Experience to value

2019 KPMG New Zealand Customer Experience Excellence Report

2019

kpmg.com/nz Experience to value Experience to value 2 3 A New Zealand Story A New Zealand Story A Luxembourg story

Contents

Foreword 04

About this research 06

State of the nation 10

Customer experience economics 12

New Zealand snapshot 14

Case studies of top performers 16

Lessons from global leaders 24

Building trust and delivering good customer outcomes 26

The customer insight ecosystem 28

Improving customer journeys 30

Activating the customer experience 32

New Zealand Hall of fame 35 Experience to value Experience to value 4 5 A New Zealand Story A New Zealand Story A Luxembourg story

Our assessment of the New Zealand data in 2018 and Global organisations recognised in multiple countries’ 2019, combined with our understanding of consumer CEE research include Alipay, Wechat, Lush, Google and Foreword behaviour from global studies, highlights the two emerging Apple. A less recognised case study that demonstrates sides of the Customer Experience Excellence story. the direction of customer experience in India is Bajaj Finserv, with an ecosystem of 75,000 retailers connected Trust to 35 million customers across 45 low value transactional The ability to build and maintain trust in a world where product categories. Bajaj Finserv stands out with their Our 2019 New Zealand consumers are highly attuned to the business impacts unique product offerings that create a flexible, personalised that matter, including the wellbeing of the community Customer Experience Excellence experience for consumers by leveraging advanced data and environment, is critical. The same consumers are science to push the idea of defining “every customer as a report reminds New Zealand increasingly anxious about protecting their personal data segment of one”. organisations that in a world of (64% of consumers are anxious about organisations exponential change, exponential tracking their personal activities online and 74% are anxious Our New Zealand research highlights that organisations now about the risk of identity theft1). This is linked closely to the respond to customer experience trends across industries increase in opportunity and pillars of Integrity, Empathy, and Resolution. and countries by creating their baseline experience for exponential increase in risk tomorrow from the best experiences of today. The challenge Execution of this is magnified by the reality that as experience “your success depends on the Both the science of understanding the “customer segment expectations rise, what customers want from a product quality of your connection to the of one” and the disciplined execution of projects are or service is changing rapidly. This requires New Zealand essential to meeting the increasingly high bar set by customer.” organisations to adapt on two levels and means a complete customers. This requires consistent execution, without mind-shift for many organisations that have not prioritised overlooking small details that are needed to deliver the customer as their primary obsession. This may be easy to recognise, but the true challenge in exceptional experiences across both the whole of life today’s environment is to successfully adapt at the required journey, as well as individual event or transaction journeys. Our study focuses on New Zealand customers, but our pace to deliver. Our 2019 research unpacks the reality of Achieving this is becoming increasingly reliant on digital conclusion on the performance of New Zealand organisations this challenge, recognises the New Zealand organisations technology to both understand the customer and enable the and the importance of customer experience excellence in the excelling at customer experience, and provides insight for journey and is linked closely to the pillars of Personalisation, B2B, B2C and B2B2C channels has profound implications for organisations needing to change faster. Resolution and Time & Effort our competitiveness as a nation, and the prosperity of our people. Our future success depends on creating exceptional This year’s Customer Experience Excellence (CEE) research The year’s results showcase the organisations that experiences for our customers, in a landscape where the assesses 115 brands across 10 sectors using KPMG’s Six excel in trust and execution. TSB, with a long history of standards are set by the best in the world, where consumers Pillars methodology. The Six Pillars, which drill into the independently providing with a deep source an increasing share of the products and services via fundamental elements that drive value for customers and connection to the customer and community, have propelled global networks and where every single dollar of our export organisations, have been developed through 10 years of their rating to the top of the 2019 results. Their results and tourism earnings. We’ve designed the insights from this research and practical application. include very high ratings for customer loyalty and perceived report to serve as inspiration and a catalyst for change to help The power of the Six Pillars of CEE is the strong correlation value. TSB delivers on trust through strong reinforcement re-orient New Zealand organisations around the customer. to economic growth. This year’s analysis found that, over of independence, banking for Kiwis and making banking the last four years, CEE leaders grew revenue two times easy. In doing so, they set the standard in an industry faster and EBITDA 13x faster than the compound annual where trust is increasingly highlighted as a concern for both growth of those with low CEE scores (scores of 7.00 or consumers and regulators across the globe. less, approx. the bottom third of brands in the study). Singapore Airlines, ranked second, and , ranked third, both demonstrate the execution science and discipline required to win in the global air-travel industry. Both organisations stand out globally in an industry where they must imagine customer journeys 10 years from today and have the agility to continuously redefine and adapt the journey to changing expectations. These airlines excel on the world stage and match many of the capabilities of organisations that Simon Hunter Baxter McConnell are shifting the boundaries for customer experience. Partner, Advisory Customer Experience Lead

1Me, my life, my wallet (second edition) Experience to value Experience to value 6 7 A New Zealand Story A New Zealand Story A Luxembourg story

About this research KPMG Global

The Customer Experience Excellence Centre is Customer Research: an international think tank, dedicated to helping members turn global customer experience best Financial Grocery practice into effective business results. services retail 2,500 cross-sector 3 million + brand reviews Non-grocery Restaurants individual evaluations The research for the 2019 each brand’s delivered customer retail and fast food New Zealand report was collected via experience. Customers were also an online survey completed in early asked to indicate how likely they were 2019. 2,811 New Zealand consumers to recommend a brand (Advocacy), from a nationally representative repurchase (Loyalty) from them, and 2019 consumer sample completed the their perceived value for money. research covers survey, evaluating 130 New Zealand This analysis is therefore based on Logistics Utilities years of and international brands. quantitative research data, verbatim ongoing To participate in the research and to customer feedback and various 10 research 20 be able to respond to questions on brand interviews. Together, these a specific brand, respondents must elements offer a detailed snapshot of distinct have interacted with that company New Zealand’s customer experience countries Telecoms in the last six months. At least 100 performance. The characteristics Travel and hotels respondents per brand were required of the New Zealand market were for that brand to be included in the then compared against global trends final research results. 115 brands met identified by the parallel research 2 years the threshold. of nineteen other markets, and of research covering incorporated into KPMG’s 2019 The CEE methodology, including New Zealand market international, large-scale customer Entertainment Public sector the Six Pillars, are the DNA of every experience study. and leisure outstanding customer experience and the fuel that powers fast Research results were channelled business growth. As the fundamental to give an assessment of Customer components of an ideal customer Experience Excellence (CEE) in experience, the Six Pillars are the core New Zealand, including a ranking of structure around which this research New Zealand brands by Customer is built. Experience Excellence score as awarded by customers. Customers were asked to respond to questions relating to each pillar for each brand they had interacted with. Brands were then assigned a score out of ten for each of the Six Pillars and these were combined to give an overall customer experience score, followed by an evaluation of Experience to value Experience to value 8 9 A New Zealand Story A New Zealand Story

Personalisation Resolution Using individualised attention Turning a poor experience to drive emotional connection. into a great one. The Six Pillars Personalisation is the most valuable Customer recovery is highly important. component of most experiences. Even with the best processes and It involves demonstrating that you procedures, things will go wrong. Great understand the customer’s specific companies have a process that not only circumstances and will adapt the puts the customer back in the position of experience experience accordingly. Use of name, they should have been in as rapidly as individualised attention, knowledge of possible, but also make the customer “The Six Pillars break apart qualitative preferences and past interactions all add feel really good about the experience. up to an experience that feels personal. A sincere apology and acting with experiences in a way that is measurable urgency are two crucial elements of excellence and pragmatic. This enables successful resolution. organisations to better understand Integrity their customers and make targeted Being trustworthy and engendering trust. The Six Pillars methodology Time and Effort improvements.” Integrity comes from consistent Minimising customer effort of customer experience organisational behavior that demonstrates -Dylan Marsh trustworthiness. There are trust-building and creating frictionless processes. was developed to provide KPMG New Zealand Customer Profitability Lead events where organisations have the Customers are time-poor and increasingly need to publicly react to a difficult looking for instant gratification. Removing a precise and practical Based on over 3 million detailed consumer evaluations, situation, and trust-building moments unnecessary obstacles, impediments and definition of the kind of the Six Pillars have been validated in 20 markets and where individual actions by staff add up bureaucracy to enable the customer to modelled against the commercial outcomes of retention to create trust in the organisation as a achieve their objectives quickly and easily emotional outcome a and recommendation. whole. For all customers, it is the degree have been shown to increase loyalty. to which the organisation delivers on its Many companies are discovering how successful experience The Six Pillars are inextricably intertwined and, in promises that is consistently top of mind. to use time as a source of competitive needed to deliver. combination, provide a powerful mechanism to help advantage. Equally, there are clear cost organisations understand how well their customer advantages to saving time, as long as the other pillars are not compromised. experience is delivered across channels, industries and Expectations “In the past year we have seen company types. The leading firms demonstrate mastery customers across New Zealand of these pillars and are outstanding at all of them. Managing, meeting and exceeding customer Empathy and the rest of the Asia Pacific expectations. Achieving an understanding putting personalisation and of the customer’s circumstances Customers have expectations about integrity at the top of their list how their needs will be met, and these to drive deep rapport. of expectations. To be more are increasingly being set by the best Empathy is the emotional capacity to Pillar impact on loyalty and advocacy brands they have encountered. Great show you understand someone else’s personalised, organisations organisations understand, deliver and Each of the Six Pillars are weighted based on their experience. Empathy-creating behaviours need to more effectively use – if appropriate – exceed expectations. are central to establishing a strong statistical correlation to advocacy and customer loyalty. data. To demonstrate integrity, Some are able to make statements of relationship and involve reflecting back The below illustration highlights their respective links to clear intent that set expectations (“never to the customer that you know how organisations need to ensure they commercial outcomes. knowingly undersold”) while others set they feel, then going that one extra step are trustworthy, in particular in the expectation accurately (“delivery in because you understand how they feel. 48 hours”) and then delight the customer their values and the protection % % when they exceed it. 14 18% 12 of customer data. This tension 23% between personalisation and % 18% integrity is where organisations 16 Advocacy Loyalty 19% need prove they can be trusted 18% % with customer data.” 15% 14 % – Carmen Bekker, Partner KPMG Australia 18 15%

Personalisation Integrity Expectations

Resolution Time and Effort Empathy Experience to value Experience to value 10 11 A New Zealand Story A New Zealand Story

2019 Customer Experience Excellence Leaders 2019 state of 01 02 Singapore Airlines 03 Air New Zealand 04 Mighty Ape the nation TSB 05 Mitre 10 06 Unichem 07

PAK’nSAVE BNZ New World Financial 08 09 10 services The 2019 research has nearly doubled in scale from TSB the 2018 results. Last year we saw 64 brands ranked Our 2019 Customer Experience Excellence Champion, a in New Zealand, whereas 2019 saw 115 brands wholly New Zealand owned , is one that operates with Other New Zealand owned and operated brands in the 2019 New Zealanders have pride in the brands they connect ranked. This expansion of the research made it more an authentic, customer first philosophy. TSB’s highest scores top 10 include Unichem and Kiwibank, where stong scores with, and have a high degree of loyalty to those brands that competitive overall, resulting in several new brands in against the market are Empathy and Resolution, a testament in Empathy and Integrity and repeated themes in respondent continuously provide to their changing needs. The 2019 the study achieving top rankings. to their support of Kiwi customers and their communities over comments give a notion to the way they show a considerate customer experience leaders all show clear regard towards their 160+ year history. In comparison to 2018, New Zealand organisations level of care and commitment to good outcomes beyond the the importance of loyalty and positive advocacy, These have raised the bar on customer experience, Singapore Airlines transaction. Customers of grocery giants PAK’nSAVE and brands understand that brand perceptions are often the highlighting that today’s experience is unlikely to meet Singapore Airlines, an international focused carrier, scored New World felt their expectations were frequently met or product of repeat experiences and interactions, and that a customer expectations in the future. The average highest against the market average in Empathy and exceeded, with strongest scores in the pillar of Expectations. long-term view is crucial to maximising the potential life-time brand score in the 2019 study was approximately Expectations, reflecting its attention to delivering the highest value that each customer carries. 3% higher than the 2018 score. levels of customer service in a genuine manner. With the expanded scale of the 2019 research, many Air New Zealand returning brands moved down in the rankings, while CEE metric of top 10 leaders: 2019 vs. 2018 Air New Zealand, New Zealand’s largest airline providing only a select few grew significantly faster than the domestic and international travel, scored highest in Integrity TSB average rate of the overall market. and Expectations, evidence of its people centric culture and In addition to the expanded scale and increased hospitality excellence, where they put significant emphasis on Singapore Airlines Not included in 2018 market average score making the field more the human connection. competitive, this year saw internationally-based Air New Zealand brands with an increased presence in the upper 50th Mighty Ape percentile - in 2018 international brands were only Ranked 4th, Mighty Ape is a leading online shopping Not included in 2018 Mighty Ape 22% of the upper half whereas 2019 was comprised platform, having grown from a singular retail gaming of 36% international brands. shop into one of New Zealand’s largest e-commerce retailers, offering a wide variety of products and services. Mitre 10 2019’s top ten customer experience leaderboard has Mighty Ape’s highest pillar scores against the market seen six brands return and four new entrants, where are Resolution and Time and Effort, reflecting their Unichem the arrival of well-respected brands TSB, Singapore commitment to customer service excellence and fast Airlines and Mighty Ape resulted in a downward shift execution of product deliveries. Kiwibank for 2018 leaders. Mitre 10 BNZ stood out as the organisation that experienced Mitre 10, New Zealand’s largest home improvement and PAK’nSAVE the most significant improvement from 2018 to garden retailer, ranked 5th, is a wholly New Zealand owned 2019, improving at a faster rate than any other brand, and operated co-operative organisation. Mitre 10’s highest BNZ pulling the bank into the top 10 overall in 2019. This pillar scores are Resolution and Time and Effort, which are is reflective of the bank’s investment in a customer- exemplified in the way the organisation takes the time to centred transformation programme focused on New World understand and support individual customer needs. engaging Kiwis in new ways to help them meet their 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 financial goals. 2018 2019 Financial services Travel and hotels Grocery retail Non grocery retail Experience to value Experience to value 12 13 A New Zealand Story A New Zealand Story A Luxembourg story Customer Maximise your experience economics return on

Spotlight on: Mighty Ape To find out how exceptional customer experiences influence revenue investment Mighty Ape places a tremendous amount of value and profitability growth, we compared the financial performance of the into staying close to the customer. One of the ways organisations at the top, middle and bottom of the 2019 New Zealand Many customer experience programmes spend much the ecommerce retailer put this into practice is by CEE results. of their time and investment targeting transformational encouraging their customers to leave a comment change to ‘delight customers’. After all, this is what makes on every transaction. All messages are read by their headlines and drives excitement. leadership team, where they focus their attention on We found that outstanding customer experience is aligned with significantly greater financial returns. where they can improve, and work to act on issues However, for many organisations this approach results in right away. failed transformation programmes and sub-optimal return on investment. There are two key drivers that create a lack “All feedback goes directly to our leadership team. We read every piece of feedback we get, where 1 of confidence in customer experience investments that Compound Annual Growth Rate of 2019 CEE Brands negative comments take priority for us. We have should be considered: the tools in place that means feedback from any source gets to the right people to address issues 1. Negative experiences are worth more than positive % Revenue Growth Analysis shows experiences quickly. Our service teams resolve matters right as they are raised.” 7% Nobel Prize winner Daniel Kahneman and his colleague – Simon Barton, Mighty Ape Founder and CEO Amos Tversky discovered that people have an innate tendency to avoid losses. Simply put, they found that 6% losses hurt more than gains feel good. In fact, their ground- 1.7x breaking research found that losses are approximately “Great organisations factor customer 4% % Revenue twice as powerful as equivalent gains. growth: Leaders When we study customer experience, loss aversion insight into all of their investment vs. Laggards decisions. Simply put, they don’t waste 0% 5% 10% 15% is very much at play. Successful organisations – often guided by a customer-centric CFO – use this psychological money on things that do not matter to Leaders Middle of the pack Laggards understanding of how we perceive loss (and negative their customers.” experiences) to focus organisational strategy and allocate investment. By doing so, organisations and customer -Baxter McConnell experience teams can realise faster, higher-value wins. KPMG New Zealand Customer Experience Lead % EBITDA Growth2 This results in the organisation having more confidence However, many great organisations achieve a superior and commitment to customer experience excellence, and Analysis shows return on investment by preventing negative experiences ultimately translates into increased investment in larger from ever happening. How? It’s simple, they do what they 13% initiatives that deliver more transformative experiences. say they’re going to do. Leading organisations rarely have 2. Reducing negative experiences is usually easier to misalignment between what customers expect and what 10% execute and less expensive to accomplish they deliver. To achieve this, they ensure that the customer is always represented when decisions are made and utilise Consider your favourite brands. Do you love them because 13x data and insights to consistently deliver against what their they do things for you that are wildly different from their 1% % EBITDA growth: customers need and value. Doing this does not require competitors or because they do the little things right and Leaders vs. Laggards dramatic, transformational change, but rather disciplined consistently meet your expectations? The majority of 5% 10% 15% execution and efficiency to get all of the little details 0% customers prefer the later. Yet, many organisations strive right, and thereby preventing negative experiences from for the former and waste tremendous amounts of capital Leaders Middle of the pack Laggards happening in the first place. and effort to go for a vision that has been created internally, oftentimes with very little actual customer insight.

1 This analysis is based on avaliable financial information from FY15 to FY18 financial data for organisations in the 2019 NZ CEE study 2 EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation. Experience to value Experience to value 14 15 A New Zealand Story A New Zealand Story

Largest gender gap: 9%Vodafone Top value brands greater satisfaction among female in New Zealand respondents

AliExpress +21%

Skinny mobile +20% New Zealand’s most New Zealand snapshot satisfied customers: Kmart +19% Gisborne and Hawkes Bay higher than scores of perceived value for money* 5.1% NZ average

The 2019 research is an accumulation of over 29,000 brand Viewing consumers’ favourite brand by age band provides Favourite Brand: evaluations from across a wide demographic, segmented unique insight into the changing needs of consumers as Domino’s throughout 16 New Zealand regions. they move through life stages. Financial Services is most Favourite Brand: important in the 55+ group, with TSB the leading brand, Financial services performed strongest in eight of these 9.6% House of Travel whereas scores skewed upwards in telecoms in the 18-24 regions, while grocery retail ranked highest in four. Standout higher scores in the age group, with the leading brand of Skinny Mobile. brands unique to individual locations and not in the top 10 upper South Island* 17% that showed through included Domino’s, House of Travel A link between greater Six Pillar successes, with higher higher scores and Farmlands Co-operative Society. Considering how loyalty and advocacy measured by Net Promoter Score in * respondents rated brand’s value for money, Skinny Mobile, scores was visible in results. However, loyalty and advocacy Ali Express and Kmart all emerged as top ranked leaders. do not always move up or down together. Consumers Favourite brand: Overall, brands were ranked more favourably in the North rated some brands as highly likely to recommend to others, Farmlands Co-operative Society Island than in the South Island, driven by some standout despite having a relatively low likelihood of purchasing with examples like energy retailers, where scores are 11% lower the brand in the future. This is an important signal for brands in South Island regions, compared to North Island regions. to diagnose, as it can result in short-term growth that is 13% Scores were notably higher overall in regional areas when offset by high-levels of customer churn. higher scores comparing New Zealand’s urban and region split, reflected in in lower South Island* specific brand groups like telecom providers, who showed much greater regional scores. *above national average

NZ 2019 Sector Sector performance vs NZ average % difference in NZ sector Average score by age band Six Pillar scores % change: 2018 vs 2019 sector ranking CEE score vs 2018

Min. Avg. Max. 1st Financial services 3.9% -2% 7.4

nd 5.6% 2 Grocery retail 3.1% 0% CEE metric

rd 3 Non-grocery retail 1.5% -1% 7 4.1% 4th Entertainment and leisure 0.7% 6% % change 2018 vs 2019 3.5% 5th Travel and hotels 0.5% 1% 6.7 6th Utilities -0.2% 3% 2.2% 18 - 24 25 - 34 35 - 44 45 - 54 55 1.9% 7th Restaurants and fast food -0.4% 2% 1.4% TSB 8th Telecoms -5.9% 1% Mitre 10 Mitre Personalisation Time & Effort Expectation Integrity Resolution Empathy 9th Logistics -7.8% 3% Skinny Mobile Skinny Contact Energy Air New Zealand 10th Public sector -13.9% N/A Favourite brand by age band

-20 0 15 NZ minimum NZ avg. NZ maximum Experience to value Experience to value 16 17 A New Zealand Story A New Zealand Story A Luxembourg story

Defining & Delivering TSB Customer Outcomes Case Study “TSB is the best bank - Financial “Good customer outcomes are what we set out to services have been with them for achieve for all people who choose to bank with us. 40 years, they always have For TSB this means going beyond excellent customer done their best, especially 1st place overall service. It’s about making sure we have the right 2019 TSB, New Zealand’s seventh largest products, systems and processes in place for our at difficult times when customers to meet their long-term needs. changing houses. They bank provides banking services to New Financial decisions are some of the biggest - and bent over backwards to The Six Pillars: Zealanders on the same principles it sometimes scariest - choices people will make. In create a unique process to Scores vs market average was founded on over 160 years ago. order to achieve good customer outcomes, we aim to help us when other Unlike other banks, TSB is owned by make sure people know all their options and get the had refused us.” right support along the way.” a philanthropic trust, where profits – 2019 CEE Respondent – Justine St John, TSB General Manager are invested in the communities their Marketing & Customer Experience +12% +15% customers and staff work and live in.

As part of their customer-first philosophy, TSB’s purpose is to help TSB has partnered with Microsoft to transform the New Zealanders get ahead. They do this through focusing on the technology platforms that support their staff and customers, +16% +17% genuine needs of their customers, and taking the time to gain an including rollout of Microsoft Dynamics 365 to enhance “I adore TSB. I have been understanding of who they are, their life stages, and their goals. customer service management. This helps to get the banking with them for best possible outcomes for customers as it ensures they a long time now and “TSB are great, they are the best bank I’ve been continually monitor their needs and proactively identify with for years. They value me as a customer, have solutions along their customer’s financial journey. I have never had any great service and are genuinely Kiwi.” major issues. When I do, As with many customer experience leaders in New they respond quickly and +11 % +20% – 2019 CEE Respondent Zealand and internationally, customer insights are core to understanding the changing needs of the customer, and are sort my issues with no Delivering good customer outcomes is a top priority for TSB. At all levels essential to success for TSB. They have recently introduced hesitation.” of the organisation, TSB has removed individual sales-based incentives. In our experience scores greater than 5% a customer resolutions specialist who carefully measures Performance measures are now entirely focused on getting the best – 2019 CEE Respondent over the market average are likely to drive feedback from customers and identifies pain points. Leaders outcomes for customers. TSB also utilises a peer recognition system significant results. and managers across the organisation have easy access to which gives their people the chance to highlight when someone goes rich insights, including voice of customer feedback, which over and above for customers. It is used daily to recognise individuals and they share regularly with their teams to ensure continuous reward good conduct. The recognition system clearly demonstrates to improvement at every level. other team members how they can go the extra mile for their customers. Integrity and empathy, two of the most challenging of the “Our people are empowered to truly take the time Six Pillars to excel in for many organisations, come naturally Doing the right thing for to get to know their customers, to figure out the to TSB. Customers recognise the unwavering commitment our customers has always best journey for them at TSB, to understand their the bank has always made to its people over its long history, been our ethos, we’ve never from continual refusal to sell to mergers, and through the needs and help them achieve their financial goals.” had an aggressive sales- strength it brings to its community focused owner, the TSB based culture.” – Justine St John, TSB General Manager Community Trust. Marketing & Customer Experience – Justine St John, GM Marketing & “I have been a customer for 20 years and have had nothing but good service.” Customer Experience – 2019 CEE Respondent Experience to value Experience to value 18 19 A New Zealand Story A New Zealand Story A Luxembourg story

Singapore Airline’s commitment to empathy and personalisation is evident in their newly launched ‘myKrisWorld,’ inflight entertainment system. myKrisWorld can be linked to an individual’s KrisFlyer account, enabling the system to not only make predictive recommendations based on past viewing history, but also allow passengers to continue watching a movie from their last flight, picking up from exactly where they stopped watching previously. Case Study Singapore Airlines “I was flying to Melbourne and I had Travel and a great time. The in flight food was hotels amazing and there was a large variety of entertainment on the flight.” 2nd place overall 2019 Singapore Airlines has a rich, 72-year – 2019 CEE respondent history of going above and beyond to In New Zealand, Singapore Airlines understand that travel agents play a critical role in many customers’ journeys. The The Six Pillars: deliver exceptional, highly personalised airline works closely with agents to ensure consistent brand Scores vs market average experiences. While consumers scored messaging and a seamless customer experience. the airline highly for all Six Pillars, the “For us the journey starts when a customer three highest scores were for Empathy, starts planning their trip and logs onto a Expectations and Integrity. website or walks into a travel agent. That’s % % ultimately for us the start of their customer +11 +15 experience. We are looking to make sure Singapore Airlines provides a world-class experience, through a culture that right from that moment, we know of paying close attention to even the smallest of details. All employees, what that customer is looking for, what from the CEO, to the finance team, to crew members, are trained to their preferences are, and then making consider how their work directly impacts the customer experience. sure that’s integrated into every touchpoint +16% +8% “Flew with them late last year and they are going through. From the moment they brilliant. We had pre-ordered kids’ meals but finalise their booking, a welcome at the somehow the message didn’t make it to the lounge, their on board experience, all the flight staff. No matter, they made it work, and put way through to when the return home,” together sandwiches, fruit and some wee snacks – Kenny Teo, Singapore Airlines for our kids. All with a smile and fuss free.” +7% +18% General Manager New Zealand – 2019 CEE respondent Singapore Airlines believes that tomorrow’s customer is Over the last eighteen months, the global airline has invested further likely already today’s customer, and understands that over In our experience scores greater than 5% in its customer experience by establishing a dedicated Customer time their needs may change significantly. There is an over the market average are likely to drive Experience Division, run by Senior Vice President Mr. Yeoh Phee Teik. imperative on always learning more about their customers, significant results. This division is a cross-functional team of customer insights specialists, understanding emerging patterns and finding new ways to ethnographic researchers and data scientists who are responsible for ensure customers’ expectations are being met. dissecting every aspect of the customer experience and providing the “We don’t underestimate the power of organisation with the tools and insights they need to meet customers’ diverse expectations. word of mouth or social influence, in terms of the feedback that our customers I travelled to India by Significant investment in customer experience management systems has enabled the centralisation of customer data, collated from both give to their friends, families and their Singapore Airlines. qualitative and quantitative sources across every stage of the customer colleagues. One person’s experience with Professional people, journey. Automated analytical systems examine how customers are us can potentially influence four or five luxury experience and free navigating the booking and check-in process. Meanwhile, lounge and others when they are making their next bus for the city tour...what cabin crew staff enrich customer profiles through engagement and travel decision.” else you could ask for?” observation, making note of individual preferences, covering their needs, likes and dislikes. This rich collection of data allows Singapore – Kenny Teo, Singapore Airlines – 2019 CEE respondent Airlines to make strategic decisions based on trends and customer General Manager New Zealand patterns, while individualised data provides the basis for personalised messaging and engagement from airline staff. Experience to value Experience to value 20 21 A New Zealand Story A New Zealand Story A Luxembourg story

Singapore Airlines Case Study Air New Zealand Travel and & Air New Zealand hotels 3rd place overall outpace their sector 2019 Air New Zealand, New Zealand’s largest “Our observation is that Air airline, knows that its power is in its New Zealand is exceptional in its ability Singapore Airlines and Air New Zealand to look at customer experience in three The Six Pillars: people: their success is critically linked to are exceptional amongst the Travel and time windows. They consider individual Scores vs market average how customers are treated by their staff. Hotel sector, which is relatively average transactional journeys, they care for as a whole. Travel and Hotels ranked customer experiences over lifetime 5th out of the 10 sectors surveyed Carrying 17 million passengers annually, the company has worked to ensure relationships, and they constantly with a considerable distance between all of their nearly 12,000 staff are engaged in providing an experience to the reimagine what the journey of the future customer that retains a uniquely kiwi persona of being warm, down to earth, the brands at the top and those at the % % will be.” +9 +11 and good humoured. bottom. “We place the importance of human connection — Simon Hunter, Partner KPMG New Zealand A commonality across Singapore and interaction at the forefront of our service and Air New Zealand know that the continued success of the Airlines and Air New Zealand’s our people are pivotal in bringing the components company is based on customer loyalty, which means ensuring success is that both brands obsess of the journey together with empathy and passion an exceptional customer experience will always be crucial. Air over customer needs and invest a New Zealand embodies this by ensuring that the customer +11 % +8% for the brand.” considerable amount of time and is always at the heart of their decision-making. They utilise resource into the science of execution. ­­– Nikki Goodman, Air New Zealand General Manager customer journey mapping, human centred design, and robust Customer Experience customer satisfaction metrics to ensure that they design their processes and procedures to suit customer’s requirements An example of their commitment to this is the establishment of the when they travel, including when things go wrong. Customer Connections programme. This is a training programme for Nikki Goodman, General Manager of Customer Experience, % % their customer facing staff and works to teach staff heightened empathy +8 +10 acknowledges that while they can’t always be perfect, it in challenging situations. +15% is how they handle tricky situations that sets them apart: Air New Zealand has found dynamic ways of expanding their digital “We ensure that we are upfront when things don’t go to Singapore Airlines +12% In our experience scores greater than 5% offerings to ensure their services are at the forefront of developing plan. Sometimes the hardest thing to do is say sorry, we Air New Zealand +10% over the market average are likely to drive technology, such as their in-app pre-order coffee feature for regular got it wrong. We ask our people to own situations and significant results. customers, while still being rooted in human engagement. communicate with integrity.” “As we continue to seek ways to enable people “Air New Zealand is our preferred airline digitally, we won’t shy away from the fact that due to their quality of service, their aircraft New Zealand the moments of human engagement are a key and their rewards program” Market Average differentiator for us. We encourage our people Air New Zealand staff are – 2019 CEE Respondent welcoming to all customers. to simply be themselves which gives them They have great customer permission to create moments of magic “Well maintained fleet, very helpful board services, a great way of for our customers” crews and ground staff, well equipped and modern lounges and competitive pricing. helping people with problems – Nikki Goodman, Air New Zealand General Manager -12% that they might have, and Customer Experience. Always my first choice of airline.” can solve a problem without – 2019 CEE Respondent making a big deal out of it.” -20% – 2019 CEE Respondent

Travel and hotels Experience to value Experience to value 22 23 A New Zealand Story A New Zealand Story

Case Study BNZ Financial services

Largest mover 2019 BNZ recognises that to be a leader in customer experience, you must first know The Six Pillars: and understand your customer. They Scores vs market average promise to always listen, and to always show understanding of each customer’s individual needs.

+6% +8% As our most improved brand in 2019, BNZ experienced more improvement “Customer issues are an important part than any other organisation in our research between 2018 and 2019. The of constantly improving our customer key drivers behind this were through the pillars of Expectations and Time & experience and they are reported on across Effort. Customer comments reflected that processes are always improving the business and to the Executive team and getting easier, and that constantly delivering on customer service on a regular basis. Not only do we try to % % fundamentals drives real customer confidence. +6 +8 resolve issues, we learn from them as well.” At BNZ, everyone across the bank has a responsibility to deliver outstanding customer experiences. Senior leaders from every part of the – Angela Mentis, BNZ CEO and Managing Director organisation get out across New Zealand at least once a quarter to talk to BNZ actively looks beyond financial services and the New staff, customers and communities face-to-face. This is a consistent theme Zealand market to anticipate what tomorrow’s customers will we have seen among customer experience leaders. They obsess over need and want. Customers expect their bank to be as easy customer detail, and play close attention to issues that arise at the frontline. % % to interact with as the other services they use every day. +5 +8 BNZ has recently introduced three new Chief Customer Officer roles, one BNZ understands that it is paramount to stay ahead of the CCO dedicated to each of their three core business units, ensuring strong ever-changing expectations of their customers, and in order to customer representation at the executive table and in all decision making. In our experience scores greater than 5% do this has created new ways of working such as customer- Trust is earned over time, and BNZ builds relationships for the long term, over the market average are likely to drive centred design teams and rapid prototyping of ideas. valuing the importance of being there for customers during important life significant results. events. BNZ recognises that customers’ needs shift and evolve as they “Great customer service in store and go through life and that in turn, what they need from their bank changes online. Phone and app services are too. This lesson applies across personal and business banking, where their very good and always improving. Good new Partnership Banking model focuses on delivering seamlessly for all competitive home loan rates.” customers, drawing on expert local knowledge across all of New Zealand’s All the staff are so lovely and centres and regions. – 2019 CEE Respondent helpful, both in the branch “When our customers talk with us, they know that “I wanted to buy a home and approached and on the phone as well. I’m we understand what is happening where they live them as a loyal customer to see what happy with all my financial and operate.“ they could do for me. I was astounded at products and the service I how quick and easy it was.” receive is amazing.” – Angela Mentis, BNZ CEO and Managing Director To ensure customers are getting the best from BNZ, they have a robust – 2019 CEE Respondent – 2019 CEE Respondent customer resolution oversight process. Using data and analytics, they provide timely resolution while undertaking root cause analysis to identify issues that may affect other customers. Experience to value Experience to value 24 25 A New Zealand Story A New Zealand Story

QVC Lush Non Grocery Retail, UK Non Grocery Retail, UK (2018 rank in Lessons from global leaders (2018 UK Rank 1st) top 10 in multiple countries) QVC leverages digital to drive Lush connects to customers through understanding and connecting with shared personal values, personality and the customer. QVC has enhanced brand campaigns. This personalisation is A consistent takeaway from our interviews with CEOs and Chief personalisation across a multitude of magnified and lived by staff at the point of Customer Officers is they recognise that what they are striving to achieve products and channels. in-store service. Singapore Airlines Netflix today will set the industry expectation for tomorrow, and will be rapidly Travel and Hotels, Singapore Entertainment and Leisure, USA adapted as standard practice. (2018 Australia Rank 1st) (2018 LUX rank 12th) Singapore Airlines combines a multi- Netflix has rapidly evolved to flex its mix year view of future journeys with use of of content to reflect the needs of 140 personalised data to shape the experience million subscribers in 190 countries. Their response is to keep improving, These customer experience leaders of every flight and improve all experiences. Hilton Hotel and Resorts by reimagining the future in three-five increasingly leverage this approach to years and designing for that. A lot increase the pace and effectiveness of Travel and Hotels, USA (2018 rank in top 10 in multiple countries) of these leaders also systematically their improvement activities. We have

Hilton Hotels captures insight from disaggregate the whole journey into highlighted a number of exemplars multiple sources to deliver highly components, and look across industries from the global 2018 CEE as a starter individualised experiences based on for relevant insight at each stage of the for New Zealand organisations to customer journey and experience. explore in their quest for improvement. individual customer profiles. This is a powerful tool for organisations Air New Zealand Emirates as diverse as airlines and hospitals - to Travel and Hotels, New Zealand Travel and Hotels, UAE break down the customer journey and (2018 NZ Rank 2nd) (2018 UAE Rank 2nd) actively study and adapt features of Air New Zealand transformed their culture Emirates uses journey maps and experiences from leaders like Hilton from “we fly planes” to “we fly people” continuously reassess the experience it Hotels, Disney, Apple and Alipay. to connect NZ to the world. Data and delivers to different types of customers customer insights drive innovation that embarking on different journeys. is used to understand future needs and Disney Parks Topdanmark Alipay meet expectations with discipline today. Entertainment and Leisure, USA Financial Services, Denmark Financial Services, China (2018 USA Rank 3rd) (2018 Denmark Rank 1st) (2018 China Rank 1st) Disney creates a seamless magical Topdanmark focuses on helping Alipay’s digital capability enables it to experience for guests. The magic is powered by process to meet and customers maximise benefits and understand ‘all potential points of time exceed expectations. minimise cost. It is loved for being “fair, wasting’ for customers and design new kind, honest and efficient.” solutions that address these. SG Express Taj Hotels, Resorts and Palaces Amazon Paypal Logistics, China Travel and Hotels, India Non Grocery Retail, USA (2018 Rank in Financial Service, USA (Rank in top 10 (2018 India Rank 1st) top 10 in multiple countries) in multiple countries) SF Express is one of the few logistic enterprises with a high CEE rank. If things go wrong, Taj staff are empowered Amazon leverages digital to remove the Paypal created a trusted independent Resolution is driven by driver culture and to use judgement to fix things even when many steps and friction in every transaction point in the transaction process to emphasis on going above and beyond to this involves significant cost. and control the accuracy of delivery. illuminate delays. fix problems at speed, and “fast claims settlement for refunds. Navy Federation Credit Union KLP Financial Service, USA Financial Service, Norway Farmlands Co-operative Society Apple Stores (2018 USA Rank 1st) (2018 Norway Rank 1st) Non Grocery Retail, New Zealand Non Grocery Retail, USA (2018 NZ Rank 1st) (2018 Italy Rank 1st) The organisation is driven by values of KLP strongly believes in responsible integrity, commitment and service. This investing and ensures investments are Farmlands does not see itself as a retailer Apple is renowned for its digital is enabled by the emotional link to navy both ethically and environmentally sound. but rather a way of life where customers leadership, but its physical stores are service and is supported by data analytics are shareholders who are mutually actually designed around a community to capture feedback. interdependent. Shareholder-customers gathering place where people feel feel personally known in their local stores. comfortable.

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Seven key steps Building trust and delivering to delivering good good customer outcomes customer outcomes Integrity and its outcome, trust, are the foundation of any good relationship. But how This year’s research highlights the strong link between the Integrity pillar, “Trust is a two-way street that requires do leading organisations build and engender which measures the extent to which customers trust organisations, organisations to put themselves in the trust? There are a few critical steps: and customer loyalty. The below diagram illustrates that, with very few customer’s shoes and consider long-term customer outcomes.” 1. Commit: A long-term commitment to good exceptions, the brands who score highly in Integrity also have an extremely customer outcomes is required - from the -David Clay KPMG New Zealand Board down - to drive meaningful, lasting loyal customer base. change. Pricing & Analytics Lead 2. Define: Clearly define what a good and bad The 2019 CEE data shows that the brands who prove customer outcome is, taking into account Integrity - the foundation of customer loyalty For New Zealand organisations, this means looking trustworthiness in the eyes of customers and the your brand promise and broader operating 9.00 beyond quarterly earnings statements and having community will receive their reward in a passionately loyal environment. conviction that doing right by customers (which doesn’t customer base who votes with their wallet. 8.50 always pay in the short-term) will ultimately create a win- 3. Identify: Identify key lead and lag indicators of Customers want to know that when they approach a potential customer outcome issues. 8.00 win-win scenario where the customer, organisation and provider, they will not walk away having purchased products society all come out ahead. that they do not need, or that they do not understand. 4. Measure: Provide transparent data throughout 7.50 The Conduct Spotlight the organisation that is personalised to Integrity In the FMA/RBNZ’s joint review of bank conduct and employee role and responsibility. 7.00 The focus on behaviours and conduct of organisations in the culture, they defined delivering good customer outcomes 6.50 financial services industry has been significant over the last as being “how the bank has embedded a customer-centric 5. Prevent: Determine the actions that can be year, and in New Zealand, for banks and insurers particularly. perspective in the design and delivery of their products and taken to fix the root cause and prevent future 6.00 services to ensure customers understand the products and issues from occurring. However, if we look overseas at the issues seen in industries services they are receiving, and that these are appropriate 5.50 ranging from technology to aged care to food and beverage, 6. Resolve: Establish a plan to urgently and for them on an ongoing basis.” empathetically resolve any customer issues it is reasonable to anticipate that regulators will shine the 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 that do occur. conduct spotlight on other industries at some point sooner Loyalty than later, especially at industries with greater numbers of 7. Deliver: Build a customer-centric culture that vulnerable customers. Increasingly, we’re seeing that customers are drawn to does not reward chasing ‘bad profits’. organisations that display values and convictions beyond It is fair to say that regulatory expectations have not simply making money. They seek organisations that changed, rather, the current environment has focused the Spotlight on: TSB communicate their core beliefs openly and credibly, that are spotlight. Successful organisations must put customers at built around a compelling purpose, and where the ‘why’ and the centre of everything they do, to demonstrate not only TSB has the highest overall score in Integrity and a the ‘how’ is as important as the ‘what’. to regulators, but to customers and the public; that they are passionately loyal customer base. It is no accident that consistently delivering good customer outcomes. Customers form trust based on their overall experiences, not the bank performs well, given that Integrity and good customer outcomes are top priorities for the bank just their short-term immediate experience, but rather the Successful organisations are proving that they are aware of – so much so that they removed all individual sales long-term experience and outcome they ultimately receive. what the community, and their customers, expect from them, incentives and refocused performance measures on Trust is built slowly, over every interaction, touchpoint and and continually adjust their behaviour to deliver good customer getting the best outcomes for customers. social media post. For organisations who get it right, they outcomes and avoid falling short of these expectations. prove that they do not take advantage of customers and stay true to their brand promise ensuring their brand is is the sum total of its words, deeds and operating philosophy. 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The insight ecosystem Closing the loop –

The most successful organisations proactively respond to and shape customer recovery customer needs by using research, data and analytics to drive customer- centric decision-making across the entire business.

Within large organisations there is imperative to connect the At the strategic level the outer loop enables central In combination, it provides the orchestrated management The insight ecosystem captures the multiple elements insights of frontline experiences with wider organisational staff team to identify the systemic issues experienced of data, action and outcomes to address the challenges that play a role in compiling, managing and activating improvement. The inner loop which operates at the local by multiple customers and, using root cause analysis, insights team often face. insight. It illustrates the role of the insight department: level is focused on customer recovery and learning and diagnose the issue and develop solutions. The continual increasingly as the facilitators of the insight into action Tomorrow’s insight driven organisations improvement. Negative feedback prompts the local team to monitoring of feedback then enables the central teams to process. In its totality, the insight ecosystem is a best re-contact the customer and address the issue. Speaking monitor the effectiveness of those solutions. practice set of structures, people and processes that Organisations will need to be able to manage and react to to the customer enables the team to see the issue from translate empirical evidence into economic success. customer insight in real time, which requires new, more the customer’s perspective and gives insight as to how The insight ecosystem operates on three levels: agile operating models. It requires insight departments effect local improvements. It has the effect of improving the that manage the insight ecosystem and the deployment customer culture amongst local teams. Integrates data: Curating and organising data around of insight across the organisation and a new breed of defined business requirements. insight professional: more extroverted, more challenging and more consultative. This includes acquiring insights from internal and external Customer sources, including traditional research, (e.g. feedback, The new technologies such voice to text, real time gives feedback Technology alerts local sentiment analysis and intention prediction will demand surveys etc) and digital sources (behavioural, social, manager to problem operational etc.) This describes how data is organised and a constant stream of customer data which needs to be or opportunity stored in a consolidated way, combined to meet business organised, made sense of and acted upon. requirements and efficiently accessed. Increasingly the unit of analysis and the vehicle for Insights action: Using prescriptive analytics and business implementation of insight driven contact will be the understanding to focus activities. customer journey. Firms will have to learn how to manage and utilise the insight generated and consumed by these The methodologies, analytical techniques and frameworks Inner Loop innovations across the customer journey. that are employed to guide the business to the right actions. Swelling stockpiles of data, advanced analytics Local follow up and intelligent algorithms are providing organisations with action and learning powerful new inputs and methods for making all manner of decisions. Ignites growth: A culture and environment where Spotlight on: Outer Loop insights are used to guide activity. Singapore Airlines Changes made.

From the right governance, through to ‘closing the loop’ Ongoing tracking of effect operationally, to how change portfolios are strategically Few organisations do more than Singapore Airlines managed around customer requirements. to create a customer-centric culture that involves This describes the organisational commitment to using continual insight capture. Lounge and cabin crew insights in the right way. are constantly observing customer behaviour and Root causes driving making note of individual preferences so that they The insight ecosystem is a logically designed set of customer problems identified can continuously raise the bar on the experience connections and standards integrating each component in they provide. the insight value chain to meet stakeholder needs. Read more from the KPMG Customer Experience Excellence Centre, the world’s largest customer experience think tank, dedicated to rapidly improving customer experience by defining what best-in-class looks like for customers around the world. Experience to value Experience to value 30 31 A New Zealand Story A New Zealand Story A Luxembourg story

Improving Journey map considerations Customer journey customer Customer steps Trigger Consider Engage Purchase Use Need help End / renew journeys What steps does the customer go through within each stage of their customer journey? Journey mapping is a technique that breaks down a qualitative experience into a series of logical steps, Operational processes usually in the form of a visual ‘map’. It’s not just a tool for marketing or the customer experience What must the organisation department. In our research and as practitioners, do to deliver for the customer 1 2 3 4 5 6 7 we’ve seen journey mapping and customer at every step? experience insights successfully applied in a number of ways, including: Emotional map –– CEOs using customer journeys and insights to set What is the customer’s Exemplars strategy and future-proof. emotional reaction and how does it impact their journey? Singapore Skinny Mobile TSB New World Air New Zealand Mighty Ape Netflix –– Sales leaders using customer experience insights Airlines to improve customer retention and win rates Economics –– CFOs using customer value mapping to optimise Which parts of the journey Customer experience enablement resource allocation provide value the most - and least - value to the customer –– Front-line staff using the Six Pillars as guide for Feedback CRM Event stream Core customer and the organisation? daily customer interactions Management processing systems Real time customer –– COOs using customer journeys to improve The Six Pillars Customer journey profile management, Pattern recognition, End-to-end customer efficiency and realise cost savings analytics, customer CVM predictive analytics, journey process support, What could be improved for –– CIOs building ‘experience requirements’ into new experience economics anticipatory service knowledge base, digital each of the Six Pillars at every technology development and social media stage of the customer journey? –– CHROs mapping employee journeys to improve collaboration and culture Journey mapping can result in identifying hundreds or even thousands of pain points and opportunities, often leaving decision-makers overwhelmed and without a place to start. Organisations must The employee experience Macro and micro customer journeys maintain clearly defined objectives and utilise It’s not just customers who have journeys. As part of a customer – organisation relationship, Spotlight on: BNZ a methodical way to prioritise improvement Employees do as well. From micro-level macro and micro journeys take place at many opportunities and move them through to execution. onboarding journeys when they join an levels. The macro-level is the customer’s journey BNZ recognise the value of making things For an organisation to achieve success at scale, it organisation and macro-level journeys that span that takes place across an entire experience or simple for their customer. “At BNZ we’re driving requires a clear vision and a long-term commitment years and careers. Understanding employee lifetime. This journey usually spans beyond a singular a customer-centred transformation programme, to customer experience from the entire journeys enables organisations to provide the right relationship and may include multiple organisations undertaken on the basis of ‘making it easier’, organisation. When this happens, the organisation tools, insight and training that employees need to and individuals. Micro journeys are those that can where initiatives such as ‘Selfie Sign-Up’ mean can design their operations around the customer deliver exceptional customer experiences. happen in a singular moment within a human-to- you can now become a BNZ customer without and utilise technology and insights to provide the human interaction. To understand the full influence entering a branch - using only your smartphone.” right differentiated experiences across the Six Pillars. on the customer, organisations should “zoom in – Angela Mentis, CEO and Managing Director, BNZ and zoom out” on the journeys that exist within and beyond what is seen as typical customer experience. Experience to value Experience to value 32 33 A New Zealand Story A New Zealand Story A Luxembourg story A Luxembourg story

Activating the Understand Engage Execute customer experience Brands Product, pricing, and customer strategy The ability to deliver relevant, valuable and consistent products, services, experiences, pricing and offers that Faced with ever-changing are targeted to their intended customer segments. customers and consumers, Personalisation Experience centricity organisations need a fresh The ability to design and deliver a seamless and personal customer experience that continually meets approach to help understand evolving expectations across all physical and digital the complex, underlying and touch points to drive engagement, satisfaction and loyalty. Experience centrically applies to prospects, interconnected drivers of customers, employees and partners. human decision-making. My wallet My connection How we adjust How we connect to Integrity Products/ our share of wallet devices, information Responsive supply chain across life events and each other services The ability for a customer to select, receive and return products/ services when, where and how it is convenient for them and in a way that is enabled through advanced, analytics-driven demand planning, inventory management distribution.

Partnerships alliances and vendor management Expectations The ability to effectively leverage third-party entities to increase speed to market, reduce costs or supplement capacity gaps to deliver on the customer promise My motivation Characteristics that drive behaviour Interactions and expectations The Customer’s Advanced data and analytics Five Mys The ability to harness and use data, analytics and insights to engage and execute in a thoughtful and orchestrated manner across all touch points while also protecting customer data integrity privacy and security.

Resolution Technology architecture and enablement The ability to leverage technology systems and experience to effectively and efficiently deliver cross- My watch My attention channel experiences, provide employee with enabling How we balance Ways we direct our tools and synchronise with partners and the broader the constraints of time attention and focus digital ecosystem. and how that changes across life events Seamless commerce

Time & Effort The ability to deliver a convenient, secure transaction experience that meets customer preferences while ensuring payment technologies are integrated and provide a consistent experience across channels. The Five Mys How these factors work in The Connected Enterprise – they need to connect concert across the different their understanding of the It is the combination of the High-performing People Organisation alignment and people Five Mys that generates life stages and life events organisations recognise that customer right through to The ability for an organisation to marry outside-in of a consumer is the key all their internal capabilities. richer stories, analysis and to become truly customer- customer perspectives with inside-out experience insight into consumer’s to unlocking real insights, centric – and deliver management processes and capabilities, including top- unmet needs, the trade-offs and understanding not just experiences that create Empathy down executive vision, cultural alignment, matrixed and they are making, and the the consumer of today, but value for both the customer agile organisational structure and integrated, aligned performance management. totality of factors influencing predicting what will drive and the company their decisions across the consumer of tomorrow. all aspects of their lives. Read more in Me, my life, my wallet and KPMG Connected Enterprise from KPMG International. Experience to value Experience to value 34 35 A New Zealand Story A New Zealand Story A Luxembourg story

Experience New Zealand hall of fame to value Singapore Air New Zealand Airlines Our New Zealand analysis, TSB 02 03 complimented through discussion with industry leaders here and 01 across the globe, has identified key Mighty Ape Mitre 10 lessons for creating the experiences 04 05 of trust and connection that lead to value in a changing world. 06 07 08 09 10 Unichem Kiwibank PAK’nSAVE BNZ New World

Farmlands 11 AA 12 13 14 Skinny 15 Life Co-operative New Zealand Countdown 1. Customer Experience Excellence Society Mobile Pharmacy Contact us requires a whole of organisation focus, spanning from business strategy to Simon Hunter front-line execution. 16 AA 17 Bunnings 18 19 Farro Fresh 20 ANZ Bank Paper Plus Partner, Advisory Insurance Warehouse Food D: + 64 9 367 5811 E: [email protected] 2. The organisation of today may not 21 22 The 23 24 25 Farmers Health 2000 ASB Bank Hell Pizza be fit for the purpose of delivering Warehouse Baxter McConnell the experience of tomorrow. Customer Experience Lead D +64 9 367 5873 26 27 My Food 28 29 30 Warehouse Barkers Briscoes Netflix E: [email protected] Bag Stationery 3. Organisations need a combination of the elements of disciplined execution and trust. This requires a 31 32 33 Flight 34 35 Kmart Mercury Tank Juice Macpac deeply personalised understanding of Centre customer life and event journeys across the Six Pillars. 36 37 Southern 38 Mad 39 40 Rialto Acknowledgements Subway International Cross Butcher Airport Cinemas 4. Organisations need a long view of future Authors: experience, that responds with agility to both 41 Event 42 43 AMI 44 45 Z Energy Caltex Whitcoulls Simon Hunter, Baxter McConnell, the changing customer and rapid changes Cinemas Insurance Hugh Baird. and innovations being rolled out by the global CEE leaders every day. Contributing Team: 46 47 48 49 Noel 50 Hallenstein Kathmandu Trade Me David Clay, Dylan Marsh, Sharne Leeming Brothers Usherwood, Ian Williamson, Andrew 5. The obsession with customer must be Tubb, Priscilla Mendes, Kerry Salter, Miro aligned with the economic analysis needed Harre and support from KPMG Global. to successfully and profitably serve the current customer and future growth. Design: Financial services Non-grocery retail Grocery retail Travel and hotels Telecoms Renée Norman. Entertainment and leisure Utilities Public sector Restaurants and fast food Logistics home.kpmg.com/nz/customer

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