Making Memories 2016 UK Customer Experience Excellence Analysis 4 5

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2016 UK Customer Experience Excellence Analysis Customer Experience Excellence Centre

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Best Use of Thought Leadership 2016 Making Memories 2016 UK Customer Experience Excellence Analysis 4 5

The memorable moments are not just about the tangible elements – the ‘nice to haves’; the intangible elements are just as important, as they can work together to create a good experience. Foreword The challenge for loyalty-fixated CEOs is to ensure their business Contents satisfies the needs of the experiencing self, so that consumers are drawn to their brands, while they also provide experiential change that the remembering self can use to create memories that will bring consumers back again and again. The decisions we make in life are based on memories – about experiences. The creation of positive memorable Kahneman makes the following distinction about how experience experiences is becoming the new battleground in improving and memory affect future behaviour: “We actually don’t choose customer value. between experiences, we choose between memories of experiences. And when we think about the future, we don’t think Our research in both the US and the UK has shown that leading of our future normally as experiences. We think about our future p. 06 p. 08 p. 10 firms now understand this, and that delivering memorable as anticipated memories.” (Source: The Riddle of Experience vs. customer experiences forms the very core of their customer Memory, Daniel Kahneman). It therefore follows that loyalty will strategy. Ritz Carlton, for example, has 40,000 ‘memory come from customers’ anticipating future positive memories of UK 2016 Executive The Six Pillars of The 2016 UK Customer makers’ – every employee is charged with creating something experiencing your brand. Summary Customer Experience Champions memorable for each individual customer. So which companies across the globe should the UK look to for Excellence However, whilst at some level, many firms intuitively understand guidance in creating ‘anticipated memories’? In the US, firms such the importance of linking memory with experience (think of as Ritz Carlton, Disney, Publix, Trader Joes and Wegmans are all the number of companies that state “creating memorable exponents of creating experiences that engage the remembering experiences” as part of their customer strategy), few really know self. In the UK, first direct, John Lewis, Lush and Emirates lead how to go about successfully implementing such a strategy. the way. These firms realise that our remembering self requires a Consequently, the theme of memory and its link to loyalty little help, so they consciously seek to reinforce memories that will p. 14 p. 18 p. 31 is the central area for exploration in this year’s UK Customer bring the customer back. Experience Excellence analysis. Interestingly, Kahneman cites travel as a change-inducing activity The State of the Nation Sector Review Delivering an The recent KPMG Global CEO Outlook highlighted that the because travel provides an ongoing supply of new and novel Omnichannel Experience primary concern keeping CEOs awake at night is customer experiences. This is interesting because in this year’s report, it is loyalty – how can we ensure we keep the customers we have? the travel and hotels sector which features some of the year’s most transformed brands, with firms such as Marriott, American Neuroscientist Daniel Kahneman provides some of the answers Airlines and Eurostar setting the pace. Each, in their own way, in his concept of the “two selves” – the “experiencing self” creating memorable experiences that drive loyalty and advocacy. and the “remembering self”. The experiencing self lives in the present, processing current inputs and information from the So why is all of this beneficial to the CEO? Most companies are p. 34 p. 51 p. 58 physical and social environment. Once these moments have attempting broad-brush, wholesale improvements in customer passed, however, most are lost forever. Kahneman estimates experience – involving large-scale transformative projects that the average retention of an experience is about three seconds look to generate root and branch improvements. The reality is, Making Memories Achieving Customer Next Steps (Source: Thinking, Fast and Slow, Daniel Kahneman). that from a customer’s perspective, it is more valuable for firms to determine where they must be good enough (meeting the needs Transformation The experiences we remember are defined by change. of the experiencing self) and where they should excel (activating Experiences that are new, novel or are personally meaningful the remembering self). For many firms, success will be a matter of provide emotional peaks in a stream of experience. Finally, our prioritisation and focus, not necessarily wholesale change. remembering self likes endings, how experiences conclude – the big finish. David Conway, Director September 2016

© 2016 KPMG Nunwood Consulting Limited is a subsidiary of KPMG Holdings Limited, a subsidiary of KPMG LLP, a UK limited liability partnership and a © 2016 KPMG Nunwood Consulting Limited is a subsidiary of KPMG Holdings Limited, a subsidiary of KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Making Memories 2016 UK Customer Experience Excellence Analysis 6 7 UK 2016 Executive sector there is something of an arms race, as a reinvigoration of how they continue to meet companies work hard to woo the more affluent their physical needs. For Eurostar, a £1 billion passenger or customer, in particular. investment in new, state-of-the-art trains has catalysed customer experience improvement Summary • Hospitality continues to focus on the delivery across all of their touch points. A significant of the brand through its people. Ritz Carlton performance given the level of disruption they led the world in training staff in how to interact have been dealing with that has often been with guests in a way that is not simply polite outside of their control. and friendly but memorably so. Parent brand Marriott has learnt from its outstanding subsidiary, At the heart of customer experience thinking this year embracing many of the techniques pioneered by has been the desire to create experiences that live in the Ritz Carlton and applying them across its portfolio memory, either directly through the superior quality of This year’s analysis shows that customer experience of brands and, as a consequence, has risen up the the experience, or indirectly through association, as is success is always work in progress and never a UK leader board. evident amongst the leaders. For Lush it is about linking destination, with familiar names entering, re-entering what they do to a memorable campaigning stance, for and leaving the top 10. • It is this concept of memory that provides the M&S Food it is the part they play in date nights, for Apple central theme of this year’s report. Our 2016 Store it is the cleverness of their geniuses and for Richer The continuing quest to outperform competitors has US report (Harnessing the Power of the Many) led to an improvement in the UK Plc score overall (from Sounds it is the passion and exceptional knowledge of highlighted companies such as USAA and Disney their people. 7.25 to 7.33) for the first time in three years, as customer Parks. They not only focus on creating great experience strategies begin to have an effect. customer experiences, but also on intentionally What is clear is that these companies all excel at The Six However, with customer expectations continuing to rise, engineering and architecting the experiences in Pillars of customer experience and wrap the experience it is becoming more and more difficult for firms to stay such a way that they live on in the customer’s around a singular customer-based mission. abreast of expectations, let alone exceed them. memory and have a direct and quantifiable impact on commercially advantageous future behaviour. • first direct top our table this year. A sterling performance given that many financial institutions • The leading brands in the 2016 UK analysis are struggling to reconcile increasing regulatory have clearly paid attention to this. Emirates, Research conducted in July 2016 demands with a high-quality customer experience. giffgaff, M&S Food and Apple Store are all skilful Over 10,000 UK consumers evaluated 287 brands exponents of managing the memories they create. However, Nationwide Building Society, who return Spanning 10 sectors: to the top 10, and first direct, show that the two • Brands that have transformed, such as OVO are not necessarily mutually exclusive. Energy and TSB, have learnt how to reach • TSB is the first of the major high street banks customer experience escape velocity and leave behind a moribund sector, by creating experiences to break into the top 50. A performance driven by Financial Grocery Non-Grocery Restaurants Entertainment an intense focus on the human side of customer that link to a powerful and memorable hero Services Retail Retail and Fast Food and Leisure experience as a competitive differentiator, led product offer. from the very top. • For brands such as Mothercare and Eurostar, • In the UK and globally, we are seeing the travel a complete rethink of how the business model is presented to the customer has been Travel and Logistics Utilities Telecoms Public sector leading both customer experience Hotels Sector innovation and the delivery of experience required. Mothercare have focused on the unmet quality through people. Indeed, within this psychological needs of new parents alongside

The Customer Experience Excellence Centre is the world’s The Six Pillars of customer experience excellence Pillar impact on loyalty and advocacy largest customer experience think tank. Through an ongoing research programme across three Organisations that deliver across The Six Pillars demonstrate the enhanced commercial outcomes that are continents over seven years, over achievable, as The Six Pillars have a clear link to loyalty and advocacy. 1.4 million consumer evaluations have been gathered. The Centre’s research demonstrates Personalisation Integrity that a universal set of emotional Using individualised attention to drive an Being trustworthy and % % 12 12 P qualities defines an outstanding emotional connection. engendering trust. thy Pe thy ers pa rso pa on customer experience – these are The m n m al E al E is is a a t Six Pillars. Personalisation, Integrity, io % ti 7 o % n Expectations, Resolution, Time and 1 n 9 2 1 t 2 3 Effort and Empathy are all essential r t % 5 r o % f o goals to master for a leading f f f E

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5th Amazon 6th Richer Sounds “I ordered a Kindle book. “My husband and I went Instead of supplying it, An exemplar of how to to Richer Sounds to buy Julian Richer describes the factors they sent me a polite generate emotionally engaging a new TV. The staff were behind Richer Sounds’ success as, The 2016 UK Customer email telling me that I extremely helpful and we Personalisation without human “we recruit colleagues who love had already bought it, spent a lot of time in the which I had! I cannot interaction, Amazon continually shop. We were also able music and movies as well as for their think of another company looks to develop new innovations to experience the sound natural friendliness. We don’t employ that would be as honest. to enhance the experience. It is the quality of the TVs in the people for their high-pressure sales Champions Most would simply sell way in which Amazon has extended shop and they went out skills; we choose team members me another copy!” its business model that shows the of their way to help us.” who are friendly, enthusiastic UK 2016 respondent greatest experience innovation. UK 2016 respondent and genuinely passionate. That For most of us, it has become means that our sales teams have 1 our library, our movie theatre, our 2 something in common with our Non-Grocery place from concert hall, our photo album and Non-Grocery places from customers straight away, which Retail 2015 Retail 2015 our retail partner of choice. makes it easier to build a rapport”.

1st first direct 2nd John Lewis 7th M&S Food 8th giffgaff “first direct are just “I have always found “I love the M&S “When I first changed brilliant. There’s always Reclaiming 1st place in 2016 (also shopping in John Respondents to the UK analysis Dine In deal. It feels M&S Food is the leading to giffgaff, I messed up giffgaff is the only telecoms company a proper advisor on the no.1 in 2014), first direct creates Lewis to be very indicate that John Lewis manages like a real treat on a grocery retailer in 2016 and on my top-up and was to feature in the top 10. A new end of the phone who positive brand memories for its pleasurable, with the memories it creates for its weekend. We’d rather continues to be behind M&S unable to purchase the type of network, giffgaff treats its can deal with your query staff who are more stay in and make a bundle I wanted. They straight away. They are customers through its quirky customers through a seamless profits. With its immensely customers as if they are a family than willing to go the night of it at home” apologised even though always cheerful, helpful advertising and outstanding extra mile for you.” experience, integrity in actions popular Dine In for Two member. Unusually, it’s less about and professional – they customer experience, knowing and swift resolution if things go deal, M&S Food makes a it was my mistake, added staff creating great experiences for UK 2016 respondent UK 2016 respondent free credit and helped me are excellent at what when its right to make things quick wrong – leaving the customer memorable experience out its customers, but instead about convert it to a bundle.” they do.” and simple for customers, and with a positive memory of staff of a night in, as customers the community of customers it UK 2016 respondent when to make memories. The bank going ‘above and beyond’, and appreciate the restaurant- UK 2016 respondent has created delivering memorable acknowledges the important role consequently, a more positive quality, competitively priced experiences for each other. An 1 its staff play, recruiting for attitude, 1 impression of the retailer than they 11 food at home, with the added 45 unusual model, but one that Financial place from training the skills and empowering Non-Grocery place from had before the issue arose. Grocery places from reassurance of all products Telecoms places from generates high satisfaction and an Services 2015 Retail 2015 Retail 2015 2015 staff to make decisions. being responsibly sourced. emotional connection with the brand.

rd th 3 Lush 4 Emirates =9th Nationwide Building =9th Apple Store “We celebrated my “Excellent in every “Towards the end of Society “My iPhone was one daughter’s birthday with A strong set of core values and possible way. They Emirates’ move into the top last year my mortgage month out of warranty At the heart of the Apple Store when it began to turn a visit to Lush and had beliefs are at the heart of the brand, make you feel important, 10 is driven by its progress in was reaching the end As a mutual organisation owned by experience is its people. As with and for those who share these even when you travel demonstrating Empathy with its of its term. There were itself off. The guy at the a lovely time. They went a number of options its members, the culture is focused Genius Bar found water the majority of the top 10, the right out of their way for us values, this sets an emotional economy class. No passengers. The airline sets itself plastic cutlery or dishes, to take and the staff on doing the right thing for its damage to the phone. recruitment and training means and made the birthday connection which develops apart from others by intentionally Apple had every right to numerous channels you were very helpful in members. The building society is its staff are explicitly taught to providing guidance on make me pay for a repair. girl feel incredibly throughout the customer journey. can watch, all making engineering memorable experiences. constantly investing in the member create memorable and magical special – she has great my options to pay it off Instead, they gave me This connection is enhanced the flight experience Be it a souvenir family photograph experience, from new product a replacement with a experiences. The brand looks for memories of that day.” and save interest and by the advisory approach staff truly memorable.” with the air hostess, or chauffeur re-mortgage costs.” launches to its branch environment three-month warranty.” passion, spirit and a collaborative UK 2016 respondent take, providing guidance rather UK 2016 respondent service from the airport, the UK 2016 respondent and digital solutions. Demonstrating UK 2016 respondent attitude when it recruits, then than hard selling. Lush Kitchen – individual touches appear special and Integrity and Empathy is a key guides with a detailed staff 2 where customers can watch their 10 personal, but behind this are well- 14 part of the Nationwide customer 5 handbook to ensure they deliver an Non-Grocery places from products being made – provides a Travel and places from crafted plans to leave the customer Financial places from experience, as reinforced by its Non-Grocery places from enriching experience that remains in Retail 2015 Hotels 2015 Services 2015 Retail 2015 memorable ‘emotional peak’. with highlights to remember. current advertising campaign. customers’ memories.

first direct is the no.1 brand in this Banks often forget that most people don’t year’s analysis. want a mortgage or a loan or a current account. They need them to get on with “Our customers’ experience is everything their lives, but they’d usually rather be doing Memory Makers to first direct. Everything we do starts and something else. Banking can be a rather ends with the customer. When we are dry business, but by making dealing with us talking about new products or systems as easy as we can, whether this is digitally changes it always comes back to the or by having people on the phones who customer journey, what will the impact are genuinely interested in helping you, we first be on customers, and how can we make try to make dealing with us a memorable it better for customers? We are always experience for the right reasons. Customer Story making changes to the business to make sure we’re delivering what customers Getting the right people for our culture is direct want and need. something that permeates throughout all levels of the business. All of our people “I have banked with first direct for over 20 We don’t settle for second best; we work Financial Services are passionate about maintaining the extremely hard to make sure we never ‘customer first’ culture and this particularly years. They are always very courteous and helpful forget what makes us different is the way shines through in our contact centres. Our we deliver our services. Customers can people talking to our customers every day and have continued to be so over the years. access our market-leading and award- and making a small part of their life that st winning products and accounts online little bit better, is something we genuinely When I happened to contact them by phone on 1 1 and on their mobile and tablet 24 / 7, but enjoy. The kind of customer service we’re every time you pick up the phone, so do rank in 2016 of placesplace fromfrom 20152015 built around is not the old school banking of 287 brands the anniversary of my joining the bank, they we, because a real person answers every queues, red tape or processes, but going single call, whatever the time, day or night. the extra mile. It’s about always looking to improve our unexpectedly sent me a box of three wines! A The Six Pillars: service for customers, while offering a Our people are very highly trained. We Scores vs Industry Average consistently great level of service. spend a great deal of time with people lovely surprise! On the very rare occasion I have had before they even join us in making We’re always looking to make sure they’re the right fit for our culture. an issue over the past 20 years I’ve banked with improvements to the customer Then, once they’re on board, we have experience and in the last year or so a comprehensive initial training plan to we’ve made quite a number of positive them, they have been very apologetic and have % % make sure they understand our products +10 +11 changes to the way customers can and systems and culture. And only once bank with us. Some of these include they’ve gone through this are they able to always sent something by way of apology, even improvements to the functionality on engage with our customers. We don’t think our banking app, enabling customers to training is a ‘once and done’ experience though the issue was resolved to my satisfaction.” do more standard transactions securely though, and further training is then part of from their mobile device. We’ve also their ongoing routine. +13% +13% added greater digital functionality to our first direct customer, UK CEE 2016 verification checks, launching Touch ID Digitisation is great and brings many verification, and most recently, Voice ID advantages, but you can’t get away from – the first retail bank in the UK to make the fact that people like people. Companies Read more about first direct on the this the primary method of verification for in our sector need to always respect their Customer Experience Excellence Centre customers on the phone. Using Touch ID customers and remember they appreciate % % and Voice ID to verify who you are instead being able to talk to real people.” +10 +14 of just using passwords means it’s never been more convenient or secure for Tracy Garrad, Chief Executive customers to access their accounts. first direct

UK Six Pillar performance fits with the concept of the ‘remembering self’ – providing The UK as a whole has made progress across all pillars in customers with personally meaningful experiences that they the last year – apart from Expectations. We’re seeing that will remember. State of the Nation: customer expectations are becoming increasingly demanding and UK businesses are not progressing at the same pace to Despite slight progress, Resolution also remains a low meet, let alone exceed, these. performing pillar in the UK. Turning a poor experience into a great one still seems beyond the capabilities of many This year, the greatest progress has been made in the lowest organisations. Whilst there is an increasing focus on providing The Year in Review performing pillar – Empathy. A demonstration of Empathy memorable moments for a customer, this is only worthwhile imprints on memory, so it is no accident that organisations when it isn’t undermined by basic process and service which have made the greatest strides in Empathy this year failings that aren’t put right. When it comes to experience 2016 has proven to be a time of political and economic also feature as some of our biggest movers in the CEE memory, a poor experience is six times more likely to be uncertainty in the UK and, as Brexit1 moves to becoming leader board. The leading organisations across the UK are retained than a good one. So, if something goes wrong, a reality, businesses are increasingly having to manage Overall CEE performance increasingly recognising the importance of acknowledging it will have six times more influence on the customer’s challenges to customer experience investment, balanced their customers’ feelings and being able to demonstrate future behaviour. Therefore a company’s ability to turn a bad with ever more demanding customer expectations. verall C performane UK vs US 1 their understanding of them through tangible actions. This experience into a good one is an absolute necessity. Against this backdrop, the positive news is that there has been a step change in overall UK CEE performance. However, there is still more to be done, as the UK remains UK pillar performance 2016 vs 2015 behind the world leader in customer experience – the USA. Despite starting to close the gap, the US has six times Personalisation difference vs 2015 more outstanding brands (those with a CEE score of 8 or 7.55 7.63 more) than the UK. 7.42 1.1 Integrity 7.33 7.2 7.33 0.5 7.25 7.25

7.21 Expectations

7.02 7.03 0.1

Resolution

6.5 7.02 1.0

Time and Effort

7.76 7.83 0.

Empathy

6.56 6.66 1.5

1. This year’s research was conducted just two weeks after the EU referendum took place. As a result, 2016 data shows little indication as to the UK 2013 UK 2014 UK 2015 UK 2016 US 2016 UK 2015 Score UK 2016 Score impact Brexit will have on consumer perceptions of customer experience.

UK 2016 sector performance % difference in UK 2016 sector CEE Sector performance UK 2016 sector UK sector score vs UK 2015 vs UK average ranking Strategic Customer Experience

1 1st

0 2 2nd

1 1 rd

0 1 th Customer experience is a critical C-suite priority which is • As businesses widen the portfolio of journeys they becoming a zero sum game – unless you are improving are redesigning, they have to return to the subject 1 2 th your experience, your competitors will leave you behind. of customer experience strategy, the definition of Consequently, huge amounts of corporate energy is being the target experience, the role of the brand, and the 1 th 2 6 expended on customer experience improvement. These design criteria that ensures consistent delivery when

efforts have met with a number of challenges and the numerous teams are involved. th current areas of preoccupation we observe are: • This has led to firms looking at software solutions to 2 th • An increasing focus on the ‘spine’ of the organisation support the design process, maintain the customer – the link between culture, employee experience, journey architecture and then make journey designs th employee behaviour, customer experience, customer visible across the organisations. th behaviour and commercial outcomes. 0 10 10 • Firms are realising that customer journeys do not exist • The continuing intent to provide ‘surprise and delight’ in isolation from each other and are, in fact, a complex emotional high points is being accompanied by the network of interacting and bisecting journeys. This is Industry performance realisation that this is only worthwhile when it isn’t leading companies to become more adept at designing In line with overall CEE performance, it’s been a year of undermined by basic process and service failings. cross-journey experiences and removing duplication and wasteful organisational effort. stability, if not improvement, for all sectors. Grocery retail • Post Brexit, firms have begun to look intensely at % remains the leading sector (1 improvement since 2015). costs. This has resulted in two short-term impacts. • On the basis of what gets measured gets managed, Utilities and telecoms have experienced the greatest Firstly, firms are becoming much more demanding of firms are changing their experience measurement progress in 2016. However, despite signs of improvement, the business cases to support customer experience focus from measuring the progress of individual silos they still remain low-performing sectors with some investment, and secondly, they are looking at and channels to measuring the quality of delivery at fundamental challenges to address. how costs are allocated across different customer different touch points across the journey. segments – rebalancing both investment and costs to Utility sector improvements this year have been particularly serve targeted customer segments. In today’s hyper- • As firms develop their customer experience strategies, driven by newer entrants, such as OVO Energy – the only competitive world it is not possible to be all things to they are increasingly concerned about whether utility company to feature in the top 100. The inclusion of all people. their corporate culture will accelerate or inhibit the water companies in the analysis this year has also boosted achievement of that strategy. • Customer journeys are becoming the most important utility sector performance (excluding water companies, • Employee engagement has featured strongly in there is still a 3% sector improvement). unit of organisational design – companies who have made progress in redesigning journeys are now the balanced scorecards of many organisations and Whilst the telecoms sector has also shown improvement, beginning to experience the complexities of managing employee experience measurement and customer only two companies, giffgaff and Tesco Mobile, feature in customer journeys in a silo-based organisational experience measurement are increasingly being aligned. the top 100. model. New operating models are emerging that focus on end-to-end journey management.

Hotels experience. Not only do they have superior quality beds (from the suppliers “When I got stuck in The hotel industry boasts a number to the Queen, no less), but they also of organisations providing lessons in disruption the information offer customers a choice of hard or soft provided was poor and I Sector Review: superior customer experience for others pillows, and even free downloadable to learn from. Well versed in the art of felt let down by the lack audio books with soothing stories, of knowledge about how providing memorable experiences, and alongside sleep tips for wide-awake to get home easily. It took continually finding new ways to deliver children. It may be more of a budget an age to get home and Travel and Hotels across The Six Pillars, hotel chains such brand, but Premier Inn truly does set out as Marriott and Premier Inn do this to do all it can to create a memorable tainted my opinion of the through their people. experience, by getting the basics right service they provide. I and exceeding expectations. don’t think they really care As previously highlighted, Marriott has a lot about customers” learnt from its subsidiary, Ritz Carlton, Rail and has embraced many of Ritz Carlton’s The travel industry boasts some of the differentiator. Other than Jet2.com, techniques to ensure not only a polite Rail continues to lag behind. Eurostar, UK 2016 respondent Leading brands in the the biggest movers in 2016, with most low-cost airlines have yet to make and friendly interaction, but also a one of the year’s rapid movers, is travel and hotels sector airlines and hotels leading the way. it into the top 100, but long-term plans memorable one. This has resulted in a the sole rail company to feature in are seeing a shift away from just ‘fill it rapid rise up the leader board. the top 100. Respondents of our UK The sector leads both customer up and sell it cheap’– and are beginning Sub-sector comparison UK 2016 Rank 2016 research make it clear where experience innovation and the delivery to focus more on an enhanced digital It’s not just luxury brands that can the problems lie. Rail passenger Sub-sector EE Metric 2016 EE Movement of experience quality through people proposition and a more seamless excel. Budget hotel chain Premier Inn Brand Rank 2016 vs 2015 expectations are increasing, a result – and it’s a pattern we see across omnichannel user experience instead. remains in the top 20 for another year. of superior experiences elsewhere, the globe. In the travel and hotels The company goes to great lengths Airlines 7.41 This, in turn, has impelled the premium but rail providers are failing to meet th sector, there is growing recognition to ensure a memorable stay – even Emirates 4 10 airlines to push forward on experience even their basic requirements, with of the need to focus attention on the going as far as to offer a ‘Good Night passengers expecting: Hotels 7.40 segment of customers/passengers that and to select where they compete. Guarantee’ (a good night’s sleep or Emirates and Virgin Atlantic are irgin ultimately drive profits – ensuring their your money back), as they are so • Better disruption management Package Holiday 15th 8 showing the way here, intentionally 7.34 Holidays experiences are competitively superior, confident they can deliver a great sleep ompanies whilst understanding the segments engineering memorable experiences • Improved digital facilities for their customers in their own unique Rail Providers 6.0 where it is acceptable to be just good • Responsibility for the Premier Inn 20th - enough. This refocus has had the style; Emirates with its exceptional politeness and memorable moments, “I arrived at my Premier Inn customer’s end-to-end journey, greatest impact on Empathy – the most hotel room in York recently not just one element of the improved pillar for the sector in 2016. and Virgin Atlantic through more quirky, lighthearted touches. to find a ‘Yorkie’ bar on journey Saga 23rd 1 the desk, alongside a hand Airlines Eurostar bucks this trend for rail. As low-cost airlines have written note wishing me a Its rapid advancement this year is a For airlines, in particular, we are seeing fundamentally changed the economic pleasant stay and personally result of clear actions taken to boost Eurostar 24th 142 intense competition around customer model of air travel, business class has signed by a staff member, experience. The ‘traditional’ low-cost become the experience battleground. the customer experience, including a offering their assistance stylish new fleet of trains with on-board airlines, after years of a low-cost, Increasingly, airlines are paying with anything I needed. A irgin low-experience focus, are having attention to the specific needs of this entertainment and free Wi-Fi, and 25th 26 small but lovely touch that I Atlantic to address customer experience group of profit-driving passengers. enhancements to the digital experience mentioned to several people to enable customers to self-serve for a as a growing number of overseas However, this refocus on the business when I came home!” companies replicate their business passenger means a realignment of the greater range of interactions. Marriott 30th 103 model and a pricing floor is reached. experience across business class and So the focus is moving to combine economy, leading to a rapidly widening UK 2016 respondent low-cost with customer experience as gulf between the two.

Eurostar is one of this year’s biggest In the travel industry, saving customers movers, up 142 places in the last year to time and effort is the ultimate selling reach 24th in this year’s CEE rankings. point. Our product has been built on this Memory Makers “At Eurostar the customer is at the principal from the outset – short journey centre of everything we do, and we are times, fast check-in procedures, city- committed to providing the best possible centre stations and no baggage reclaim customer experience at every stage of or passport checks on arrival. This has the journey. Customer experience doesn’t provided our customers with an ease start in the stations or on board, it starts of travel which has been integral to our with the customer’s first interaction with success for more than 20 years. Customer Story Eurostar, and today that’s often online, Our ambition to become Europe’s most Eurostar as people begin to research their travel loved travel experience means that we options. The business is focused on want customers to remember us being a providing inspiration and suggestions highlight of their trip, not just a means to for customers through our marketing get there, but this means different things Travel and Hotels “I recently had a wonderful trip to Paris channels, making it easy to find journey or for different customers. For our frequent destination information on our website, or business customers, we train our teams offering advice and suggestions through to anticipate their needs in advance. For on the Eurostar - it could not have been social media. these passengers we also recognise that a better experience. It was my first time th Over the past year or so, we have made they need a regularly changing menu on- 24 142 significant changes across the business board and working with Raymond Blanc, our Business Premier Culinary Director, on Eurostar and I was really impressed as rank in 2016 of places from 2015 to further personalise the service we offer 287 brands and take customer experience to the we develop recipes regularly to keep it next level. We recognise that customers best in class. Our international travellers it was so much nicer than a local train. It have a wealth of choice and we want our from further across the globe may be The Six Pillars: experiencing travelling under the channel Scores vs Industry Average customer experience to stand out from was modern and clean with huge seats that the crowd, as we strive to become the or at high speed for the first time, and so most loved travel experience in Europe. we are now using on board technology were really comfortable. I was so pleased to (rather than announcements) to point out The biggest investment for us has been parts of the trip that will be of interest, in a new fleet of trains, which came into without disturbing those that make the have free Wi-Fi too. It made the time pass service at the end of last year. Customers % % trip every week. +10 +6 on board can enjoy stylish interiors by quickly and I downloaded the app so I had Italian design house Pininfarina, as well In the immediate future, as our responsive as connecting to free Wi-Fi and on-board website is introduced, customers will on-board entertainment.” entertainment. This has undoubtedly have full access to our services online, led to an improvement in customer no matter what device they are using. satisfaction levels for both business and Personalisation is increasingly important Eurostar Customer, UK CEE 2016 +7% +7% leisure travellers. to us, and at our contact centre we have introduced a ‘single customer view’, As with any business, we’ve seen a rapid showing their journey history, previous change as customers embrace digital interactions, loyalty status, personal technology, and have been working hard requirements etc. This presents us with to improve customer experience online an opportunity for much greater levels of to enable customers to self-serve where personal service.” +8% +6% possible – this includes making changes to bookings and processing refunds and Marc Noaro, Chief Customer Officer exchanges in the event of delays. Eurostar

terms of size) by delivering strongly on the human side of customer “Our success has been driven by our willingness to Financial Services experience. These organisations challenge some of the orthodoxies of running a retail create warm and memorable bank. When we designed and trained in the TSB experiences with customers, building Experience, we created a flexible framework, rather an emotional connection which retail than a set of rules, which partners (employees) could institutions struggle to replicate. to break into the top 100. TSB in buy into, because they could see how it would improve The financial sector has seen the customer experience.” slow progress in 2016, with a particular has made notable strides first direct leads the sector, Leading brands in the 1% improvement in customer through the rankings this year, delivering emotionally connective benefiting from a focus on the human experiences across both human and financial services sector experience performance overall. Peter Navin, Distribution Director, TSB However, it is evident that side of customer experience as a technological interactions. It has UK 2016 Rank excellence is possible in this sector, competitive differentiator. Fittingly, introduced a number of technological EE Movement with first direct leading the way, the most improved pillar for the innovations, such as biometric Voice Brand Rank 2016 vs 2015 not only for the sector, but also sector as a whole this year is the pillar ID security and payment applications, the rankings overall. TSB, Lloyds of Empathy. making it simple, quick and and Nationwide Building Society convenient for customers to manage first direct st Insurers lag behind traditional 1 1 are also among the brands to see their day-to-day banking. The bank financial service providers in also continues to deliver excellence notable improvements this year. customer experience maturity. Aviva Nationwide when interacting with customers in th and Direct Line are two of the few Building Society 14 The industry has faced strong its phone channel, making it easy challenges over the last year; the insurance providers to be driving to contact them and being available negative impact on market confidence customer experience improvements, 24/7. Seen as barriers to contact oventry th Building Society 11 11 caused by the recent Brexit result, progressing into the top 100. As a for some companies, not using an a low interest rate environment and relatively low-touch product, insurers automated phone menu system BOE base rate reductions, have all have to deliver service excellence at and enabling their customers to get th PayPal 13 14 impacted the customer’s economic the key moments of truth – during the straight through to a human creates experience. This has led to customer joining process and when customers a powerful ‘anticipated memory’ of interact to make a claim. These th experience being viewed as the key future positive experiences. MS Bank 16 -4 differentiator, as the sector becomes organisations have made positive more homogeneous in the eyes of strides at these memorable and A key challenge for the sector American the customer. emotive journey touch points and are now is understanding how to build 20th -12 Express now reaping the rewards. an emotional connection within Despite these challenges and digital, as customers migrate to uncertainty, the sector has improved its Mutuals continue to drive customer using technology for day-to-day orkshire th Building Society 27 0 performance against the UK’s average experience improvements and interactions. Brands that manage score, with nearly a quarter of the top outperform larger retail banks. to meet customers’ expectations Nationwide, Coventry and Yorkshire Hargreaves 100 brands from financial services. using technology, whilst delivering a 27th - Building Societies are all within the Lansdown memorable experience with human TSB, Santander and Lloyds are the top 30. Several mutual organisations contact, are likely to dominate the first of the major high street banks punch above their relative weight (in sector in future.

Ranked 13th in this year’s CEE dreams and ambitions of millions of analysis, PayPal has moved up 14 people around the world. places since 2015, and is among the Memory Makers leading financial services brands. All our new products are developed using an approach we call Customer “At PayPal, we put our customers – who Driven Innovation (CDI). It involves might be consumers or businesses – at engaging small groups of customers in the heart of everything we do. We do early user experience design, extensive this by enabling them to choose how, prototyping and A/B testing as part of when and where they make payments the build process. For example, CDI Customer Story PayPal in new, innovative, secure and more helped us redesign the PayPal app to convenient ways. Offering more choice make it simpler and more personal for is crucial to our customers; it helps us our customers to manage their money. improve their lives and makes their ability The app enables our customers to pay “My PayPal account was easy to set up and I Financial Services to manage and move money better, safer friends and family in seconds with just an and faster. email address or mobile number. like the swift notifications showing purchases Last July, PayPal became an independent Looking to the future, in a constantly company again and this allowed us to evolving financial technology sector, we and transactions. For a time I received emails th reaffirm our focus on our customers. always ask ourselves, ‘what could be For years, PayPal has been recognised better for our customers?’ As more and claiming to be from PayPal that were clearly 13 14 as a more secure, simple and fast way more companies join the race, and a rank in 2016 of places from 2015 287 brands of making online and mobile payments. new ‘pay’ seems to appear almost every spam. I sent them to the email address on Now we have the opportunity to move week, we will continue to innovate, beyond that and become an essential invest in our technology platforms and the PayPal website and they were quickly The Six Pillars: part of our customers’ daily lives, build new partnerships that extend the Scores vs Industry Average transforming the way they move and reach of our services. In other words, acknowledged, and I then received a follow-up manage their money. we’ll be working harder than ever to shape the future of money and enable We have already started to realise better experiences for our customers.” email telling me what action had been taken. this vision. We have brought mobile payments to petrol forecourts nationwide Alison Sagar, Marketing Director and I feel so confident using PayPal that I use +8% +5% for the first time with the Shell Fill Up Head of Consumer & Go app. We have introduced PayPal PayPal UK it for any online purchase when given the One Touch, which lets consumers who opt in, skip login when they check out option, it’s just so simple.” online, so there is no need to type in any usernames or passwords. And, for our +5% +5% small business customers, we created PayPal customer, UK CEE 2016 PayPal Working Capital – a cash advance that offers businesses access to the capital they need to grow, and fills a void Read more about PayPal on the in the traditional banking environment. Customer Experience Excellence Centre Through all this innovation, our mission +6% +3% remains the same: to provide simple, secure and reliable financial services and digital payments that enable the hopes,

benefit lies. Gap has recently introduced a couple of initiatives that “Utilities can learn much financially reward shoppers each from the best brands time they interact. An app offers Sector Review: in terms of customer Sector Review: customers a discount each time it experience. Utilities need is used in store and sharing views to shift from being asset on the shopping trip automatically focused to customer triggers a further discount for the Utilities focused organisations.” Non-Grocery Retail next visit. This combination has the power to fuel better targeted Simon Virley, Head of Power and communications and provide Utilities, KPMG UK the basis for a genuine two-way conversation between brand and shopper – a marketing nirvana that Though utilities continues to focused approach of those at the Aside from gas and electricity sector. The Richer Sounds experience has long been talked about but rarely be one of the lowest ranking helm, is driving the success of brands providers, water companies have been The CEE top 20 features retailers been delivered. sectors measured in the customer such as OVO Energy. For a second new entrants to the 2016 analysis. who have clearly marked is like a breath of fresh air – clear, experience excellence analysis, a consecutive year, OVO is the only Whilst none feature in the top 100, themselves out from the crowd. personalised and memorable So what can retailers do with this gradual improvement has been utility provider to feature in the top their performance is ahead of gas Whether legacy brand or disruptor, because of its uniqueness. Contrast information once it is shared? In evident over the last two years, 100, now ranked 57th, following a move and electric providers as a whole. each of the high-performing this with customer comments from the US we have seen Kroger trial as utilities work to improve the up 31 places in the last year. After years of under investment in companies at the sharp end of the sector competitors and it’s clear electronic shelf-edge strips designed customer experience, whilst the water industry, the realisation of leader board creates a memorable that pushy sales staff with little to interact with mobile technology. grappling with multiple systems, OVO has invested heavily in technology, the impending competition, with the experience for their customers by knowledge of the product, poor Need a nut-free cereal? A command new processes and complex tariffs. both internally for its call centre deregulation of the non-domestic water being different and distinctive. Of availability and poor channel ‘join-up’ from the shopper’s phone can trigger and billing platform and also for its market in 2017, has led to a cultural course, being different isn’t enough still haunt the marketplace. a red flashing light under each Each of the major utility companies customers. It is also widely recognised shift, with a more intense focus on – it has to deliver that difference in a relevant item in the section. We are is making small but measurable for its app development – most recently An exciting new era of technology customer experience overall, alongside relevant and beneficial manner. promises to transform the in-store also seeing personalised ad screens progress in customer experience. The launching the first full-service pay-as- heavy investment in infrastructure. trialled – if a retailer knows you are improvement has been recognised you-go app, allowing customers to top Many experiences with brands experience, with the two-way exchange of information at the heart in the store and that you previously across all pillars, but it is Empathy that up from their own home. such as Lush, Richer Sounds and bought blue chinos – how about has led the movement. Organisations AO.com stay long in the memory of things. Technology will drive a revolution in Personalisation and, addressing the shopper by name, have recognised the need to focus and are stories that are told over and displaying an image of matching more on the humanity of the and over by consumers who have where customers can be persuaded “We are a company built to interact and share data, the pieces that you know are in stock, in experience in order to react to the around what is best for our found their interactions to be the right size, three metres away? challenge ahead, as a rapid increase remarkable and, crucially, different shopping journey can become a customers, our sole purpose is in switching sites provides greater to what they expected, based on tailored, interactive and, ultimately, The experience revolution in retail switching opportunities for customers. to design new ways to make their previous experience with less memorable experience combining has begun. Brands such as Richer interactions with us efficient impressive competitors. For many the benefits of bricks and digital. Sounds, Mothercare and Lush are Whilst traditional utility brands and effortless. In fact, we’d of the very successful brands in Persuading customers to share data proving that, in a price-obsessed have struggled to make meaningful like things to be so simple our analysis, addressing customer marketplace, memorable interactions improvements as a result of the legacy looks increasingly like retail’s next for them that they walk away needs ignored by competitors in big challenge. It’s relatively easy that address real customer truths culture, systems and processes they from any conversations with an crowded marketplaces seems to can deliver success. Digital initiatives must manage, newer entrants to the to get brand advocates to share unexpected smile on their face” have done the trick. Richer Sounds is information, but chances are their such as those described above will market are making rapid progress, a great example; knowledgeable and provide another platform for the unhindered by the past and with patronage is pretty much guaranteed. Justin Haines, Executive Customer trustworthy advice has always been delivery of memorable, compelling new technology at their disposal. Persuading the ‘floating voter’ to Services Director, OVO Energy difficult to find in the electronics experience excellence. This, coupled with the customer- do the same is where the revenue

Once the ‘go-to’ store for all new • Mumspace – in a small number of parents, recent years have seen stores at present, Mumspace is a Mothercare losing share to online zone where parents and toddlers stores and grocery retailers as they can socialise, learn and play together, Memory Makers expanded their baby offer. through classes and activities. However, the 2016 Customer Experience • Expansive product range – as a new Excellence analysis demonstrate that parent it’s a minefield knowing what Mothercare has been on something of you need – Mothercare has everything a transformation – now ranking 22nd, the from maternity clothes and hospital bag brand has moved up 45 places over the essentials to toys and car seats. Customer Story last two years. • Mothercare also aims for the ‘fun Mothercare Mothercare boasts a dramatic lead over factor’ to make a visit memorable – in the average retailer for the pillars of the Leeds store, for example, there is Empathy and Integrity, in particular, truly a huge rocket in the centre, actually a “On my last visit to Mothercare Non-Grocery Retail delivering its proposition of “uniting mums functioning lift with sound effects. (and dads) to take on parenting together”. It’s not just about the in-store experience, my toddler son was the one crying, The organisation recognises the journey Mothercare focuses on its omnichannel of the expectant parent, through to birth, experience by continually evolving ways to parenting and beyond – considering support parents across all platforms. screaming and generally on the loose nd their changing needs along the way and 22 16 demonstrating they are there for them on With a goal to become a digitally led that particular day - instead of looking business, Mothercare has enhanced its rank in 2016 of places from 2015 the parenting lifecycle. 287 brands digital customer experience by providing: Parenthood is unquestionably a disapprovingly, one staff member began memorable experience in itself, and • ‘Online Self-Help’ – a search and answer The Six Pillars: Mothercare has made a trip to its stores system built around natural language Scores vs Industry Average a memorable experience too, not just a processing with an online persona chatting to him and entertained him with practical place to shop: designed for customers. • Guidance and demonstrations – • ‘Ask Mothercare’ – A search system the train table that was set out to knowledgeable staff are on hand and with advanced functionality to aid some stores even have indoor buggy contact centre staff. play with, allowing me a few minutes to +1% +7% parks with artificial grass to trial buggies • An interactive app – with a weekly on different terrains. pregnancy guide, baby name finder and hear about car seat options and make a • In-store cafes – with Costa concessions even a timer to record contractions. in a number of stores, Mothercare decision on which to buy.” encourages mums to get out of the “Becoming a parent for the house and meet with other parents. first time is one of the most personal and memorable % % • Breastfeeding welcomed – Mothercare +3 +3 moments in people’s lives and Mothercare customer, UK CEE 2016 recognises it can be daunting leaving creating a personalised customer the house with a baby and has experience for parents is a unique designed its experience to show and rewarding opportunity. By Empathy for the new mum and understanding customers during encourage them to stay a while. this time of need, we can help to unite mums and dads to take on % % • In-store portrait studios and 4D +2 +10 parenting together.” ultrasound ‘Babybond’ clinics – capturing memories. Glyn Birchall, Director of CRM, Loyalty and Insight, Mothercare

In the UK, ‘digital’ remains something of an island. customers to conduct more complex tasks historically requiring Separated departmentally and often geographically, human intervention. Innovations, such as a voice interaction % Telecoms, like utilities, is a high- to 4G less than 50 of the time to but the brand builds a relationship with it has made it difficult for firms to create an integrated system and Apple and Android Pay, have all made the banking investment, legacy infrastructure- their customers and, unsurprisingly, them; the operator commits to its omnichannel experience, which needs to allow customers experience more effortless and convenient for its customers. laden industry. As such the a drastic rise in customer complaints, customer base and, in turn, customers to do what they want, when they want, how they want. customer hasn’t always come first. have all had an impact. tend to stay far beyond their original In 4th place, and confirming that UK organisations are placing However, as one of few sectors contract commitment. UK firms who have made big omnichannel improvements have a greater emphasis on omnichannel experience, John Lewis to show an improvement across Despite the challenges, mobile done so by reintegrating digital back into the organisation as is making a £500 million investment in its online shopping all Six Pillars in 2016, there are operators have still managed to an additional mode of engagement, rather than a standalone platform, in order to align the in-store and online experience. signs that this is beginning to advance their customer experiences. channel. John Lewis, TSB and first direct can offer their The sector presented the greatest “Telcos often view Organisations with an integrated and consistent branded change, as companies such as themselves as being at a customers a seamless omnichannel experience as they have giffgaff and Tesco Mobile continue growth in the Time and Effort pillar aligned channels and distribution. channel experience are likely to continue to outperform the UK with a 4% improvement, along with disadvantage when it comes market in experience excellence. to demonstrate an improved to customer experience due to understanding of customer needs. growth in Personalisation, Integrity As other firms follow the same path, the omnichannel scores in and Empathy (all 3%). A performance the frequency and complexity the UK are beginning to close the gap on the US. 2016 has been a challenging year for that has led the telecoms sector to of customer journeys involved. the telecoms sector. The increasing be the only UK industry to outperform The key is to view this as a American Express sets the benchmark in the UK in 2016, popularity of data-based messaging their US counterparts, performing as potential advantage – many leading through innovation. Offering outstanding Customer Care UK 2016 omnichannel leaders and calls (major apps doubled much as 6% and 5% better (Time and other organisations would Professionals in the contact centre to deal with queries, Amex has also transformed its online portal, so customers have the mnichannel UK EE Rank their market penetration over the Effort and Integrity, respectively). welcome the opportunity to Rank sector Brand mnichannel Score 2016 year) are threatening key revenue facility to manage cards, apply for cashback or talk to someone continuously engage their 1st American 8.56 20th streams for brands, namely calls The ‘traditional’ companies such as customers around a product from the support team all within this channel. The developments Express Vodafone are innovating, offering all aim to reduce the effort required from customers to manage and text messaging. The situation is which has real emotional 2nd Richer Sounds 8.51 6th a 30-day guarantee for customers their finances. exacerbated by a 4G infrastructure significance in their lives. and prospects to try out new 3rd first direct 8.50 1st that is close to reaching full capacity Telcos should identify the Richer Sounds, who rank second in the omnichannel index, (data usage grew by 60% over the services/plans. More importantly, journeys which create the have achieved this by focusing on a prompt customer service 4th ohn Lewis 8.48 2nd last year, Source: Ericsson Mobility all major players in the industry are now offering a one-month plan to most customer value and experience, and offering a diverse range of services across Report) and a proliferation of public 5th A.com 8.41 16th customers; however, they still charge then redesign these, from the channels, such as out-of-hours personalised demonstrations. Wi-Fi networks across major UK The organisation has actively explored the interplay across these more for the same service when ground up, to meet customer 6th American 8.38 70th cities, such as Edinburgh and needs and differentiate from channels, easing the process of customer interaction, all of which Airlines Newcastle, further threatening compared to a longer-term contract. competitors.” have also helped it achieve a strong position overall this year. 7th irgin Holidays 8.31 15th these revenue streams. Frequent giffgaff is the only big player not offering th reports of customers being wrongly any plan beyond 30 days. giffgaff Michael Crow, CX Solutions first direct’s drive for experience excellence is underpinned by 8th 8.27 1 overcharged, independent reviews its omnichannel performance. The organisation has released customers are free to come and go, Director, KPMG Nunwood th th showing networks providing access some considerable innovations in the digital channel, allowing First hoice 8.24 113 10th Emirates 8.23 4th

“As a mutual organisation, we’re owned understanding what they want us to invest by our members, so the culture at in, with feedback coming directly from Nationwide is absolutely focused on them through our Voice of the Customer doing the right thing and putting them at programme, where we speak to over Memory Makers the heart of everything we do. 200,000 customers every year. This enables We believe our success in customer us to improve and to target the next area of experience has been driven by continuous focus, based on what is important to them. improvement and investment in the To ensure we always focus on the Nationwide business. Whether that’s in our digital customer, internally, we have made a solutions, our people, our physical number of developments, including our Customer Story environments, or our customers. weekly ‘Heartbeat’ meeting. The meeting Building Society This year, our big initiative is ‘Customer now starts with 30 colleagues who are First’, which has sought to further ensure at the frontline of the business talking our customers are at the forefront about what’s going well and not so well. Financial Services of everything we do. Alongside this, This week, for example, we’ve had three there have been some very specific members from our direct channel and “When we moved into our new home developments, including the launch of last week we had two members from our Specialist Support Service, purposely the branch network. It’s a really powerful for members dealing with life threatening meeting because we’re hearing directly we received a hamper from Nationwide th conditions, so we can give this group of from those people who are dealing with 9 14 customers a very bespoke service at a customers. It’s about connecting people with some useful goodies like toilet that are dealing with the customers on rank in 2016 of places from 2015 time when they need it most, treating the 287 brands customer as an individual. a daily basis with the decision makers to ensure a customer-focused outcome. paper and washing up liquid. It came On the digital side, we’ve very recently The Six Pillars: launched an improved mobile banking app One of the challenges facing the industry with the message “welcome to your Scores vs Industry Average which has a range of new features based is balancing the physical and digital on feedback from our customers. experience, and enabling customers to do things in a way that suits them, at a new home”. I thought it was a really We have also invested very heavily in convenient time for them. That’s why Nationwide Now, which allows us to we’ve invested in a number of customer nice touch - both very thoughtful have face-to-face video meetings with touchpoints, so we offer more opportunities +6% +7% customers where we couldn’t necessarily for customers to engage with us in the get in the room with them. This is way that they want to. Offering that and useful!” particularly beneficial for customers of our personal service is how we create the right smaller branches – as they can now go in impression with our customers, whether to their local branch and have a mortgage that’s an interaction over the telephone, Nationwide Building Society customer, UK interview, when it suits them, with a webchat, Twitter or face-to-face – it’s mortgage consultant who is at the other +6% +5% very important that each interaction is end of a very high quality video screen. memorable for our customers. CEE 2016 We’ve also invested in new product We’ve just launched a new advertising launches, including our FlexBasic account campaign which shows the human side Read more about Nationwide Building Society and our FlexStudent account – the first time of the organisation – it’s all about people, on the Customer Experience Excellence Centre we’ve had a current account specifically because that, to us, is how you create aimed at students. memorable experiences for customers.” +7% +6% These new product launches and the Alison Robb, Group Director, People, overall continued improvement is all Customer and Commercial based on listening to our customers and Nationwide Building Society

working every day to create those may need a little help when it comes leaders in the US, both Disney Parks desire and empowerment of staff to special touches that customers will to becoming an advocate – and, in and Ritz Carlton offer the services of a craft memorable events. not just remember, but will return to essence, they follow a similar process professional photographer to capture enjoy again. to smooth the way: special moments. In today’s world, the brand is the Making Memories experience and the experience is Customers are invited to share these AO.com enables reviews to be the brand. As firms grapple with memories on social media. Behind the streamed across their site, realising the fundamental truth that it is scenes, every single day, the 40,000 that the memories of others can the memory of an experience that memory makers share new ideas and 1. Co-create become an individual’s impetus to influences future customer behaviour, insights about how they can make the An experience that act. Lush use Lush Kitchen as a then increasingly, firms will have Ritz Carlton experience memorable. is memorable and way of cementing memories of a to add some new brand-related anchored around an particular product experience in the measures to their suite of CX metrics There is scarcely a company in Our 2016 US analysis (Harnessing the customer’s mind. as they seek to understand the the world that is not, in one way Power of the Many) identified a trend emotion, change or “We are in the business of novelty. emotional and rational aspects of the or another, concerned about the amongst market-leading companies Eurostar have used an advertising experience that people remember. creating indelible memories quality of the customer experience to not just consider the end-to-end campaign with the line “Stories are that last a lifetime. There What other associations and it delivers. Many of these customer journey, but also to consider waiting”, inviting potential passengers connections are being made? To what is a significant amount companies state their ambition the end-to-end psychological journey, to create their own stories and extent do emotionally rich experience of dedicated care and as being to deliver, “memorable and, by doing so, came to understand 2. Capture and memories by using Eurostar. They see memories convert into positive future craftsmanship that goes into customer experiences”. A number the process by which memorable Curate their role as inspiring a connection customer behaviour? making memories for the of these know what it takes to customer experiences can be crafted. between people and places, as Enable the discerning world traveller.” create a memorable experience. facilitators of future memories. But only a small, elite group In this year’s UK analysis we are customer to capture understands the craftsmanship beginning to see the emergence and manage the Virgin Holidays use Google Cardboard required to engineer memories of this trend on this side of memory. and augmented and virtual reality that will influence a customer’s the Atlantic, as firms become in their v-room lounges to create Ritz Carlton future behaviour. This small group increasingly preoccupied with the an immersive experience with the is recognised as global leaders. process of creating competitively promise of future memories. superior experiences. 3. Share Looking across the globe at best These companies engineer ‘emotional practice, Ritz Carlton has pioneered In the UK, Emirates, Mothercare, Make it easy for peaks’ – enhanced moments in the art of memory making, offering Lush, Apple Store, giffgaff, AO.com that memory to the customer journey that not only guests the opportunity to: and others have consciously or be shared with resonate with the companies’ brand intuitively focused on how memories others through values, but also touch the customer “When a waiter tells • Let us make you the captain are created. emotionally, in a way that will live on conversation and you your table is ready of your own ship for a day social media. in their memory. They are concerned These companies realise that the with what is remembered and what it has no impact, but • Let us show you the view possibilities for creating special isn’t remembered. They are clear on when a Rainforest Café th from the 110 floor touches that imprint on the memory where they have to be exceptional, host declares that your are endless. They are concerned as to and where being ok is good enough. • Let us invent a drink in your whether the experience is positively For many of these companies, it is the adventure is about to honour memorable overall, as well as which power of the photograph that has been Companies such as AO.com and begin it sets the stage specific parts of the experience are central to their ‘co-create, capture and Mothercare show that a memorable for something special.” These are ‘big’ memories, but the curate and share’ approach. Emirates staff are charged with creating great particularly memorable and why. experience doesn’t have to be a cabin crew will offer to take photos premium one. It can meet customer memories at every touch point. At They realise that if the promise of of you and your family enjoying the Ritz Carlton, this means a 40,000 needs at a particular price point for a The Experience Economy, advocacy through great experiences inflight experience and then make particular segment. It just requires the strong army of memory makers are is to be realised, then the customer them available to you. Looking to the Pine and Gilmore

This configuration of neuroanatomy means that we tend There are clear generation differences in retained to store memories that are emotional in content more memories: older people show a tendency to retain deeply than those that are not. Emotional memories are emotionally positive memories over negative Memories are Made of This: among our strongest and easiest to recall. However, ones, whilst young adults are the reverse. Younger if new connections are not strengthened by active people find negative information more compelling usage, they soon disintegrate. The more frequently a and memorable. given network of neurons fires together, the greater the The Psychology of Memories likelihood that they will hardwire together permanently, increasing the likelihood that they will fire in unison in the future, according to Donald Hebb, the father of cognitive neuroscience. (Source: Review of General Psychology). But it can take as many as six exposures before new information enters into permanent memory. With new experiences, we amend, rather than A fundamental question about human maintain and protect, our past memories – occasionally memory is why are some experiences The memory processing part of the brain (hippocampus) is located changing them beyond recognition. The newly stored remembered whereas others are in the emotional centre (amygdala) which, in turn, is connected to The brain shows greater information has been altered, forming new and modified partiality and retention of forgotten? Further, what is it about the the future forecasting part of the brain (prefrontal cortex). It is this representations of events. retained memories that drives future series of connections that governs our behaviour. When information is visual information than it customer behaviour? determined to have potential long-term value, the hippocampus links does auditory. It is why the significant elements of that event or experience together, forming diagrams work better The truth of experience design is that it is a permanent memory. than text. not the actual experience that drives future behaviour but our memory of it and, fortunately The amygdala, in turn, triggers our flight, fight or freeze response and or unfortunately, our memory systems are error is more concerned with negative possibilities than positive ones. prone, malleable and influenceable. There are considerably more unidirectional connections between the amygdala and the prefrontal cortex than there are in the reverse path. For companies looking to create a This is why we can quickly be overcome with emotion and struggle to ‘memorable experience’ this is a fundamental be rational. insight. It means that marketing effort has to be expended to crystallise the experience It has been estimated that 95% of our reactions are unconsciously We remember those things best that we care about. Those things that are memory and influence how it is stored and driven by the amygdala and only modestly impacted by the executive personally meaningful. Neurochemical tags are added to memories that are retrieved in the human brain. This is one of centres of the cerebral emotionally important to aid retrieval and influence our future behaviour. the reasons why we see firms increasingly cortex. Although ours As humans, this has a profound effect on our behaviour. Subconsciously marketing the experience of dealing with is generally considered we will ‘approach’ situations that are likely to recreate existing emotionally them, rather than the products themselves. a rational brain, it is an positive memories and ‘avoid’ situations that reactivate emotionally intense emotional brain, where negative memories. The neuroscience on how memory works is feelings receive first priority. incomplete and there are a large number of As neuroscientist Antonio We remember negative emotions six times more strongly than positive variables that influence memory, but enough Damasio puts it, “the ones. Indeed, we remember the emotion first, then the event itself. This is known to provide guidelines that can help emotional tail wags the is what has kept humans safe throughout evolution. This has led some to organisations looking to craft memorable rational dog”. (Source: The speculate that it can take as many as 12 positive memories to overwrite experiences. Our focus here is on the ‘what’ Feeling of What Happens: one powerful negative memory. and ‘how’ of memory, rather than the ‘why’. Body, Emotion and the The key neuro-scientific insights are as follows: Making of Consciousness).

Memory best practice The role of The Six Pillars in experience memory

Personalisation Integrity Time and Effort

We retain memories that are Behavioural economics teaches The more the cognitive effort, personally meaningful, that us that we like people who the more likely the brain is reflect things we care about. are like us and we trust people to retain the memory (deep Lush have mastered this with who we like. Likeability is a processing theory) – but this their link to deeply emotional key part of gaining trust. We has to happen in a good way, Virgin Group’s airline brands around the world have Hollister provides a unique multisensory experience public campaigns. are more likely to remember otherwise it is retained as a long known the power of creating emotional memories. showing the power of ambience. The smell (olfactory), the people we like. first direct and negative memory. Amazon We are concerned also about One of our respondents talked about mentioning to the loud music (auditory) the nature of the lighting and the TSB have focused on making has mastered this with its things that affect our sense of cabin crew that she and her partner had just got married video of Huntingdon beach (visual) all combine to create a their staff approachable, recommendation engine self-worth and self-esteem, of and were travelling on honeymoon. 15 minutes later, the highly memorable experience. likeable and trust building. which, mid purchase cycle, feeling important and valued. We captain paid her a visit with a bottle of champagne signed makes you stop and think are more likely to retain memories by each of the crew and invited the whole aircraft to more deeply about your where we have been made to feel celebrate with a round of applause. An emotionally rich, purchase and other potentially better about ourselves. memorable experience, shared amongst 155 people. complementary purchases. Expectations

The brain is an expectation engine. Daniel Kahneman defines Empathy two “selves” as brain systems: system one and system two. Resolution It is interesting that the banks System one is the fast processing that have broken away from the part of the brain that allows us to Errors, problems and issues herd, such as TSB, have done function on automatic, however, will be retained as powerful so by focusing on the human it relies on expectations being negative memories with a quality of Empathy. How we met. When an expectation is not strong influence on future One of the most strongly remembered financial services Singapore Airlines use a specially developed scent are dealt with when we are met, it invokes system two, which avoidance behaviour. Our adverts of recent times was the NatWest advert for called Floridian Waters. It is worn as perfume or cologne emotional sticks in our memory is slower and more reflective, research has shown, however, emergency cash. Why? Because it immediately tapped by the cabin crew and permeates the hot towels. It is the for good or bad. It is vital to get and allows us to consider the that when a poor customer into negative emotions we could all relate to but neuroscience behind its development that is interesting – this right. implications of an unfulfilled situation is retrieved brilliantly delivered a positive outcome. It told an emotional story it has been specially formulated to influence the pleasure expectation. (Source: Thinking, then it sticks in the memory with a happy ending. centres of the brain and tap into positive memories. There is something about large Fast and Slow, Daniel Kahneman). because it meets the emotional Smell is the most powerful of the senses in evoking organisations that disables our story criteria of something memories. As soon as you walk onto the aircraft, positive natural human tendency to be For organisations such as Lush, bad happened then something memories of eastern service are evoked, added to, and empathetic – organisations that the continual management of really good happened and it left more deeply imprinted. have made significant progress expectations is critical. Retiring me feeling better overall – the in customer experience often 33% of the product line every service recovery paradox. John do so by simply restoring the year, Lush ensures it is continually Lewis’ approach to ‘heroic humanity to the experience. re-setting expectations around recovery’ is an example. new product innovations.

With a network that’s one of the fastest Communication, Entertainment) – is growing in the world, reaching over another memorable feature. Though all 150 destinations across six continents, premium airlines offer entertainment, Memory Makers Emirates is a true example of a brand Emirates surpasses the rest – with that deliberately sets out to create far greater choice (1,800 choices of memorable moments for its customers. entertainment across films, TV, music and Indeed, the brand states in its in-flight games), the opportunity to order duty free magazine: “we’re always looking for shopping onscreen to be delivered direct new ways to make your journey even to your home. There is also the novelty more memorable, from our world of camera view on your entertainment Customer Story class service to our inflight dining and system, enabling passengers to see the Emirates award-winning entertainment.” view from outside the plane throughout the flight, even watching the plane land. Such devotion to a memorable customer “I recently flew with Emirates, travelling with my experience sees the airline move into the Added to this are the personal touches Travel and Hotels top 10 in 2016, up 10 places in the last and displays of Empathy that remain 3-year old daughter. I was not particularly looking year alone. This progress has particularly with Emirates passengers long after they been driven by the pillar of Empathy – a land. Respondents of the 2016 research forward to the thought of having to appease her notoriously difficult pillar to excel in. frequently cite examples of how they have been personally attended to by for a 7-hour flight. However, the cabin crew went th The Emirates experience begins even Emirates: 4 10 before boarding, with business class out of their way to ensure I had a pleasant flight rank in 2016 of places from 2015 passengers provided with a chauffeur • In the month of Ramadan, one 287 brands service to reach the airport, and Emirates passenger noted that Emirates offered (as well as my daughter!). They provided toys, a lounges greeting passengers with special special Iftar boxes for those observing blanket and a travel kit to keep my daughter busy. The Six Pillars: touches, such as spa treatments. Upon the holy month, to allow them to break Scores vs Industry Average boarding, the memorable experience their fast whilst on board – further Not only that, they even took a polaroid of us on continues with the way passengers are commitment towards exceptional greeted (smiles, personal compliments experience, providing comfort and the plane, placing it into a keepsake folder, with and a choice of newspapers), hot towels convenience to those fasting. soon after take-off and a light snack within • Passengers travelling with children talk a personal handwritten note saying ‘make moments the first hour. of the Empathy and special attention % % +10 +13 In-flight meals are often a cause for they receive from Emirates, with to remember’. It certainly was - my daughter carried disappointment, but not so on an family check-in desks, priority boarding, the photo everywhere, telling people about her Emirates flight. Far from typical plane complimentary strollers and flight food, meals such as smoked salmon attendant attention – even capturing experience on the plane.” and tandoori chicken are served (and special moments by snapping pictures that’s just economy class), with excellent of families and children with the cabin +13% +13% provision for all dietary requirements, crew, as a memory of their adventures. Emirates customer, UK CEE 2016 from allergy management to strict vegan. It’s no surprise that Emirates regularly Accompanying wines are selected tops studies of the world’s best specifically for each flight, alongside little Read more about Emirates on the airlines, and now, recognised in the touches, such as proper cutlery and a Customer Experience Excellence Centre 2016 Customer Experience Excellence packet of mints to freshen breath, all analysis, as the no. 1 airline. +6% +15% adding to the experience. Emirates’ award winning TV entertainment system – ICE (Information,

Crafting Memorable Coming in 2017 White Paper: Customer Journey research by the Customer Experience Experiences Excellence Centre.

Memory is a crucial element in the design of experiences – if we focus on the parts of the experience that The first impression The emotional peak The last impression customers remember, it prevents over This is known in psychology as the law of primacy. The In designing the emotional peak, we can look at The psychological law of recency applies. We engineering and wasted investment in first thing that happens shapes our view of what happens the role of emotion in an experience in three ways: recall our memories through the last thing that non-essential parts of an experience. next – the process of priming. If the initial experience is has happened in an experience (peak-end theory). outstanding it is like placing a large deposit in an emotional • Where the customer is emotional and Airlines are good examples of organisations that The key to memorable experiences where our emotionally intelligent response is embodied in the psychological bank account. If what happens next is positive, it benefits realise that how you end an experience is as from confirmation bias; alternatively, if what happens next is will be memorable. For example, urgency, important as how you start it – with the captain term ‘the Serial Position Effect’. This sympathy, understanding, reassurance. highlights where and when to make negative, the customer will be more forgiving. However, if leaving the flight deck to say goodbye and thank experiences memorable: the initial experience is poor, the reverse is true. • Where the customer can be made you for your custom, as well as opening new emotional. For example: first home, first arrival lounges in key airports to extend the lasting In a well-publicised experiment, a supermarket played impression of care and concern for the passenger. German music near the wine aisle and saw German wine car, first joint bank account, or where the outsell French wine by two bottles to one, with a similar experience is personally meaningful. Lush, Hotels invite you to return as you leave. Apple phenomenon happening when French music was played – for example, provide advice, guidance and Store learnt from Four Seasons the power of with French wine outselling German wine by five bottles to a consulting-led approach to educate and creating a last impression – encouraging their one. Much of the process of priming happens subliminally. inform their customers. team members to ensure a warm, friendly finish (Source: North, Hargreaves and McKendrick, 1997). • Where the transaction just has to happen and an invitation to return. It is no accident therefore that organisations focus on ‘the as quickly and expediently as possible and The truth of the serial position effect is a profound welcome’. Both Santander and TSB have focused on a ‘red there is no emotional content. one – if you manage these three parts of an carpet welcome’. first direct benefit because you are always In our US 2016 report we looked at signature experience, whatever goes on between these key greeted by a warm friendly voice, not a computer. Looking actions: those things that symbolise the target points, as long as it isn’t horrible, probably won’t more widely to the automotive sector, the designers of experience the organisation is seeking to deliver be remembered. Jaguar cars focused intently on what happens when you and, in themselves, provide an emotional peak. enter the car, whilst Aston Martin orchestrate an emotionally For example, Doubletree by Hilton hotels providing intense experience when revealing a new car to its owner. warm cookies at check in.

Emotional peak The emotional peak can be something tangible, such as a gift or added extra, or intangible – in the way a staff member deals with you and the personal attention and warmth they exude. Whatever the Last impression emotional peak, it is typically something a customer Last impressions are about making the customer feel is not necessarily expecting. good and leaving them on a positive note. Tapping into customer ‘firsts’ provides a great Who does this well? opportunity to deliver an ‘emotional peak’ – First impression customers buying a first house, a child on its first first direct and Apple Store are exemplars in the lasting impression. flight abroad etc. It is an opportunity to educate, A first impression doesn’t have to be memorable in its own right. show care and attention and become a trusted ally. These brands recognise that small touches count: Brands that deliver a good first impression do this by delivering or even • Use the customer’s name. exceeding expectations, beginning the process of trust creation and Who does this well? • Summarise what has been achieved eg. “So this is what we have done for you Mr Smith...” starting a positive disposition to the brand. • Emirates – taking photographs of families on • Warn the customer of anything that might go wrong, and what to do if it does Who does this well? board and providing them in a souvenir folder. • Marriott – staff seem to care personally • Reference any previous personal discussion eg. “Good luck with the wedding!” • Santander – providing a ‘red carpet welcome’, creating a good and anticipate customer needs ahead of the • A warm goodbye and an invitation to return. “Pop back and tell us how it went”. impression from the outset. customer themselves. • If the customer says “Thank you” then it is best practice in the hospitality industry to respond with “It was my • British Airways – with a clear focus on greeting, the captain • Nationwide – providing a hamper for new pleasure”, not “You are welcome”. comes out to welcome passengers on board. mortgage customers at their new home. • Ask “Have I done everything you need today?” as it gives a chance for them to say yes, and leave on a positive • TSB – as soon as you enter a TSB branch, a staff member comes statement, rather than “Is there anything else you need today?” to you straight away with a smile and a willingness to assist. What is the impact on the customer? What is the impact on the customer? What is the impact on the customer? From an emotional peak, a positive memory is created. The human brain creates a desire to repeat The small touches demonstrate Empathy with the customer and leave them with a warm feeling towards the brand. Last A great first impression creates an environment where future memories such memories, increasing loyalty to the brand. impressions don’t have to be spectacular, but they end the memory and, as long as the gist of the memory is positive, it will can be stored. leave the customer wanting to return.

Moving up 105 places in the last This new culture, coupled with the two years, TSB has made rapid introduction of the ‘TSB experience progress in the 2016 Customer programme’ across head office Memory Makers Experience Excellence analysis, as well as customer-facing roles, firmly establishing itself in the was combined with the creation top 100 and making it one of the of a single distribution function transformation brands of 2016. responsible for key customer interactions, be they digital, face to “At TSB, customer experience is face or through brokers. This has right up there as a priority. As a helped us deliver a consistently great Customer Story new challenger bank setting out to customer experience. TSB deliver better banking to the people of Britain, we put the customer These changes, focused on honing experience right at the top of the tree. the skill, attitude and behaviour “I really appreciate the staff in my local TSB of our partners in order to deliver Financial Services th Now ranking 35 , our success has been the customer experience that our driven by our willingness to challenge customers want, have helped us to branch. I had some financial issues recently some of the orthodoxies of running move up through the rankings but a retail bank. When we designed and there is a lot still to do!” when I moved home. I needed some matters th trained in the TSB Experience, we created a flexible framework, rather Peter Navin, Distribution Director 35 85 than a set of rules, which partners TSB sorting out and had to visit the branch rank in 2016 of places from 2015 287 brands (employees) could buy into, because they could see how it would improve several times. The staff who dealt with the customer experience. The Six Pillars: me were fantastic and really helpful. It is Scores vs Industry Average This approach has contributed to our progress in the Personalisation pillar. We removed standard word patterns so important to have actual people to deal and recognised that customers want to be dealt with in different ways. with in certain situations, who can explain Achieving this required each partner +4% +3% to have great listening skills and to know that they have the freedom to things simply and generally make it easier for be themselves. It means avoiding a mechanical approach and treating every customers, and TSB did just that.” customer as they want to be treated. We made other significant changes % % +4 +2 in order to improve customer TSB customer, UK CEE 2016 experience at TSB. By removing sales targets, making all employees partners and completely changing Watch the Customer Experience Excellence Centre the variable pay regime across the interview with Peter Navin, Distribution Director, TSB entire bank, we have created a brand +4% +3% new business culture.

Social media exemplars A Memorable Social Brands such as British Airways, Tesco and Virgin Trains are setting high standards in the field of social media interaction. Media Experience

Social media has emerged as a Understand British Airways Tesco Virgin Trains powerful new communication tool What does your brand represent? What makes your brand British Airways responds to social Tesco has generated much positive Virgin Trains’ lighthearted, slightly for both brands and customers. With unique? What do you want your brand’s community to be like? media queries within minutes of PR from its engaging and clever tongue-in-cheek style has endeared its vastly increased availability, social Understanding who you are, what you sell and who you want to receiving them, ensuring customers social media responses, and is felt to their social media approach to many. media is now used by customers to sell to gives the brand a clear identity. Knowing your customers receive the most up-to-date have done a good job of filling up its Virgin Trains have made a commitment work, shop and socialise. Brands are gives you the basis for creating compelling, relevant and information possible. Individual agents timeline with engaging visual content. to use social media to make life easier able to engage with customers in a emotionally engaging content. own the response and use a tone for the passenger, with an ambition to whole new way, and provide highly of voice that reflects the customer’s Unlike many other retailers, Tesco only respond to queries in as near real-time Co-create integrated, personalised experiences. query and the style within which it has tends to post one update each day, as possible. Tweets are followed by the Building content that solves customer problems and makes been made. and it is nearly always related to the initial of the agent personalising the In the US, firms such as Nordstrom brand or its products. and Disney have learnt how to their life easier ensures it is memorable and shareable. The response. great brands do this with the customer, inviting the customer to British Airways uses social media use social media to crystallise and to show it genuinely cares about its Tesco also frequently incentivises The twitter accounts for individual preserve positive memories. They participate in the creation process. The brand acts as mediator user comments by offering Clubcard and curator. passengers and will work tirelessly to franchises are centrally monitored to then equip their customers with the help where it can. points in return for sharing stories on ensure that, even if the customer gets mechanism to share those memories Engage various topics. This is a good way of the account wrong, the query will be with minimum effort with their friends, Social media is also used to driving engagement. Tesco also offers dealt with. colleagues and families. Customer engagement can make or break a brand’s social media supplement the voice of the customer a useful ‘here to help’ tab that includes strategy and customers want to engage with the brands they – identifying what is preoccupying contact details for all its customer care In the UK, brands have started to resonate with. Tone of voice is particularly important when it customers, what conversations they channels and a ‘real food’ app that recognise the value and growth that comes to dealing with customers. People don’t hold conversations are having and how British Airways gives information on seasonal recipes. social media can drive. Enabling two- with multiple people in the same style, so why should brands? can add value. way conversations and bringing people It regularly encourages conversations Manage together on a single platform has through the live chats it hosts with allowed brands to access untapped Not every positive or negative comment that is posted about the various food and health experts. Coming soon communities and individuals. brand will be sent directly to you – the top brands ensure they have appropriate monitoring in place. This should go hand in hand White paper: Best practice Research conducted by KPMG UK with a well versed and regularly practised crisis management plan. in social media customer shows that the exemplar brands create experience, by Cliff Yiu and a memorable social media experience by Enjoy Edward Williams, Customer following these five steps – Understand, The best brands show they enjoy the freedom that social media Advisory, KPMG UK Co-create, Engage, Manage and Enjoy. provides for banter, clever responses and creating viral content.

Applying The Six Pillars to social media The Six Pillars capture the universal characteristics of customer experience excellence, analysing the end-to-end journeys of customers and comparing them to best practice around the world. But how can The Six Pillars be applied specifically to social media? Achieving Customer Transformation Personalisation Integrity Expectations

This involves using your As social media becomes a Customers have increasingly historical and future customer more mainstream channel of high expectations across all data to tailor your conversation communication with customers, the channels they engage with on a one-to-one basis in it has become even more brands through. Therefore Most transformed brands order to improve customer paramount to be as transparent businesses should have relevant Year after year, organisations strive to connection. The more data as possible with your customer SLAs and KPIs in place that improve and deliver better experiences for UK EE Rank you have on a customer, the base. It can only take one match the Expectations of their their customers. Many brands invest heavily Brand sector Movement since 2013 2016 better your understanding of misplaced message to destroy customers. If these begin to in making changes for and around the Saga 200 23rd their behaviours, purchasing years of hard-earned trust slip, the customer’s experience customer and, when done well, the rewards patterns, wants and needs. amongst your customers. begins to diminish. can be substantial. Travelodge 120 75th Successfully transforming experiences can accelerate underperforming businesses into Barclaycard 117 7th leading organisations, however, it is a complex endeavour. The complexity of this journey TSB 105 35th challenges us to distinguish between two categories of transformation: the transformed and irect Line 100 100th the rapid mover. Transformed brands have Resolution Time and Effort Empathy *TSB first featured in the CEE analysis in 2014 consolidated their position as consistent providers of outstanding Social media gives brands the Social media allows brands This involves being able to experiences, continually improving Rapid mover brands ability to rapidly turn a bad to engage in real-time online adapt a brand’s tone of voice the experiences they deliver year UK EE Rank customer experience into a conversations with customers. in order to understand a after year. Brand sector Movement 2016 vs 2015 2016 good one in a public forum. However, brands must shoulder customer’s circumstances and American 156 th Brands should embrace this the majority of the effort, in strike an emotional chord. This Rapid movers, in contrast, spike in Airlines 70 opportunity to demonstrate an order to make the interaction enables brands to reach a new performance and dramatically rise up effective Resolution process to as timely and pain free as level of understanding and the ranks from one year to the next. Eurostar 142 24th their other customers. possible, in order to maximise emotional engagement with the customer experience. their customer base. Both are of interest: how do great firms maintain Marriott 103 30th their position? And what is it that rapid movers are doing that is changing their customer ision Express 102 4th experience dynamics?

irgin Holidays 8 15th

The Six Pillar transformation There seems to be a pattern in how brands evolve and transform themselves. Organisations start with a strong customer strategy, mostly led (and championed) by a board executive. What differentiates transformed brands and rapid movers can be observed through The Six Pillars of customer experience excellence – the transformation pattern closely follows The Six Pillars implementation sequence referenced in the UK 2015 report ‘A New Era of Experience Branding’.

Rapid movers: the start of a transformative journey Managing expectations: the Becoming customer champions fuel of transformed brands

Expectations Time and Effort

What really differentiates transformed Many traditional brands struggle Resolution brands and rapid movers is summarised with Time and Effort. Often inhibited Personalisation Resolution presents a sizable in one pillar: Expectations. Accurately by aging systems, the traditional The pillar that makes the largest challenge to rapid movers. With a setting, managing (and often exceeding) companies do not compare well contribution to loyalty and advocacy is relatively low growth of 3.5% over the expectations is an art that organisations with new businesses that can utilise Personalisation. The leading firms know need to master to achieve successful modern systems, adopt the latest Integrity years, Resolution is often among the that this is more than just getting the Empathy lowest performing pillars. Improving transformation. It’s about setting technology and cherry pick where right content to the right person at the The first stepping stone of on this pillar can be complex, as it Expectations so that customers want they play. right time. It is about how the customer Empathy is extremely important due transformation is through the Integrity requires cultural change but spans to engage with your organisation over is left feeling about themselves and to its role in memory: its emotional competitors, and, at the same time, Effort is a big driver of loyalty. The pillar. On average, rapid movers across a number of functions within psychological law of least effort tells therefore provides the source for aspect is the root to embedding improved on Integrity by 5% (more the organisation. Regardless of the ensuring that you are able to truly creating the most influential memories. memories in customers’ minds. It is deliver against these expectations. us that customers will take the line of than any other pillar). Brands need to starting point, long-term efforts least resistance. For older companies, about creating an emotional bond, a regain the trust of their customers are required for these initiatives to This is what transformed brands do best this means having to offset difficulties sense of mutual understanding with and show they truly care. A key significantly improve the way the (on average, these brands improved in creating frictionless processes the customer, something that goes aspect of transformation is convincing company deals with issues. their Expectations scores by 8.3% with other emotional aspects of the far beyond regular daily interactions. customers that the organisation Recruit staff for their empathy, then Resolution is an area where versus 5.1% for rapid movers). Saga experience. Anecdotally, first direct stands for something more than profit; (our most transformed brand) improved started chatting to customers while train the processes and the skills leading businesses put the customers’ transformed brands have achieved required, because those interactions greater growth than their rapid mover its Expectation score by 20.6% over agents waited for the systems to interests in front of their own. four years. This is driven by their work – not wanting to leave “dead make the experiences customers have counterparts. Despite this difference, with brands. these are not the key to their commitment to employee engagement, air”. When they discovered it created success, nor the main distinction with and their highly detailed and relevant a strong emotional connection, they In the words of the poet and author rapid movers. database of respondents covering turned the tactic into a strategy. Maya Angelou: “People will forget more than 50% of their core segment what you said. People will forget – allowing them not only to set what you did. But people will never expectations accurately, but also know forget how you made them feel”. how these people would react to them and how to delight them consistently.

Despite being a relatively niche brand, 2. Highly engaged employees catering mainly for the 50+ age group, Saga stands out as an authority in The exemplary levels of employee Memory Makers customer experience, having risen 200 engagement are the source of Saga’s places in the Customer Experience outstanding Empathy score. According Excellence analysis since 2013, to be to its own calculations, employee % classed as a ‘transformed’ brand. engagement levels are above 80 and Saga has a clear commitment to Saga can show the way for organisations continuously improving on this. With looking to master the art of customer this mission in mind, Saga launched the Customer Story experience transformation. Crucially, Saga ‘Saga Way’ programme, to further drive Saga demonstrates that no matter where the engagement and ensure outstanding starting point is, with coordinated efforts, customer care is top of mind across the investment and a customer-first approach, business. The brand also demonstrated “I’ve booked several holidays with Saga and Travel and Hotels an organisation can steadily grow and a certain level of savviness in putting the enter the ranks of the top 100 customer right people in the right job, from the brands in the UK. empathetic frontline staff to the talented always find they are a very professional marketing team making the best out of The success of Saga is driven by three the powerful database. Saga’s success team to deal with. They are very willing to rd key areas of their business strategy, which in staff allocation allows the brand to revolve around providing a more targeted ultimately harness the knowledge and 23 19 and personalised experience, delivered by spend time with you to give you exactly build differentiated and targeted products rank in 2016 of places from 2015 287 brands driven and enthusiastic employees. for customers and prospects. what you need and want, and then provide 1. A thorough customer understanding 3. Piloting products driven by customer The Six Pillars: Saga’s core customer segment is made knowledge even more. When we had a problem as the Scores vs Industry Average up of British customers aged 50 and As a result, Saga has been trialling above, the fastest growing demographic a number of products built on its airline cancelled our upgraded flight booking, % in the country – it is estimated that 40 of understanding of the customer. Beyond the UK population will fit this description profitability, a pilot needs to achieve one we didn’t have the stress of having to by 2033 (Saga Annual Report). The key target in order to be launched at full +4% +10% brand stands out with this segment as it scale: it needs to surprise and delight demonstrates a know-how in setting and customers. As Saga’s outstanding deal with this as Saga entirely resolved the % managing expectations (7 above the performance in meeting Expectations study average) and provides a much more shows, the organisation knows how issue for us.” empathetic and personalised interaction to accurately set Expectations and % with its target segment (11 above the deliver on them – Saga’s performance study average). This is made possible by % +8% +10% in Expectations has improved by 20 a database comprising more than half of since 2013. Saga customer, UK CEE 2016 over-50s households, with highly relevant data that it constantly nurtures and When strong employee engagement updates, which allows the firm to know and powerful insight are put together, how to interact with, serve and delight differentiated products are created and customers. This database allows Saga stellar experiences delivered. These are the +5% +13% to build differentiated products that are key elements that propelled this customer- specifically targeted for the core segment centric business up the CEE rankings. and delivered by enthusiastic employees.

For all of these organisations, the start point has been creating a culture where customer experience will flourish. Creating your own army of memory makers It involves aligning the employee Building an Army of experience with the customer experience The key elements of organisational change are well understood: create and articulate a compelling vision, define the in the context of a clear customer behaviours necessary to deliver that vision and then adjust the levers of cultural change, (performance management, experience strategy. reward and recognition and leadership role modelling) to reinforce the behaviours required. Memory Makers Looking to the world’s leaders, there Creating an army of memory makers requires a firm to not just undertake the above but also to provide the tools are several US organisations who have and empowerment necessary for employees to achieve this objective. Memory making is a spontaneous, in-the- elevated memory creation through moment exercise and firms need to both set their memory making expectations and then enable staff to deliver. employees to an art form. USAA, Marriott has risen 103 places in the UK Both of these organisations realise Disney, Ritz Carlton and Nordstrom have Communications is a critical facilitator, not just top-down communication but also peer to peer, team to team, rankings and it subscribes to a simple that with thousands of customer engaged their employees to spot and harnessing employee feedback and input so that sharing great ideas and best practice creates an environment of mantra: people bring brands alive. interactions every day, there are a myriad take advantage of memory creation “customer surround sound.” Marriott trains every single employee of opportunities to create emotionally opportunities, to elevate particular from maintenance to housekeeping charged experiences for customers aspects of the customer journey and to and concierge, on how to interact – staff just need to be educated and create positive mental imprints. with guests. Marriott is also highly motivated to identify and act on them. concerned with employee motivation These companies identify emotional and engagement. As founder J. TSB has moved up 105 places in the last peaks; deliberately enhanced moments We recruit We are clear on We encourage We help our people We encourage our Willard Marriott puts it: “you have got two years, due largely to the focus on of the customer journey that resonate empathetic our expectation staff to show they understand the people to share their to make your employees happy. If the culture, setting themselves the objective with the organisation’s brand values, people who care that our people care, extend small types of memorable experiences of creating employee is happy they are going to of ‘restoring the humanity to banking’. touch the customer emotionally about customers, create memorable kindnesses and moments they memorable moments make the customer happy”. No easy task, it involved training and equip their employees with the customer service moments for to continually look should be looking for and what works and several thousand partners to think wherewithal to ensure the brand will live and have a passion customers for opportunities doesn’t work, and Marriott systematically looks for of themselves as a customer: to put on in the customer’s memory. for our sector to improve the to work together at opportunities to cement the link between themselves in the customer’s shoes and customer’s day creating memories memorable events and the Marriott to find ways of making the customer brand, celebrating birthdays, anniversaries feel important and valued. and special occasions with a bottle of “Employee empowerment Eurostar has set itself the ambition champagne or a room upgrade. means being able to use my of delivering the ‘best-loved travel natural ability to create a lasting American Airlines has risen 156 places experience in Europe’. This has involved memory for guests or resolve a We practice ‘heroic’ We empower staff to We recognise and We celebrate great in the UK analysis this year – another thinking deeply about culture – evolving guest issue and have confidence recovery when things make good judgements reward staff who deliver ideas and great organisation that focuses on the a culture that is “neither French nor that my company supports me go wrong about how and when to great experiences for customer stories employee. In an industry rife with poor English but European”. Coupling this with 100% for my effort. wow the customer customers employee relations, CEO Doug Parker high levels of employee engagement has confronted employee issues head on, and being pinpoint clear on how Sometimes the most delightful tackling job security, compensation and staff can deliver the “quintessential wow moments occur in the better opportunities for advancement, Eurostar experience”. The advertising blink of an eye, if employees whilst at the same time integrating the reflects Eurostar’s focus on memories, are not empowered and need to employees of US Airways. He is highly encouraging potential passengers to cross layers for approval, these We enable staff by We encourage our We focus on creating We equip our people empathetic towards his own staff, think about ‘the stories in waiting’, inviting moments could be lost forever.” removing petty rules, leaders to role model the passionate, enabled with the tools they feeling their pain, and showing this by customers to make their own stories and bureaucracy and other behaviours necessary to and empowered staff need to deliver an symbolically putting himself on the same memories and being clear on Eurostar’s Ritz Carlton Leadership Centre hindrances wow customers outstanding experience contract as they are. role in enabling happy memories.

13. 15. 16. 16. 16. 19. 20. 20. 22. 23. 24. 25. Customer periene irgin MS Premier American irgin Mothercare ellene Centre Contact the experts Ocado Holidays MS Bank AO.com C Inn Express Saga Eurostar Atlantic

The Customer Experience Excellence Centre is dedicated to rapidly David Conway 25. 27. 27. 29. 30. 30. 30. 33. 33. 35. 35. 35. improving customer experience by defining what ‘best-in-class’ looks like Director orkshire Hargreaves New Skipton for customers around the world. ASOS Building Society ansdown Farmfoods Marriott ook Sainsbury’s Boots Building Society TSB ebenhams Next E. [email protected] Access the Excellence Centre online 35. 35. 40. 40. 40. 40. 40. 45. 45. 45. 49. Customer experience best practice 45. Tim Knight loyds Hilton Hotel reen Best practice case studies on global leading customer brands, Managing Director Specsavers Aldi eBay Superdrug Screwfix Iceland Waterstones Pharmacy and esorts NSI Flag Wagamama including CX transformation success stories. Download previous CEE reports, watch best-practice sector webinars and E. [email protected] access CEM execution toolkit white papers. 49. 49. 49. 53. 54. 54. 56. 57. 57. 57. 57. 61. CEEC membership ision Tesco The as Millie’s Toby OO House ASK Express Mobile Body Shop Wilko Iguanas Energy of Fraser Thorntons Clarks Italian A community for customer experience professionals, providing Michael Crow Cookies Carvery access to best-practice tools, alongside a platform to connect CX Solutions Director and influence. Apply online. E. [email protected] 61. 61. 61. 61. 66. 66. 66. 66. 70. 70. 70. 73. The Six Pillars Center British American Tesco A universal set of qualities within every customer relationship. Tesco unelm IKEA Netflix Costa Parcs Morrisons Airways Airlines Argos Nando’s Bank The Six Pillars have proven to deliver enhanced commercial Tamsin Jenkins outcomes and deliver greater shareholder value. Executive Advisor, CEEC 73. 75. 75. 75. 78. 79. 79. 81. 82. 82. 82. 82. Acknowledgments E. [email protected] The Krispy Travel loyds co-operative Sainsbury’s Authors: David Conway, Tamsin Jenkins, Simon Gould, Gustavo Imhof, Craig idl travel Travelodge Santander ara Thomson Asda Kreme epublic Bank et2.com Bank Ryder, Michael Hoole, Cliff Yiu, Edward Williams www.nunwood.com Design: Lee Jolley-Brown 86. 86. 86. 89. 89. 91. 91. 91. 94. 94. 94. 97. T. +44 (0) 845 372 0101 Illustrations: Tom Gilbert, Luiz Amorim Post omino’s iver E. [email protected] BM Selfridges Evans ame Wetherspoon Contributors: Lynsey McGregor, Hannah Mac Mahon, Oliver Nightingale, Ivan Subway Aviva Office Primark Pia Island Beefeater Martins-Wood, Amit Varsani, Peter Clarke, Victoria Buxton

97. 97. 100. 100. 100. 100. 100. 100. 100. Aess the Customer Ted Pia irect Topshop Pia Experience Excellence © 2016 KPMG Nunwood Consulting Limited is a subsidiary of KPMG Holdings Limited, a subsidiary of KPMG LLP, a UK limited liability partnership and a Barclaycard Preo Baker AC Topman Express member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Hut ine Centre here www.nunwood.com

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