and compensates you without your It is interesting to note that two local companies are asking… A world in which your ranked in the top three, which shows that proximity, operator does not waste your time empathy, convenience and reliability are gaining and dedicates his to making your importance. Brands that have been able to provide 43 life easier.” a seamless omnichannel experience, adopting and Pepephone’s highest pillar scores extending the use of new technologies to connect are in Time and Effort, Resolution, and interact with customers (such as AI, marketing and Personalization. automation, and digital interaction channels) while Looking ahead, creating a customer- retaining the human touch, are the ones that are centric vision won’t be too hard for winning. In this respect, I must say that customers many Spanish brands. What will be difficult, however, will be the increasingly value employees as the key factor for harnessing and analysis of the large delivering an excellent experience, focusing on solving swathes of customer data. their problems, making their lives better, and building relationships — instead of just being transactional. “

Enrique Porta-Puy Head of Consumer & Retail and Digital Customer KPMG in Spain

42 https://www.consum.es/en/mission-vision-and-core-values 43 https://www.pepephone.com/los-principios-de-pepephone

Sweden

In Sweden, many people would describe themselves as properly manage social distancing efficient, and proudly so. Indeed, efficiency is something and cleaning routines. that customers have come to expect from brands and any Many brands did this successfully, organization that can deliver a seamless experience — while and indeed the Swedish retailer IKEA achieved a high score for delivering true value is generally considered in high regard. Integrity, ranking in third place in 2020. IKEA responded positively to the outbreak of COVID-19, The higher ranking brands Similarly, the pillar of Integrity also introducing a ‘click and collect’ also leverage customer insight matters. It’s the biggest driver for service which allowed consumers effectively and in Sweden customer advocacy, and this is to order products online and then consumers generally accept this something that Swedish customers collect them at special drive- as long as it is stored safely and do not give easily. They tend to through pick-up points. ethically — and of course used be quite careful about which to deliver a premium customer organizations they’ll recommend The pillar of Integrity also experience. to family and friends, lest their encompasses wider, environmental judgement be misplaced and they concerns. In general, many non- The non-grocery retail sector is come away feeling embarrassed. grocery retailers ask customers currently performing best in this to help them look after the planet, regard and understands how to That being said, there are many encouraging them to return used gather, analyze and utilize customer brands that score highly for clothes to stores so that they data. These insights helps brands to Integrity in this year’s study. can be repurposed, for example. truly deliver what their customers COVID-19 certainly threw a Likewise, other brands such as the want, which is critical in Sweden spotlight on this pillar, when the pharmaceutical retailer Apoteket — as the pillar of Personalization is a onus fell on individual brands which ranks at number two in strong driver of loyalty. Customers to ‘look after’ the customers 2020 — ask customers to return are loyal to the brands that tailor themselves. This is because the empty bottles and packaging so the experience to their specific government never fully closed that they can be recycled. needs and remember their past its restaurants, schools or retail preferences. stores, leaving it to organizations to

“No one can save the world on Leading CX brands in Sweden their own,” says Apoteket. “To do something about the challenges Apoteket IKEA Budbee facing the world, the UN countries 02 03 04 have agreed on seventeen global 01 goals. Here at Apoteket, we accept the challenge and roll up our sleeves a little extra. We have Spotify Netflix ICA chosen to focus our efforts on Apotea 05 06 07 the five goals (health, customer offering, environment, employees, profitability) where we believe we can make a difference.”44 Willys Avanza Halebop

This sentiment is echoed by another 08 09 10 pharmaceutical retailer, Apotea, which ranks first. The brand says: “We feel responsible for the world, Many struggle with the alignment There is also customer insight the people and the environment of their front, middle and back office to consider. While it’s seen as around us. Ever since Apotea started, processes, meaning unnecessary an acceptable part of CX, many sustainability has been important hurdles sometimes disrupt customer organizations are ill-equipped to to us. Sustainability should not journeys. In addition, the older handle large volumes of data, and be something we just talk about; organizations are being challenged lack the tools to analyze it properly, or it should be at every level of the by new disruptors — start-ups that even store it safely. Brands that want organization and it should be seen have designed customer-centric to improve their customer experience that we always have the idea of processes from the ground-up, and will need to focus on data if they are sustainability with us.”45 are already winning the hearts of to unlock its value. Of course, being a retailer, the day-to- Swedish consumers. day functioning of its stores matters as well. Apoteas's highest scores are in Personalization, Time and Effort The 2020 research strongly highlights the shift to and Integrity. One respondent said they had “never had a problem with digital we see in Sweden which is independent of Apotea” and described the shopping industry. The physical channel now supports the digital process as “smooth” and “fast.” experience rather than the other way around. Digital- They added: “They offer good prices, born organizations such as Apotea will therefore have fast delivery, and a large range of products. I always use the Instabox an advantage over traditional brands due to more delivery option, which is also free, on efficient and connected operating models.” the way home from work. No need to Helena Granborg even take a detour to pick it up.” Customer Experience Lead However, achieving this level of KPMG in Sweden Personalization and efficiency is still a challenge for a number of Swedish brands.

44 https://www.apoteket.se/om-apoteket/hallbar-utveckling/vi-tar-ansvar/ 45 https://www.apotea.se/vart-ansvar

Taiwan

COVID-19 changed the face of customer experience in Face masks were readily available Taiwan. Footfall fell at non-grocery retailers, and the in all of its stores, which the brand wrapped in special ‘dust free’ government issued shopping vouchers to encourage packets, paying particular attention to domestic spending. In addition, customers started to hygiene and safety. demand a wider range of payment options, and while Despite this, it’s clear that PX Mart is many organizations provided these, they didn’t always have a customer-centric brand regardless the most efficient systems to switch between different of COVID-19. Its strongest pillar score is in Personalization — the pillar that payment methods. is key in driving customer advocacy in Taiwan. But it also performs well in the pillar of Time and Effort, and it is However, for grocery retail, COVID-19 There was a sudden surge in the most ‘accessible’ grocery retailer, was a catalyst. Many organizations dependency from consumers, and a with its 1,000+ stores being within embraced the fresh challenges and less able sector could have buckled reach of 80 percent of Taiwanese redesigned their services, aiming under the strain of this increased families. Inside, customers are to make them quicker and more demand — particularly in Taiwan, usually46 able to complete their personalized. where convenience stores are transactions speedily as well, with typically closer to people’s homes its PX Pay platform (and smartphone Brands such as 7-Eleven and Family than the bigger department stores. app) greatly shortening the checkout Mart were instrumental in this, People were limiting their travel, and process. recognizing that people’s needs had looking to companies like 7-Eleven to suddenly become more diverse. become ‘one stop shops.’ Speed is also an important factor With customers staying away for Taiwan’s second highest ranking from certain shops at the height This was a challenge that PX Mart brand — the restaurant chain Din of COVID-19, these brands began rose to, and the retailer ranks at Tai Fung. Its smartphone app allows offering new services. POS machines number three in this year’s study. customers to book their tables ahead were available to sell public transport During the COVID-19 period, PX Mart of time and receive a notification and concert tickets, and the brands went to great lengths to earn its when it’s ready, meaning they don’t also set up services that allowed customers’ trust. have to queue at the restaurant — a people to collect parcels they had feature that also helped with social ordered online. distancing at the height of COVID-19.

46 https://medium.com/commonwealth-magazine/whats-the-scoop-on-brick-and-mortar-e-commerce-85e07ff2e6b4

Din Tai Fung is notable for its high Leading CX brands in Taiwan pillar scores in Integrity and Empathy. Din Tai Fung PX Mart Eslite For example, the brand is particularly (鼎泰豐) conscious of people’s dining speeds; 02 03 04 it recognizes that it can be unpleasant 01 to feel ‘rushed’ during a meal, and always serves at the same rate as Family 7-Eleven Carrefour customers’ dining speeds, regardless Mart of the cost implications. Richart 05 06 07 As one person observed: “The food is very delicate, and the service makes Cama Wowprime people feel like home… The menu Adidas Café (王品) may seem home-styled, but I can taste their sincerity.” 08 09 10

This sincerity is echoed in Taiwan’s customer experience leader — the financial services organization popular social media platform — all-the-while remaining conscious of Richart. Like Din Tai Fung, Richart Line — is connected to a number of the privacy concerns connected with cares passionately about its brands. Users can receive discounts big data. customers. In fact, it was originally or earn Line points whenever they Arguably, this is a problem globally, launched by Taishin Bank with the make purchases through the app, and but there’s a particular emphasis on it express purpose of providing the they can also use it to recommend in Taiwan, with over half of surveyed best financial customer experience products and services to their friends. customers saying that they have through mobile banking. It’s no Undoubtedly, this platform has had purchased products they did not surprise, therefore, that its Time and a positive impact on the world of intend to buy, as a result of receiving Effort score is 7 percent ahead of the customer experience as a whole. But a personalized recommendation. In market average in 2020, fuelled by a it has also created some problems. fact, Facebook’s user activity saw a smartphone application that allows Many Taiwanese customers are marked decrease in Taiwan following users to send money to friends and suffering from ‘information overload’ reports of a big data leak. families using just a phone number, and have started to block out online advertisements on social media amongst other things. Organizations must now work hard to platforms. earn their customers’ trust, and prove But Personalization is Richart’s that they are operating with their best strongest pillar — a quality the brand The challenge for brands in Taiwan interests at heart. exudes across many touchpoints. For is now to curate content through instance, its dog mascot resembles personalization, rather than volume, a child’s drawing, evoking a sense of playfulness and simplicity while helping to humanize the organization. Via its smartphone app, users can A digital world with a vast amount of options to even invest in Richart’s stock market portfolio, a process which the brand customers is already the new reality in Taiwan. Brands has designed to act like a mobile only have a few seconds to capture customer attention. game — one that is fun, and easy The key to unlocking future customer loyalty is through for beginners. the right use of data, curated content, and immersing These digital considerations are the brand in the customer journey.” becoming more important across Taiwan. For example, the most Wayne Lai Partner, Advisory Services KPMG in Taiwan

Thailand

There is something of a race happening in Thailand. Cell (encouraging innovations); and Speed 47 phone use is exploding as customers rely increasingly on (adapting and learning quickly.) mobile platforms. COVID-19 has accelerated this, but it’s Next is Apple Store, which ranks at fair to say that this trend has been growing for a number number two. The retailer is keeping pace with Thailand’s digital revolution, of years. recognizing that the smartphone has become an integral part of many people’s lives, particularly when it Those brands with their fingers The strongest brands are able to comes to social media use, which on the pulse have been able to tailor the customer experience to has seen a sharp increase. capitalize on this shift. As more the specific needs of the individual, consumers turn to their cell phones, unfettered by corporate processes Of course, the physical outlet is the expectation of an ‘on demand’ that often leave people wrapped up key to Apple Store’s business, and economy has emerged. People in red tape. Personalization is also in non-COVID-19 times it’s a go-to expect organizations to offer faster about remembering past preferences, ‘destination’ in which customers and more efficient services, while and customers’ names — in essence, can explore and play. In addition, the at the same time delivering value it represents the ‘humanization’ of brand offers a service called Today for money. Indeed, economics customer experience management. at Apple, where visitors can attend have become more important in In Thailand, the brands that special workshops to learn how to do 2020, with COVID-19 leaving some master this pillar are more likely new things on their smartphones. households financially fragile, and to be ‘promoted’ in consumers’ Inevitably, this service had to stop limited in their ability to boost the peer groups. during COVID-19, but Apple Store country’s economy. This is certainly true of the financial maintained its customer focus by That being said, the world of CX is services sector, which leads for moving its workshops online. Here, not without its winners. In Thailand CX performance in 2020. The bank phone users could watch pre- — much like the rest of the world SCB ranks highly in this year’s recorded videos explaining how to — the pillar that has the greatest study, landing in third place. SCB use some of the iPhone’s features. impact on loyalty and advocacy is operates on four core values: And a selection of these videos Personalization. Customer Centricity (focusing on catered to multiple audiences at customers); Risk Culture (managing once, with some being delivered risks appropriately); Innovation in Sign Language with English voiceovers, and Thai subtitles.48

47 https://www.scb.co.th/en/about-us/sustainability.html#tab-4 48 https://www.apple.com/th/today/feature/today-at-home/

Apple Store is conscious of its Leading CX brands in Thailand responsibility towards the planet. All Apple SCB Oishi of its stores’ electricity — both in Store Thailand and in every other country 02 03 04 in which it operates — take 100 01 percent of their electricity from renewable sources, and Apple Store has reduced its carbon footprint 7-Eleven Kbank AIS by 71 percent since 2011, despite AIA 05 06 07 a fourfold increase in its energy usage.49 Bar BQ Thailand’s CX leader is the financial KFC KTAL Plaza services organization AIA, which specializes in insurance. AIA is 08 09 10 committed to its customers, and it learns about them continually through its virtual data science across the globe indicated that they brands in Thailand. Customers may lab, which gathers and analyzes were worried about their personal be demanding slicker, speedier consumer data. data, and how it was being gathered interactions, but their loyalty could Much of this is derived from its AIA and used. And with the acceleration wane if they don’t believe that Vitality platform, which launched in of cell phone use, and countless brands are truly ‘on their side.’ 2019. It’s an insurance and wellness gigabytes of data being transferred program that rewards users for on a daily basis, this should be a being healthy. By taking regular growing concern for the leading exercise, or eating healthily, or even going for an annual health check- up, users can earn points which can be exchanged for discounts We are a country with some of the highest penetration at gyms and pharmaceuticals, rates across all major mobile platforms so we can and even plane tickets. As such, see in the survey results that those organizations that Vitality highlights AIA’s concern for its customers’ wellbeing by invested heavily in mobile-led strategies are bringing incentivizing them to look after their connectivity to their ecosystems. They’re underpinned minds and bodies. by enhanced data and analytics capabilities, and This initiative also helps AIA to learn they’re winning on the customer battlefield by offering more about its customers and, in a differentiated customer experience. Time is running turn, find new and more relevant out for those that have not. We have seen 10 years ways to serve them. of expected behavioral shifts occurring in the last six This is, however, a delicate line to months alone.” tread. 98 percent of respondents Christopher Saunders Partner, Head of Financial Services KPMG in Thailand

49 https://www.apple.com/th/environment/

United Arab Emirates In the Gulf region, there is no happier place to live than the customer. For instance, some United Arab Emirates (UAE) according to the latest edition of the seats on Emirates’ A380 jets are equipped with their own of the World Happiness Report. The UAE is at the top of the brass-plated drinks holders and list of Arab nations and is home to some of the happiest doors which allow passengers to cities on the planet such as Abu Dhabi and Dubai.50 effectively seal themselves into private rooms.53

Financial services organization Dubai has its own “Happiness The UAE’s highest-ranking brand HSBC is ranked second in this Agenda” — a city-wide vision led is Emirates Airlines. During year's research. HSBC has adopted by HH Sheikh Mohammed bin COVID-19, Emirates focused on a strategy of improving its digital Rashid Al Maktoum, Vice President a policy of open communication offerings. In 2018 some of the and Prime Minister of UAE and and general responsiveness. For branches in the UAE underwent Ruler of Dubai, which aims to example, customers who had a transformation into Customer “make Dubai the happiest city on already purchased plane tickets Service Units. These branches earth” using a “science based” could choose to retain them until aim to blend digital self-service approach to “measure, impact and they were ready (or able) to fly, with technologies with human interaction sustain happiness for the whole Emirates extending their validity where visitors can print and emboss city.”51 Across the UAE, residents up to 24 months. Customers could their own HSBC debit and credit place a high value on empathy, also receive a full refund, or a travel cards.54 and this ethos is reflected in the voucher which could be exchanged quality of its customer experience for other Emirates flights or These new Customer Service management. products.52 Units seek to expedite the banking experience by offering on-the-spot The impact of COVID-19 was The best brands aim to deliver a video conferencing for visitors to its overwhelming for some consumers, better experience than the general branches.55 and successful brands were ones consensus of what constitutes which could prove themselves to 'good'. Like many brands in the be reliable and trustworthy during UAE, Emirates aims to provide these unsettling times. a 'luxurious' experience for the

50 https://worldhappiness.report/ed/2020/ 54 https://zawya.com/mena/en/press-releases/story/HSBC_expands_digital_ 51 http://en.happinessagenda.ae/#overview experience_with_new_Customer_Service_Unit_in_Mirdiff_City_Centre- 52 https://www.emirates.com/uk/english/help/covid-19/ticket-options/ ZAWYA20180903095729/ 53 https://www.emirates.com/ca/english/experience/cabin-features/first-class/ 55 https://www.tahawultech.com/industry/financial-services/hsbc-uae- a380/ promises-80-digital-interaction-to-customers/

Entertainment and leisure brand Leading CX brands in United Arab Emirates VOX Cinemas ranks number three. It is the largest cinema chain in the Centrepoint DEWA DHL Middle East, with 490 screens across 02 03 04 47 locations. In 2017 it won the Best 01 Cinema in the World award at the 56 CinemaCon conventiown. Emirates Emirates FedEx NBD It offers a service named ‘Gold’ which Carrefour includes “plush seating”, food and 05 06 07 drink. According to one customer, “VOX Cinemas are the go-to place Vox for any comfortable movie-watching HSBC Spinneys Cinemas experience in UAE. This time the VOX Gold experience proved that 08 09 10 this is the gold standard of movie experience with its luxurious setting Note: Brands are listed in alphabetical order. and services.”57

Another brand which has provided a rapid response to COVID-19 is Spinneys Dubai which operates 50 COVID-19 has had an unprecedented impact on all Spinneys supermarkets and eight sectors in the UAE. It has put customer experience at Waitrose stores in the UAE.58 The demand for home grocery deliveries the forefront of levers to drive loyalty and confidence has accelerated dramatically this among consumers. Companies are increasingly looking year. Spinneys launched a new to invest in more proactive approaches. Enhancing the e-commerce delivery service — a use of data and data-driven insights is going to play a direct response to consumers' changing preference to shop for huge role in enabling companies to be more predictive groceries online. Spinneys anticipates in nature, anticipating customers’ needs and wants, e-commerce demand will continue rather than just being reactive.” to gather pace and aims to deliver an omnichannel customer experience.59 Pilar de Miguel Veira Customer Experience Lead, Partner Consumers are becoming KPMG in the UAE increasingly selective in their decision-making. As we move towards 2021 brands will have to demonstrate that they are ‘COVID-19 safe’, can be trusted and that their services deliver value for money.

56 https://cinemacon.com/press-release/vox-cinemas-to-receive-cinemacon-2017-global-achievement-in-exhibition-award 57 https://uae.voxcinemas.com/ways-to-watch/gold 58 https://www.eurofresh-distribution.com/news/spinneys-dubai-retailer-never-compromises-quality 59 https://mediaoffice.ae/en/news/2020/June/21-06/Spinneys-launches-online-delivery-service-in-Dubai)

United Kingdom

While COVID-19 has changed the face of customer As one respondent said: “For me, experience in the UK, many of the more adaptable, agile they’re one of the banks of the future with helpful staff, intelligent brands which have often topped the CX rankings have answers to questions and no continued to lead throughout the lockdown period of 2020. pressure to try and get you to take on further products”.

It is also an adaptable brand, What has changed, however, is a Excellence (CEE) performance swiftly responding to support its widening gap between the high- since 2019, with restaurants & customers during COVID-19 with flyers and the laggards in the UK. fast food, logistics and the public the introduction of its Connected The lower-ranking brands need to sector seeing the biggest climb. Cards scheme to allow friends work even harder to catch up to Nevertheless, grocery retail and and neighbors to shop for those their higher performing competitors. financial services remain the self-isolating, removing the need Their performance across The Six highest performing sectors overall for payment via physical contact. Pillars will be key to their growth. in the UK. Starling also participated as a At the same time, one of the Indeed, four financial services lender in the government-backed pillars — Integrity — has become organizations feature in the UK Coronavirus Business Interruption more relevant than ever. When 2020 top 10, including a new Loan Scheme during COVID-19. COVID-19 was at its peak, entrant to the research — Starling Ranked second is the online customers wanted to know that Bank. Starling Bank ranks third and retailer QVC UK — a brand that brands stood for more than just is an entirely digital bank which recognizes the importance of the making a profit. They wanted to be clearly understands its customers Personalization pillar. The ‘human assured they were looking after and the role their mobile devices touch’ is one of the retailer’s their employees and consumers, as play in their lives. Its services defining characteristics, with the well as taking the implications of are streamlined and hassle-free; ‘conversational’ attitude of its COVID-19 seriously. The long-term Starling has partnered with a presenters being a key part of its TV impact of this psychological shift number of third parties, including and internet broadcasts. remains to be seen. PensionBee and Churchill, enabling customers to manage several Despite this challenging climate, financial services on one app. most sectors have seen an increase in their overall Customer Experience

And while this way of working Leading CX brands in United Kingdom became difficult during the lockdown Starling John Lewis QVC UK period, QVC UK strove to maintain Bank & Partners it for as long as possible. Moreover, 02 03 04 many of its customers turned to 01 the brand’s social media channels at the peak of COVID-19. QVC UK were able to utilize these channels Lush Monzo Lakeland to help shoppers order, track and first direct 05 06 07 return products effortlessly. Its #QVCAlwaysWithYou hashtag was also put to good use, with the brand Côte American M&S recognizing that some customers Brasserie Express were relying on social media simply 08 09 10 for comfort and reassurance.

Similarly, the UK’s customer experience leader — the financial In addition, the bank’s customer Being a “pleasure” is possible for first services brand first direct — is experience is deployed consistently direct because of its deep customer consistently strong for customer- across all of its channels; it’s as quick knowledge. The bank knows exactly centricity. As with many banks and easy for a person to interact with what people are seeking physically at the start of COVID-19, first first direct over the phone as it is via and psychologically and if these direct moved quickly to protect its one of its social media platforms. desires change it’s immediately customers against negative economic aware and can adapt accordingly. consequences with fee-free As one respondent explained: This depth of insight will be crucial overdrafts, loan repayment holidays “Always a great experience when for UK businesses as they head into and lower insurance payments. Its I have to contact first direct about the uncertain world of 2021, where agile at scale operating model also anything (which is rare.) I’m currently the true impact of COVID-19 cannot allowed the bank to quickly scale up re-mortgaging with them and as be predicted. a dedicated, empowered customer always their staff have been an team to empathetically respond to absolute pleasure to deal with.” their customers’ difficulties. first direct’s people first mantra means the bank constantly asks itself three questions: How are our people The present downturn promises to be one of the most feeling? How are our customers intense, but also an opportunity for many brands to feeling? What is our commercial engage with a new customer and redefine what their performance? The answers to these questions guide the shape of its enterprises stand for.” customer experience. Tim Knight Partner, Customer Advisory Indeed, first direct is successful KPMG in the UK in part because of its connected CX vision. Every aspect of the organization is guided by these questions, with each department moving in the same direction.

USA

When COVID-19 peaked and many countries went into Indeed, this Texas-centricity became lockdown, the grocery retail sector became crucial. Of more apparent during COVID-19, with H-E-B launching a ‘Texans Helping course, it had always been essential, but not to this extent. Texans’ campaign which encouraged With the mounting pressures and the need to adapt quickly, local communities to pull together there was a very real possibility that grocers could buckle and embody “the generous spirit and strength that brings together all under the strain. Texans during uncertain times”—an initiative that was intended to help the state’s most vulnerable citizens. But many retail grocers stepped up, As such, Hannaford exemplifies Similarly, H-E-B showed much finding new and efficient (and safe) customer-centricity, and this trait support for the restaurant sector ways to help people shop. Services sets the CX champions apart during COVID-19 and partnered with such as curb-side pickup, contactless from the others. To achieve true a number of local establishments payments and extended hours for customer-centricity, brands need to sell chef-prepared meals at at-risk consumers all helped people to have a strong understanding of its outlets. Undoubtedly, H-E-B’s to navigate what was (and still is) an The Six Pillars, and in the US the caring spirit really resonates with unsettling time for the United States. pillar of Personalization is particularly customers, and it sees the brand take important. It is the biggest driver for second place in this year’s research. The retail grocer Hannaford is a good loyalty and advocacy, and the brands example of this, and the brand saw that master it are able to adapt their A caring spirit is certainly a strength a significant rise in the rankings in customer experiences to the specific of the restaurant brand Chick-fil-A, 2020. The brand began offering hand needs of the individual. which ranks at number three in wipes at its store entrances, and the US study. Its CX strategy is introduced one-way directional signs The retail grocer brand H-E-B exudes underpinned by the principles of its to help maintain social distancing. It a similar ethos, although being a founder, S.Truett Cathy, who told his also offered a grocery pick-up service Texas-based retailer, it places a employees to treat each customer as that allowed people to shop online, greater emphasis on its home turf. if they were the president. Indeed, and then collect their goods at the For example, many of its coffee its workers are encouraged to store of their choice. blends bear names such as San constantly look for opportunities to Antonio and Austin, and it also sells surprise and delight, and to tell diners Texas-shaped cheese chunks and “it’s a pleasure” rather than simply tortilla chips. “you’re welcome.”

Ranking first is the financial services Leading CX brands in USA organization USAA, or the United Navy Federal H-E-B Chick-fil-A Services Automobile Association. It’s Credit Union a brand that focuses on people who 02 03 04 serve (or have previously served) in 01 the US military and their families, and it has taken the top spot in the Edward In-N-Out Costco American rankings three times in the Jones Burger Wholesale last 5 years. USAA 05 06 07 Arguably, one of USAA’s defining qualities is Empathy. The organization Charles has a strong understanding of the Publix Wegmans Schwab people that it serves, including the emotional implications of having a 08 09 10 career in the military, or being the spouse of someone who serves. When USAA says it “knows what it means to serve,” it isn’t just talking about customer service. Leaders in our 2020 index maintained strong customer This customer-centricity has also relationships during times of volatility, with commercial enabled USAA to innovate. For availability and cadence being at the core of this example, its mobile app uses the Zelle payment platform, enabling relationship. As customer needs and expectations customers to make payments to adapt to the new reality, businesses need to rethink others using just an email address or their customer engagement approaches, with a phone number, within minutes. Such stronger reliance on digital interaction.” a service is particularly useful for someone serving in a non-domestic Jeffrey Mango location, who may need to transfer Managing Director, Customer Solutions money quickly. KPMG in the United States

“We have been with USAA for a while now,” said one respondent. “They are always very helpful. I am able to call and ask for a copy of my insurance cards to be emailed to me and it only takes minutes.”

The companies highlighted in the United States survey stand as leading examples of customer experience best practice in 2020, but in these ever-changing, uncertain times, they cannot afford to rest on their laurels.

Vietnam

Digital channels are on the rise in Vietnam. Social media launched the Viettell++ customer usage has increased rapidly, and customers are more care program, which operates like a loyalty scheme. Users of Viettel likely to take to these platforms to discuss their brand products accrue points which can experiences — and even recommend brands to their peers. be exchanged for discounts on Some organizations are conscious of this fact, and are certain services, or even at hotels, restaurants and shops. Crucially, working to capture as much insight as possible — all in the this is a system which functions pursuit of CX growth. automatically, with no input required from the consumer. People are automatically enrolled, and Viettel Although digital awareness has As such, there is much potential for keeps track of the points they collect. been increasing, there are many disruptors to challenge the legacy Technology also plays a key role for challenges. Some established organizations, particularly if they Vietnam’s second highest ranking brands cannot innovate fast enough, come with a strong digital offering. brand. The financial services and in Vietnam there is a growing organization Prudential primarily expectation that organizations Indeed, digital is something that specializes in insurance, but in 2019 should be able to respond quickly to Vietnam’s third highest ranking brand it launched a new Pulse app that was unforeseen circumstances, such as Viettel does well. While it’s far from designed to look after customers’ COVID-19. At the same time, many being a start-up (having existed in wider health needs. Through the app, Vietnamese customers are reluctant some form for over 30 years) Viettel users can track their Body Mass Index to do business with new entrants. is constantly evolving. It began life (BMI) measurements, Wrinkle Index There is a general suspicion that as a construction firm in 1989 before measurements, and also receive a less-established brands might lack moving into telecommunications in free consultation with a doctor. the necessary experience to cater to 2000, and it finally became a digital services provider in 2018. Viettel is their needs. Mr. Phuong Tien Minh, General an extremely innovative organization, Director of Prudential Vietnam That being said, consumers tend and is at the forefront of IoT (Internet said: “With Pulse, we aim to bring to be loyal to organizations with of Things), facial recognition and technological achievements in the long and prestigious reputations, artificial intelligence technology medical field closer to the people, and that show Integrity. Similarly, in Vietnam. helping people take the initiative they are more likely to advocate for in their care and easily manage brands that score highly in the pillar Moreover, Viettel stands out for their own health at any time of Personalization. its customer-centricity. In 2019 it and anywhere.”60

60 https://www.prudential.com.vn/vi/our-company/press-release/2020/tu-van-suc-khoe-mien-phi-voi-bac-si-truc-tuyen/

This initiative arrived at the same Leading CX brands in Vietnam time as Prudential’s renewed brand commitment to “Listening. Prudential Viettel DHL Understanding. Delivering.” As one 02 03 04 customer explained: “The company 01 understands their customers, providing prestigious services and Samsung Vietcombank Bao Viet quality products. I have been a Vietnam store customer of Prudential for 20 years 05 06 07 and will always be a loyal customer of Airlines the company.”

Vietnam’s leading customer MoMo Tiki BigC experience organization is Vietnam Airlines — a brand that also 08 09 10 puts listening at the heart of its customer experience. Its continual collection of feedback has influenced quality services, “all to provide the But the digitization of CX is also the customer journey at every most enjoyable experience possible presenting the Vietnamese consumer touchpoint, even down to the for passengers.”62 with more choice, and brands are conversations at the check-in desk, being challenged to differentiate and the food on its planes. This blend of technology and themselves. They must prove that customer-centricity is likely to define And again, like many of the leaders they offer something relevant, and of Vietnam’s customer experience in Vietnamese CX, technology has real value. In this battle, the winners champions in the years ahead. been at the heart of its operations. will be those organizations that understand consumers at a micro For example, Vietnam Airlines uses This is particularly true in the world level, and are ready to adapt to the leading technologies to capture and of COVID-19, which has changed ever-changing needs of the world respond to customer feedback in real customers’ habits and behaviors, around them. time. It was also the first Vietnamese with people becoming increasingly airline to provide in-flight Wi-Fi, and it comfortable using online channels. offers charging ports for passengers’ mobile devices. In addition, its planes are equipped with LED lights with “gradual brightness transformation” Vietnamese customers are getting used to having for when food is being served, and diverse choices of products and services. A self check-in desks are available at competitive pricing strategy alone cannot be a long- select airports.61 term strategy if companies want to ensure their Personalization is one of the brand’s sustainable growth. Companies need to come closer stand-out pillars, and the human to their customers, utilize all the available resources element of the experience is one that Vietnam Airlines is conscious of. One and make appropriate investments to understand their respondent praised the “attentive customers better, provide them with personalized staff with smiling faces,” and products and memorable customer experiences. This is described it as an “amazing airline how a company can survive and evolve in the coming with first class service.” Moreover, its Vice President Mr Le Hong Ha decade.” said that its success was down to Nguyen Tuan Hong Phuc the brand’s continued investment in Partner, Head of Customer & Operations, Digital Consulting advanced technologies and high- KPMG in Vietnam

61 https://www.vietnamairlines.com/gb/en/plan-book/experience/business-class/communication 62 http://bizhub.vn/news/vietnam-airlines-takes-off-with-digital-transformation_311088.html

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 93 Customer experience in the new reality Methodology

About the research An interaction is defined as making In order to be included in the final a purchase, using the company’s rankings for each country, each brand For eleven years, our member firm products and services, contacting must have achieved a minimum professionals have been asking a company with a query, or even number of consumer responses. consumers about their individual browsing their website or store — so experiences with brands. not all respondents will have been existing customers of the brand they Over that time, more than 385,000 evaluated. consumers have been interviewed and c.3,500 brands have been measured — providing c.4 million individual evaluations across Global Customer Experience Excellence coverage in 2020 34 countries to support our expertise in customer experience best practice.

This year alone we have taken in the views of more than 100,000 27 101,162 consumers across 27 markets. countries, regions consumers The research for this report was and jurisdictions conducted via an online survey methodology, completed Q2 2020. A nationally representative consumer sample was targeted for each market, to be representative in terms of age and gender, while also targeting regional representation.

To participate in the research and to be able to respond to questions on a specific company, respondents must have interacted with that company in the last two months. This has been updated from previous years where a six-month period was given, in order to capture interactions and 2,060 804,795 experiences specifically during the unique cross individual brand time of COVID-19, to truly understand and fairly compare the reaction and sector brands evaluations resilience of brands.

Sector coverage For this report we analyzed brands across 10 sectors:

Financial services Grocery retail Non-grocery retail Restaurants Entertainment and and fast food leisure

Travel and hotels Logistics Utilities Telecoms Public sector

Customer Experience Excellence (CEE) scores The rankings for each country are determined by the CEE scores of the brands surveyed.

The CEE score is derived for each brand via a weighted average of the brand’s score for each of The Six Pillars. The weighting is calculated through regression analysis to understand the relative importance of each pillar in driving the two commercial outcomes measured in the analysis: advocacy and loyalty. Research program coverage

Sweden Netherlands Czech Republic Belgium

UK Russia Ireland Poland

Spain USA Romania Japan Luxembourg Hong Kong (SAR), China Mexico Germany UAE Taiwan Italy Thailand Vietnam Austria Slovakia Brazil Singapore

Australia New Zealand

Methodology developed by the KPMG Nunwood Excellence Centre.

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 95 Customer experience in the new reality Thinking ahead

COVID-19 presents challenges to To flourish rather than flounder, However, they must leverage their businesses — but also opportunities. businesses must determine the ability to adapt and be resilient, It throws light on the need for correct investment strategy across embrace technology and, above organizations to put the customer at the Front Office by considering their all, trust their teams to put their the heart of the business and have customers, their brand and their customers’ needs first and a coherent, consistent intent across place on the economic curve, so foremost — as this will bear fruit long their Front Office functions — and they can invest with greater certainty after COVID-19 is over. indeed connect the entire enterprise. of return. It highlights the importance of If you have any questions regarding digitalization and robust data All companies will be physically the possible impact from COVID-19 collection so that organizations constrained during the measures or are looking for help to position make decisions based on evidence, to contain and limit the impacts of your customer experience strategy not instinct. And it foregrounds COVID-19 and their values will come to be resilient in the face of future how essential it is for organizations under close scrutiny. threats, please do not hesitate to to consider how each function get in touch with our global network fits together. of consultants.

The simple truth is if you don’t transact there is no experience and if there is no experience, you will struggle to maintain customer relationships. Experiences in the new reality need to be immersive, emotionally connective and overtly safe. This demands a connected organization where every capability is symbiotic and digitally aligned front to back to deliver an intentional customer experience. KPMG consultants can work alongside organizations to help them balance costs and priorities against changing customer expectations”

Julio Hernandez Head of Global Customer Center of Excellence KPMG International US Customer Advisory Lead KPMG in the US

Contact the Global Customer Center of Excellence

Julio Hernandez Head of Global Customer Center of Excellence KPMG International, US Customer Advisory Lead, KPMG in the US E: [email protected]

Contact your local Customer Experience leader:

Amanda Hicks Takehiro Horii Rudolf Sedmina KPMG in Australia KPMG in Japan KPMG in Slovakia E: [email protected] E: [email protected] E: [email protected] Werner Girth Jean-Pascal Nepper Enrique Porta Puy KPMG in Austria KPMG in Luxembourg KPMG in Spain E: [email protected] E: [email protected] E: [email protected] Vincent Piron Manuel Hinojosa Helena Granborg KPMG in Belgium KPMG in Mexico KPMG in Sweden E: [email protected] E: [email protected] E: [email protected] Augusto Puliti Edgar Molenaars Wayne Lai KPMG in Brazil KPMG in Netherlands KPMG in Taiwan E: [email protected] E: [email protected] E: [email protected] Tomáš Potměšil Paul Cottingham Bradley Styles KPMG in the Czech Republic KPMG in New Zealand KPMG in Thailand E: [email protected] E: [email protected] E: [email protected] Tom Lurtz Jan Karasek Selim Tanfous KPMG in Germany KPMG in Poland KPMG in the UAE E: [email protected] E: [email protected] E: [email protected] Isabel Zisselsberger Dr. Victor Iancu Tim Knight KPMG in Hong Kong (SAR), China KPMG in Romania KPMG in the UK E: [email protected] E: [email protected] E: [email protected] Owen Lewis Paul Cushion Jeffrey Mango KPMG in Ireland KPMG in Russia KPMG in the US E: [email protected] E: [email protected] E: [email protected] Paolo Capaccioni Guillaume Sachet Tuan Hong Phuc Nguyen KPMG in Italy KPMG in Singapore KPMG in Vietnam E: [email protected] E: [email protected] E: [email protected]

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The statements made in this report and the related case studies are based on the results of our survey and should not be construed as an endorsement by KPMG of the companies’ goods or services. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities. © 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Throughout this document, “we”, “KPMG”, “us” and “our” refer to the network of independent member firms operating under the KPMG name and affiliated with KPMG International or to one or more of these firms or to KPMG International. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Publication name: Customer experience in the new reality Publication number: 137144-G Publication date: October 2020