Tomorrow's Experience, Today
Total Page:16
File Type:pdf, Size:1020Kb
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 financial services 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 Air New Zealand, 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