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Building a Trusted and Connected Customer Experience in China

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Building a Trusted and Connected Customer Experience in China Customer first Building a trusted and connected customer experience in China KPMG China Customer Experience Excellence report kpmg.com/cn ¥ ¥ ¥ Foreword In our first KPMG China Customer Experience Excellence report, we look in detail at the state of customer experience in China to understand what market leaders are doing to drive success. Many of our clients prioritise customer centricity While technology has played a pivotal role in and are continuously looking to improve customer reducing time and effort, and improving convenience experience. In order to accomplish this, organisations for customers, creating a personalised offering, need to have an up-to-date understanding of their engendering trust and delivering a brand promise customers and readily adjust their operations to that resonates with customers are also shown to be meet customers‘ needs. immensely important. The KPMG China Customer Experience Excellence Looking ahead, the Greater Bay Area (GBA) initiative report focuses on mainland China and Hong Kong will be the next force of change for customers customers to find out what they value most when in mainland China and Hong Kong. Improved interacting with brands, and understand what infrastructure and transport connectivity means that other factors are important for organisations to companies which optimise their customer strategy successfully deliver a market-leading customer accordingly will be better positioned to maximise the experience. To explore the topic, KPMG China took new business opportunities available. part in a survey of over 5,000 customers, who were asked questions about more than 200 brands across We hope our insights provide you with a more mainland China and Hong Kong. It was conducted in comprehensive view of what successful customer parallel with research in 13 other countries, as part experience looks like, and how brands in mainland of KPMG’s wider customer experience excellence China and Hong Kong can benefit. We would programme. welcome the opportunity to discuss our findings with you. Understanding what drives customer experience is important – KPMG therefore defined Six Pillars of customer experience excellence based on more than eight years of global research across multiple markets. The Six Pillars represent six fundamental elements which define a great customer experience, and serve as strong predictors of commercial success. Our research has demonstrated that organisations which consistently incorporate these elements throughout their customer strategy cultivate stronger relationships with their customers, receive more positive feedback, and as a result, Reynold Liu improve their business performance. Therefore, the Head of Management Consulting, best brands are continually evolving and investing to KPMG China meet changing customer demands. Customer first – Building a trusted and connected customer experience in China 1 © 2018 KPMG Huazhen LLP — a People’s Republic of China partnership, KPMG Advisory (China) Limited — a wholly foreign owned enterprise in China, and KPMG — a Hong Kong partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Contents Please click on the headings to jump to the corresponding sections 01 Foreword 04 About this research 06 Executive summary 08 The Six Pillars of customer experience excellence 12 Mainland China sector overview • Financial services • Non-grocery retail • Grocery retail • Logistics • Restaurants and fast food • Travel and hotels 2 Customer first – Building a trusted and connected customer experience in China © 2018 KPMG Huazhen LLP — a People’s Republic of China partnership, KPMG Advisory (China) Limited — a wholly foreign owned enterprise in China, and KPMG — a Hong Kong partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 29 Hong Kong sector overview • Financial services • Retail and logistics • Restaurants and fast food • Travel and hotels 38 Key takeaways 42 Mainland China CEE top 50 results 44 About KPMG China 45 About our Customer Advisory practice 46 Contact us Customer first – Building a trusted and connected customer experience in China 3 © 2018 KPMG Huazhen LLP — a People’s Republic of China partnership, KPMG Advisory (China) Limited — a wholly foreign owned enterprise in China, and KPMG — a Hong Kong partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. About this research Global Customer Experience Excellence (CEE) programme Since 2010, KPMG’s Customer Experience Excellence Centre has been researching best practices in customer experience across the UK and US markets, and has recently expanded its research across the globe. 8 years 14 countries of ongoing research across the globe 2 million+ 2,300 brands individual evaluations across different sectors globally China CEE survey This is the first China CEE survey under the global CEE programme. The survey covered the following: 5,003 Financial Grocery Respondents from mainland services retail China & Hong Kong* 6 sectors Non-grocery Restaurants 208 retail and fast food Brands Travel and Logistics *Including 4,118 respondents from mainland China and hotels 885 respondents from Hong Kong 4 Customer first – Building a trusted and connected customer experience in China © 2018 KPMG Huazhen LLP — a People’s Republic of China partnership, KPMG Advisory (China) Limited — a wholly foreign owned enterprise in China, and KPMG — a Hong Kong partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Survey methodology About The research for this report was collected via an online survey, completed in December 2017. A nationally representative consumer sample was targeted in terms of age and gender. 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 previous six months. An this research interaction is defined as making a purchase, using the company’s products and services, contacting a company with a query, or even browsing their website. As such, not all respondents will have been existing customers of the brand they evaluated. The rankings for this report are determined by the customer experience excellence (CEE) scores of the brands surveyed. In order to be included in the final rankings, each brand must have achieved a minimum of 100 consumer responses. CEE scores The CEE score is derived for each brand through 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. Advocacy To understand the respondent’s likelihood to recommend a brand, we ask them to rate how likely they would be to recommend each company to a friend or colleague. Loyalty To understand the respondent’s likelihood of repurchasing, we ask them to rate how likely they are to continue buying goods/services from each company in the future. Critical incident technique questioning An open question is included to encourage respondents to share more about their experience with a particular brand. Example responses cover details of a specific experience, what happened and how it made them feel about the company. Note: The methodology was developed by KPMG’s Customer Experience Excellence Centre. Mentions of individual companies should not be interpreted as an endorsement by KPMG. Customer first – Building a trusted and connected customer experience in China 5 © 2018 KPMG Huazhen LLP — a People’s Republic of China partnership, KPMG Advisory (China) Limited — a wholly foreign owned enterprise in China, and KPMG — a Hong Kong partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Executive summary As leading organisations shift towards customer-centric business models and adopt customer-focused strategies, customer experience has become an important marker of a brand’s success. Delivering exceptional customer experience has been shown to drive brand loyalty and brand advocacy, which in turn, drive revenue and growth. Our research shows that across all sectors, customer experience leaders in mainland China are those who have successfully leveraged technology to improve their interactions with customers and drive operational efficiency to improve their customer offerings. The adoption of mobile technology was also shown to be particularly important for brands in mainland China, given that over 95 percent of internet users in China access the web using a mobile device.1 In fact, many of the top brands in this year’s study were recognised for offering an exceptional mobile application, including Alipay and WeChat Pay. When compared to their mainland China counterparts, Hong Kong consumers currently place greater emphasis on personal interactions, and they are more accustomed to interacting with brands offline rather than online. The brands that are achieving customer experience success in
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