A Digital Walk to Remember

2019 NL Customer Experience Excellence analysis

October 2019

kpmg.com 2

NL 2019 Customer Experience Excellence Research 5,052 214 10

respondents brands sectors covered

Congratulations! If your brand is ranked in this report, We discuss the importance of brand you have good reason to be proud. According to Dutch purpose and the need to continuously translate your brand values into consumers, the vast majority of brands in The Netherlands the customer experience. We look have improved their customer experience (CX) since last at how some of the leaders are year. And that’s an achievement worth celebrating. using digital solutions to create the ultimate ‘phygital’ experience – the integration of digital into the physical experience. And we explore how However, our research suggests They listen to their customers, consumers’ digital footprints are being those who stand still are quickly take the time to understand their leveraged to create new, innovative falling behind. That’s because needs and priorities, and then and better customer experiences. customer needs and expectations move quickly to meet or even are continuously changing. And exceed their expectations. Ultimately, our report suggests that while that’s nothing new, the Dutch customers are rewarding pace at which these changes are What separates the CX leaders is a those brands that offer them occurring is adding unprecedented deep organisational desire to ensure experiences they won’t quickly urgency. Indeed, in today’s fast- that everyone and everything is aligned forget: a ‘digital walk to remember’. paced digital and customer-centric towards one common goal: to deliver world, it is disrupt or be disrupted. outstanding customer experiences. They are there for their customers, Yet, our research shows that only particularly at their ‘moments of truth’. a few have managed to make the And they put great effort into showing changes necessary to turn their their customers they are valued. brands into truly customer-centric and digitally-enabled enterprises.1 In this report, we go beyond the rankings to explore some This year’s champions, on the of the deeper trends changing other hand, are meticulous about the customer experience Nienke Wichers Hoeth putting their customers at the across today and tomorrow. heart of their organisation.

1KPMG (2017,2018,2019). Global CEO Outlook

Personalisation Using individualised attention to Key findings drive an emotional connection

Integrity Overall Best Customer Experience: Van der Valk Hotels Being trustworthy and engendering trust #1 (8.01) Climbing four places to take top spot in this year’s Customer Experience Excellence (CEE) research, Van der Valk received the highest scores on five of The Six Pillars, scoring second only under the Empathy pillar behind Lush.

Overall Customer Experience rating: 7.23 7.23 The average CEE score increased from 7.14 last year Expectations to 7.23 this year, with more than three-quarters of brands outperforming their previous year’s scores. Managing, meeting and exceeding customer expectations Leading sector: Retail Grocery Retailers scored an average CEE of 7.36, followed by Non-Grocery Retail at 7.32, with new tech-savvy entrants who are actively competing for the heart of the customer.

Rising pillar: Expectations While Personalisation remains the greatest driver of Resolution an excellent customer experience, this year has seen Turning a poor experience into a great one a considerable increase in the importance Dutch consumers place on the Expectations pillar.

Lagging pillar: Empathy Dutch consumers gave brands an average rating of just 6.94 under the Empathy pillar, suggesting most brands still have much work to do here.

Most empathetic brand: Lush (7.87) Time and Effort 7.87 With a CEE score of 7.87 on Empathy, Lush shows Minimising customer effort and that investing time into understanding and responding creating frictionless processes to customers’ unique needs can help establish a strong emotional relationship with customers.

Most improved sector: Hotels and Travel The Hotel and Travel sector increased their performance by around 3 percent over last year and boasts the highest new entrant (Landal entered the rankings at number 11) and the biggest climber (Corendon jumped 82 places over last year). Empathy Achieving an understanding of the customer’s circumstances to drive deep rapport

Experiencing the power of a brand 12

Embracing consumers’ digital footprint 22

Digital footprint in a ‘phygital’ world 24

Customer-led, technology-enabled 26

Research methodology 44

Further resources 45

2019 NL Top 100 Customer Experience Excellence champion 46

Sector highlight: Walk of fame: Non-Grocery Retail 17 ANWB 15

Sector highlight: Walk of fame: Restaurants and Fast food 29 bol.com 20

Sector highlight: Walk of fame: Banking 34 Picnic 32

Sector highlight: Walk of fame: Insurance 37 Centraal Beheer 40

Sector highlight: Logistics 42

Click here to get a quick tour through some of the key highlights presented in this report:

Delivering on higher expectations Our research of consumers suggests that Dutch brands recognise the importance of the customer experience and State of are taking steps to improve it. More than three-quarters of the brands in this report improved their Customer Experience Excellence (CEE) score over last year. And that helped bring the average CEE score up to 7.23 (from 7.14 last year). the nation At the same time, brands in The Netherlands also recognise they are now no longer just competing against peers in their sector, they are competing against every other brand a consumer comes into contact with. Once consumers engage in an exceptional experience they won’t settle for less, regardless of brand or sector. The battle for the customer wallet has reached new heights as The competitive environment is heating up as a result. In customer expectations shift and fact, in our research, the number of brands consumers new entrants change the rules of the ranked as ‘excelling’ (that is, achieving a score of 7.5 or above) increased to a total of 34. The intensified level of game. It’s no longer good enough competition is not only seen in the top of the list, the vast to simply offer a functional service; majority (77%) of brands scored between a 6.5 and 7.5, today’s customers expect every hence minor changes can make a significant impact. At the interaction to be an experience. same time, 21 new brands entered the Dutch CEE Top 100 this year.

The dynamism in our rankings only underlines the need for brands to become even more adaptable in order to respond to customer expectations.

Making it personal Perhaps not surprisingly, Dutch consumers continue to rank Personalisation as the greatest driver of an excellent customer experience. Yet, interestingly, it is the only CEE pillar to have seen a drop in scores versus last year, suggesting that customers highly value Personalisation but may not feel they are seeing enough of it to make them happy.

7.23 A recent survey of global CEOs1 conducted by KPMG International this year seems to indicate that CEOs More than three-quarters understand the challenge. Most said they see customer data of the brands in this report as one of their most valuable assets and key to enhancing improved their Customer their ability to personalise products and services. But less than a quarter of the CEOs in that survey claimed to be able Experience Excellence to exceed customer expectations for Personalisation. (CEE) score over last year

1KPMG (2018). CEO outlook 2018

Expecting more Performance of The Six Pillars % difference Expectations, however, are on the rise. And that is Personalisation vs 2018 clearly demonstrated in the notable increase in the importance placed on the Expectations pillar as a 7.33 7.39 -1% key driver for customer experience excellence in The Netherlands (up by 2.6 percentage points over last year). Integrity

In many cases, brands are feeling the impact of 7.34 7.45 +2% a phenomenon known as ‘expectations transfer’: expectations set by companies like Uber quickly Expectations become the standard expectation across all industries. Those brands able to successfully manage, meet and 6.78 7.18 +6% exceed expectations are being highly rewarded. Resolution It is also worth noting that expectations are no longer solely set by brands but rather increasingly by co- 7.01 7.07 +1% consumers (often through channels such as social media or online reviews). Millennials, in particular, Time and Effort are influencing expectations across generations and consumers of all types are becoming more informed and 7.28 7.33 +1% digitally-savvy. The customer has always been king; the difference is that they now know it. Empathy That is not to say that Dutch brands are not rising up to 6.88 6.94 +1% meet expectations. In fact, we have seen performance under this pillar rise by 6 percentage points this year Key over last – the most significant increase of any of 2018 2019 The Six Pillars in The Netherlands. Considering the rapid evolution of customer expectations, that is a notable achievement.

Pillar impact on Customer Experience Excellence Shift in pillar performance compared to previous year

% % 20 % % 15 +0.1 -0.2

% 16 % % 17% -1.1 -0.7

% 15 +2.6% -0.8% 17%

Retail on top… for now Looking ahead Retailers in the Netherlands seem to have a very clear understanding of the While it is clear that brands operating importance of an excellent customer experience. Once again, retailers lead our in The Netherlands have stepped up CEE industry rankings: Grocery Retail ranked as the leading sector with Non- their game, this is no time to rest. Grocery Retail ranked second. The expectations of today’s digitally- enabled consumers are constantly and Changes in digital preferences and capabilities are clearly having an impact on the rapidly resetting. Brands will need to way customers view the retail experience. And retailers are increasingly leveraging find ways to continuously improve and digital to create an optimal ‘phygital’ customer experience, integrating digital into invest into the customer experience the physical setting. Competition for the customer is heating up, paving the way if they want to continue to meet for digitally-enabled brands like Picnic (ranked 26th in our report) to challenge the expectations in the future. status quo in Retail. Our view suggests that the leaders Whereas retailers top our list again this year, the question is for how long? of tomorrow will be those who are Our research suggests that Telcos, Financial Services and Travel and Hotel brands able to improve their performance are quickly closing the gap, with Travel and Hotels seeing the greatest increase in across all six of The pillars of Customer scores. The Travel and Hotels sector was also the only sector to enjoy an increase Experience Excellence. We look in performance across all of The Six Pillars. forward to finding out who will be in the top spots next year. NL sector performance

NL sector % difference in CEE score compared to 2018 NL 2019 sector ranking

Grocery retail +1% 1st

Non-grocery +1% 2nd retail

Telecoms +2% 3rd

Financial +1% 4th services

Travel and hotels +3% 5th

Entertainment +2% 6th and leisure

Restaurants +1% 7th and fast food

Utilities -1% 8th

Logistics -2% 9th

Public sector +1% 10th

“Every night in a Van der Valk hotel is a pleasant surprise. From a glass of free apple juice for my nephew at breakfast to a refund because I had to go for surgery The 2019 NL the next day. The staff is always very friendly.”

Van der Valk Hotels This year’s Customer Experience Excellence leader is family-owned hotel chain Van der customer Valk. Up from fifth place in last year’s rankings, Van der Valk continues to innovate with the customer at heart. The brand has been a keen adopter of customer-facing technologies – offering digital receipts (‘Digibon’), mobile Champions payments and apps that allow customers to order food and drinks online – while above all maintaining the human touch. Customers frequently point to the chain’s genuine hospitality and the efforts of employees to Curious what makes van meet and exceed customer expectations. der Valk stand out? Click here to experience van der Valk’s customer journey 2nd

“After receiving a damaged book I was helped very well by bol.com’s customer service: I received a new book even before I returned the damaged copy!”

bol.com Rising one place to second in our rankings, bol.com continues to delight its customers. By far the largest online marketplace in The Netherlands with more than 9 million customers, bol.com sees itself as the “store for everyone”. Through valuable loyalty services like ‘Select’ and their ability to anticipate future customer needs through pioneering new technology advances like voice, bol.com is proving that it understands its customers and their changing preferences. The brand combines this customer focus with a wide assortment of products, an extreme focus on convenience and exceptional customer service to continuously impress and engage their customers.

3rd 5th

“I like the personal attention “I’m a fan ever since my and I really like the products. first purchase at Coolblue: The employees are of great fast delivery and good and help in store: they offered reliable employees.” great alternatives on a product that was out of stock.” Coolblue Coolblue is a textbook example of a brand that Lush is designed around the needs of the customer. They know what their customers want and Again in our Top 3 this year is Lush. Known go beyond expectations by continuously for its sustainable and animal-friendly improving their experience – new services products, customers repeatedly cite the such as same-day delivery and timeslot company’s ethical values and sustainability delivery options, the rapid introduction of standards as key drivers of the customer Apple Pay (Coolblue was the first retailer to experience. The brand also puts great offer the payment option in The Netherlands), effort into creating alignment between the and a healthy dose of personal touch wherever employee experience and the customer possible are just some of the attributes experience. As a result, customers that have pushed Coolblue into the Top 5. frequently note the personal attention they Their slogan of “everything for a smile” is receive from employees, their product even embedded in the little things, like the knowledge, advice and encouragement. shopping cart icon on their website which changes as more products are added. 4th 6th “I always remember the scent for a very long time “I purchased my first pair after visiting a Rituals store. of glasses here. They have It is as if you immediately very friendly staff and relax when you enter. You even after a period in the also get a warm welcome hospital they asked me how with a cup of tea. Great I was doing. They really shopping experience.” know their customers.”

Rituals Pearle Opticiens New to our Top 10 this year is Rituals, a First time entrant in The Netherlands Top luxury home and body cosmetic brand 10, Pearle Opticiens’ continuous focus on inspired by centuries-old Asian knowledge improving and optimising the customer and traditions. As Rituals says; “We’re not experience has paid off. The brand’s ‘pilot here to sell you beauty, we are here to make stores’ allow the organisation to test new you feel good”. And that means helping concepts and innovations with their customers. customers change their everyday routines into The pilot stores carry a more modern and meaningful experiences. Their stores offer a industrial look, an experiential element where calming environment where customers can customers can watch their glasses being relax with a cup of tea, enjoying personal made for them, as well as digital channels and attention, mini treatments and great smelling effects such as screens where customers can products. Customers frequently say it is compare how different glasses look on them. an experience to enjoy and remember.

7th 9th

“I have been here twice. The “I have been an ANWB first time I was here for a member for over 40 years hearing test and the second and I am extremely satisfied time for the fitting of the with the services and the hearing aids. Both times I was products they offer.” very pleasantly helped. The employee had a clear story ANWB and he took all the time for With roots dating back 135 years, ANWB’s questions and answers.” mission is to help customers travel and move freely and enjoyably. Up one place in our rankings from last year, they take their Specsavers members’ and customers’ interest to heart. Specsavers, a family-controlled franchise The brand makes great efforts to deliver on business with more than 1,800 stores their mission: they provide excellent roadside worldwide also enters our Top 10 for the first assistance (their core business) as well as time. The organisation, which also sells hearing valuable services such as driving lessons, aids, offers a customer experience that is helping seniors learn how to ride e-bikes defined by a personal touch, both in store and and turning customers’ cars into connected online. They also prioritise innovation: their devices. This has allowed ANWB to continue ‘virtual try-on’ button on their website allows to serve every customer based on their unique customers to see how different frames may travel needs and contribute to a better society. look on them and their ‘connected hearing aids’ automatically connect to specific devices to provide customers with clearer sound. 10th th 8 “I reached out via WhatsApp to ask how I could arrange “Even after half a year the a wheelchair. I received saleswoman immediately a quick reply and was knew who I was when I supported very well.” walked in again, and she KLM (Royal Dutch Airlines) remembered what glasses With an iconic blue brand and a reputation I had taken on her advice. for operational excellence and customer You don’t experience intimacy, KLM (Royal Dutch Airlines) took this anywhere else.” 10th place in this year’s rankings. KLM’s ambition to become the most customer- oriented, innovative and efficient airline Eye Wish Opticiens in Europe, has encouraged the brand to Another optician that is new to the Top 10 list, continually focus on identifying, meeting Eye Wish Opticiens aims to ‘look through the and exceeding customer needs. Their new eyes of the customer’. The brand goes out ‘Hologram Bar’, for example, allows customers of its way to give customers the experience to have a 3D interaction with other customers and service they wish for, providing personal taking the same flight, but in the opposite style advice to their customers through their direction, to share personal experiences. network of instore style advisors and their offer of free maintenance on their glasses.

Beyond the logo A few years ago, common wisdom suggested that brands were defined by what they said (their taglines) and what they looked like (their logos). More recently, however, those superficial notions have been swept Experiencing away. Customers recognise brands for what they do and the impact they make on the world around them; it is more about their purpose and values than their visual identity and advertising spend.

Simply put, today’s brands are defined by their ability to the power consistently translate their purpose and values into the customer experience.

A brand: A sum of its purpose to add of a brand meaning and distinctive value, the beliefs it creates as a result in the heads and hearts of customers, and translation into delivery of a The greatest brands don’t just want to consistent experience deliver a great customer experience, they also want to win their customers’ The reality is that brands continue to be an extremely hearts, minds and wallets. And that important element of the customer experience. Brands are critical in setting customer expectations. They are means making sure their customers central to delivering a consistent experience. And they understand, appreciate and engage are key to ensuring that an organisation’s products and in the brand’s purpose and values. services get noticed.

Brands also allow organisations to become more than just the sum of their products or service lines. A great brand is there at the moments that matter, delivering meaningful, distinctive and ‘magical’ experiences that unlock new value for customers today and tomorrow.

With this in mind, the customer experience becomes the ‘fuel’ of a brand. It is where organisations are able to demonstrate that their brand can deliver on its promises (measured through the Integrity pillar), that they can meet customer expectations (measured in the Expectations pillar) and that they can make their brand relatable and valuable to customers (the Personalisation pillar).

Organisations that are unable to translate their brand’s purpose and values throughout the customer experience are often unable to fulfil their purpose and, as a result, customer expectations are left unmet. That can lead to challenges retaining customers, poor financial results and an overall distortion in the way customers view the brand.

Those brands that are able to Purpose seamlessly translate and integrate their purpose and values into the daily lives of their customers are the ones that stand out from the crowd. These are the brands that are able to attract and keep new customers, improve their longer-term financial value and drive new growth through enhanced customer lifetime value. Brand Understanding the interplay between a brand’s purpose, its values and the experience it delivers is key.

Standing out with purpose In a crowded and complex marketplace Experiences Beliefs where consumers are continuously bombarded by algorithm-driven purchase suggestions, organisations need to find new ways to make meaningful differences in the lives of “HEMA is an amazing brand with good products and their customers. The future seems an interesting loyalty program, but also friendly and even more complex: the increasing role of social media platforms, live great service. Both in-shop and online.” streams, platform plays and voice- Respondent CEE, 2019 activated personal assistants are already forcing brands to reconsider HEMA (ranked 56th in our research) Another brand that leverages its the role traditional human interaction is an example of a brand that strives values and purpose to differentiate plays in their customer experience. to embody its promise of ‘making itself is Rituals (ranked 4th in our Not surprisingly, the leading brands are daily life easier and more fun’. HEMA survey). Rather than focusing on exploring how their brand purpose and sees its customer experience and selling products, the brand aims to values might help them transcend the its brand promise as the key starting sell experiences and stories – an competition, build their social currency points for its digital transformation idea captured in their brand purpose and differentiate themselves in the efforts. By combining personalisation, of ‘transforming daily routines into hearts and minds of their customers. customer experience and digital, special moments’. From targeted and the brand has created a much more personalised in-store experiences Social currency: seamless alignment between its online (such as free teas and hand massages) and offline experience. And that, in to dynamic and emotional brand The entirety of a turn, has allowed the organisation elements embedded into their online brand’s current to revitalise and strengthen its shopping experience, Rituals aims and potential value overall brand. to deliver its brand promise through that comes from ‘magical’ moments. their presence in social networks and “Rituals surprised me from the moment I entered the communities, both shop, varying from all the different fragrances they digitally and offline. offer to a cup of coffee and customised discount. I felt more than welcome.” Respondent CEE, 2019

The majority of brands that are able to create a continuous interplay and learning loop between their purpose, their beliefs and their experience on one hand, and digital on the other hand, are not only adding value to their customers lives but also outperform their peers. In today’s digital world, organisations must make sure every single behaviour is digitally-enabled but – most of all – that they are ‘on brand’.

CX journey Brand & How they do it What customers think stage brand promise

Transavia Brand is a strategic pillar, both internally and externally “Always a pleasure. It’s not “Make low cost at Transavia. Brands are developed internally and clearly Emirates but that is also not what feel good” demonstrated externally through, for example, a series I pay for. Great value for money.” of YouTube videos that show the emotional side of the Trigger Transavia travel experience through the eyes of customers and employees. The marketing campaign pops up everywhere, particularly during peak holiday seasons.

bol.com bol.com’s extensive product offerings are the result of “At bol.com they simply have “The store for all in-depth customer analysis and a strong awareness of local everything you need, or can of us” and sub-local cultures and expectations. Targeted branding possibly think of. I don’t even start and offers ensure that the needs of a diverse range of looking somewhere else.” Search customer segments are met.

Rituals Every year, the brand renews nearly half its product “Not a day goes by without using “Transforming line-up to surprise and inspire customers and employees. my Rituals products.” daily routines into The brand combines day-to-day structure and out-of-the- special moments” box surprises to help customers find products and enjoy Engage special moments.

HEMA HEMA continuously analyses activity at various touchpoints “I consider shopping at HEMA “Making daily life throughout the store to optimise service and reduce relaxing and enjoyable. The easier and more queues. The brand focuses on aligning their loyalty program employees are always friendly fun” and their online/offline experience with their brand purpose and attentive and I can ask them Purchase to drive engagement. Another recent example is the HEMA anything. Returning products or ‘schapscanner’ that customers can use as a mobile self- asking questions about the online service checkout option. loyalty program is never an issue.”

SNS SNS is reversing the digital-only trend by creating bricks- “SNS takes me seriously. They are “To help every and-mortar SNS ‘shops’ where clients will find a fixed client authentic, careful and thoughtful, single individual – team to support them. The brand also uses technology but most of all: just around the in a personal way to ensure that customer calls are – where possible – corner and simply there for me.” Use – to be financially routed to the same employee to ensure a consistent and resilient” personal experience.

ANWB ANWB strives to provide excellent quality and service at “The last time we got unlucky on “Move and an affordable price, to make sure they can deliver their the road, we ended up beside travel freely and purpose. Through their omni-channel approach they do not the highway with our children. enjoyably” only want to deliver one seamless customer experience, They made an additional effort Help and they also use the data to personalise their offering and ‘go and showed up extra fast: support the extra mile’ when needed. amazing service!”

Lush At Lush, they strive to do what’s best for the world. “I love buying products at Lush “We stand for This includes animal-friendly products, marching in because they are great for fresh, handmade, environmental strikes, but for example also the use of my hair and skin, animals and vegan cosmetics 100% post-consumer recycled plastic for their products. To the environment. I value that End/Renew that have not been stimulate customers to hand in these products after using they hardly use any plastic: tested on animals” them, they launched their ‘5-pot-program’ in which you most products are close to receive a free face mask after returning 5 plastic pots. zero waste!”

Rank: 9 Movement vs last year +1 Walk of fame: ANWB

Driven to represent the interests of its members, ANWB’s mission is to make sure people can ‘move and travel freely and enjoyably’. While the mission may be timeless, the brand has remained at the leading edge by providing personalised omni-channel service and surprising, seamless customer experiences. No wonder ANWB has – once again – impressed across almost every Customer Experience Excellence pillar.

The extra mile “Our mission provides us with direction claims earlier than customers expect, or and clarity when making choices. proactively calling members to indicate Although more than 135-year-old, it is that their car might soon run out of still highly relevant and ensures we stay battery – a recent initiative linked to close to our true essence; our mission our ANWB ‘connected car’ initiative. In provides us with focus to make sure other cases, it might be a spontaneous that all the products and services we tire pressure check as a service – little offer are relevant to our members. things that are often highly appreciated. We call this being ’unexpectedly For example, our mission has allowed surprising’ (‘onverwacht attent’). us to focus on recreation offerings that take place while our customers Our employees are essential in are moving. And it includes services delivering these surprises. We give like our connected home insurance, them the freedom to make the call which enables our members to move when they believe a customer may and travel freely and confidently, need extra service. And that means knowing everything at home is we need to invest a lot of time and covered. Our members trust us with effort into hiring and retaining the these service areas. And we are right employees. Indeed, many of constantly challenging ourselves to our employees are with us because ensure that all our communications are they want to do good for society, help aligned with our mission and brand. others and be part of an association. We always set high standards, and our goal is to provide excellent quality It is not just about surprising and service at an affordable price. customers. Our culture also encourages our employees to ‘go the extra mile’ In our everyday activities, we are (‘helpen plus’). In everything we do, continually looking for ways to surprise we always start by asking ourselves our members at the right moments. whether our actions will make a Sometimes, this might mean paying out difference for our members.

One seamless journey next level of personalisation. What While we anticipate future Our ultimate goal is to deliver matters most is not the channel nor developments and disruption, we one consistent, excellent ANWB the physical interaction; it is that the know we need to keep testing and experience. Whether our members members feel we are there for them. sensing the needs of our members connect with us about Travel across The Netherlands. That is how or Insurance, across different Data supports our mission by helping we can ensure we are always there for channels or service locations, us align our channels and deepen our members, today and tomorrow.” the experience should always be customer insights. We have found excellent, and in line with what our members are usually willing to Click here to watch our members expect from us. share their data as long as they are clear on what it is being used for and ANWB’s interview highlights: To support this goal, we are that it results in some benefit for simplifying processes by, for example, them – maybe increased speed of harmonising payment options. And service, reduced costs or improved we are continuing to invest into experiences. We also use our data personalisation in marketing, sales to help improve the broader society, and service which, nowadays, is a for example, warning members hygiene factor: our members always and municipalities about changes expect personal attention, with the in road traffic. However, we are right message, and at the right time very careful about how we use from us. But we also go further. and store data and we conduct For example, our recent vacation frequent internal audits to ensure it Marga de Jager preparation campaign provided is being managed appropriately. Board of Directors ANWB, Director members with personalised advice Brand & Members (‘Merk & Leden’) on specific stops, tips and insurance Sense the crowd products to consider based on their As people’s needs continue to Scores vs. market average upcoming vacation and household evolve and grow, brands must also settings. Members loved it. evolve if they hope to keep meeting expectations. And that includes Part of providing a seamless omni- ourselves. Fortunately, as a member channel experience is allowing organisation, we have the privilege members the opportunity to decide of being very close to our members. Personalisation Integrity their channel of choice. And, not We encourage deeper member surprisingly, digital is playing an participation and involvement through % % increasing role. We use chatbots initiatives such as our User Experience +6 +6 for things like assessing whether Lab, where we test our new initiatives members have applied for the and hear feedback from members. right insurance. And members These results are highly relevant to use our digital roadside assistance us as we strive to ensure that we are app to report a car breakdown; there for all our members, taking action the first human they deal with is only when the majority is ready for it. often the person that shows up Expectations Resolution to help them back on the road. However, this does not mean that % % we are not extremely active in early +6 +7 We experience that our members stage technology development. Our not only highly value receiving ‘connected car’ initiative, for example, personalised messages when helps us move from protection to interacting with us, many of them prevention by leveraging car data even prefer personalisation through to proactively inform members our digital channels. They tell us about potential maintenance issues they receive more insights and feel or driving behaviour. We are also Time and Effort Empathy they have more control over the investing into trends such as electric % % process which, in turn, helps us to mobility and voice recognition. +5 +7 manage expectations and achieve the

These are exciting times for Dutch consumers. On the one hand, retailers in The Netherlands are increasingly experimenting with their customer experience; most now consider their customer experience to be one of their most important assets and many are investing into revitalising their ‘old’ bricks-and-mortar stores. But with customers now starting to put considerations such as product sustainability, brand values and emotional connections on par with product qualities and cost, the quest to respond to customer expectations is never-ending.

The non-grocery retail sector has Getting ‘phygital’ much to be proud of. Non-grocery While some have been predicting the retailers were ranked as the second demise of the bricks-and-mortar store best performing sector for Customer for years, many retailers are proving Experience Excellence (CEE) in The that the offline experience is far from Netherlands (scoring 7.32 versus dead. Indeed, as retailers start to refine grocery retailers at 7.36). The sector their overall customer experience, also dominates our rankings; seven many are starting to see the store as of the Top Ten brands are non- a key component of their seamlessly grocery retailers. And the sector saw integrated customer experience. overall increases across all of The Six Pillars except Personalisation. The leading brands are combining the physical and the digital by introducing Many familiar faces can be found in our new innovations and ideas into the list of top retailers. Brands like bol.com store experience. And that has led to (ranked 2nd overall), Lush (ranked 3rd) a rise in the ‘phy-gital’ – experiential and Coolblue (ranked 5th) remain in the retail spaces where brands create Top Ten. Others, like Rituals (ranked immersive customer experiences. 4th), Pearle (ranked 6th) and Specsavers Nike’s in-store digital fitting rooms, (ranked 7th) have made impressive gains for example, lets customers try on

Sector highlight: Non-Grocery Retail to climb into the ranks of the Top Ten products based on their personal this year. Retailers’ investments into preferences and can change elements Customer Experience (CX) is paying like colour in a matter of seconds. off. But competition remains stiff.

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Simply put, retailers are working to “All products are organic and that’s why I think Lush make sure their customers leave their stores with both products and is a great concept. Especially the fact that they don’t experiences. One brand that has use any plastic is something I find important.” consistently delivered memorable Respondent CEE, 2019 customer experiences is Lush. The brand is well-known for using digital technology and physical stores to The new business model not only Perhaps not surprisingly, the deliver on customer expectations. Its demonstrates the brand’s commitment top retail brand in our research ‘naked store’ concept, for example, to the environment, it also allows of Dutch consumers is bol.com. offers products without any packaging the brand to engage customers in About 40 percent of sales across at all; customers use the ‘Lush Lens’ a much longer-term relationship. the vast array of products offered app to scan the product for information on the site come from third party in the store and feel great about Coolblue is showing their merchants. The company uses their impact on the environment. environmental credentials by working its customer data to deepen its to become completely climate- understanding of their customers, It’s these types of digitally- neutral. The brand has installed optimise their offering and deliver enabled physical experiences the largest solar-panel roof in The a highly-personalised experience. that get customers off the couch Netherlands on their warehouse; they and into the retail stores. use CoolblueBikes to deliver small Experiments with new technologies packages; and they offer customers – such as their new Voice Assistant A greener customer deals on ‘Second Chance’ products that helps customers find the perfect instead of throwing them away. gift and then adds it to their wish- In today’s retail environment, list or shopping cart – is further customers expect their products to Our research indicates that the enhancing the overall experience. be sustainable. And they increasingly leading brands in The Netherlands For more insight into bol.com’s select their brands based on their are those that are not just talking customer experience, see page 20. social and environmental impact. about sustainability but acting on it. The leading brands are taking note In a market where expectations are and are rethinking their existing The rise of the marketplaces being set by the likes of bol.com, business and operating models in Zalando (ranked number 18) and order to prioritise sustainability. The proverbial ‘elephant in the room’, of course, is the online marketplaces Amazon (ranked 93rd), retailers have just three choices: they can either IKEA (ranked 16th overall) has which are changing the fundamentals build a marketplace of their own, introduced a leasing concept that of both the retail experience and the engage in an existing marketplace, allows customers to enjoy their customer relationship. Marketplaces or do nothing at all and fade away products in their homes and then, essentially facilitate transactions into obscurity.1 And we can assume at the end of the product lifecycle, between third party merchants nobody wants the third option. return them to be reused, refurbished, and customers; most only own a remanufactured or recycled. small percentage of the products sold through their marketplaces.

Building your own marketplace is a Now they not only enjoy considerable Hall of fame risky proposition. The technology is not reach in The Netherlands through all that difficult to master. But gaining the wehkamp marketplace, they enough traction to attract customers have also expended their reach bol.com can be difficult for a new brand. into the US and Canada through 2 Some larger, more established brands an agreement with Walmart. may consider this a viable strategy. Along with increased control over the The obvious trade-off in selling Lush 3 customer experience and access to through a marketplace rather than your customer data, building a marketplace own channels is that you lose control lets brands create new revenue of parts of the customer experience. In Rituals streams and new direct-to-consumer exchange for greater customer reach, 4 channels at relatively low cost. retailers must make peace with the fact that the marketplace will control “I’m a fan of bol.com key aspects of the customer journey. Coolblue 5 And in exchange for scalable and because of their affordable payments infrastructure, warehousing, logistics, customer enormous variety of Pearle Opticiens support and online marketing services, 6 products, quick and they are forsaking key opportunities reliable delivery and to differentiate themselves. Specsavers 7 their great service, Interestingly, while local brands like I’ve never had bol.com have dominated the Dutch marketplace, none of the ‘super Eye Wish Opticiens any problems.” platforms’ have seemed to get any 8 Respondent CEE, 2019 traction in The Netherlands to date. Amazon, the only of the seven super Most Dutch retail brands have platforms to make our Top 100, was Apple Store 12 therefore opted to participate in ranked at just 93rd place. Alibaba existing marketplaces in order to didn’t make it into the Top 100. extend their reach, both in The However, with Alibaba working to Greetz Netherlands and globally. achieve a 72-hour global delivery time 13 anywhere in the world by 2020, it For example, HEMA (ranked 56th) seems possible that the dynamics of used to sell its products exclusively the market will once change again. Hornbach 15 through its own channels.

1KPMG (2018). Unlocking the value of the platform economy

Rank: 2 Movement vs last year +1 proved that bol.com will never give up on delivering an excellent customer experience and building long-term relationships. Making customer experience (CX) a priority in everything we do is key, and our passion for CX Walk of fame: goes up all the way to the board. There for you At bol.com, we will always make sure that ‘we have got your back’. We are proud of our customer service bol.com team who jump in when needed and take care of everything, no matter how challenging the issue.

With an unyielding focus on NPS and Customer Service as Their goal is to ensure that every one of the core values of bol.com, customer-centricity is core single customer interaction to bol.com’s value proposition. Indeed, the online retailer’s results in a satisfied customer. smart combination of empathy and technology is just one However, keeping customer of the reasons that bol.com secured a second place ranking satisfaction at heart of the organisation in this year’s Customer Experience Excellence research. can also be challenging. As a platform, we work with over 20.000 retail partners and recognise the importance of safeguarding our Being customer-focused means acting Customer DNA brand’s reputation. So while we and communicating accordingly, even “Customer satisfaction and centricity value the great opportunities and when it might mean making difficult are part of our DNA. Every single expertise of our partners and firmly choices. Last summer we faced employee at bol.com uses a Net believe in our strong network, we extreme hot weather for weeks, and Promotor Score (NPS) as one of their also know maintaining proper control experienced issues with on-time key performance indicators (KPIs). The is critical to delivering a consistent deliveries via our logistic partner due NPS KPI even shows up on the agenda bol.com experience to our customers. at all of our company-wide meetings. to a record amount of large orders Focusing on a single customer-focused like air conditioners and swimming Some of our partners need support KPI encourages transparency and pools, as well as additional breaks to achieve our standards. But we delivers clarity to our employees. for deliverers, which resulted in have found that others already It makes us all strive to provide the a drop in NPS. For the future, we have exceptional customer focus, best customer experience possible. wanted to take steps to prevent the sometimes outperforming even same thing from happening again. our own high standards.

So we consciously decided to communicate possible late deliveries Click here to exerpience because of unforeseen circumstances bol.com’s customer to our customers on our website, even journey: though we knew our transparency could lead to a drop in sales.

It was a bold statement. But it was also a good transition: clear communication is key to setting the right expectations and creating transparency with our customers. It

A little while ago, we had a case to learn and prepare for a future ultimately, are the true experts in their where a customer’s piano book was where voice plays a big role. areas. Given our roots as a start-up, delayed. Rather than just send an it is not surprising that our culture email apologising, our retail partner Meanwhile, we have our “good old” of autonomy, entrepreneurship and scanned the first few pages of the chatbot Billie. We released Billie personal responsibility is still strongly book and sent them to the customer back in 2008 and have spent the reflected in the DNA of our organisation. so that the customer could take his past 10 years making him smarter Indeed, our willingness to give our first piano lesson the next day. It was and better. With all the data Billie has teams the room and responsibility they a solution that we could not have collected to date, we aim to make need to make their own choices, and delivered ourselves. It is crucial that him the most empathic chatbot of our continuous encouragement to go we, together with our retail partners, The Netherlands and Belgium. We beyond limits, is not only what makes it meet our customers’ expectations. are constantly searching for new a true pleasure to work here – it is also applications for Billie, such as being how we will make a difference for our Tailored technology able to take care of product returns. customers. Now, and in the future.” When our CEO said “bol.com does Our app is also becoming much Click here to watch not have customers, customers easier to use and that is delivering an bol.com’s interview have bol.com” he was embodying highlights: increased rate of returning customers our customer DNA. Today our entire and customer satisfaction. Customers organisation embraces his statement. are surprised they can order an item And it shows in the way we work: with just two clicks at bol.com. Our even though we are really a technology app is also highly appreciated by our organisation, we are constantly asking customers, and is rated one of the ourselves what our decisions mean best retail apps in the Netherlands. for our customers (as well as our retail partners), how it works for them and what they might want in the future. Making a difference In the near future, we believe the Otteline van der Feltz To ensure our products and services fit interplay between automation and our customers’ needs, we work in an human touch will become increasingly Customer Service Director agile way in which developments go important – and ultimately the standard. bol.com live in phases. This way, we are able Automation will play a bigger role in our to continuously test our ideas with our lives, making it even more important Scores vs. market average customers and further adapt to meet for brands to know the optimal our customers’ and retail partners’ moment to transition customers from wishes even better. Moreover, we technology to human interaction. closely collaborate with our privacy experts to evaluate what anonymised Being able to sense this properly is behavioural data we need and how we crucial: customer expectations and Personalisation Integrity can provide added value to customers dynamics are increasing; customers % % in return. At bol.com, we stand for expect to be comfortable with the +9 +8 trustworthiness, and we believe it is entire experience. Yet, at the same important that customers trust that they time, organisations need to be able to can share information with us and that stand out and differentiate themselves we will handle their data with care. at the moments that matter, delivering experiences that matter. That means As a growing technology firm, there we need to be more proactive than Expectations Resolution is no such thing as a key milestone – ever in offering the right level of % % we achieved our success through a empathy along a customer’s journey. +9 +10 process of continuous development. For example, we recently became Looking at our own future, we are one of Google Home’s first all working towards a common goal. partners in The Netherlands. While the board sets overall goals, it is our teams that are responsible And while we recognise that few for detailing and executing the Time and Effort Empathy customers use the service yet, we implementation of those goals. That % % see it as a great opportunity for us shows our trust in our teams who, +9 +8

Imagine your uncle’s 60th birthday is coming up. You don’t see him very often and so you don’t have a specific gift in mind for him. Picking up your smartphone, you search “birthday present man sixty” in Pinterest and get back a picture of a mug that says Embracing “Celebrating the 39th anniversary of my 21st birthday!”. The gift seems perfect so you click on the link which directs you to Amazon. While there, you explore a few other mug options but ultimately decide to stick with the original mug. Back on Pinterest, you select a card that says “SIXTY is only 15 in Scrabble” and click on the link consumers’ to order it from Ebay. Both items arrive a few days later, well in time for your uncle’s birthday party.

Now consider the trace of data your activity may have left behind. It’s not just the active data that you are often aware of – things like social media posts, likes, shares digital and comments or searches on Google or Pinterest – it’s also the more passive data that is shared every time you visit a website or interact with a digital asset. Together, these types of activities form a ‘digital footprint’ of data points. And few customers or users truly understand the extent of the data they are creating and sharing and how footprint it is being used. An analyst firm estimates that there will be more than 20 To win in today’s crowded marketplace, billion devices connected to the organisations need to be close to their internet by 2020; at that point customers. They need to understand their needs and desires. And they there will be approximately four need to be in the right place, at the devices for every human being right time and on the right device to on the planet. meet their customers’ expectations. Gartner Embracing the full digital footprint of

consumers will be key to success. All signs suggest that the depth of the digital footprint is only going to expand over the coming years. The rise of the Internet of Things (IoT), for example, will add massive amounts of new data to people’s footprints as more and more gadgets and objects (like Fitbits, Google Home devices and smart security systems) become enabled. Gartner, an analyst firm, estimates that there will be more than 20 billion devices connected to the internet by 2020; at that point there will be approximately four devices for every human being on the planet.

Step into their shoes The opportunity for organisations and While a customer journey traditionally Data collected from the device is brands to learn from this data – to starts with a ‘search phase’, used to provide drivers with valuable embrace the digital footprint – in order Burger King’s experience clearly insights about their driving behaviour, to deliver the right message at the demonstrates that brands are now their vehicle’s fuel consumption, right time and on the right device is able to ‘trigger’ desires in their the condition of certain parts in the tremendous. Brands are increasingly customers by predicting what they vehicle as well as early notifications of able to provide customers with a might need at a particular place and potential upcoming issues. unique, tailored experience. time. Offline channels are also using digital footprints to trigger in-store What these examples, and a In Mexico City, for example, Burger decisions by, for example, installing growing number of new applications, King recently used real-time customer ‘smart mirrors’ that are able to make demonstrate is the importance of data from GPSs and other sources recommendations based on the being in the right place at the right to identify which customers were specific customer in the fitting room. time and on the right devices. For currently stuck in traffic. They sent brands, that means embracing the out a push notification offering ‘traffic We also see a growing number digital footprint. jam Whoppers’ – drivers could order of brands using customers’ digital the burger through the app and have it footprint data to improve and enhance delivered right to their car. the overall customer experience. ANWB – ranked 9th overall in our The app also showed how long they research of customer experience might be stuck in traffic and updates – offers customers a dongle that about their food delivery in progress. transforms cars and motorcycles into Using customer digital footprints, connected vehicles. Burger King was able to be in the right place at the right time on the right devices.

In Mexico City, Burger King recently used real-time customer data from GPSs and other sources to identify which customers were currently stuck in traffic. They sent out a push notification offering ‘traffic jam Whoppers’ – drivers could order the burger through the app and have it delivered right to their car.

Consumers are using digital technologies Some of this data is actively shared – for example, when to communicate, find and share information you input your address in an online registration form. Other data points are left passively – things like mouse movements and entertain themselves. But, as they and device orientation. Yet each of these potential traces do, they are leaving behind a trail of data of data helps build a more robust view of the customer and points. Combined, these data points their activities. form a consumer’s ‘digital footprint’. While the creation of digital footprints may be intimidating to some, many organisations are finding ways to leverage their customers’ digital footprints to help create the ultimate ‘phygital’ experience where digital is seamlessly integrated into the physical customer experience. Simply put, the leading brands are capturing and using their customers’ digital footprints to the customer’s advantage.

• Purchases • Web search & preferences • Web search & preferences • Video footage • Geo-location Customer Data points Data

Trigger Search Engage Journey Customer

• Event prediction • Chatbot AI • AR/VR • Occasion circumstance • AI • Event prediction segmentation • AI driven Personalisation • Intelligent interaction • Behavioural history • Behavioural history • Contextualised view of customer

Enabling • Customer intent technology

Burger King leverages unique insights TUI applies AI technology, using IKEA adopts augmented reality from geolocation data to push sales customers’ web search and preference technology to allow customers to offers to customers stuck in traffic data, to create highly-tailored itinerary visualise products in their own homes suggestions for customers before purchasing Example

Video footage Customer Contact Data Facial expressions (emotions) Name, address, email

Purchases Travel, route and speed Product/service, Payments, Date/time

Device data Orientation, Motion/rotation, Requests Screen time Questions, Complaints A ve ct si ive as Mode of purchase P Webpage Location, Channel, behaviour Delivery

Connections Financial & Network transactions

Face ID & Fingerprint Social interests

Web search Driving behaviour & preferences

Activity Data Smart home use Sports, steps

Health status Streaming data Heartbeat, Blood pressure, temperature Content, Time

Geo-location

• Customer contact data • Customer contact data • Web search & • Requests • Purchases • Driving behaviour preferences • Web search & • Geo-location • Requests preferences

Purchase Use Need help End/Renew

• 4D printing • Proactive help • Remote diagnostics • Needs and wants • Real time voice sentiment • Remote monitoring • Anticipatory service • Predictive analytics analysis • Remote diagnostics • Live agent AI • Next best action • Computer vision feedback • Bots and AI • Preferences • Virtual assistants

Amazon smartly combines AI, ANWB uses a connected Lemonade digitises the KPN leverages AI driven computer vision and sensors dongle to collect driving insurance claim process using predictive analytics to drive to create a seamless shopping behaviour data to notify bots and AI, to make the relevant next best action experience for customers, in customers of potential process less cumbersome (driving down churn rate) which checkout lines are no upcoming issues and time consuming longer needed for consumers

The growing role technology plays in the customer experience cannot be easily denied. Organisations are using digital developments to deliver unprecedented levels of connectivity and speed to customers. They are using technology to access, process and analyse Customer-led, huge amounts of customer data, leading to greater insights around customer expectations, behaviours and intentions.

Customers are also embracing technology within the customer experience. They often see the value that technology- technologies like Artificial Intelligence (AI), machine learning and predictive analytics add to their day-today lives.

It’s ‘digital Darwinism’; the only real options are to adapt and evolve or die. And our view suggests it will be enabled the brands that are able to deliver a smooth, digitally- enabled customer experience that will emerge stronger in the future. It’s brands like Uber and Netflix, who take a customer and digital-first approach, who are thriving; brands like Blockbuster and Kodak failed to adapt to the new reality. The customer experience must be digitally enabled. But that does not mean brands Start with the customer should be investing into every new Our experience suggests that the current pace of technology. Indeed, our research suggests technological change has left many decision-makers the leading brands in The Netherlands are feeling overwhelmed. Most are struggling to decide which technologies and tools are right for their the ones putting their customers at the organisation. And our view indicates that the leading heart of their technology decision-making. brands are those that adopt the right technologies for their customers – they are customer-led rather than technology-led.

As Steve Jobs once famously noted, “you have to start with the customer experience and work backwards to the technology”.

Unfortunately, many business leaders seem to have ignored this wisdom, allowing their organisations to % rush into digital transformation programmes without 61 first understanding their customers’ future needs and expectations. As a result, they tend to fail to invest of organisations that are into those aspects of the customer experience that effective at using digital matter most.

technologies enjoy higher In this environment, organisations must remember revenue growth than that digital innovation – in and of itself – does not their competition. guarantee success; rather it is how new innovations and technologies are combined to create a seamless Source: Harvey Nash and KPMG fit around the organisation’s brand purpose and how (2018). KPMG CIO survey 2018 they improve the customer experience that creates differentiation.

The bottom line is that digital transformation is both an opportunity and an absolute necessity in today’s customer- centric environment.

Technology-enabled CX By exploring the customer journey Their approach recognises that Lemonade – an insurance start-up with through the lens of The Six Pillars of customers do not want to spend time ambitions to enter The Netherlands Customer Experience Excellence, waiting in lines to pay and so they have – is using technology to target the organisations are able to target the focused on removing the checkout line Integrity and Time and Effort pillars. parts of their customer experience and altogether. Using a combination of AI, They recognise that the insurance prioritise technologies that will deliver computer vision and sensors, Amazon claims process is often seen as the greatest value for their customers. Go stores track which customers take cumbersome and time consuming for which products from the shelves. As consumers. Using bots and AI, the IKEA, for example, has successfully the customer leaves the store, their brand has re-imagined the process, used technology to target the Amazon account is automatically taking the customer experience as Personalisation and Expectations charged for the items they took. the starting point. By digitising the pillars by enabling their customers experience across the front, middle to view their products in their own Travel platform TUI has used and back office, the brand has been homes before purchasing. Using technology to target the able to transform the experience and augmented reality (AR), IKEA’s tool Personalisation and Time and Effort reduce the claims time down to a allows customers to capture their living pillars in order to help customers matter of seconds. space and then place different ‘virtual’ create better vacations with less products into it to see how they would effort. The brand uses AI to match The bottom line is that digital look. In doing so, IKEA has recognised customer’s personal preferences transformation is both an opportunity that customers often struggle to against a deep ocean of historical and an absolute necessity in today’s visualise their products outside of the travel data to create highly-tailored customer-centric environment. But store and this has led customers to itineraries for their customers. that does not mean that decision- either postpone purchases or not make Beyond travel and accommodation makers should be blinded by every them at all. recommendations, the brand also new technology; the leading brands uses the data to suggest TUI or are those that stay on course, investing In creating it’s brick-and-mortar chain third-party excursions, restaurant only into those technologies and tools of convenience stores, Amazon used recommendations and ideas for that help them move towards the technology to target the Integrity and activities. In doing so, TUI not only experience they know their customers the Time and Effort pillars. saves customers time but also helps will want in the future. them create more enjoyable vacations.

The thin line between cool and creepy Customers are keen to embrace new, become one of their most important data-driven, personalised and user- jobs as CEO. friendly technologies. But they also tend to worry about how their data is Brands must remember that securing being used and secured. According to customer data is only part of the a recent survey by KPMG, customers job. They must also make sure it is are often more concerned about how being used appropriately and to the their retailer is using their data than customer’s ultimate benefit. they are about their data being stolen by external hackers.1 They should be asking themselves how far they can go before their If brands hope to retain customer trust, analysis starts to become intrusive – in therefore, they must be able to clearly other words, where the line between and effectively manage expectations cool and creepy lies. And they should about what data is being used and ensure they never step over it. how it benefits the customer. Our view suggests those organisations In a different global survey of CEOs able to predict and exceed customer by KPMG conducted earlier this year,2 expectations without becoming creepy three in five respondents agreed that will gain clear competitive advantages protecting customer data had now in the fight for the digital consumer.

Cool The creepy meter

Clueless Creepy

1KPMG (2018). Consumer Loss barometer 2KPMG (2018). CEO Outlook 2018

What’s on the menu? Restaurants and fast food providers in The Netherlands aren’t just dealing with changing customer expectations and desires, they are also facing an increasingly competitive landscape. While the sector remains true to the slogan of “customer is king”, it struggles to keep up with sector dynamics and customer needs. New players, new technologies and new trends are increasingly shaping the customer expectations. As the leading brands in our research illustrate, however, it is possible to deliver faster and better food service, ticking all the boxes to deliver the optimal food and customer experience.

Customer appetites and expectations The rankings do not tell the full story, are changing. And Dutch Restaurants however. We see evidence of great and Fast food brands are taking big innovation and customer-centricity in the steps to respond. Indeed, the sector market – new technologies are being saw its overall Customer Experience applied across the customer journey; Excellence score rise to 7.22 in our innovative speciality menus are being research this year, up from 7.15 last year. offered; and unique experiential new food concepts are being rolled out. Our Clearly, the sector still has a long way view suggests many leading restaurants to go, particularly when you consider and fast food brands in The Netherlands that consumers now compare their are working hard to feed the customer’s experience against every other sector hunger for better dining experiences. they interact with. That being said, many of the leading restaurant and fast An appetite for technology food brands in our research improved The rise of mobile delivery apps, shifting their year-over-year ranking, suggesting customer technology preferences significant improvement over the past and new service options are rapidly year. Subway, the leading brand in the changing the Dutch restaurants sector, moved from 81st place in 2018 and fast food market. The leaders to 59th place this year; La Place moved are the ones that are embracing from 94th place last year to 67th place these changes as opportunities – this year; both notable improvements. creating technology-infused and differentiated experiences that keep the customer coming back for more.

“Went home the other day after a Subway In part, this is playing out in the shift from fine dining to more fast, casual visit feeling great! Cheerful people behind the dining. But customers are also looking desk that were sincerely interested in having a to be more conscious in their dining choices – prioritising things like conversation and asking me how my day was.” healthier specialty products offered in Respondent CEE, 2019 sustainable packaging with zero-waste policies. A number of newcomers have taken advantage of the void McDonald’s, for example, has Technology isn’t just being used to in the marketplace by offering new normalised the use of self-ordering reduce customers’ Time and Effort. product ranges. US-chain Sweetgreen, kiosks in fast food restaurants. Its It is also being leveraged to enhance for example, is widely viewed as a move towards direct home delivery Personalisation. Thuisbezorgd.nl true lifestyle brand due to its healthy services are fully ‘in line’ with the new (number 70 in our overall ranking) and sustainable plant-based menu delivery landscape. And their recent allows customers to save their and its investment into community investments with new technology favourite orders and restaurants in their services such as nutrition education. providers suggest the brand will account. On future visits, customers continue to enhance its technology can then reorder a previous favourite Responding to these changing capabilities and customer experience. with just two clicks on the app. customer demands can be challenging. Domino’s Pizza (ranked While it may be some time before La Place uses its app to improve its number 83) aspired to be the only robot chefs prepare and serve food Time and Effort and Personalisation Dutch pizza brand offering certified to customers in a matter of seconds, scores by providing special, gluten-free pizzas. However, we see efforts by global brands to personalised promotions to their significant slowdowns in operations improve the speed and convenience online app users. Starbucks (ranked have made the brand decide to of food delivery. In some cases, 73rd this year) uses AI in its stores shelve those plans for now. advanced payment options and curb to predict customer preferences side services are being offered, based on a number of factors While there have been many similar allowing customers to order through such as store location, weather trials and pilots that have failed the restaurant’s mobile app and online conditions and user preferences. to move the meter – often due to platforms, pay online with digital either a lack of understanding of the currencies, and have the food delivered Feeding the mind and body market or unexpected costs and right to the car window. Burger King The way people order food is bottlenecks – the vast majority of has refined the service into its ‘Traffic changing. But so, too, is their brands continue to invest into meeting Jam Whopper’ in some cities in the expectation of the products they order. the more specialised needs and US and Mexico – delivering hot food Indeed, today’s multi-dimensional expectations of their customers. to cars that are stuck in traffic. customers are often willing to pay a premium for convenient, sustainable and flexible food options.

“La Place’s self-service concept is fast and good. Hall of fame I often use their app as well, which gives me a quick overview of special promotions!” Subway 59 Respondent CEE, 2019

Some are working to improve their Experience to date, however, La Place 67 sustainability through certifications, suggests that building a brand improved employee training and in this sector without a physical waste reduction programs (particularly presence remains challenging. Thuisbezorgd.nl the removal of packaging from the 70 value chain). Others, like Too Good The importance of delivering an To Go, are taking a more direct excellent offline experience is well approach by offering customers a understood by Starbucks. They are Starbucks 73 ‘magic box’ that contains a selection taking a more radical approach to of near-expiry food items at a improving its offline experience discounted rate to fight food waste. and winning back traditional Domino’s Pizza customers by almost completely 82 What exactly IS a eliminating their online retailing and restaurant anyway? developing ‘Reserve Roasteries’ initiatives in favour of focusing Vapiano At the same time, some Restaurants 83 on creating a more emotive and and Fast food brands are also starting distinctive experience in-store. to experiment with the entire store concept. One of the more radical What is clear is that delivering on concepts being tested, for example, customer expectations in today’s are ‘ghost restaurants’ that have Dutch marketplace will require no physical customer touchpoints brands to bring together both digital except for the delivery. By reducing and physical experiences. Given the real estate costs and improving significant investments many brands control over the value chain from have been putting into improving their inventory management through customer experience over the past to orders, sales and delivery, the few years, we expect to see the sector concept is offering convenience to rise further up the rankings soon. customers, often at reduced prices.

That prompted us to come up with the ‘Grocery radar’ (‘Boodschappenradar’) which shows customers in real-time Walk of fame: when their groceries will be delivered. Our grocery radar is just one example; we involve customers on a continuous basis. In fact, every week, we invite customers to our Picnic offices to test new features or assess new product assortments.

Trust and feedback The online grocery market can be Picnic doesn’t just deliver groceries, they deliver on customer challenging; customers need to receive their full basket of products, expectations. And that has allowed them to fundamentally all in high-quality, and often stored change the way Dutch customers shop for groceries at different temperatures. And when online. Super-convenience, smart use of technology, something goes wrong, we need friendly runners and trustworthy service teams are just to fix it properly and promptly. some of the reasons that Picnic impressed and entered One way we do this is by trusting our our Customer Experience Excellence rankings this year. customers. And 99.9% of customers can be trusted. Our customers don’t need to provide evidence of their brown bananas, for example; Customer-led convenience However, we need to make sure that we trust them and simply refund. Picnic is super convenient. Our our use of customer data is always for customers can place an order in just the benefit of the customer and that three minutes and are able to make our customers continue to trust us repeat orders quickly and easily with their data. That’s why we have a based on previous orders. Our app Golden Rule in how we use data and is simple and intuitive, but on the develop our services: every change we back-end we use a lot of technology, make needs to be to the customer’s data and Artificial Intelligence (AI). advantage. For example, when customers are ready to order, it would Consider, for example, how different be super easy for us to ask if they customers might search for cheese: need tomato sauce to go with their some might look for it in the dairy spaghetti order. But we don’t, because section whereas others may consider we know customers find it annoying. it a sandwich spread. AI allows us They just want to finish their order. to adjust the location of cheese to the individual customer’s preferred At Picnic, we develop everything location for future visits. Similarly, if with the customer in mind and we notice you’re not interested in pet in close collaboration with our food and probably don’t have cats, we customers. When we started in will not show cat food in your standard Amersfoort for example, we invited view. Our ability to leverage customer 400 families to test our app. And it data enables us to provide a better and was amazing to hear their feedback. more seamless customer experience. During one of the town halls, for example, customers asked why it was not possible to know exactly when their groceries would arrive.

But it doesn’t stop there: if we start For example, if runners see toys in Click here to watch to see multiple similar complaints the front garden but it’s rather late at Picnic’s interview we dive into the details to find the night, they knock on the door instead highlights: cause and solve it. In the case of the of ringing the doorbell so as not to brown bananas, we quickly found out risk waking up any sleeping children. that the issue was isolated to just It’s this mentality we’re looking for one specific distribution hub where, in our runners. And it’s this approach as it turned out, the temperature that makes sure our customers our bananas were being stored are happy with their delivery. at was two degrees too high. A better tomorrow Knowing the root cause of We are proud of the multiple customers’ complaints enabled us to Click here to milestones we have achieved so exerpience Picnic’s solve the banana issue, reduce waste far. From our launch in Amersfoort, customer journey: and improve customer satisfaction. we have expanded to many other cities across The Netherlands We appreciate customer feedback, and now Germany. Our ‘Grocery and need it to further improve our Radar’ (‘Boodschappenradar’) is services. That’s why we make it as highly valued by our customers. easy as possible for customers to So, too, is the development of provide feedback. When customers our electric delivery vans. miss a product in our assortment they are looking for, they can click Sustainability is part of our vision, a ‘request’ button in our app and, if but we don’t make a big deal about Michiel Muller there are a couple of other people it. For us, it was important to make Co-founder Picnic that also want it, we add it to our impact first, and explain how we product assortment, ensuring create a more sustainable world Ruben Vermijs our assortment is aligned to our second. Last year, for example, Digital marketing leader customers’ needs. Our teams we launched our Summer Update respond to customer questions to customers; it provides each or issues in just a few minutes in customer with an individual overview Scores vs. market average most cases – not a chatbot, but of how much CO2 they saved real people. Our customers really based on their orders with Picnic. appreciate the human interaction and we really appreciate their feedback. Looking to the future, we want to become even more sustainable. And In our customer journey, the moment we are exploring a number of new Personalisation Integrity of delivery is key: it is the only ideas going forward. For instance, % % real physical, personal interaction we started a pilot with wehkamp to +1 +3 customers have with our brand. collect webshop returns when we That’s why we try to ensure that deliver groceries. Customer feedback our runners are the ‘ideal son-in- suggests they really like the idea; law or daughter-in-law’ type. They it’s convenient and sustainable are nice and self-motivated. If an at the same time. Looking at the issue does come up, we don’t want whole supply chain, there are many Expectations Resolution them to tell customers to send us an ways to improve sustainability by email or call our customer service; improving packaging for instance. % % no, we need runners to think like There is so much to win, since we’ve +5 +9 the customer and fix issues on the created a completely new model. spot if needed.Little things also matter deeply to our employees. We want to make a sustainable impact, for and with our customers.”

Time and Effort Empathy +1% +9%

Banks lagging CX battle The competitive landscape for banks continues to change. Challenger banks are gaining traction in Europe based on their exceptional customer experience; BigTech players are using their data and insights to offer highly-relevant banking and payments solutions to customers; FinTechs are using new regulations like PSD21 to bring innovations to market faster. At the same time, other sectors outside of Financial Services are redefining customer expectations. No wonder customers are becoming more critical of their banks’ services.

In today’s competitive marketplace, Dutch consumers do not think standing still is the same as falling they have gone far enough. behind. And when it comes to improving the customer experience, Why are Dutch banks falling behind? the banking sector in The Netherlands And what should they be focusing is standing still. The banking sector – on in order to deliver the type of on average – posted the same score customer experience that meets Sector highlight: Banking as last year in the overall Customer expectations and retains loyalty? Experience Excellence rankings. Looking into the future Other sectors posted impressive To get a better understanding of how gains. As a result, the banking sector the dynamics are changing, it is worth is falling behind. On average, banks in looking at the most recent CEE results The Netherlands fell 17 places in our for the UK. The UK is widely seen as ranking. No bank managed to make it the breeding ground of FinTechs – into the Top 20 this year. Of the five brands that are able to capitalise on brands that experienced the greatest their lack of legacy infrastructure and fall in our research, four are banks. highly-agile operating models to deliver exceptional customer experiences. So while Dutch banks seem to have So it is worth telling that two of the been placing significant focus on Top 3 brands in the UK are so-called improving the customer experience – challenger banks (First Direct took first enhancing performance, breaking down place and Monzo took second place), organisational siloes and pursuing an yet only one of the ‘Big 4’ (Lloyds) increasingly digitised customer journey – managed to make it into the Top 100.

“I have recently opened a savings account at At the same time, our research shows that most customers have a preference ASN Bank because I can relate to their mission. for online banking, and predominantly And I’m always treated friendly and correctly” app. But as customers indicate, it is not a differentiator anymore: “I use Respondent CEE, 2019 the mobile app and it works”, and “I manage everything online, and have Last year, we saw some of these Others are picking up on the trend. not experienced issues so far”. challenger banks broaden their Rabobank’s ‘Banking for Food’ footprint to expand into mainland and ABN AMRO’s ‘Finance the But Personalisation has as much an Europe. So while they may not be Future’ purpose both speak to a offline as a digital angle. Our research capturing much market share in The higher vision than simply delivering clearly illustrates the importance Netherlands today, we expect their shareholder returns. However, customers place on personal contact. influence will soon be felt by Dutch compared to ASN Bank and Triodos Some customers noted frustration banking brands as their customers Bank, our view suggests the big with the lack of omni-channel start to demand similar functionality banks still have some way to go customer management (“Via the and experiences in the near future. before they convince customers website chat I have asked a question they are truly purpose-driven. but they couldn’t answer. I had to Working for a purpose call a phone number and wait 30 minutes, then they still couldn’t help ASN Bank still leads the pack in Balancing digital with personal me. That’s 30 minutes lost forever”). banking in The Netherlands (ranking Dutch banking customers are clear Others cited more positive elements #28 overall), suggesting that strong about what makes an experience (“I enjoyed the proactive thinking values and a clear purpose continues excellent: it’s Personalisation. Yet of an employee in a branch”). to motivate Dutch banking consumers. our research shows that all banks are In our research, customers indicate underperforming in this important area. Challenger banks like Revolut and N26 they appreciated that ASN Bank are shifting customer expectations was “good for the environment” Banks strive to critically balance their for personal contact. They offer and that they could “understand and data security and GPDR requirements premium subscriptions that include value their vision and philosophy”. against their use of customer data. things like premium personal support, And recent cases with ING and concierge service and priority Another example when it comes ABN AMRO suggest that the Dutch customer support with dedicated down to purpose-driven business Data Protection Authority is taking phone and chat lines. Traditional is Triodos Bank. Their mission potential transgressions seriously. banks will need to rethink their is to “make money work for positive change” as they strive approach if they want to compete. for positive, social, environmental and cultural change through community-driven offerings and a sustainability-led lending strategy.

1Second version of the Payment Services Directive that replaced PSD in 2015. This initiative is administered by the European Commission in order to regulate payment services and providers throughout both the European Union (EU) and European Economic Area (EEA)

People deliver the personal touch Hall of fame While technology plays a key role in However, our view suggests delivering on the customer agenda, that both the employee and the it is the bank’s employees that are at customer experience need to ASN Bank the centre of delivering the customer be connected across the front 28 experience. That is why some banks and back office; the experiences – such as First Direct in the UK – are are mutually interdependent and PayPal refocusing their recruitment criteria tightly intertwined – managing the 39 to prioritise ‘caring professionals’. connectivity between them is now First Direct wants to “hire for the a vital organisational competency. smile and train for the skills”. SNS Those looking for inspiration may 66 Ask yourself this: when was the want to examine First Direct or last time your HR Director, your Transavia where top management Customer Experience Director, your is evaluated on how well the Rabobank 71 Chief Marketing Officer and your employee and customer experience Operations Director got together to is interconnected. ASN Bank’s efforts talk about the customer experience to ask all employees to keep the ING and the employee experience? If customer at heart is another good 87 you are like most organisations, move in the right direction. And the answer is probably never. maybe this will be the trigger that will push the Dutch banking sector ABN AMRO 98 back up the leader list next year.

From ‘one-size-fits-all’ to ‘fit for purpose’ As the availability of data starts to open up new opportunities and insights for insurers, many of the leading brands in The Netherlands are taking advantage to the customers’ benefit. Yet the journey is only just starting – Dutch insurers will need to step up their transformation efforts if they hope to be able to quickly respond to shifting customer expectations and provide timely, value-added and personalised customer experiences. In this environment, the brands with the most customer-centric, data-driven and digitally-enabled business models will win.

While the Financial Services sector Centraal Beheer is also winning is doing relatively well with a fourth customer hearts and minds through the place, insurers need to step up their introduction of new customer-oriented game given the fact that banking products and services, such as their surpasses insurance on all of The Six ‘Handyman’ (‘Klushulp’) that provides Pillars except for Integrity. Customers an online platform to easily book a have never considered insurance to local craftsman for home repairs. be the most exciting of purchases. But that hasn’t stopped some Dutch Another innovative insurer – FBTO – was

Sector highlight: Insurance highlight: Sector insurers from trying to change their ranked second place amongst insurance minds. Indeed, our ranking of Customer brands. Their focus on improving the Experience Excellence (CEE) in The customer experience and co-creating new Netherlands shows there are a number propositions with customers has helped of brands that are finding unique them move up 29 positions in our CEE Top ways to satisfy their customers. 100 this year. The brand scored well across all of The Six Pillars, particularly in the Centraal Beheer, our leading sector Time and Effort and Expectations pillars. brand (and ranked 17th overall), is widely recognised as being one of the Getting personal most customer-centric companies With customer expectations for a in both the private and commercial personalised experience at an all-time high, insurance markets. In part, their many brands are now working to better success is driven by their efforts understand their customers’ expectations, to make their employees directly anticipate their specific needs and responsible for customer experience. adapt the experience accordingly.

“I had a small accident while at my son’s house. From protection to prevention I called Centraal Beheer’s and told them I was there Insurers are now using data insights because I had just become a grandfather. Two days to help them achieve a better understanding of the actual risks later I received flowers at home from Centraal Beheer, and behaviours associated with expressing their best wishes. Great, right?“ individual customers and policies. And this is helping them to set the Respondent CEE, 2019 right premiums and ensure the right products for every customer. Simply put, the sector is trying to Putting data to work for move from the ‘one-size-fits-all’ the customer At the same time, however, a growing approach of the past to a ‘fit-for- If insurers want to capture the hearts number of insurers are also using data purpose’ approach that is tailored of Dutch consumers, they will need and insights to help them shift from around the individual customer. to put more effort into understanding protection to prevention, allowing the drivers and expectations of them to deliver even greater value to The opportunity for insurers to impress their current and future customers. customers and to differentiate in the is great: insurers are often involved Data will be key. It will help insurers marketplace. For example, Univé’s in their customers’ most important refine their products and create Smart Safety Scan helps customers life events – buying a new house, new services; it will help them tailor predict and prevent negative events getting married or having children, services to highly-targeted customer which, in turn, allows the brand for example. And these are the times segments; and it will help them to offer much more competitive where a highly-personalised and apply more dynamic risk-based premiums and provide the customer empathetic experience can make a key pricing (thereby reducing risk for with a more positive experience. difference in the customer relationship. both insurers and policy holders). Our experience suggests that Interestingly, while the value and However, insurers are also increasingly delivering on these opportunities and importance Dutch consumers place recognising that – if they want to use expectations will require insurers to on Personalisation has increased in-depth data on their customers’ become much more connected across versus last year, the overall average behaviours – they will need to the front, middle and back office. for the sector in this pillar remains deliver benefits to customers in Insurers will need to be able to quickly unchanged. This suggests Dutch return; perhaps better policy pricing, convert their insights into actions insurers have some ground to improved damage prevention or a that benefit their customers. And cover to meet expectations for healthier lifestyle. FBTO, for example, that will likely require a fundamentally more personalised services. offers a ‘driving style insurance’ different business model than what is that offers discounts to customers currently used. More transformation with good driving habits when will be required, particularly focused they sign up through the app. on improving the responsiveness of operations, modernising the enabling technology architecture and creating more seamless interactions.

US-based InsurTech Lemonade That, in turn, will drive improvements Hall of fame is often cited for their focus on in customer experience. Insurers integrating automation to simplify will also need to carefully consider and improve customer processes. how they deliver strong change Centraal Beheer Their AI-driven claims processing management support to the 17 application, for example, uses chatbots organisation and its employees in to interact with customers who submit order to achieve better end-to-end claims simply by uploading photos of alignment with the organisation’s FBTO 41 damaged goods. This not only helps new digital, data-driven and improve the brand’s capabilities in the customer-centric business models. Time and Effort pillar, it also creates a Univé much more efficient claims process. Customers are asking for change. 60 Insurers will need to step up further Towards the insurer of if they hope to make sure their the future propositions remain ‘fit for purpose’. VGZ 74 It’s not just operating models that are changing; the insurance sector also needs to find new ways of Zilveren Kruis working. In part, these are being 76 created by InsurTech start-ups and innovators who are creating new CZ business models and processes. But 86 if insurers want to keep up, they will also need to improve their own internal capabilities and business models. Interpolis 90 Attracting new talent and new capabilities will be key. Insures will OHRA need to focus on the entire employee 95 journey, from recruiting and onboarding through to motivating and engaging.

We also like to create surprises on a larger scale. For example, during our “little dents day” event, we invite customers to come out and get up to three dents repaired for free. We create a carnival-like atmosphere with coffee, sweets Walk of fame: and live music to entertain our customers while we fix up more than 3,000 cars. It is a great way to deliver on our customer experience Centraal Beheer and build customer relationships. At Centraal Beheer, we try to encourage our employees to contribute to our customer experience and to With a deep desire to solve customers’ issues and come up with new ideas. Every month, to contribute to the wider society, Centraal Beheer is we recognise an employee who has gone the extra mile to either directly changing what customers expect from traditional insurance or indirectly impact the customer. organisations. Supported by a ‘Happy Customers’ team that is dedicated to driving customer centricity across the organisation, the brand is creating positive, solution- oriented and personal experiences. And that has earned them top rankings in the financial services sector this year.

Putting customers in the driver’s seat “From Day One – more than 110 years ago – Centraal Beheer has been all about customer centricity. For more than a century, we’ve been focused on creating a positive impact on our customers’ lives. And I think our Happy Customers team embodies that commitment – this is a multi-disciplinary team with a single-minded focus on making customers (even more) happy.

It is important that our customers know we value them. We know that, in today’s environment, you really need to value your customer as their expectations are no longer being set by the sector, but rather by the overall cross-sector leaders. Our customers expect the same level of customer experience from their insurer as they do from their retailer or telco. We need to make sure we can meet those expectations.

Yet simply meeting our customers’ heightened expectation is not enough for us. We strive to go that extra mile by surprising and rewarding our customers at key points along the customer journey. Our customer agents are empowered to send our customers small surprises when appropriate – maybe a small bib when a new child is born; in other cases we might send Myosotis seeds (commonly known as forget-me-nots) when a customer cancels their policy.

Our goal is to recognise certain occasions – to create memorable moments and put a smile on our customers’ faces. The response from our customers is often just as surprising: we have received gift cards and thank you notes; customers have driven to our offices just to say thank you in person.

One recent honouree, for example, And that allows us to detect New technologies and ideas will be was a call centre agent who helped pain points, solve issues, track key; ease-of-use and a ‘one-click/ a customer salvage their travel plans improvements and – most of all – one-swipe’ experience will be the at the last minute by driving key improve service personalisation. base expectation. We also know it documents right to their home. is pointless to focus on the present We also go directly to our customers without creating alignment to the Our employees are motivated by to capture their ideas and insights. future long-term strategic plan. our customer values: positive, Our Customer Arena event, for solution-oriented and personal. At example, brings together groups of Our vision of the future encourages Centraal Beheer, our customers customers to share their experiences our Happy Customers team and our always come first; their needs always on specific topics. The event not employees. It drives our customer take priority. That is something only provides us with valuable focus and our brand. We see the future unique to our culture and it is customer feedback but also provides as our inspiration. And we understand highly motivating to employees. employees across the organisation that the future starts today.” with a shared understanding Really getting to know of our customers’ needs. the customer Our focus is on sharing our customer We never make changes to the Albert Spijkman insights across the organisation and customer experience based solely encouraging our employees to use Division Chairman Centraal Beheer on gut-feel or assumptions; all of them. Our view is that every single (divisievoorzitter Centraal Beheer) our decisions need to be customer- employee needs to understand the centric and data-driven. We use Yvette Stegeman needs of the customer if we hope our customer data and insights Manager Happy Customers to create even happier customers. to critically evaluate and prioritise (manager Blije Klanten) those improvements that will make a real difference to our customers. Delivering valuable solutions At Centraal Beheer, we don’t Scores vs. market average When our data uncovered that our just sell insurance policies, we customers were not properly re- offer our customers solutions. evaluating their policies on a regular And that is how we see our role basis, we created a chat-bot that in society: we identify important worked with customers to determine issues and work to solve them. whether their insurance was still the Personalisation Integrity best fit for their personal needs. While For example, our ‘handyman’ % % our preference is to have a human solution helps both customers +5 +4 agent speak with all of our customers, and non-customers find a reliable the chat-bot was warmly received by and suitable handyman when they customers and allowed us to further need it (more than 20,000 people increase customer engagement. have used it since we launched it last year). Our ‘RoadGuard’ Given the value of customer insights, solution provides drivers in The we are continuously looking for Netherlands with an on-demand, Expectations Resolution new opportunities to improve our pay-per-use roadside assistance % % understanding of our customers. service, complete with an Uber-like +4 +6 We have invested significantly into interface that allows users to track achieving a 360-degree view of our the location of their support vehicle. customers. We use text mining to capture key insights from qualitative As we look into the future, our focus customer feedback. We have mapped continues to be on our customers. our entire customer journey and now Indeed our long-term goal is to monitor key interactions using Voice support all of The Netherlands. Time and Effort Empathy of the Customer feedback as well as % % measures such as NPS and Loyalty. +7 +7

Delivering experience When was the last time you purchased stamps at a Post Office? Or took a package to a return point and waited for the proof of shipment receipt? Chances are, it was a long time ago. Today, consumers are able to write a nine-digit code onto their envelope to ensure it reaches its destination. Packages can be picked up right at the customer’s door. As the environment and expectations around logistics rapidly shifts, our research suggests logistics providers in The Netherlands are struggling to impress. The big question is whether this trend can be reversed.

The logistics sector has been under And while there are many possibilities tremendous pressure over the past for things to go wrong, it also few years. Stuck between rising creates massive opportunities for expectations, narrowing margins and those able to deliver an experience increasing competitive pressures, the alongside their service. logistics sector has been struggling to connect with customers. More than a delivery When social media started being Sector highlight: Logistics Indeed, in our research, the sector adopted, many worried it would suffered an overall drop in Customer be the final nail in the coffin of Experience Excellence scores – from traditional mail services. But the 6.85 in 2018 to 6.69 this year. None simultaneous rise of ecommerce filled of the brands in our ranking improved the void with packages. Now, the their score over last year. As a sector, dynamics of the logistics sector are logistics ranks ninth overall (only slightly changing, and continue to change. ahead of the public sector in last place). On the one hand, customer expectations While consumers seem to consider are increasing – options like same-day logistics providers to be trustworthy (the delivery, preferred timeslot delivery sector scored highest on the Integrity and track & trace options are resetting pillar), the reality is that their base customer expectations across the sector. level expectations have shifted. It’s no longer good enough to just deliver the package on time and undamaged; this has become the status quo.

“The possibility at PostNL to write a nine-digit PostNL, for example, already offers customers a furniture- code as a stamp is a great solution if you don’t assembly service and a set-up have a printer or a post office nearby.” service for laundry machines for example. In the future, this could Respondent CEE, 2019 become a significant source of new revenue and improved customer At the same time, the rise of Retailers like Picnic and Coolblue experience for logistics brands. digitisation and adoption of Internet for example, are taking logistics of Things (IoT) is also providing in-house; they see delivery as an Furthermore, customer demands logistics organisations with new important customer touchpoint for more sustainable products and sources and use of data to improve and an opportunity to delight. supply chains could also create operational performance and Picnic uses technology to put the new opportunities for logistics enhance the customer experience. customer in control of their delivery brands to delight customers. by showing them in real-time The sector is also continuing to when their groceries will arrive. There is a massive opportunity to explore new delivery innovations and rethink the traditional delivery and models. Pick up points are popping Coolblue uses unique cardboard return process; logistics companies up not only in stores but also in boxes that are designed to be could be helping shape that offices and transit stations. Others fun on their own for customers future in a way that reduces their are experimenting with drones for (creating ‘PakketPlezier’ or impact on the environment and small commercial deliveries. In the ‘PackagePleasure’). In doing so, keeps customers at the centre. Netherlands, Albert Heijn is testing these brands are demonstrating that a bright blue delivery robot to deliver there is significant opportunity to While logistics brands in The orders at Eindhoven Campus; DHL delight customers with logistics. Netherlands are clearly struggling and PostNL are running a pilot where to impress Dutch consumers, we deliveries are securely delivered and Go the extra mile see strong signs and signals of stored in the customer’s car trunk. With a strong track record for future hope. Logistics brands are achieving operational excellence starting to recognise the vital role Digital upstarts may pose little and extensive national and they play in the customer experience threat to the bigger players at this international networks, logistics and are now shifting their focus time (logistics remains a capital- brands should be well positioned towards delighting customers. intensive and asset-heavy business). to create value for customers. Instead, the threat is coming from “PostNL delivers its companies that, at one time, would Some of the more innovative logistics have been considered customers. brands are now looking at how they packages on time can provide additional customer and the deliverer is services by leveraging their network and personal customer interactions. friendly and polite.” Respondent CEE, 2019

Global Customer Experience Dutch Customer Experience Excellence coverage in 2019: Excellence Research The brands included in this research are based on guidelines from Customer Experience Excellence Centre, conducting Customer 5,052 48,170 214 Experience Excellence (CEE) research Customers brand evaluations cross sector brands annually since 2010. Over that time, more than 275,000 consumers Methodology and terminology: have been interviewed and 2,700 Sector coverage brands measured to collect more than 3 million individual evaluations. For this report we analysed brands across 10 sectors. A total of 214 brands, Since two years the research operating in the Dutch market, were included in this research. expanded around the globe, and continued this year by taking in the views of more than 84,000 1 consumers across 20 markets . Financial Grocery retail Non-grocery Restaurants Entertainment services retail and fast food and leisure The research for this NL Customer Experience Excellence report was conducted via an online survey methodology, completed Q2 Travel and Logistics Utilities Telecoms Public sector 2019. A nationally representative hotels consumer sample was targeted, to be representative in terms of age and Key metrics Critical incident gender, whilst also targeting regional The Six Pillars A decade of research technique questioning An open representation. The sample consisted and more than 3 million consumer question is included to explore more of 5,052 consumers. evaluations have identified and about a respondent’s experience with validated six fundamental components a particular brand. Example responses To participate in the research and to of every great customer experience cover details of a specific experience, be able to respond to questions on – The Six Pillars - a framework for what happened and how it made them a specific brand, respondents must customer experience best practice feel about the company. have interacted with that company in which are measured within the survey. the last six months. An interaction is Advocacy In order to understand the Customer Experience defined as making a purchase, using respondent’s likelihood to recommend Excellence (CEE) scores The CEE the company’s products and services, we ask them to rate how likely score is derived for each brand via contacting a company with a query, they would be to recommend each a weighted average of the brand’s or even browsing their website or company to a friend or colleague. score for each of The Six Pillars. store – so not all respondents will have The weighting is calculated through been existing customers of the brand Loyalty To understand likelihood to regression analysis to understand the they evaluated. In order to be included repurchase we ask respondents to rate relative importance of each pillar in in the final rankings each brand must how likely they are to continue buying driving the two commercial outcomes have achieved a minimum of 100 goods /services from each company in measured in the analysis: advocacy consumer responses. the future. and loyalty.

1KPMG Customer Experience Excellence Centre, Methodology developed by the Customer Experience Excellence Centre. 2019

Contact the experts Acknowledgements

Nienke Wichers Hoeth Authors: Nienke Wichers Hoeth e: [email protected] t: +31 6 15030487 Leonie Vervelde Kay van der Vleuten Jelle Jochems Linde Erinkveld Leonie Vervelde e: [email protected] Special thanks to: t: +31 6 30003724 Edgar Molenaars Arjen van Ulden Jan-Paul van Term Anouk Zevenbergen Martijn Helder Customer Centre of Excellence Marketing & Communication department (NL)

Design: Jagdeep Shambi

www.kpmg.nl

4 Rituals

Van der 1 Valk Hotels 5 Coolblue

Pearle 6 Opticiens

7 Specsavers 2 bol.com Eye Wish 8 Opticiens

9 ANWB 3 Lush 10 KLM

Sector key

Non-grocery Restaurants Financial Grocery retail Logistics retail and fast food services

Travel and Entertainment Telecoms Public sector Utilities hotels and leisure

Change vs 2018

Up Down Non-mover New to Analysis

11 Landal 42 Holland & Barrett 72 Vodafone

12 Apple Store 43 Douglas 73 Starbucks

13 Greetz 44 Corendon 74 VGZ

14 TUI 45 Bruna 75 Ticketmaster 15 Hornbach 46 Ekoplaza 76 Zilveren Kruis 16 IKEA 47 Gamma 77 Vero Moda 17 Centraal Beheer 48 Lidl 78 Praxis 18 Zalando 49 BCC 79 BP 19 Expert 50 C&A 80 YouTube 20 Hans Anders 51 de Bijenkorf 81 Nelson 21 DA 52 Kruidvat 82 Domino's Pizza 22 Albert Heijn 53 Jan Linders 83 Vapiano 23 wehkamp 54 Gall & Gall 84 DekaMarkt 24 Ben 55 Etos 85 Greenchoice 25 Utopolis (Kinepolis) 56 HEMA 86 CZ 26 Picnic 57 PLUS 87 ING 27 Hallmark 58 Jumbo Schiphol Amsterdam 88 28 ASN Bank 59 Subway Airport 89 Esprit 29 Prénatal 60 Univé 90 Interpolis 30 Vue Cinemas 61 Simpel 91 Vomar 31 Hunkemöller 62 T-Mobile 92 Action 32 Transavia 63 Center Parcs 93 Amazon 33 ICI PARIS XL 64 Hollands Nieuwe 94 Videoland 34 Dirk van den Broek 65 OMODA

35 KPN 66 SNS 95 OHRA 96 Foot Locker 36 Booking.com 67 La Place 97 Expedia 37 Pathé 68 Karwei 98 ABN Amro 38 Netflix 69 Samsung Store 99 Esso 39 PayPal 70 Thuisbezorgd.nl 100 Blokker 40 Sunweb 71 Rabobank 41 FBTO

© 2019 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 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. CREATE. | CRT118446 | October 2019