Customer First. Customer Obsessed. KPMG Global

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Customer first. Customer obsessed.

Global Customer Experience Excellence report, 2019

kpmg.com/customerfirst

The quality of customer Businesses are finally coming to Three sectors dominate the experiences are improving around grips with escalating customer 2019 hall of fame. First place the world. All countries researched expectations, as new rankings are occupied by: in 2018 have seen an uplift in organization models emerge and Financial Services, Travel & their overall Customer Experience firms become more agile by Hotels and Retail. Excellence (CEE) score this year. deconstructing silos. 6 New entrants globally are In six markets, the number one The battle lines for ‘platform wars’’ redefining the way experiences ranked brand holds the position are being drawn as organizations are delivered and are solving for a second consecutive year. create an ‘operating system’ for life problems rather than just retail that includes an entire eco- selling products. system of technologies, partners, sophisticated supply chain and delivery management. 10% Personalization drives loyalty in The top-ranked brand in each Personalization as an approach is 18 out of 20 markets. In a world market typically outperforms becoming increasingly anticipative – of mass marketing and mass the respective market as firms use advanced analytics to reach production, consumers still want to average score for each pillar out to customers before they even feel unique. Firms that play to this by around 10%. realize they have a need. Relevance and with mass customization – through cut-through are becoming the drivers their platforms – are winning out. of purchase decisions.

Integrity drives advocacy in 14 Integrity is rooted in the purpose Empathy appears to be the out of 20 markets. Consumers of the organization. Firms most challenging pillar. are concerned about trusting with a strong sense of purpose On average, performance is half organizations and, in particular, what are attracting generation Z, a point lower than across the they do with their data. This will limit millennials and baby boomers, as remaining five pillars. the amount of personalization firms environmental and social concerns are able to achieve. increase in many countries. 4 Customer first. Customer obsessed

Winning this battle for an ever-evolving consumer requires deep, holistic insight; a willingness to design distinctive, personalized and – critically – intentional customer experiences and then, crucially, the ability to execute these experiences across the life cycle of the customer throughout the organization. Foreword It requires all layers of an organization to be obsessed with the customer. Obsession describes an idea or Everything about the thought that continually intrudes upon customer is changing – the mind. For leading organizations, motivations, connections, the customer continually pervades their thinking. Serving customers by expectations, time and solving their problems and meeting purchasing power. Life their changing needs is their raison events are less predictable d’être, their motivation and their than they were in the past. enduring quest. Organizations that don’t I believe there are three defining and competitively advantageous detect these shifts, and fail characteristics of customer to build strategies based obsessed organizations: on the new realities and They are customer first: they put lives of the customers their customers at the heart of their they serve, will struggle strategy, planning and execution and to remain relevant in continually ask “what does this mean to my customers?”, “what is the today’s marketplace. impact on my customers?” and “how will my customers respond?”

They are insight driven: these companies know their customers at a deep and profound level, they know their physical and their psychological needs and, as a consequence, they craft market leading propositions. They are continually listening to customer feedback in real time and choreographing experiences that are It requires all layers of an organization inspirational and motivational. to be obsessed with the customer. They practice customer foresight to Obsession describes an idea or thought anticipate customer needs: many are organized around the customer, with that continually intrudes upon the mind. ‘test and learn’ a way of life. They are For leading organizations, the customer organized to respond quickly and to execute efficiently and effectively, continually pervades their thinking.” so that in many cases they meet the need just as the customer realizes they have one. Leading companies’ obsession These firms are breaking away from with building long term customer the pack because they have built firm relationships generates a foundations for success by cultivating customer focused mind-set that the right internal capabilities. They penetrates strategic thinking and are distinguishable by the degree to operational reality. which their customer experience (CX) efforts are integrated and connected. In this report we look at four lenses of The boundaries between their front customer obsession and how these and back offices are blurring and they translate to market success: are intimately close to their customers The purpose of the organization, its and driven to innovate by the insights brand and how it is lived internally so they gain. They are structuring their it is felt authentically externally; how businesses in new and exciting ways greater potential can be unlocked and, in the process, they are within its teams for the betterment of delighting their customers and the consumer – and ultimately creating lifelong fans. the business. These customer obsessed The products, services and organizations see customer propositions that the firm develops experience as a source of commercial in response to its customers’ needs, value; not just a differentiator versus the supply chain and supporting competition (although it certainly is partnership eco system that supports that) but a mechanism for superior rapid product delivery. profitability. The net result? Customer obsession results in a sustainable Customer interaction management source of financial value for and the use of predictive analysis shareholders and owners. to anticipate customer needs, the supporting systems, technologies and support services required to deliver a seamless experience. The organizational design model, its closeness to the customer and the degree to which the front, middle and back office are connected. We have incorporated our research findings from 2,075 brands across Julio Hernandez 20 countries, regions and jurisdictions, sharing the experiences of leaders Head of Global Customer Center of Excellence, who are customer obsessed and KPMG International, making real progress transforming US Customer Advisory Lead, their businesses and, in the process, KPMG in the US enhancing their customers’ lives and gaining competitive advantage.

Contents

Introduction 01 About the research 08 The Six Pillars 10

2019 hall of fame

02 The leading brands from 12 the research

The four lenses of 03 customer obsession The power of purpose 14 Spotlight on: Singapore 16 Airlines (SIA) Products, services and 18 propositions

Spotlight on: Zalando 20 Customer interaction 22 management

Spotlight on: Edward Jones 24 Customer oriented 26 business models

Spotlight on: Monzo 30

Industry view 04 Air travel 34 Romania 78 Telecoms 36 Singapore 80 Grocery retail 38 Slovakia 82 Hotels and hospitality 40 United Kingdom 84 Insurance 42 United States 86 Banking 44

Market overviews Further information 05 Australia 48 06 KPMG contributors 88 Austria 50 Methodology and terminology 90 Brazil 52 How KPMG can help 91 Czech Republic 54 Denmark 56 France 58 Germany 60 Hong Kong (S.A.R), China 62 Italy 64 Luxembourg 66 Mexico 68 Netherlands 70 New Zealand 72 Norway 74 Poland 76

Last year we expanded our research around the globe, and have continued this year by taking in the views of more than 84,000 consumers across 20 markets. The research for this report was conducted via an online survey About the methodology, completed Q1-Q2 2019. A nationally representative consumer sample was targeted for each market, to be representative in terms of age and gender, whilst also targeting regional representation. research To participate in the research, and to be able to respond to questions on a specific company, respondents must For the last decade, our have interacted with that company in member firm professionals the last 6 months. An interaction is have been asking defined as making a purchase, using consumers about their the company’s products and services, individual experiences contacting a company with a query, with brands. Over that or even browsing its website or store – so not all respondents will have time, more than 275,000 been existing customers of the brand consumers have been they evaluated. interviewed and over In order to be included in the final 2,700 brands measured to rankings for each of the countries, collect more than 3 million regions and jurisdictions researched, individual evaluations. each brand must have achieved a minimum of 100 consumer responses. 20 84,066 countries, regions consumers and jurisdictions 2,075 752,096 cross-sector individual brand brands evaluations

Global Customer Experience Excellence coverage in 2019:

Australia Austria Brazil Czech Republic 2,502 consumers 2,225 consumers 5,006 consumers 5,032 consumers

Denmark France Germany Hong Kong (S.A.R.), China 2,502 consumers 7,002 consumers 5,059 consumers 1,999 consumers

Italy Luxembourg Mexico Netherlands 4,997 consumers 1,002 consumers 5,093 consumers 5,052 consumers

New Zealand Norway Poland Romania 2,811 consumers 2,501 consumers 5,043 consumers 2,499 consumers

Singapore Slovakia UK US 1,011 consumers 2,093 consumers 13,085 consumers 7,552 consumers

The Six Pillars A decade of research has shown that every outstanding customer relationship has a universal set of qualities – they are The Six Pillars of experience excellence.

Integrity Being trustworthy and by staff add up to create trust in engendering trust. the organization as a whole. For all customers, it is the degree to Integrity comes from consistent which the organization delivers on organizational behavior that its promises that is consistently top demonstrates trustworthiness. of mind. There are trust-building events where organizations have the Trust and integrity originate in the need to publicly react to a difficult organization’s sense of purpose situation, and trust-building and how it ethically, morally and moments where individual actions socially discharges this purpose.

Resolution Turning a poor experience recovery paradox’ teaches us that into a great one. just fixing problems is no longer good enough; the customer has Customer recovery is highly to feel great about the recovery important. Even with the best experience. Some companies call processes and procedures, things this ‘heroic’ recovery. will go wrong. Great companies have a process that puts the A sincere apology and acting customer back in the position they with urgency are the two crucial should have been in as rapidly as elements of successful resolution. possible. But the ‘service

Expectations Managing, meeting and promise, and every day through exceeding customer touchpoint interactions where they expectations. need to meet and - if appropriate - exceed expectations. Some Customers have expectations are able to make statements of about how their needs will be met, clear intent that set expectations, and these are increasingly being while others set the expectation set by the best brands they have accurately and then delight the encountered. Great organizations customer when they exceed it. understand that expectations are set strategically by the brand

The Six Pillar model was developed to provide a precise The Six Pillars are inextricably intertwined and, in and practical definition of the kind of emotional outcome a combination, provide a powerful mechanism to help successful experience needed to deliver. Based on over 3 organizations understand how well their customer million detailed customer reviews, The Six Pillars have been experience is delivered across channels, industries and validated in 20 markets this year and modeled against the company types. The leading organizations demonstrate commercial outcomes of retention and recommendation. mastery of these pillars and are outstanding at all of them.

Empathy Achieving an understanding of relationship and involve reflecting the customer’s circumstances back to the customer that you to drive deep rapport. know how they feel, then going that one extra step because you Empathy is the emotional understand how they feel. capacity to show you understand someone else’s experience. Empathy-creating behaviors are central to establishing a strong

Personalization Using individualized attention attention, knowledge of to drive emotional connection. preferences and past interactions all add up to an experience that Personalization is the most feels personal. valuable component of most experiences. It involves But what distinguishes world demonstrating that you class personalization, is how the understand the customer’s customer is left feeling after their specific circumstances and will interaction. Do they feel valued, adapt the experience accordingly. important and more in control? Use of name, individualized

Time and Effort Minimizing customer effort and have been shown to increase creating frictionless processes. loyalty. Many companies are discovering how to use time as a Customers are time-poor source of competitive advantage. and increasingly looking for Equally, there are clear cost instant gratification. Removing advantages to saving time, as unnecessary obstacles, long as the other pillars are not impediments and bureaucracy, to compromised. enable the customer to achieve their objectives quickly and easily,

We have welcomed the top-ranking brands in each of the countries, regions and jurisdictions researched into the 2019 hall of fame. These organizations are the most effective in delivering great customer experiences, from the perspective of respondents to the 2019 Customer Experience Excellence research.

Australia Austria Singapore ÖAMTC Airlines

Denmark France BroBizz Mercure

Italy Luxembourg Amazon Ernster

New Zealand Norway TSB Vinmonopolet

Singapore Slovakia Singapore Martinus Airlines

Brazil Czech Republic Verdemar Air Bank Supermercado

Germany Hong Kong Hilton (S.A.R), China Singapore Airlines

Mexico Netherlands Fiesta Americana Van der Valk Hotels

Poland Romania iSpot (Apple) Samsung Store

UK US first direct Navy Federal Credit Union

The power of purpose

They (competitors) Purpose is the organization’s “why”; It can be environmental, social it sits alongside the “what” – the or a dedication to the needs of can buy all the mission – and the “where” – the a particular group of customers. physical things. vision. It answers the question “why Executives at USAA, for example, are The things you do we exist beyond what we make, targeted on “making a difference to do or sell?” customers’ lives”; Lush is focused on can’t buy are environmental matters and customers Purpose goes beyond brand positioning who share its love of natural products; dedication, and is reflective of the values, culture and MAIF has a very strong sense of devotion, loyalty— and ethos of the organization. It is the social purpose. the feeling that you fundamental source of authenticity and the platform that brings the brand alive Topdanmark in Denmark is revered for are participating in throughout the customer experience. its approach to going beyond insurance a crusade.” Purpose is the great connector; it is and resolving customer life problems, important because it has an integrating, KLP in Norway for responsible, ethical Herb Kelleher aligning and cohesive effect across all investment, and Alipay in China for its Founder, Southwest Airlines customer touchpoints. focus on safe money payments. Today, business and societal impact If these purpose driven organizations must go hand in hand. In this disappeared tomorrow, their customers information age, consumers are more would miss something meaningful. informed, more connected and more Employees are advocates for what the skeptical than to fall for a brand that organization does, and what it achieves claims to be pursuing a profound over and above product sales. ‘purpose’ when what it’s really after is a stronger P&L. KPMG International research1 reveals how important purpose is to both As human beings we are inspired millennials and, increasingly, baby by purpose. It is the satisfaction boomers. This growing generation is we achieve over and above our now more and more often rewarding employment. It creates advocates of truly purpose-driven brands: by both employees and customers. choosing them over their (less purpose- Companies such as USAA, Lush and oriented) peers, by paying a premium MAIF demonstrate that purpose is a for their products and services, or by dedication to something more than just coming back as loyal customers, over making money for shareholders. and over again.

1 Me, my Life and my wallet: 2018

Purpose-driven organizations are characterized Authenticity of purpose is critical and by the following: requires a purpose-driven culture:

For Ritz Carlton, purpose Led from the top and customer obsession are inextricably linked. Every day, It is the CEO who sets the purpose every team across the globe agenda, articulating ideas that go shares stories of great things that far beyond the business impact. For have been done for customers organizations like Lush and Specsavers, the previous day. The day starts it is the founder who wraps the with what great looks like and business around a purpose. For Ritz Carlton’s purpose, “unique, organizations such as USAA, where memorable, and personable the purpose was established in 1925, customer service experiences” is it is the role of each incoming CEO to infused through every activity. make it relevant for the current age. Southwest Airlines’ purpose is the power of storytelling to make sure each of its 46,000 employees pursues its vision of being the most Openness loved and most traveled airline each and every day. Southwest is doing Businesses need to be open about how so by rallying employees around the purpose they have subscribed to a common purpose. “We exist to connects to their business, while at the connect people to what’s important same time creating a positive impact on in their lives through friendly, reliable, society. A sound storytelling approach and low-cost air travel.” Corporate is essential; one that clearly and simply communications are filled with paints a picture to explain why shared real examples and stories to help value creation is beneficial to everyone employees visualize what each involved. step of the purpose looks and feels like. Every week CEO Gary Kelly gives a ‘shout out’ (public praise) to employees who have gone above and beyond to show great Participation customer service. Today’s consumers know that actions speak louder than words, and they want Joe Robles, former CEO of USAA, their own actions to make a difference. stated that a leader’s most important That’s why successful brands provide job is “to connect the people to them with opportunities to engage and their purpose.” At USAA, every to co-create. It is no accident that many employee undergoes an immersive of the top companies across our index 4-day cultural orientation and makes are mutual organizations owned by their a promise to provide extraordinary customers, where participation and service to people who had done the involvement are a way of life. same for their country.

Ranked 1st in Australia, Singapore and Hong Kong (S.A.R.), China Ranked 2nd in New Zealand Spotlight on: Singapore Airlines

Singapore Airlines is highly rated for A commitment to “enhancing the customer experience in its core markets. lives of people we touch” is what It has a clear sense of purpose that sets Singapore Airlines apart. It is the shapes its behavior and its credibility driving force behind innovation and as a corporate citizen. The airline experience delivery. It is rooted in articulates its purpose in its vision the qualities of Eastern service and is statement as follows: reflected in every interaction, digital or physical. Passengers notice the care and attention they receive, the help and Singapore Airlines has a assistance that is offered proactively when they have difficulties, and the responsibility not only to overall desire to please. be an excellent company, but also to be an excellent In the airline industry the service ethic is tested most strongly when there citizen of the world by is disruption. According to a recent enhancing the lives of the Sabre and Forbes Insights briefing people we touch. With paper, 80 percent of airline executives that aim in mind, we have think that flight optimization and disruption management are the main made many commitments factors that will enhance operational to the arts and education, performance and eventually to our communities, and improve CX. the health and welfare Unlike many major carriers, SIA of our country’s citizens, approach this by focusing on stress- and those in countries reducing communication: ensuring we fly to. With this goal that passengers are kept informed and reassured about missed in mind, we’ve also made connections or unforeseen overnight a strong commitment to stays, thinking ahead and answering preserving the environment questions before passengers have – and our world for future even thought of them. Everything possible is done to put the customer generations.” back in control and reduce stress Vision of Singapore Airlines, and concern. Harvard Business Review

Staff are trained to de-escalate situations with emotional passengers and to show that the airline cares about the passengers’ plight and is doing everything possible to put things right. Behind the scenes, Singapore Airlines utilizes advanced systems for communication and agile crew management. Its software ecosystems work constantly to update data flow and have everything needed for aircrews: in-team chats, schedule tracking, task lists, issue lists and reports. Effective and quick crew communication is a vital part of disruption resolution. So, even in adversity, when things are difficult and passengers are emotional and fraught, its employees are bound by its purpose to “enhance the lives of the people we touch.”

In a world where a competitive understanding and prediction of advantage can be replicated in future trends and needs. M&S weeks rather than years, and where understands the value of digital and first mover advantage is often is investing accordingly. the only way to secure success, Global fashion retailer Zara typifies speed to market has become the move to rapid proposition a critical success factor for our development, agile deployment and leading organizations. product withdrawal. The Zara product Time is increasingly recognized as a lifecycle is weeks, not months, competitive weapon. The ability to driven by an end-to-end, customer meet the demands of customers for led process across the entire supply ever-shorter delivery times, and to chain. This is supported by rapid synchronize supply to meet the employee and customer feedback so peaks and troughs of demand, is of that products and propositions can be critical importance in this era of ‘time- adapted ‘on the fly’. based competition’. Zara produces 450 million items In the UK, the CEO of Marks & a year, all delivered globally, with Spencer, Steve Rowe, has created clockwork precision, to every store, 1,000 new analytical roles to through a small batch delivery drive supply chain responsiveness system. The New York Times labelled improvements, customer it “mind-spinningly supersonic.”

A lot of our revenues come from innovation, but it gets copied quickly. We have to get innovation out there quickly. We have to bring things to fruition quicker than everyone else.” Neville Roberts, CIO, Best Buy

Firms that succeed are those that have aligned front and back office activities along a digital spine:

Rapid delivery systems Bi-directional supply chains Zalando has set the standard in local delivery The world of online retailing has meant the management, often exceeding customer management of returns has become a major expectations. In the UK, Ocado, a grocery focus and cost. This is as vital a part of the CX delivery service, has driven innovation across as delivery. the supply chain to such an extent that it’s now selling its inventory management systems and processes globally.

An extended eco-system of suppliers Big data analytics and planning Leading retailers are overhauling delivery Retailers need to leverage big data to combine systems to build and enhance multi-supplier disparate information sources and create value relationships. In 2016, approximately one-third for their customers (and shareholders). For of all online sales (according to distributed example, it is becoming standard practice for commerce network Commerce Hub) came retailers to constantly monitor their competitors’ from new products that were added to retailers’ product assortments. This competitive online storefronts. New supplier relationships intelligence is then compared to their own are arising to help fuel growing online product product assortments and the products available assortments. Platforms are being developed to through their existing supplier relationships. enable complementary product selections to Assortment ‘gaps’ are then quickly closed, which consumers. All these developments require the can lead to increased revenue for retailers as management of a supplier ecosystem. consumers see more relevant products available.

Ranked 3rd in Norway Ranked 5th in Denmark, 13th in Germany, 14th in Austria, 17th in France, 18th in the Netherlands, 24th in Italy and 24th in Poland Spotlight on: Zalando

Started only 10 years ago, Zalando has a “In fashion, there are still huge market capitalization of US$11.85 billion, inefficiencies. Product development employs 15,000 staff and is building an takes a lot of time; there are big ‘operating system for fashion,’ providing bets you need to place; and that’s logistics, technology and marketing why there is so much waste. Your solutions to brand partners across its inventory — you can get it completely business. It is a ‘consumer platform’ wrong! The retailers, the brands, the aimed at fashion. Starting first in the warehouses — what if you started Netherlands, Zalando has subsequently connecting inventory and data? This expanded to 17 markets. is how we came up with building an operating system for fashion. Central to its differentiation is convenience. From the outset the founders of Zalando believed that they should be focused on a great experience in terms of delivery, and the opportunity We want to build that to return and call customer service, which one destination which requires them to own the logistics, the customer service interface and the is the entry point for online experience. consumers and the They invested heavily in front and back most relevant platform office technology to ensure it was all for brands. I don’t aligned and connected. They foresaw the world of platforms. For example, think you will have there is one app for transport (Uber), one one app for shopping. major app for entertainment (Netflix) and But you might have one major app for music (Spotify). They wanted to be the app for fashion. one app for fashion The founders looked at best practice and that is what we from brands such as Alibaba and WeChat, are going for”. who had developed ecosystems by platforming their assets. David Schneider, Co-founder, Zalando

“Really tear down the barriers for consumers. Make everything accessible and let the consumer decide by taste and not by product availability in a physical store. Personalize it and make it convenient. And on the industry side, help brands to digitize and make this connection. We felt we could make a very strong contribution and not only to our own business.” A further component, which is getting to double-digit [revenue contributions], is the partner business: brands connecting directly and selling directly on the platform, earning commission for Zalando. There are additional services like marketing, with over 1,000 campaigns across 200 brands leveraging reach, media channels and data. Growing the business is not without complexity. “Europe is very fragmented. In order to build a proposition for 350 million Europeans you need to have tons of different cultures, languages, currencies, payment methods. It means that the solutions that we’re building must be very much localized. And in order to achieve a certain scale, we need to invest a lot more than a company from the US or China because they have a whole market which is more or less homogeneous with one language.” Central to managing this complexity is the digital spine of the business, enabling responsiveness and agile development. It is a business powered by connectivity.

Organizations now have a Every interaction can be broken down to its component parts to assess, infer, anticipate and wealth of customer data optimize such interfaces to meet the needs of at their disposal – and the individual. customers well know Big data technologies and machine learning methods it. It is an increasing have transformed our ability to improve interactions for customers (who look for information, solutions, or resolution customer expectation through personalized experiences) and organizations (who that if organizations are look to provide those personalized experiences across multiple channels in the most cost-efficient manner). collecting this data, then Across all possible applications of big data and machine they should use it to deliver learning in CX, the following seven rise to the top. These benefits to the customers applications, or use cases, achieve the greatest impact by delivering precise customer insights, personalized customer themselves - to deliver experiences and overall brand value. personalized, meaningful experiences, proactively Proactive Customer Service predict and satisfy needs, and save a customer time Proactive customer service offers some of the greatest potential for customer service transformation. The future and effort in all interactions of customer service will be proactive and preemptive, through seamless data i.e., customers will receive information and resolutions before they contact customer service, thereby reducing usage and sharing across stress, eliminating negative experiences and ultimately an organization. Enhanced saving time and money. A combination of real-time data pipelines, predictive analytics and human-centered data usage is the key design can be used to analyze transactional, behavioral to delivering a better and relational signals that predict customer life cycle events and interaction needs. Armed with these experience across The Six predictions, organizations can preempt the incoming Pillars – and therefore the interaction and use the most efficient channels and key to enhanced treatments to resolve the need. customer loyalty.” Insurance companies frequently adopt this approach to predict when their customers’ children will need drivers’ licenses or when customers will move to a Amanda Hicks, bigger house. When done right, this advanced capability Partner in Charge, Customer, Brand and means an organization can proactively offer new products Marketing Advisory, KPMG in Australia and services at the time the customers need them the most.

Real-Time Marketing Propositions and Offers Pricing Optimization

Personalized marketing is proven to be effective, but it In a traditional approach, many pricing models were has to be data-driven and adaptive. Predictive analytics customized for customer characteristics such as age can analyze data nearly instantly, to help companies and socioeconomic status. Today, organizations are make dynamic marketing offers. Hotels such as IHG applying advanced analytics to more granular usage use analytics to predict the in-room features and mix of and engagement data, to optimize pricing schemas that options it will take for an individual customer to stay at reflect their customer base more accurately. their hotel. The data can suggest if a customer should This is especially prevalent in insurance companies. Both be offered an upgraded room, food or additional service Aviva in the UK and Progressive in the US use telematics based on history and preferences, to maintain loyalty programs and in-car sensors to gauge how often and or drive additional visits. how well customers drive. This data personalizes the rates for each customer based on driving styles and risk profiles.

Scheduling and Resourcing Precision and Churn Management

Using historical customer interaction trends, advanced Data can pinpoint which customers are most at risk of scenario modeling and predictive analytics, brands can leaving and the economic value exposure they represent better anticipate the variances in contact volumes. Real- (e.g. lost revenue stream). Companies that use predictive time data across channels (web, app, chat and social), analytics to identify ‘flight risk’ factors can greatly broken down by product, customer and geographic improve their customer retention via targeted initiatives. dimensions can drive service workforce planning and FedEx uses data to predict with 60-90 percent accuracy optimization. Marketing activities (such as limited time which of its customers will defect to a competitor.2 offers), local/micro shopping trends and competitor actions Similarly, Sprint can identify segments that are 10 can drive traffic up or down, and influence customer times more likely than other customers to cancel. By interaction needs. using data to identify the factors that lead to churn, and Appropriate staffing saves companies money by the customers most likely to churn, companies can allocating resources to the most immediate needs of remediate some of the customer pain points through the business – including frontline customer service, targeted programs, actions and messages, to new product training, learning and development, and improve retention. innovation. Additionally, the right level of customer support will also have a direct impact on customer and employee experience and satisfaction.

Real-Time Product Recommendations Predicting Customer Needs

Using predictive analytics, especially reinforcement The most fundamental use of analytics is for predicting learning, organizations can tailor a customer’s experience customer needs. This is largely what makes apps by the in real-time. This advanced capability is at the core likes of beauty products retailer Sephora so successful. of ‘algorithms of services’ like Netflix and Spotify. By using historical product purchase and interaction A customer’s actions, such as watching a certain trends, brands can predict repeat purchase propensities show or skipping certain songs, and instantaneous and new product and service recommendations. feedback (ratings, thumbs up/down), drives their next These precise insights enable targeted offers that help recommendations. drive marketing efficiency and sales effectiveness. These dynamic feedback loops can inform real-time Similarly, L’Occitane uses AI and predictive analytics to content delivery, and significantly drive customer ensure that every section of its site meets individual engagement with products and services at moments customer needs. that matter most.

Predictive analytics helps brands look towards the future and improve their customer experiences. These seven types of predictive analytics show just how much new data can do when used correctly and strategically. (Based on Forbes.com, 7 Kinds of Predictive Strategies for Customer Experience: Blake Morgan, Jan 2019).

2 Predictive Analytics 2016, Eric Siegel

Ranked 5th in US Spotlight on: Edward Jones

Financial advisors are under tremendous Fintech companies and robo-advising pressure to create new business platforms deliver more convenience relationships and bring additional and better service at lower cost. assets under management. However, There are also new forces in play: fundamental changes to the industry are blockchain technologies, AI-driven making this increasingly complicated. financial advisory services and ever- more self-service technologies. At the same time, fee compression is forcing financial advisors to achieve more with less. Through it all, customer We’ve found that having expectations continue to rise. the chance to be creative Financial advisors must deliver more and to contribute goes value to justify comparatively higher fees – and a key differentiator is the hand in hand with client experience. people loving their jobs. Edward Jones is completely focused A study we conducted on the client experience and ensuring among Edward it adds value at every customer interaction. It realizes that success Jones employees requires a commitment to maximizing discovered that when client empowerment, participation and staffers have “a lot” of confidence. Central to its approach is the ability to anticipate client needs meaningful innovation before clients know they have them. opportunities, 99 Anticipatory customer service is percent call Edward not a new concept, but data-driven Jones a great approaches are making it easier workplace.” to execute. “We believe it’s a mind-set shift,” Fortune 100 best companies to says Ken Cella, Principal, Client work for Strategies Group at Edward Jones. “We need to think like our clients— Source: https://fortune.com/2018/03/27/edward- not just about them.” jones-best-company-finance-happy-workers/

Successful Edward Jones financial advisors are leveraging data aggregation technologies and on-boarding tools to help facilitate meaningful, trust-building conversations. Prior to assisting with financial decisions, financial advisors can help clients clarify priorities and values. In this respect, a better Edward Jones client experience involves not only financial knowledge, but also emotional intelligence. To identify opportunities to add value, Edward Jones involves its people. Harnessing their insights around what is necessary to deliver a great experience at every interaction has had a double benefit. It improves the experience for customers and increases loyalty – and also energizes employees. According to Ken Cella, “We’ve found that having the chance to be creative and to contribute goes hand in hand with people loving their jobs. A study we conducted among Edward Jones employees discovered that when staffers have “a lot” of meaningful innovation opportunities, 99 percent call Edward Jones a great workplace.” At organizations throughout the financial services field, it’s never been more important to ensure that all employees bring their best new ideas to the business. The highest ranking financial brands in the research, such as Edward Jones, are boldly reinventing the future, and doing so in ways that widen the circle of people putting their minds to work.

The era of digital transformation has given rise to a number of established businesses and start-ups that combine digital technologies with unconventional business models, to disrupt competitors and even entire industries.

The convergence of cloud, mobile, change improvement. The processes social, cognitive, big data/analytics, of thinking about the customer are as and IoT provides a platform for a important as the underlying business variety of important transformations, or transaction processes. including a shift from traditional Our brains prefer to work by means product-centric to customer-value- of connections; connecting ideas centric business models. and concepts to form new ones. However, many organizations Unfortunately, modern organizational are structured around business life has led to mechanical thinking, models that assume that all the meaning that we are ruled by habits, value is generated through a automatic departmental associations, product transaction. It is built on the and historic responses. manufacturing model that arose in the Getting stuck in fixed patterns of 18th century when production was thought leads us to make fewer long term and with little variation in and fewer connections and, as a product or customer. This results in a result, firms are being left behind by customer environment that may be new start-ups and digital tech firms product rich but experience poor, and unencumbered by the past. It is the disconnected across the organization. quality of their customer ideas that has In today’s digital economy, value is propelled the leading organizations in often generated through the cultivation our research to the top of our rankings. of successful client relationships. However, few businesses are Companies need to break down structured in a way that facilitates structural silos and work cross- integrated holistic thinking about functionally, align customer needs and customers and their needs. organization design and ensure that Organization design for many implementation is rapid and error-free. companies is an outcome not an input. This is driving businesses to rethink their business models and think The advent of customer journey more connectively. mapping is accelerating this shift, as firms realize that they cannot Such change affects how they think manage customer journeys through and operate and is the root cause conventional, departmental, of inconsistency in experience delivery. functional structures. Connective thinking links concepts in new ways to drive innovation and step-

The 8 capabilities or connected organizations High-performing organizations are getting connected by making significant investments across eight capabilities. They are doing this to a greater degree than less mature organizations.

Future-focused businesses are shaping new operating models in which every part of the organization, from marketing and sales through to the supply chain, is working collectively to deliver against the customer’s expectations.” Miriam Hernandez-Kakol, Global Head of Management Consulting, KPMG International

Firms such as USAA are organizing that are more suited to delivering their The process connected around customer life events, while customer promise. organizations have embarked New Zealand’s Kiwibank operates on is as follows: cross functional ‘journey’ and These organizations ranking highly in customer needs teams. In the UK, our research recognize that becoming Appoint a journey owner: truly customer centric requires more found to be a very difficult job Santander has changed its business model to reflect the importance than just connecting strategy with unless the owner has decision- implementation. That is a vital first making responsibility; even then, of customer insight, the impact of insight on customer products step. But at the heart of a customer it is a difficult role across a centered business is a connected departmental structure. and propositions, and introduced rapid time to market thorough agile enterprise – one where front, middle A matrix link to journeys: delivery teams. and back office processes are aligned Aligning individual departments and interconnected. Where partners to the sections of the journey The Harvard Business Review found and intermediaries start with the they are responsible for, linking that over a third of Fortune 500 customer and work backwards metrics and responsibilities, and companies have restructured around through the value chain. taking cross-department / cross- the customer, using needs, segments When faced with complex value journey decisions to a forum and journeys as the organizing chains, the temptation for many attended by an empowered principle. Not every transformation companies is to look at the next link decision maker from each of the has been immediately successful. in the chain as being the customer. departments involved. For example, the cutting of well-worn communication paths and channels, as However, industries that manage A customer centric structure: existing structures are torn down and complex value chains – such as high Organized around customer new ones implemented, takes time to technology firms – start with the journeys within needs or rebuild – possibly years for companies end customer and work backwards segments. who have not thought this through. with their partners. A failure to do so can result in disintermediation, Nonetheless many of the high-ranking as the UK asset management brands in this year’s research have industry discovered when new successfully made this journey. entrant Vanguard bypassed the entire USAA, Tumi and American Express value chain and went straight to the in the US are examples of successful end customer. customer centric structures. Airlines such as Singapore Airlines, Emirates An organization that is connected and Air New Zealand are forsaking across the whole value chain is an conventional structures for formats essential precursor for digital success.

Connected Enterprises focus every process, function and relationship of their organization on a single purpose, harnessing the power and potential of customers to fuel profitable and sustainable growth.”

Adrian Clamp, Head of Digital Transformation, KPMG in the UK

With the customer at the core, some of the critical questions that organizations should ask themselves here are:

Employees

Are staff empowered and enabled to deliver the customer promise through having the right tools, knowledge and training? Are they clear on what they are supposed to deliver? Are they motivated by a culture of customer-centricity and teamwork to excel? Are they leveraging technology and AI in the right way?

Front, middle, back offices

Are they motivated by a culture of customer-centricity and teamwork to excel? Are they pulling in the same direction – rather than trying to fulfil their own individual targets at the expense of the company’s vision and purpose – and the customer?

Channel and business partners

These are essential parts of the delivery dynamic, and in the customers’ eyes are a proxy for the brand itself. Are they aligned with the customer’s expectations and helping to deliver in a way that stays true to the brand promise?

Market dynamics, digital signals

Are teams constantly monitoring the market including social channels to pick up the signals of customer sentiment and demand? Does our organization design accelerate or hinder the achievement of our strategy? Picking up and rapidly responding to these signals is key.

Ranked 2nd in the UK Spotlight on: Monzo

Monzo is a 4-year-old bank that now Teams stay in touch with the has 2.5 million customers and 1300 customer in several ways: through employees3. It has thrived by being qualitative user research tools extraordinarily close to its customers’ including desk research; regularly needs and being agile and responsive in reviewing in-app messaging chats and meeting these needs. community forums and idea boards; conducting user interviews; and “The way we organize our teams and ensuring users keep physical diaries manage the people in them is crucial to to observe how they will use certain our success as a company.” features on a day-to-day basis. A large number of software engineers, All of these tools allow the design designers and analysts work at Monzo, team to, as stated on its blog, across all areas of the business. They “understand how different people design and build the core banking budget, spend, save, invest and systems, the iOS and Android apps, and borrow money, keeping a pulse lending products like the overdraft. They on people’s behaviors, goals and make sure Monzo can process payments, motivations.” detect and prevent financial crime, and add customer centric functionality. Monzo is also now focusing on latent user needs with the potential to Monzo has discovered that by working in actively and positively impact users’ small, interdisciplinary teams, it can move relationship with money and finances; quickly as a company. for example, the role that mental Engineers, designers and product health plays in financial management. managers work together in small, cross- As a result, teams are experimenting functional teams. Each team is focused with creating moments of ‘design on a feature, project or area of the friction’ in features that all customers business, and defines and works towards use, including: real-time account its own goals. When teams get too big, balances; sending a notification after they break them into smaller squads each purchase; a top-up feature to aid following the ‘two-pizza’ rule (a team budgeting; and a new unique feature should be small enough to be fed with which allows users to review late two pizzas). night purchases by ‘checking with them the next day if they want to As teams do not rely on one other, they follow through with their purchase’ can work independently and at speed; when their mind is in a different state. and because each one works towards a common goal, they are able to create a real sense of shared ownership.

We believe that getting the right people with the right mix of skills together on a project helps us create better features for our customers. A typical Monzo product team will feature engineers, designers, data analysts, product marketers, writers and user researchers working together to solve problems.”

Source: Monzo Annual Report 2019

3 Monzo website

Customer first. Customer obsessed 33

Industry view

All around the globe, our survey respondents had the same message — they’re crying out for companies in every industry to understand them as people: complex, evolving and unique. The better “connected” a company is to its customers’ lives and the various ecosystems they inhabit, the better it can understand customers’ needs. And, in concert with insight into their motivations and aspirations companies can begin to develop a roadmap to build experiences that are meaningful and gain greater share of their customers’ time and money. In the following pages we explore some of the customer experience trends and themes across various industries in our research, considering the most noteworthy signals of change, how they could play out, and how companies can anticipate and get ahead of disruption. We have shared the brands leading the rankings in their respective countries, territories and jurisdictions as exemplars of CX.

Change and disruption is occurring today across all industries. The impact of global trends like advancing technology, geopolitics, climate change and changing demographics, to name a few, are forcing the C-suite to rethink their focus and how they conduct business. At the center of, and a key driver, of this change is the customer. Those businesses who do a better job at connecting their whole organization with their customers, and their changing needs, will be rewarded and leave the competition behind.” Gary Reader, Global Head of Clients and Markets, KPMG International

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 34 e lvaAir tr elvaAir Customer first.obsessed to theresearch. experiences accordingtorespondents and deliver amazingcustomer that arefindingways todifferentiate rest. This reportisfilledwithairlines for someairlinestosoarabove the Our research shows thatitispossible regardless ofwhatcarrier they use. it tobe(atleast)asgoodthelast– travel experience, doorto door, andfor seamless integrationofthewholeair into thesector. Customersexpect a thosesame expectations and carry experiences inotherareasoftheirlives are lookingtotheirfrictionlessdigital continuously changing. Passengers are also thatcustomerexpectations for operationalandassetefficiency. It’s competition isdrivinganongoingdesire It’sunrelenting. notjustthat Yet thepressure toevolve is demand and/orprice. be negatively impactedintermsof the premiumendofmarket, may movement ofpeople,particularlyat does notbodewell for trade,andthe are congested.Current geopolitics mature andtheemergingmarkets more thantoday. Airports inboththe always face headwinds–andnever Like theplanesthey operate,airlines travel frictionwillbekey. experience. Findingways tocontinuedelightpassengersandreduce whichis rising, negatively impactsakey aspectofthepassenger in aircraft andproduct;ontheother, congestionanddisruption isresultinginsignificantre-investment profitability record industry share. CompetinginfluencesareimpactingCX;ontheonehand,recent –arechallengingand full-service fiercelytocapture alargermarket Air passengertraffic isgrowing dramatically andairlines–bothlow-cost Brands that soar entity withwhichentity theindependentmemberfirmsofKPMGnetwork areaffiliated. © 2019 KPMGInternational Cooperative andisaSwiss (“KPMGInternational”).KPMGInternationalprovides noclient services Focusing onoperational • Leveraging dataanddigital: • Investing into their ‘hard • Full servicecarriers are: factor inairlinecustomer remains themostcriticalsuccess and whistles,on-timeperformance performance: nomatter thebells to-date customerdata. augmenting on-boardstaff withup- and check-in processthroughto personalization ofthebooking and off theaircraft –frombetter toimprovedata theCXbothon customer journey. They areusing toremovedigital frictionfromthe The leadingcarriers embrace the market. economy atthepremiumendof on-going expansion ofpremium product improvements, such asthe capabilities complementthese New technologies andon-board returns ofmany ofthesecarriers. is criticaltotheoverall financial of wallet ofthepremiumsegment customers expect. Capturing share and todeliver theexperience their both asaway todrive down costs up theirinvestment innew aircraft, product’: Mostcarriers areramping Customer first. Customer obsessed 35

satisfaction. The leading carriers are remain on high-demand routes working with their supply chains and destinations. Airlines hall of fame and airports to proactively minimize • Automating for efficiency: disruption and to introduce new Low-cost carriers are investing in Air New Zealand New Zealand technologies such as RFID (radio- digital and intelligent automation frequency identification) for capabilities as a way to improve UK, baggage handling. efficiency, create new ancillary Emirates Hong Kong Low cost carriers are: revenue streams and drive down (S.A.R.), China costs. The leaders are those • Delivering value for money: that are combining the use of Whilst driving down real unit costs Jet2 UK automation with improvements in is critical, the top-ranked brands for digital engagement. CX were not always the lowest- JetBlue Airways US cost. But they were viewed as The big ‘external factor’ influencing delivering the best value for money. CX in this segment is the airports Low-cost carriers are also upgrading themselves. Finding ways to work KLM Netherlands their inventory of aircraft, with a with airports to grow capacity (either particular focus on narrow bodied through new capital investments or Lufthansa Germany models that will allow them to efficiency improvements), to reduce improve overall unit costs. passenger friction (particularly through Scandinavian check-in and security) and to enhance Denmark • Rebalancing their footprints: Airlines the CX (perhaps through additional With competition on major routes ancillary services options) will be vital. Australia, squeezing margins, and new Hong Kong Singapore airports in the emerging markets The brands in our hall of fame (S.A.R.), China, Airlines creating fresh demand, many low- have reputations for creating New Zealand, cost carriers are rethinking their outstanding experiences in the eyes Singapore routes. Opportunities to capture of respondents to this research. The some new long-haul routes with services they offer today have already Southwest US new technology aircraft between become table stakes and they will Airlines Asia, America and Europe will continue to raise the bar and indeed be balanced against the need to set the standard for all other sectors. Virgin Atlantic UK

Demand for air travel is booming in the emerging markets and this is creating space for new competitive ideas and models to develop. The airlines featured in our hall of fame are often the ones thinking more creatively about how ‘value’ can be created in passenger travel.”

Malcolm Ramsay, Global Head of Aviation, KPMG International

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 36 Telecoms Customer first.obsessed when tomorrow’s CXisalready being invested inimproving today’s CX telcos: how much shouldbe capital Herein liesthedilemmafor today’s countries aremuch furtherbehind). andmany subscribers enjoy thisluxury just two-thirdsofUKmobilephone uninterrupted accessto4G(currently would besatisfiedsimplyby ensuring –mostcustomerneeds of necessity business cases.Butitisalsoacase require tounderpintheirinvestment cases andgeneratethedemandthey work hardtocommunicatetheuse and imagination:telcoswillneedto In part,thisisamatter ofeducation demand for 5Gisequallyslow moving. The goodnews isthatcustomer picking upspeed. deliver 5Ghasbeeninitiallyslow, butis models andtechnologies requiredto investments inthenew kit,business change thegame. Which meansthat that nobodyknows exactly how itwill theproblemis augmented reality; particularly inaworld ofIoTand willbeagame-changer,and capacity Everyone knows that5Gspeeds 5G future tomorrow. customers engagedtoday whilepreparingthemarket for a and convenience. The challenge facing many telcoswillbeto keep matter tocustomerstoday: namelyprice,coverage, speed,content operators (andtheirvirtual offspring) arecompetingonthethingsthat promise willrequiretimeandinvestment. Untilthen,mobilenetwork 5G promisestodramaticallyimprove the CX.Butdelivering onthat In theabsence of 5G entity withwhichentity theindependentmemberfirmsofKPMGnetwork areaffiliated. © 2019 KPMGInternational Cooperative andisaSwiss (“KPMGInternational”).KPMGInternationalprovides noclient services • success infive key strategies: that theleadingbrandshave enjoyed expectations. Ourresearch suggests today whilepreparingfor tomorrow’s on ways they canimprove theCX and mobilenetworkoperatorstofocus This situation hasforced mosttelcos different thantoday’s. models. Tomorrow’s CXwillbevastly will leadtonew demandpatterns and of autonomoussensorsandbots) And trillionsofnew ‘users’ (intheform customer expectationsanddemands. will bedeveloped, leadingtofresh New applicationsandtechnologies new pricingmodelsandnew contracts. world, which willmeannew services, new handsetswillberequiredina5G created? Consider, for example, that the customerlifecycle. just atcontractend,butthroughout working customersnot hardtoretain captive contractholders,they are than treatingtheircustomersas focusing onissueresolution.Rather processesand customer service and telcooperatorsareimproving relationships: thetopmobile They are improving customer Customer first. Customer obsessed 37

• They are preparing for the 5G example, are partnering with airlines future: the fastest moving telcos are to offer their customers priority Telecoms hall of fame already rolling out 5G services (albeit boarding, while others are partnering on upgraded 4G infrastructure). They with retailers to give their customers 4ka Slovakia are also partnering with technology deeper discounts or faster delivery. providers, software developers • They are upgrading their and startups to develop revenue Ben Netherlands technology: even with the coming generating use cases. Even brands of 5G, the leading brands continue that are some way off from achieving to invest in expanding their networks giffgaff UK 5G speeds and service are now and upgrading their existing talking to customers about future technology. They recognize that use cases. Iliad Italy there is still significant room for • They are investing into security: improvement in most markets and KPN Netherlands while investments into network that more growth can be achieved security and data privacy often go without massive new capital unseen by customers, they are a vital investments. O2 Slovakia component of the CX. The leading The reality is that – over the next brands are exploring how new 2 years – the introduction and OneCall Norway technologies – such as blockchain – widespread adoption of 5G will lead can help them deliver security more to a radically different set of customer efficiently and effectively. Skinny Mobile New Zealand expectations and demand. If they hope • They are focusing on customer to survive in the new world, telcos ‘life moments’: the leaders are and mobile network operators not only Telmore Denmark thinking about what is important need to imagine and deliver on a 5G to customers at key life moments world; they also need to keep their Tesco Mobile UK and then working with a range of customers happy in a 4G (or possibly partners to help their customers 3G) world. savor those moments. Some, for

The introduction and growth of 5G will certainly have a massive impact on the market. But it won’t happen overnight. In the meantime, the operators and MNOs are working hard to create ‘stickier’ offerings that keep customers loyal through great experiences and prices rather than contractual obligations and barriers to switching.” Alex Holt, Global Chair, Media and Telecommunications, KPMG International

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 38 a i l tocery reGr tocery ail Customer first.obsessed entity withwhichentity theindependentmemberfirmsofKPMGnetwork areaffiliated. © 2019 KPMGInternational Cooperative andisaSwiss (“KPMGInternational”).KPMGInternationalprovides noclient services and pop-ups. and pop-ups. the day’ displays andfood showcases live cookingdemonstrations,‘mealof inspiring theirin-storecustomerswith engaging and focus onentertaining, Many oftheleadersinourresearch shopping experience. consumers comingback istheoverall brand, recognizingthatwhatkeeps physical storeasflagshipfor the ofa illustrated theimportance Microsoft and Samsunghave sector,In thenon-grocery Apple, a store. and selecttheirgroceriespersonallyat still prefer toseekoutthisinformation it’s unsurprisingthatmany consumers it fromfieldtostore.Consequently, ofthesupplychaindetails thatbrought ingredients, nutritionalvalue, cost,and knowing moreabouttheirfood –its are developing agrowing interestin personaldecision.Consumers very we eatandhow itisprepareda considerable difference. Butwhat hasalreadymadea online services work-life balance,andinnovation in purchases ortosupporttheirbusy whenmakinglarge of delivery Consumers want theconvenience seamless -experience. continually innovate anddeliver adistinctively branded –and themselves inaphysical experience. Brands, therefore, needto the rise ofdigitalchannels, grocery shoppersstillwant to immerse value andconvenience regardless ofwhere we shop. Even with integrated physical anddigitalecosystems designedto deliver The world ismoving towards platform businesses, which are Delivering fresh experiences • should: retailers grocery even greaterchallenge, which means amid allthenoiseinmarket isan consumers tonoticeyour brand rules ofengagement,andgetting Technology continuestochange the experience. create amemorableandconvenient store mustwork even harder to exact timeitisrequired–thephysical then deliver itfreshandcoldatthe will needanotherpintofmilk–and predict exactly whenacustomer a world whereanalgorithmcan and expanding theirofferings. In heavily times inshorteningdelivery giantshaveOnline retail beeninvesting services. delivery line upagainstconvenience meal aimedatthehealth-conscious services newcomers, andpreparedmeal lineupagainstvalue-based retailers asdiscountbox is fragmenting, industry loyalty-generating. The much defensive asthey are Such theatricstrategiesareas data. However,data. thenew frontier smartphone hasbeenasource of years, everycustomerwitha Hyper personalize: for many Customer first. Customer obsessed 39

in personalization will analyze • Appeal to emotions and values: emotional data, eye movements consumers now choose to buy Grocery retail hall of fame and DNA in addition to searches, brands based on their social and purchases and views, to pinpoint environmental impact. They are Biocoop France exactly what customers need in shopping with their emotions real time. Hyper personalization is and values instead of just their the next step in our obsession with wallets4. Customer obsessed Esselunga Italy data. Brands need to tap into real- brands articulate and deliver a time behavioral data to understand ‘vision’ that goes beyond simply consumers on an emotional level. selling groceries. The leading brands H-E-B US AI, image recognition and mood in our research are those that analysis provide deep and detailed demonstrate, across the CX, that Hofer Austria understandings of consumer they share their customers’ goals, attitudes, reactions and patterns. dreams and values. La Formaggeria Czech Republic • Refresh the experience: more Gran Moravia than simply focusing on cost and selection, the leading brands are Ocado UK immersing their customers into the shopping experience. Experiential Picard France retail, or ‘retailtainment’, is the future. In a changing market, people cherish and are investing Publix US in experiences over material possessions. By creating a more REMA 1000 Denmark immersive experience, retailers can attract people to their stores Verdemar and ensure they leave not just with Brazil Supermercado products but also memories. Wegmans US

Increasingly consumers’ buying patterns have become multimodal. They might order online one week and then visit a physical store the next. They may always buy some goods online and others instore. This means that alongside value, the watchwords for the grocery industry have to be integration and connection. Firms that enable customers to shop however they want whenever they want will win out.” Rene Vader, Global Head of Consumer Retail, KPMG International

4 Retail Trends 2019, KPMG International

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 40 yalitspittels and hoHo yalitspittels Customer first.obsessed that isleadingtothedevelopment provide auniqueexperience. And the customerjourney, buttoalso to notonlyremove friction from hotel brandsarelookingfor ways maps, manyreality) oftheleading as way-finders and AR (augmented of VR (virtual innovations reality) such apps andplatforms throughtotheuse customer journey. From new booking Technology isalsochanging the focus onthecustomer. analytics thatempower employees to involves new mobiletechnologies and and problem-solvingskills.Inothers,it employee empathy, communication In somecases,thismeansimproving level ofpersonalizationby employees. in technologies thatenableahigh investments inhumanresources,and main players aremakingsignificant At thehighendofmarket, the unique tothehotelsector. requires capabilitiesthatarevery they expect anexperience. And that more thanjustroomandboard; customers arelookingtothemfor hotel chains have recognized that Airbnb, many oftheworld’s leading economy platform players like with theintroductionofsharing Having struggled tocometerms connections iskey. right betweenremoving frictionandcreatingpersonal,emotional to play agreaterroleincustomerjourneys. Getting thebalance however, continuouslychanging. And new technologies arestarting brands torisethetopoftheirmarkets. Customerexpectationsare, experiences. And itisthoseexperiences thatareallowing many hotel sectorprovides customerswith and beds.Butthehotelhospitality The sharingeconomy may beproviding people withlow-cost rooms The humansideof travel entity withwhichentity theindependentmemberfirmsofKPMGnetwork areaffiliated. © 2019 KPMGInternational Cooperative andisaSwiss (“KPMGInternational”).KPMGInternationalprovides noclient services They are embracing technology: • expectations? and remainaheadofcustomer survey doingtocreatethatbalance What arethetophotelbrandsinour flatwithalockbox.rental staying atahotelfrom ata interaction. That’s whatdifferentiates they doexpect somelevel ofhuman their journey. But(for thetimebeing) frictionin to dealwithunnecessary personalization. Customersdon’t want need for humaninteractionand technology enablementagainstthe be tobalancethebenefitsof The challenge for hotelswill charged by intermediaries. build loyalty andavoid commissions at company-owned platforms, to encouraging travelers tobookdirectly hotels). Hotelchains areincreasingly (including reception-lessandkey-less of somenew andcreative models More thanjustexperiences, the customer propositionsandvalue. vendors tocreatecompellingnew a rangeofnew technologies and leading brandsareworking with new customerappsandtools,the finance functionsthroughtoslick from automatingback office Customer first. Customer obsessed 41

leaders are using technology to We are seeing the hotels market provide customers with greater respond to disruption and remain Hotels hall of fame choice, empowerment and value. competitive against an influx of new entrants. As the landscape • They are investing in the human Fiesta Americana Mexico changes, one thing’s for sure: the connection: the leading brands are consumer still increasingly values the empowering their employees to experiences that the leisure industry Fiesta Inn Mexico resolve customer complaints and offers. They make decisions with problems at the first interaction and their heart as much with their head. Germany, they are helping them use empathy Hilton Given this sector’s historical focus on Mexico, Poland and communication to make special customer service, the leading brands connections with their customers. in our research have become adept Hyatt Mexico And this is leading to consistently at understanding customer insights, high levels of personalization and partnering with the sharing economy, InterContinental Hong Kong customization for customers. and weaving together an emotionally Hotels & Resorts (S.A.R), China • They are exploring new models: connected online and offline rather than trying to be all things experience that makes their customer Landal Netherlands to all guests, many hotels are now feel special and valued. They are taking a much more segmented balancing the use of technology Mexico, Hong Marriott Kong (S.A.R), approach to defining, attracting and customer expectations as well China and serving their clients. Some as the occasion (especially in the chains are focusing on specific luxury segment) where personal Mercure France demographics – boomers and service is key. millennials in particular – while others concentrate on helping Novotel France guests achieve their journey’s ‘mission’, whether that be business, Presidente personal or something in between. InterContinental Mexico México Polanco

Van der Valk Netherlands Hotels

Delivering that special experience or that high level of personalization that delights guests requires deep insight into what customers want, and a high level of execution capability. You can’t do that with technology alone. It takes people. And the leading brands are investing in both.”

Will Hawkley, Global Head of Leisure & Hospitality, KPMG International

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 42 anceInsur Customer first.obsessed entity withwhichentity theindependentmemberfirmsofKPMGnetwork areaffiliated. © 2019 KPMGInternational Cooperative andisaSwiss (“KPMGInternational”).KPMGInternationalprovides noclient services just tokeep upwithexisting barrier. Mostinsurersarestruggling Regulation isperhapsthebiggest extraordinarily challenging. make reorientingaroundthecustomer a basket ofongoingchallenges that Insurers aretherefore struggling with preferences. towards investing moreenvironmental investment shifts portfolio associety insurers arefeeling pressureontheir projections intheLife sector. Even re- delaying traditionalinsurancesales of many consumersegmentsis The ‘live now, save lifestyle later’ business. the PropertyandCasualty models iscausingrapiderosionin to fractionalownership andshared customers arealsochanging. The shift At thesametime,needsof and theircustomers. disintermediation betweeninsurers then online. This hasledtorapid aggregators –firstover thephone, the introductionofinsurance for with decades.Itallstarted disruptionunder pressurefromdigital hasbeen The insuranceindustry driving growth andsecuringloyalty. distrust, generatingexceptional customerexperiences that,inturn, are some insurancecompaniesarefindingways tobreakoutofthecycle of are struggling toremainrelevant tothelives oftheircustomers. Yet In today’s rapidlychanging businessandsocialenvironment, insurers in adigital world Remaining relevant • • experiences today arethosethat: insurers delivering thebestcustomer Our research suggeststhatthe to stayrelevant. wonder many insurersarestruggling requirements.Itisno and regulatory mergers, acquisitions,consolidations issues –theresultofdecades by legacyinfrastructure andprocess But many arealsobeingheldback how they world. applyinadigital tofullyassess time orcapability changes;regulatory few have the digital opportunities.digital markets andsegmentsaroundnew rethinking theirstrategies,models, organizations arethosethat and increasescale,theleading footprints toenternew markets insurers arecurrently adjustingtheir Rethink themodel:whilemany money. purpose’ beyond simplymaking by stressingandlivingaclear‘social insurers, like MAIFinFrance, dothis and customerrelationship.Some the coreofinsuranceproposition Build trust: trust willalways remainat Customer first. Customer obsessed 43

• Perfect the resolution: there are few Insurers face an uphill battle to remain things more important to insurance relevant in increasingly competitive Insurance hall of fame customers than knowing that their and disintermediated markets. They claims will be dealt with quickly, fairly will need to work hard in order to truly AA Insurance New Zealand and – where questions or issues arise delight and excite their customers – that they will be resolved quickly and across the various stages of their lives. with the utmost empathy. The leading Customers of all ages now expect to be Centraal Beheer Netherlands insurers are those that continuously able to conduct at least the most basic of transactions online. Investment in focus on improving their resolution Foyer Luxembourg capabilities, recognizing that their insurtech and digital is paramount – as is people (and the empathy that only taking the time to properly understand Hargreaves UK humans can share) are at the core of and respond to ever-changing needs. Lansdown the CX. • Improve sales and onboarding: HUK-COBURG Germany recognizing that much of the front-end John Lewis experience – from product selection UK through to application – is overly Finance complex, some of the leading insurers are focused on simplifying the KLP Norway experience. They are using machine learning, chatbots and AI to remove LALUX Luxembourg or reduce unnecessary processes. And they are rethinking customer journeys to reduce friction and MAIF France improve resolution. NRMA Insurance Australia

Techniker Germany Krankenkasse

We are seeing some insurers make great strides towards starting the fundamental changes necessary to survive and thrive in the future. But there are a handful that seem unwilling to simply just improve on the status quo; they are taking innovative steps and investing in radical new models and enterprise-wide ideas that will enable them to remain relevant for years to come. It’s not surprising that many of those innovators are represented in our customer experience insurance hall of fame.”

Laura Hay, Global Head of Insurance, KPMG International

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 44 Banking Customer first.obsessed many markets. topofourCXrankingsin at thevery of banksandbuildingsocieties thatsit fame illustrates,thereareanumber bearing fruit. Indeed,asourhallof the customer. And theirefforts are reorient theirorganizationsaround stepsto important banks aretaking In thisenvironment, theleading opportunity topounce. tech firmsare justwaiting for theright customer. And they know thatthebig eventual disintermediationfromthe payment modelscouldleadtotheir the rapidadoptionofnew digital the customer. They that understand will onlyheightencompetitionaround Open Banking modelsandregulations recognize thattheintroductionof marketand fundamental shift. They is justthebeginningofamassive Most bankingleadersknow this alternatives tothetraditionalsystem. see thefintechs asviableandreliable Customers arenow to starting of thegreatercomplianceburdens. created wiggle-roomaroundsome paymentsdigital andcurrencies has new bank. digital The development of upa has slashedthecostofstarting (software infrastructure asaservice) availability ofoutsourcedandSaaS changed thestatus quo. The disruption have fundamentally No more;theforces ofdigital felt confidentthey couldcontrolthepaceofchange. requirements were rigorous. And customersseemedloyal. Mostbanks customer-centric approach. were high.Compliance Butbarriers toentry banks weretoshift starting thebankingmodeltowards amore Yes, itwas becomingincreasinglyclearthat fintechs andchallenger Until recently, few traditionalbankshadmuch impetus tochange. Investing into relationships entity withwhichentity theindependentmemberfirmsofKPMGnetwork areaffiliated. © 2019 KPMGInternational Cooperative andisaSwiss (“KPMGInternational”).KPMGInternationalprovides noclient services They are expandingtheir • They are investing into new • increasingly competitive markets? differentiate themselves in What ishelpingthesebanks be achallenge. and models,however, continuesto capabilities. Scalingupthose ideas as away toexpand theirinnovation and academia,tonamejustafew – providers, innovationservice labs with arangeofplayers –fintechs, are actively pursuingpartnerships environment.digital-first Sothey to remaincompetitive intoday’s the skillsandcapabilitiesrequired recognize they donothave allof ecosystems: The leadingbanks will bekey. digitization andhumaninteraction Finding therightbalancebetween want tointeractwithhumans. in particular–customersoften they arelearningthat–inbanking the enterprise. At thesametime, are embracingtechnology across at theback, theleadingbanks predictive riskmanagementtools to increasinglysophisticated interfaces atthefrontendthrough technologies: From new chatbot Customer first. Customer obsessed 45

• They are focusing on customer willing to rethink their customer needs: Rather than blindly selling and operational processes from Banking hall of fame products based on broad customer end-to-end, leveraging new segmentation, the leading banks technologies, partners, models Air Bank Czech Republic are investing in understanding their and ideas to deliver notably individual customers at a much different propositions to their deeper level. And this is enabling customers. Rather than simply Equa bank Czech Republic them to start working with defend their traditional territory, customers to solve some of their they are constantly looking for Fineco Bank Italy big life problems – which, in turn, is new opportunities to reinvent shifting the model from products to themselves in ways that are highly solutions. The winners of tomorrow relevant to their customers. first direct UK will be those that know their While banks continue to retain some customers the best. market advantages – few Fintech ING Germany • They are creating emotionally- upstarts have the access to capital connected customer journeys: or customers required to truly Monzo UK As illustrated by some of the compete head-to-head with banks leading banking brands in this – there are signs that the big tech Nationwide UK survey, many of the top brands firms are starting to smudge the lines Building Society are those that differentiate between technology provider and Navy Federal themselves based on their purpose banking partner; Facebook’s recent US and their customer empathy. launch of a new ‘digital currency’ Credit Union Rather than just paying lip-service, alongside a bevy of retail, online and TSB New Zealand they are working to demonstrate tech giants is just the latest sign that their values right across the the traditional banking system is customer journey and through all being transformed. USAA US customer channels. Customers In this environment, banks will want great rates and low fees, but want to focus on investing into their not at any cost. customer relationships. As those in • They are tearing up the status our hall of fame illustrate, banks can quo: More than anything, the delight customers. And those that leading banks are the ones that are know how to are standing out.

Banks understand they can no longer rely on customer inertia to maintain their balance sheets. In today’s environment, banks need to engage their customers, predict their needs and rally them around a greater purpose – even if that purpose is simply increasing their personal wealth.”

Judd Caplain, Global Head of Banking & Capital Markets, KPMG International

Market overviews

Australia

Many organizations are putting effort into CX initiatives in Australia, although not all of these are proving to be effective. Often, it’s the holistic approach that’s lacking, with responsibility for the CX of each channel sitting in siloed business units in many Australian companies. This means there’s a lack of overall strategy, or indeed a sense of what ‘the big picture’ looks like.

This is important. It can mean Australian market, it is not surprising to consumers, and there’s a general organizations risk being perceived to see that the CX pillar of Integrity is expectation that companies will be as not truly customer-centered or one of the biggest drivers of advocacy able to offer a seamless service across customer-first in approach. And when in Australia at 18.8 percent, with only a myriad of platforms. However, this consumers feel that their interests Personalization marginally ahead at is proving to be problematic for some are not being well looked after by the 18.9 percent. Companies that are able Australian organizations, particularly organizations they interact with, they to tailor the CX to the specific needs those legacy companies that adhere to can and will publicly complain. As we of the individual (such as Singapore the more traditional ways of working. In have seen over the course of the past Airlines and Afterpay), whilst also doing many cases, they’re being superseded few years, in some sectors they will so in a transparent and ethical manner, by (relatively) newer brands such as also demand greater government or are the ones that Australian consumers Afterpay and retailer The Iconic, which regulatory intervention. are most likely to gravitate towards. have built their CX from the ground up with digital channels at the forefront. Given the recent significant scrutiny In addition, a good multi-channel placed on some sectors in the experience is increasingly important

Despite this, there are companies that Leading CX brands in Australia appear to keep their fingers on the pulse of what the Australian consumer RACQ Bendigo PayPal expects. For example, Bendigo Bank, Insurance Bank which ranks third in the 2019 study 02 03 04 (consistent with its performance 01 in 2018), has managed to achieve this position by being recognized by respondents for the pillar of Empathy in NRMA Afterpay ING particular. This can perhaps be attributed Singapore Insurance to customer facing initiatives such 05 06 07 as Tap-On Tuesdays, where eligible Airlines Bendigo Bank Mastercard customers were offered free train, rail and ferry Dan RACV services across Sydney in April 2019. Subway Murphy’s Insurance In addition, Bendigo takes part in a 08 09 10 number of philanthropic initiatives, Travel & Hotels such as partnering with Emergency Management Victoria to establish a community relief fund for those affected by fires in the south east. It also offered discounted interest rates place in three out of the four countries create individual user accounts to save and fee waivers to those customers that feature it in the research. The their preferences, and this means they affected by North Queensland’s floods brand also ranked in first place in can ‘bookmark’ films they might be in February 2019. Australia in 2018. halfway through watching, and resume them when they board their next flight.6 The financial services organization Singapore Airlines was recognized by RACQ Insurance was highly rated Australian consumers across each of It is this type of technological innovation by Australian consumers for the The Six Pillars – and in particular ranked which is prompting the legacy pillar of Integrity and ranks in second highly for technological innovation. companies to reappraise their approach place in the Australian 2019 study. The airline has focused on the pillar to CX. This is because many Australian RACQ Insurance is part of The Royal of Personalization with its KrisWorld consumers are perceiving such Automobile Club of Queensland (RACQ) entertainment system, and in addition, innovations to be ‘the new normal,’ group that offers a range of products has partnered with Bang & Olufsen and expect to see them in a first class such as roadside assistance, insurance, to offer wireless headphones. This CX. Therefore, any company that can banking and travel. As a member-owned service offers over 1,800 television, grasp this, and deploy innovation mutual organization, RACQ is focused movie, music and game choices, but and customer centricity across an on giving back to the community: passengers are able to customize the organization, will have taken the first RACQ’s foundation has helped over 190 service for their own needs. They can step towards an Australian CX revival. community groups since its inception in 2011, and it has so far approved AU$680,000 (US$460,000) in funding for various community organizations. Customer experience has been heightened Furthermore, RACQ is investing in CX as a topical conversation in the Australian innovation. In 2019 it became the first market through increased scrutiny over Australian company to utilize Voigle Voice technology – a service which the past 18 months in areas as diverse as allows motorists to use smart speakers, aged care and financial services. Traditional cell phones or in-car applications to access RACQ’s Fair Fuel and Road Australian organizations, who are often Conditions websites. In practice, this tied to legacy ways of working, are means that a customer can use the Voigle Voice to find out where the best struggling to match the digital experience fuel price may be in a particular suburb offered by new market entrants. The future or check the road conditions on certain routes before traveling.5 challenge for these organizations will be However, the brand highest-ranked by successfully translating their physical Australians is Singapore Airlines - an presence into a digital blueprint that aviation company that ranks in first captures the essence of their brand.”

Amanda Hicks, Partner in Charge - Customer, Brand and Marketing 5 https://www.racq.com.au/support/alkira 6 https://www.singaporeair.com/en_UK/gb/flying-withus/ Advisory, KPMG in Australia entertainment/myKrisWorld/

Austria

Subtlety is an important discipline for Austrian brands. Extravagant websites or lavishly-designed business premises typically have little impact on the Austrian customer – at least, not in isolation. To achieve CX success, organizations need to prove that best practice is in their DNA and demonstrate their capabilities across each of The Six Pillars as a matter of course.

This means that a first class CX is a driver of Austrian customer loyalty This is certainly one of the strengths sum of many parts. Indeed, one of the and advocacy. And yet the pillar of of the pharmaceutical company most important of these components Expectations is proving to be an dm-drogerie markt, which is the third is the employee. In Austria – and in important pillar too. In the current highest-ranking brand in Austria, many other countries such as the UK study, brands are recognizing the having risen four places since 2018. and the US – the employee plays a value of setting realistic customer The company slogan echoes the significant role in CX best practice, with expectations from the outset, with voice of the consumer – “Here I am Austrian consumers often praising the the strongest organizations a person, here I will buy” – and this friendliness and customer centricity of managing to surprise and delight by human-centric ethos is reflected in staff members, even in industries that overachieving. However, success in the brand’s proficiency in the pillar of are largely governed by self-service this area is dependent on the brand Personalization. As one respondent processes. having a clear perception of the explained: “I am very happy with dm customers’ needs and wants, and by due to the effort to create attractive As such, the pillar of Personalization knowing them more intimately, which and individual offers for customers.” continues to be a key one for is one of the key characteristics of the Austrian brands, as the greatest pillar of Personalization.

In addition, the retailer offers around Leading CX brands in Austria 30 products in the range of natural cosmetics and natural nutrition, highlighting the brand’s integrity and Pearle DM Hofer attentiveness to the environment. It 02 03 04 also employs staff who are friendly, 01 personable and service-minded. “The individuality of every human being is at the center of attention at dm,” says Erste Fressnapf Bank und Müller the brand on its website. “This should Sparkasse be experienced by our customers ÖAMTC 05 06 07 and employees at dm. But beyond that, we want to be exemplary in our environment by taking responsibility in Bäckerei society, by being a good and exemplary Bipa Lidl Der Mann employer, and by paying attention to 7 the health of our employees.” Travel & Hotels 08 09 10 Similar values are shared by the optical retailer Pearle, which ranks in second place and is new to the 2019 research. Like dm-drogerie markt, Pearle is built on a foundation of typically reach the customer within half Arguably, ÖAMTC is one of the staunch customer centricity, with a an hour, which is above average for a organizations for whom CX excellence mission to drive a deep rapport with its breakdown service; and a very high appears to be in the DNA. Its success customers by tailoring its services to percentage of the breakdowns they is largely down to its holistic approach their specific needs. service result in the customer being – managing the key lessons of The able to drive away in their own car, Six Pillars and demonstrating them in “We inspire our customers on a daily preventing the need for organizing everything it says and does. Services basis,” the brand states. “We focus a replacement or other alternative. such as its holiday planner, which on our customers and place them and In addition, the ÖAMTC is constantly provides free travel tips and toll road their needs at the center of our actions. available for all mobility related information, are offered as standard, Advice, service, quality and price are issues and its employees are together with its free replacement tailored to our customers so that they therefore perceived as ‘yellow angels’ cars and free legal advice. These are feel happy.”8 by customers. expectations that ÖAMTC sets and frequently delivers on. Pearle offers its customers professional As one customer stated: “I appreciate advice on product selection and a the accuracy and competence of Customer centricity, therefore, is the guaranteed lifetime service. Customers the employees. They prove their uniting theme amongst the strongest know that Pearle is attentive to any engagement for the customer brands in Austria. issues and treats them with care at whenever I need or contact them, all times. year after year.” Notably, Pearle is able to evoke Personalization even at a digital level. For example, it offers a feature where customers can try glasses on from the comfort of their own home, with the website utilizing the customer’s webcam to take a still photo and One key challenge for Austrian brands superimpose the chosen frames onto lies in giving the impression that it’s not their face.9 the creation of a special experience that’s The highest-ranking organization in Austria is the car association ÖAMTC at the forefront of their actions, but the – a position it has retained since 2018. consistent, reliable provision of services in The brand describes itself as the company that offers “the membership order to satisfy customers’ needs. 10 that suits you.” Werner Girth, Partner, Customer and Operations, KPMG in Austria The CX success of the ÖAMTC is driven in particular by its fast and reliable breakdown service. Patrols

7 Translated from: https://www.dm-drogeriemarkt.at/at_homepage/verantwortung/verantwortung-wir-bei-dm-unsere-werte/ 8 Translated from this page: https://www.pearle.at/unternehmen/ueber-pearle 9 https://www.pearle.at/service/brille-virtuell-anprobieren 10 https://www.oeamtc.at/mitgliedschaft/

Brazil

Brazil is feeling the impact of new data protection legislation. Determined by federal regulatory agencies, the Brazilian legislation imposes strict rules on companies in terms of how they should handle customer data. Unlike some European countries, however, such an initiative is less frustrating to Brazilian customers. In fact, the legislation appears to be improving the level of trust they have in organizations, and Integrity is one of the most impactful pillars for loyalty and advocacy.

At the same time, Brazilian consumers As such, Brazilian companies are The chocolate and coffee chain are commanding personalized, becoming aware of the importance Kopenhagen ranks at number three seamless experiences from brands, and value of CX, but few have been in the 2019 results. It is a company and such virtues are expected to be able to transform such thinking into that has existed for over 90 years, and in evidence as standard rather than action. The most successful brands, it currently operates more than 300 optional extras. This is partly due to though, can be found in the retail outlets across Brazil, as well as an the pressure that various fintech and sector (grocery and non-grocery) – 7 online store. insurtech companies are applying; of the top 10 brands in the Brazilian Performing well across each of The Six they’re re-educating consumers as market are in retail. These brands Pillars, Kopenhagen particularly stands to what an optimized CX looks like. outperform not only in Integrity but out for the pillar of Personalization. Some of this influence is also reaching also in Empathy when compared to The brand presents its outlets more as Brazil from abroad, prompted by some the Brazilian average. ‘experience destinations’ rather than of the larger international brands from simply coffee houses or chocolate many different industries.

gift shops, paying great attention to Leading CX brands in Brazil the décor and ambience to create environments that are intimate and cozy. Much of this is heightened Nubank Kopenhagen Apple Store by a wish to relive a part of one’s 02 03 04 childhood; many Brazilian customers 01 have fond memories of the brand and its products from young ages. Its employees are attentive to this warm L’Occitane Granado Pandora ethos, being cordial to their guests Verdemar Au Brésil Pharmácias and helping them to feel welcome. Supermercado 05 06 07 Indeed, Kopenhagen states that its mission is to “preserve” the traditional taste of its chocolates with “sophistication and quality.” The Netflix Mary Kay O Boticário brand is “concerned about providing 08 09 10 happiness” through its products and Grocery Retail aims to work “with pleasure and emotion” to “meet the preferences of customers.”

Similarly, Brazil’s second highest- assortments among supermarkets arguably looks more like an upmarket ranking brand – the financial services in Brazil, mostly composed of wines cookbook as opposed to the social organization Nubank – also operates directly imported and selected by the account of a supermarket. from a position of customer centricity. company. As one customer stated: “I As such, Brazil’s strengths in the pillar This is partly because of the autonomy love shopping at Verdemar because of Personalization extend beyond Nubank gives its employees, who I always find differentiated products adapting to the specific needs of are empowered to make certain and with higher quality than other the individual. A broader sense of on-the-spot decisions about the best supermarkets.” ways to serve at a given moment. customer centricity is a theme that For example, Nubank’s Xpeers (CX And like Kopenhagen, Verdemar unites the strongest organizations, attendants) are able to adjust credit aims to offer more of a destination with many companies on a mission card limits based on pre-approved rather than a conventional shopping to foster joy at the most important conditions. They also have a specific experience. As a more upmarket touchpoints. budget to bestow gifts upon retailer, it places a greater emphasis individual customers where it feels on relaxation and luxury, helping appropriate. When such acts occur, shoppers to experience the leisure of the events sometimes go viral on their visit rather than to feel as if it’s social networks, highlighting the joy a chore. Indeed, many of Verdemar’s and gratitude that the individuals products are presented in a rustic and experience. artisan fashion, and its Instagram feed Such consideration for the customer can also be seen with the grocery retailer Verdemar Supermercado, which is Brazil’s highest-ranking Brazilian customers are increasingly pushing organization. For instance, its cashiers are trained to ask shoppers if there companies from all sectors to deliver higher were any products they were unable quality experiences. Consistently offering to locate. If so, the person’s details are taken and when the item arrives a seamless, frictionless and personalized in store a few days later, a relationship experience throughout all channels and manager will call the customer to let them know it is now available. interactions between a brand and its Verdemar works with the best brands customers is starting to move from a ‘nice and products in the market and to have’ to a ‘must have’, and the companies produces its own fresh products, that reach this status will be in a stronger which are recognized and even awarded for their high quality. A key competitive position.” differentiator for Verdemar is having one of the most diversified wine Augusto Puliti, Partner, Customer Experience, KPMG in Brazil

11 https://www.kopenhagen.com.br/institucional/empresa 12 https://www.instagram.com/supermercadoverdemar/

Czech Republic

Consumers in the Czech Republic tend to approach organizations with a certain level of distrust. Respondents to the research revealed a perception that companies may not be overly transparent about their services and so they feel the need to be ‘on the look-out’ for hidden caveats and charges at times.

That’s not to say that consumers feel Moreover, some organizations Bank which ranks third for another this way about all companies in the recruit staff as customer-facing year. It’s particularly notable for its Czech Republic. There are some who employees who aren’t familiar with customer centricity and for looking are perceived to be more open and best practice in customer experience, out for people’s best interests; for honest about their services and it’s to as exemplified through The Six Pillar example, in 2018, the bank raised the those companies that customers tend framework. As a result, a customer’s interest rates on its savings accounts to gravitate. However, in a sense this experience with a particular and lowered the rates on customer is limiting CX growth in the Republic; organization can fluctuate in terms of loans and mortgages. the basic hygiene factor of honesty is quality; it can depend wholly on the Moreover, Equa Bank recognizes the perceived, by some, as the epitome employee they encounter. role of the employee in delivering of first class CX. Because of this, the Despite these challenges, there a strong customer experience. The pillar of Integrity currently has the are several companies in the Czech brand acknowledges that “a well- greatest influence on customer loyalty Republic that stand out for the quality balanced work and personal life has and advocacy. of their CX. One of these is the an impact on employee satisfaction,” financial services organization Equa and explains that it supports team

activities and healthcare events “to Leading CX brands in the Czech Republic help build a friendly atmosphere and trust among employees.” La Formaggeria Such initiatives boost the brand’s Equa Bank Zásilkovna Gran 13 performance in the pillar of Integrity. 02 Moravia 03 04 Another organization that values 01 the employee experience is the food retailer La Formaggeria Gran Moravia, which ranks at number two Ovocný Fio banka Manufaktura in the Czech Republic. The brand Svetozor trains its staff to a high degree; Air Bank 05 06 07 they are knowledgeable about La Formaggeria’s products and are ready to engage with shoppers with State- kindness and cordiality. Undoubtedly, owned Benu Dr. Max the retailer puts human beings at the castles and châteux center of its CX design. Financial Services 08 09 10 Furthermore, La Formaggeria also shows strength in helping its employees to feel looked after. For example, it offers a special ‘Baby “My wife and I visited a branch An immediate payments service Bonus’ of 25,000 CZK for any because of a problem and they is also available through the app, individual with a new-born child.14 managed to solve it immediately,” with payment completed and in the said one respondent. “In addition, receiver’s account in 10 seconds As one employee said: “This decision they solved another issue for us, or less. The bank prides itself of the company really made me which was not the reason for our on “Simplicity, Courage, Truth, happy. We are expecting our first child visit. It just somehow came up in the Friendliness.”17 soon and such a bonus will certainly conversation and we are glad that the come in handy. I’m really glad the In summary, the Czech Republic is a bank cares about us.” company takes these steps. It shows country with room for improvement that employees are important to the As such, the organization achieves with its CX. But it’s also home to a company.”15 the highest score of all ranked number of strong brands that are brands in the pillar of Empathy. already using CX frameworks such as The Czech Republic’s highest ranking An equally strong performance can The Six Pillars to gain a commercial organization in 2019 is the financial be seen in the pillar of Time and advantage over their competitors. services brand Air Bank, which has Effort. This result is bolstered by risen six places in the last year. It’s services such as Air Bank’s bespoke a relatively new company, having internet banking app which was been established in 2011 with a clear released last year, allowing customers vision to create a bank that serves to create an account, pay in-store people, is simple, tells the truth, and with a mobile phone, view other does not hide behind the small print. bank accounts and even settle loans. Today the bank has over half a million customers. Like La Formaggeria Gran Moravia, it puts the human element of its CX design front and center. For instance, its customers are invited to bring their pets along to Air Bank Although Integrity is still showing to be the branches, and visitors are served with biggest differentiating pillar in the market, it 16 free coffee. doesn’t mean it is a one-size-fits-all solution and everybody should now focus only on Integrity. Czech companies need to realize that they need to find their own Six Pillar ‘spice mix,’ fitting both their customers and employees to win their trust and create

13 https://www.equabank.cz/o-nas/spolecenska authentic experiences that cannot be copied odpovednost 14 http://www.laformaggeria.com/en/brazzale-launches- by their competition.” baby-bonus-employees/ 15 https://www.hrnews.cz/novinky-z-hr/syrarna-zavedla- specialni-baby-bonus-pro-zamestnance-id-2971059 16 https://www.airbank.cz/o-air-bank/ Tomáš Potměšil, Head of Customer Advisory, KPMG in the Czech Republic 17 Ibid.

Denmark

Danes value speed in their customer experiences. In 2019, the pillar of Time and Effort has the greatest impact on customer loyalty, with Danish consumers commanding a frictionless experience in their brand interactions.

For some companies, achieving this In addition, Danes place a great study for its technological innovation. is problematic; Danish organizations deal of emphasis on ethical and The payment application ranks second are still learning what it means environmental concerns; one of the in the Danish Customer Experience to deliver CX best practice and reasons why the pillar of Integrity Excellence research and offers a not all are convinced by the CX is important in driving loyalty, and simple and easy service, whereby a business case. And whilst many the most important for driving person can use their smartphone to companies invest time and money advocacy. Many customers have high carry out transactions. Continuous in collecting customer insight, a standards in this respect, expecting investment in strategic collaborations number are unsure as to how to organizations to take visible action has resulted in many boutiques and use this knowledge. Moreover, the against climate change and ethically companies using MobilePay as a gathering of too much insight can source their products. supplement to credit card or cash leave a negative impression on Danish payment methods. The company Danes consider companies that consumers, making them less trusting performs well in the pillar of Time and harness cutting-edge technology as of an organization. Effort, with a money transfer facility ‘the future’. MobilePay is one such that’s described as being as easy as example that stands out in this year’s

sending a text message. There’s also Leading CX brands in Denmark a function that allows people to share bills among groups, for example when Billund 18 MobilePay REMA 1000 dining with friends. One respondent Airport to the research described the services 02 03 04 as “one of the best inventions in 01 recent times,” adding that “it is so easy to pay and you never have to have money in your pocket.” Nordisk Zalando Film Ecco Other high-ranking organizations Biografer are similarly forward-thinking in BroBizz 05 06 07 their approach to CX. For example, Denmark’s second largest airport, Billund Airport, ranks third in 2019 and is notable for the close care and Dankort Irma Matas attention it pays in creating a smooth 08 09 10 experience for passengers. Travel and hotels Much of this has been achieved through investment in new facilities. For example, the airport is currently developing a new concept known that’s fitted to a vehicle’s windscreen that it acts in the best interests of as the Multi-House, due to open in and a customer can pre-fund their its customers and that it stands for November 2019. Billund has been account so that – on approaching a something more than profit. investing in new terminals and toll booth – they can pass through It is technological innovation and innovative solutions to make the without waiting, or searching for the forward-thinking capabilities, airport more convenient and user- correct payment. therefore, that set companies like friendly for passengers, with the new Time and Effort, therefore, is a BroBizz, Billund Airport and MobilePay space allowing for 1,800 people to defining pillar for this organization, apart from their competitors. Such pass through each hour. In addition, but BroBizz also epitomizes the businesses are putting pressure on its King Amlet Lounge grants some pillar of Integrity. For example, other Danish companies to compete. passengers the opportunity to take when long queues start to form at a bath.19 In short, the Danish customer is certain tolls – such as the Store Bælt clamoring for customer experiences Billund Airport is also notable for its Bridge – new lanes will be opened that are innovative, seamless, and work in the pillar of Integrity, including to allow everyone to pass through executed with Integrity. a key focus on development using faster, regardless of whether they environmentally friendly solutions. have a BroBizz device. In doing so, For instance, the Danish Aviation the organization is demonstrating Association plans to make the country’s aviation completely carbon- neutral by the year 2050; an ambition that the airport shares. What is perceived as a unique customer “In Billund, we work diligently to achieve this goal,” says Jan experience today is probably considered the Hessellund, the airport’s CEO. “If standard tomorrow. Customers’ expectations we do not reach it next year, we will compensate by purchasing quotas are shaped by their last best experience and until we reach it. We will do whatever that experience could have been created in it takes. We owe that to many passengers.”20 another country and industry. As a result, Denmark’s highest-ranking brand customers’ expectations are formed in a in 2019 is the payment platform global context outside industry structures. BroBizz – a service that allows people Therefore, a strong, continuous effort is to quickly pass through toll booths on the country’s bridges and other required - and this year’s results indicate that locations. It’s a wireless transmitter Danish companies have both the will and the

18 https://www.mobilepay.dk/om-os ability to take on the challenge.” 19 https://www.bll.dk/da-dk/i-lufthavnen/king-amlet-lounge/ lounge-of-the-year 20 Ibid. Kenneth Ipsen, Senior Manager, Financial Services Advisory, KPMG in Denmark

France

Among French companies, CX awareness is rising fast. More and more are looking to the CX of other organizations and asking themselves how they can improve and compete. Even if some questions remain about customer experience’s commercial value and investment worthiness.

However, customer obsession has the customer journey in painstaking mail to convey and capture emotions become a defining characteristic detail to understand the emotional in a written format. The whole of the leaders. These businesses drivers, including the factors that lead business DNA revolves around client recognize the power of Integrity and to frustration. obsession: members and employees Personalization for their customers state “I am MAIF” rather than “I am This is true for insurance company – which are the country’s greatest with MAIF”, emphasizing the idea that MAIF, France’s third highest ranking drivers of customer loyalty – and the company is more of a family than organization in 2019. MAIF stands are investing in data collection, a detached business. out for the pillars of Resolution measurement and analysis, to extract and Empathy – the way in which it key insights about their customers to ‘humanizes’ its business. It harnesses drive business decisions. client verbatim to motivate and inspire Moreover, several of the more employees to deliver a state-of-the- customer-obsessed organizations are art client experience. MAIF has also being thorough in their acquisition of invested in all its communication insight, looking at each touchpoint of channels, including work on physical

Leading CX brands in France Similar qualities can be seen with the financial services organization PayPal MAIF Novotel PayPal, which is the second highest ranking brand in France. Like many 02 03 04 businesses in the country’s top 10, 01 PayPal puts the customer at the center of its operations. Leading in the pillars of Personalization and Biocoop Nespresso Apple Store Expectations, the brand’s employees are encouraged to understand Mercure 05 06 07 the ‘story’ behind each and every customer. PayPal takes the time to analyze client interviews, and pays Yves Cultura Picard close attention to the feedback it Rocher receives through co-creation and real- 08 09 10 time monitoring of client satisfaction, Travel and Hotel continually listening out for changes in customers’ needs, and refining processes as it goes. At its heart, PayPal sees itself as Mercure is committed to offer a a means of making life easier for homogeneous network of hotels consumers, with a promise to help based on renovated premises, people navigate the frictions of high quality and professionalized payment. But what this looks like, services, mixed with authenticity in practice can vary from country to and local emotions. Local initiatives country, as PayPal adapts its offerings and entrepreneurship spirit are depending on the various customs of encouraged through multiple individual markets. pilot tests. The highest-ranking brand in France As such, customer obsession is in the 2019 research is the hotel chain the dominant theme amongst the Mercure, which is new to the rankings highest-ranking brands in France. this year. It’s a deeply self-aware Many are using the desire for first- organization, closely monitoring its class experiences to drive innovation RPS (Reputation Performance Score) and continual self-improvement, and encouraging each of its hotels and are growing customer loyalty to perform regular self-diagnostics as a result. in an effort to pursue continuous improvement. It is the highest-ranking brand in the pillars Integrity, Time & Effort and Resolution. Much of this is born out of Mercure’s The expectations in terms of customer customer obsession. The brand says that “each and every one of our experience are both rising and expanding experienced members of staff is among many sectors. In this context, dedicated to providing a service that makes your stay unique,” adding that companies that are customer obsessed they offer “a personalized service, are leading the pack.” going beyond guests needs,” and that customers will be “charmed by the Emmanuel Hembert, Partner, warm and convivial welcome of Head of Advisory for Consumer & Retail, KPMG in France our hoteliers.”21

21 https://mercure.accorhotels.com/gb/discover-mercure/index.shtml

Germany

In Germany, CX success can vary depending on the sector. Often, this is not necessarily because of the specific brands; rather, it is about the level of expectation on the part of the consumer.

In grocery retail, for example, their expectations from the online That being said, these truths do not customers’ expectations are quite trade to the stationary grocery retail always result in apathy; a number moderate. On the one hand, German trade. It remains to be seen how of grocery retailers have achieved consumers are concerned with the long consumers will be satisfied with CX success despite a widespread price points, while on the other the status quo; the current KPMG preoccupation with pricing. For hand there is a significant correlation Germany Customer Value Study example, companies such as Edeka between good CX and loyalty and shows that 66 percent of shoppers and Alnatura, the highest-ranking recommendation. German grocery have either used a food online shop or grocery retailers in the German retail has not yet migrated as strongly can imagine using one.22 Furthermore, research, take a much more holistic to the digital services as other sectors there is a significant increase in approach to CX management, creating (like financial services) due to its e-food sales compared with the same a welcoming atmosphere in their structure (dense branch network, period of the previous year. This may stores whilst also honoring the origin short distances, fast accessibility, high be one of the first harbingers of rising of their products. Alnatura in particular product quality, low price level) and expectations that already exist in is careful to stock a variety of the preference for selecting products other sectors. products that are both vegetarian and on the spot. Shoppers do not transfer

sustainable, aiding its performance in Leading CX brands in Germany the pillar of Integrity. Integrity is a pillar that’s particularly Fielmann ING DM evocative with the German consumer: it has a 19.8 percent weighting on 02 03 04 customer advocacy, higher than any 01 other pillar.

Financial services organization ING, Techniker HUK- PayPal which is ranked third in the German Krankenkasse COBURG 2019 research, achieves one of Hilton 05 06 07 the highest scores for the pillar of Integrity. This focus can be sensed in its core purpose, which is to

“[empower] people to stay a step LEGO Ravensburger Otto ahead in life and in business. Our purpose guides us in everything we Travel & Hotels 08 09 10 do.” ING adds: “It’s founded on our belief that ING’s role as a financial institution is to support and promote economic, social and environmental progress.”23 It’s not only the pillar of Fielmann’s aim is to treat customers out at the end of their stay to avoid Integrity in which ING performs ahead in the same way that they would queuing.25 Customers acknowledge of the market; the bank is notable want to be treated themselves, with a these benefits with a top Time and for its strengths in meeting and even rigorous training and support program Effort score for the brand. exceeding Expectations, with one to help employees to deliver on this. Ultimately, it’s those that blend the respondent to the research noting Indeed, “the customer is you” is best of human and machine that the “Excellent online processing in the guiding principle of Fielmann’s feature at the top of the rankings in all areas, it is hardly necessary to corporate philosophy.24 Germany, as organizations like Hilton support service advisors. In addition, In addition, the optician is also demonstrate. A more integrated lens ING has a fast and self-explanatory investing heavily in multichannel should be a consideration for other user interface!” innovation, in order to combine its brands as they set about reforming Despite being an online-only bank strength in personal consultancy their CX in 2019 and beyond. in Germany, ING scored the highest with extended digital services. These for the pillar of Empathy out of all include the possibility of reordering banks ranked. The capability to individually customized contact convey Empathy via digital lenses via web or app; or the project touchpoints could give ING a future of digital mirrors for the Fielmann edge over traditional banks. branches – currently in development The results of our – in order to try on eyewear using Similar values can be seen in survey clearly computer animation. Germany’s second highest ranking show: investing brand – the optician Fielmann. The highest-ranking brand in this Fielmann revolutionized the market for year’s German research is the hotel in establishing a glasses that are subsidized by health chain Hilton. Being customer-centric customer-centric insurance companies in Germany, is a discipline that has paid off for by making them affordable for this organization, but Hilton also organization pays customers. The organization performs stands out for the way it’s seamlessly off. Managing the particularly well in demonstrating able to combine personal and digital Empathy and Personalization, interactions to fulfill its brand promise balance between achieving the highest scores in the of valuing guests and providing an digital and German research for these pillars. unforgettable stay. Much of this success can be traced personal customer From a digital perspective, the Hilton to the brand’s recognition of the services will make smartphone app provides a more importance of emotional connections, connected experience for its guests. the difference to considering the way in which Known as Honors, the app allows employee experience bisects with CX. deliver outstanding customers to select their preferred choice of hotel room and also place customer 22 https://home.kpmg/de/de/home/themen/2019/06 special orders ahead of their arrival, kpmg-retail-sales-monitor-2-2019.html experience.” 23 https://www.ing.com/About-us/Profile/Purpose- such as refreshments or extra pillows. strategy.htm In addition, the app allows visitors Tom Lurtz, Partner, Customer 24 https://corporate.fielmann.com/de/ueber-fielmann/ (translated) to use their smartphones as keys to Advisory, KPMG in Germany 25 https://hiltonhonors3.hilton.com/rs/hilton-honors enter their rooms, as well as to check mobile-app/

Hong Kong (S.A.R.), China

As an international city and a global trade hub, a plethora of brands, businesses and retailers are all vying for consumers’ attention in Hong Kong.

With such an abundance of choice In last year’s report we found that average in the pillar of Time & Effort. comes an urgent need for brands customers expected a consistent One survey respondent describes a to offer something distinctive and experience across channels. In this particularly unpleasant experience authentic that resonates with year’s report, survey respondents while applying for a credit card: “when consumers. This is no easy feat given echoed this sentiment. While many I applied for a credit card for my loved high customer expectations for quality brands in Hong Kong are paying ones, the staff weren’t helpful and and service. To compete, brands are attention to harmony between online made me go to another branch. I felt looking at ways to customize their and offline channels, we’re seeing that the two parts of the same bank offerings and develop unique and a wider recognition of the need for were completely disconnected.” The exclusive experiences for their most consistency across the entire brand findings suggest that while many valuable customer segments. This ecosystem, including partnerships brands promote a customer-centric trend is reflected in our research, and alliances. approach, few adequately consider which shows Personalization to be the how front, middle and back office Ensuring efficient and effortless most important pillar in driving brand operations are aligned to support customer interactions continues to be loyalty. The pillar of Expectations was the customer. a challenge for the Hong Kong market, also found to be important for driving particularly for the financial services loyalty and, along with Integrity, was a sector, which performed below market major driver for brand advocacy.

A theme uniting some of the city’s Leading CX brands in Hong Kong (S.A.R.), China highest-performing brands is their desire to truly understand the customer. The Hong Kong survey Apple Chanel Dior Emirates findings show that investing in technologies and platforms to collect, analyze and act on data and insights is a top priority for brands. Despite InterContinental Louis Marriott this, our research suggests that most Hotels & Lalamove organizations do not share data Resorts Vuitton Hotels across their business; nor do they use it to champion behavior that will benefit the customer and drive business outcomes. Shangri-La Top 10 brands in alphabetical order. Singapore Hotels and Airlines The research also shows that brands Resorts that use data and analytics to inform experience design and drive customer- centric decision-making are finding success across The Six Pillars. This is exemplified by one of the city’s such as the Guangdong-Hong Kong- them to track the status of their goods highest-ranking brands - Singapore Macao Greater Bay Area. in real time. This addresses a key Airlines – which scored highly across logistics pain point – poor delivery all pillars. Research shows that millennials tracking during the ‘last mile’ – and is and generation Z consumers spend The pillar of Integrity is also likely to have contributed to Lalamove’s increasingly large amounts of their fundamental for brands in Hong Kong, exceptional performance in the pillars spare time online – 2-3 hours per day and indeed is one of the biggest drivers of Expectations and Empathy. on average26. But it’s not just younger of advocacy. Our research reveals that consumers that use online platforms. Conversely, a challenge for more consumer trust and confidence is quite Enhanced accessibility has altered the well-established companies is how thin, particularly when it comes to data behavior profile of consumers across to re-invent themselves in order handling; customers are conscious generations, and brands are having to to remain relevant, as customers’ about how their data is treated and pay closer attention to new channels behaviors evolve at a pace never seen the way in which businesses address and be flexible and responsive to how before. Meanwhile, implementing these concerns, a theme which is customers choose to use them. the necessary changes takes mirrored globally. As such, brands that time. The brands that make CX a can demonstrate some awareness Start-ups have the advantage of being strategic priority, at the highest levels of these fears – and address them able to build their businesses around of their organization, will have the directly – tend to perform better these considerations, designing alignment and support needed to amongst consumers. experiences that are digitally optimized make the necessary operational and truly connected. For example, Of course, there are many factors that changes to deliver outstanding Lalamove, a Hong Kong-based logistics impact an organization’s Integrity, and customer propositions. start-up with ‘unicorn’ status, provides organizations can also show Integrity in live updates to customers allowing different ways. For example, successful Hong Kong start-up On The List has devised a sustainable way for luxury fashion retailers to dispense with old stock (rather than having them sent to landfills) by holding special flash sales for By investing in initiatives to understand its members. In addition, the company works closely with organizations and engage customers, global brands in that benefit the local community, Hong Kong are delivering locally relevant and has partnered with charities that are aligned to their core experiences with great success. At the customer segment. same time, disruptive brands are now However, perhaps the greatest making an appearance in the hall of fame – challenge for Hong Kong is the speed with which its customers’ behaviors a reminder that brands need to are evolving. These are influenced continually push themselves if they want by generational shifts as well as the increasing connectivity with mainland to stay ahead.” China, accelerated through initiatives Isabel Zisselsberger, Head of Customer & Operations Hong Kong, KPMG in China 26 https://www.globalwebindex.com/reports/social

Italy

In Italy – as with most countries – customers expect a fast and seamless experience. Indeed, the optimization of the pillar of Time and Effort has almost become ‘the new normal’; as such, it’s quite difficult for some brands to differentiate themselves using this pillar alone, as many organizations are already offering smooth experiences.

This is due, in part, to the way in relevant. For instance, it has obsession. Much of this is reliant which the omnichannel experience developed a product known as the on good use of customer analytics, has been mastered. On the whole, Morellato Smart Jewel, which has the and whilst many Italian organizations Italian companies have efficiently appearance of an ordinary pendant, acquire customer data, not all of them connected their offerings across but can also be used to connect have the means or the knowledge to a myriad of touchpoints, making it to the wearer’s smartphone via put this information into action. Those easier for consumers to achieve their Bluetooth. When the person receives that do have a much greater chance of goals via the mediums of their choice. a phone call, text or other notification, scoring highly for Personalization – the the pendant gently vibrates, and a pillar with the greatest weighting on The jewelry retailer Morellato is a crystal LED lights up.27 loyalty. good example in this respect, as one of the biggest movers in the Italian With such innovations, Morellato rankings in 2019. In the last year it demonstrates that it has an has risen 55 places to rank seventh, understanding of its customers’ and has used technological innovation lifestyles and needs, which is to keep the customer experience symptomatic of the brand’s customer

Indeed, Personalization is one of Leading CX brands in Italy the strengths of Italy’s third highest- ranking organization – the luxury Fineco PayPal Chanel fashion retailer Chanel. It designs Bank much of its customer experience 02 03 04 with the individual at the center, 01 even going to great lengths to exude Personalization in its fulfilment of online orders. Customers who shop Apple Store Prada Morellato via its website receive their products in a signature white box – along with Amazon 05 06 07 a personalized note – which Chanel describes as “a gift.” There’s a sense that great care is taken to fulfill every order, heightening the sense of Swarovski Netflix Esselunga importance for that specific individual. 08 09 10 In second place is the online payment Non-Grocery Retail platform PayPal – a brand that has risen six places in the Italian rankings since 2018, and is notable for its performance in the pillar of Time service for those customers living Italian companies must also take and Effort. As one respondent to in Rome or Milan. Moreover, for time to fully understand the people the research explained: “The PayPal bulky items, Amazon offers a service they’re serving and fashion more account is very comfortable and whereby a person can specify which personalized customer experiences efficient. I recommend it to everyone. room in their house they’d like a that cater for the specific needs of the It’s also safe and easy to manage.” product taken to.29 individual. As brands such as Chanel Undoubtedly, one of PayPal’s demonstrate, attention to detail is key Time and Effort, therefore, is a key strengths lies in the ease with which here and nothing should appear to be consideration for Italian organizations. customers can achieve their goals. ‘too much trouble.’ But as mentioned previously, this This is exemplified in the brand’s One is no longer enough, in isolation, Touch service, which enables people to gain a competitive advantage. to complete transactions with a single click. The preference can be activated within the user’s profile, after which One Touch can be seamlessly used across any device, be it a tablet, smartphone, or PC.28 In decades past, only the largest firms The country’s highest-ranking could afford the teams needed to analyze organization is the online retailer and report customer data to drive business Amazon. Indeed, Amazon is the country leader for almost all of The Six Pillars. decisions. So most decisions about the “I love Amazon because it makes my customer were based on guesswork, or shopping safe and simple,” said one at best, intuition (what senior people respondent. “I really like buying on this site because I find everything here.” think the customer wants). In today’s Not only is Amazon notable for its rapidly changing world, that is an vast product range, but it also stands extremely dangerous way to do business. out for its plethora of delivery options. Leading organizations of the future have Shoppers can choose how quickly they want items delivering, and the to develop strong customer analytics brand also offers a same day delivery competencies and embed it at all levels of the organization. This enables a successful business with every employee, not only the front office, obsessed with creating a 27 https://urbanwearables.technology/morellato-smart- jewel-wearable-tech-meets-italian-charm/ positive experience for their customers.” 28 https://www.paypal.com/it/webapps/mpp/one-touch- checkout Paolo Capaccioni, Partner, Head of Customer Advisory, KPMG in Italy 29 https://www.amazon.it/gp/help/customer/display. html?nodeId=200534000

Luxembourg

Luxembourg is something of a melting pot. Being inhabited by more than 170 nationalities, with more than 190,000 German, French and Belgian cross-border employees, the country sees the simultaneous use of three or four languages on a daily basis. And with such diversity comes a range of sensibilities and cultural expectations, meaning that only the brands that find ways to truly ‘connect’ with individual consumers are able to stay ahead of the curve.

In addition to the cultural expectations, resources or impetus to make such in the top 10 belong to the public organizations in Luxembourg have a change a reality – and are thus left or financial services sectors, where number of international competitors to behind. integrity and trust play significant contend with. Many of the country’s roles in determining positive customer In general, Luxembourg organizations younger inhabitants – having left outcomes. performed better than last year, the country to study abroad – have leading to an overall improvement in The public sector organization returned with high expectations as the Customer Experience Excellence Bierger-Center is an example of to what a good CX looks like in other score. In terms of driving customer this, ranking third following its markets, especially when it comes to loyalty and advocacy, the pillar of introduction to the research this digital experiences. And whilst this Personalization has the biggest year. It’s a citizen service center, is something that many Luxembourg weighting on customer loyalty, whilst allowing residents of Luxembourg to organizations are sensitive to, with an Integrity has the greatest weighting on complete administrative formalities evident willingness to ignite change, advocacy. This can partly be explained such as passport applications and some brands appear to lack the by the fact that the majority of brands marriage certificates. Undoubtedly,

trust is an important factor with Leading CX brands in Luxembourg such an organization, and Bierger- Center scores highly in the pillar of Bierger- Spuerkeess LALUX Integrity. One of the organization’s Center greatest strengths is in the pillar 02 03 04 of Personalization. Bierger-Center 01 recognizes the need to cater for a myriad of unique scenarios, such is the diversity of its services, and Guichet.lu Foyer PayPal indeed, its local residents. Because of this, it has been successful in Ernster 05 06 07 fashioning a multichannel CX that allows people to engage with the organization in the manner of their choosing. Naturata Luxair Tours Amazon As one respondent said: “Over the 08 09 10 last few years, waiting times have Non-Grocery Retail improved dramatically. The many services that can now also be requested online simplify my life and help me save time.” available budgets, whilst also helping has not been complacent in delivering The digital offering is also a strength people to meet their financial goals.31 a relevant CX for the present-day of Luxembourg’s second highest- consumer. Ernster scores highly in That is not to say that the human ranking brand – the financial services the pillar of Time and Effort, with element of Spuerkeess is lost. The organization Spuerkeess. It’s a respondents to the research praising bank is also notable for its capabilities bank that’s notable for its use of the speed of the brand’s delivery in the pillar of Empathy, where it technological innovation to improve times. Indeed, the brand claims that achieves the highest score in the the CX, offering services such as most of its German titles can be Luxembourg research. Its employees its S-Net banking app which allows delivered in under 24 hours.32 stand out for being able to understand people to instantly reach out to customers’ various situations and As a result of its strong CX Spuerkeess to access and manage respond accordingly. Indeed, one performance, Ernster is the brand that their accounts.30 respondent referred to Spuerkeess as Luxembourg’s respondents would Moreover, Spuerkeess has continued a “very trustworthy bank with friendly most likely recommend to their friends developing its web and mobile banking and professional employees.” or colleagues.33 feature known as MIA (My Intelligent The highest-ranking organization for “Customer is king,” says Ernster. “Our Assistant), which – as the name 2019 is the book retailer Ernster, which booksellers happily aide you to find suggests – acts as the customer’s ranks first for the second year running. the perfect book for every occasion. PA. MIA helps customers with their Despite its long history – having been Almost all of our booksellers are financial planning; it can anticipate established in 1889 – the company multilingual and able to advise you in future expenses and estimate your language.”34 Ernster’s diversity of services mirrors the diversity of the country. Finding a Last year’s best customer experiences have way to meet (and compete with) such become this year’s expectations. One cannot a broad spectrum of expectations is what sets the stronger brands apart rest on its laurels, every brand constantly from the CX laggards. The country’s needs to push their Sisyphus’ rock up the highest-ranking organizations achieve hill. We see that, in a multicultural landscape, this by being adaptable in the services they offer and, indeed, in the where customer experience standards are languages they speak. Ernster is an set by the best in the world, brands that are example of a brand that fulfils all these criteria. not improving are falling behind.”

Jean-Pascal Nepper, Partner, Head of Customer & Operations, KPMG in Luxembourg

30 https://apps.apple.com/lu/app/s-net-mobile/id391760650 31 https://www.bcee.lu/en/mia/ 32 https://ernster.com/about/services 33 Based on Net Promoter Score in Luxembourg 2019 CEE research 34 Ibid.

Mexico

The demand for a high level of CX is certainly increasing in Mexico in 2019. But Mexican consumers seem to be able to overlook a negative interaction and still appear quite forgiving when experiences go wrong.

Despite this, The Six Pillars have a top 10. One of these is Fiesta keen to create experiences which are clear impact on loyalty and advocacy. Americana, which ranks first following memorable, and a step beyond the Indeed, the pillar of Personalization is a move of two places since 2018. It functional bedroom experience. This the greatest driver of both of these focuses on offering a premium hotel is symptomatic of a CX vision which commercial outcomes in Mexico. The experience, and one that’s easy, is more person-oriented; the hotel message, though, is clear: Mexican reliable and trustworthy. experience appears to be tailored customers are commanding more around the individual, putting her or “The service is what gives Fiesta individualized attention from brands, his needs and desires at the center. Americana a plus,” said one which in turn need to demonstrate respondent. “They always attend to Moreover, Fiesta Americana their trustworthiness, with your needs and the most important appreciates the importance of having Integrity being just as important as part is that they make you feel at a more connected digital experience. Personalization for driving advocacy. home.” The Fiesta Americana app, for Mexico’s strongest performing example, enables visitors to get Many of Fiesta Americana’s hotels are sector in 2019 is Travel, with six hotel directions to and from their particular geared towards luxury. The brand is organizations ranking in the country’s hotel, as well as obtain local weather

information, and make reservations Leading CX brands in Mexico for dinner. The result of such a service is a CX that’s more seamless, and enables the individual to engage PayPal Hilton Amazon at a time that is most convenient 35 02 03 04 to them. 01 In second place is the payment platform PayPal, which is a high Presidente performer across a number of Netflix Marriott Inter- Continental markets featured in this year’s Fiesta México Polanco Global Customer Experience Americana 05 06 07 Excellence report. PayPal scores highly across all of The Six Pillars, but it’s particularly notable for the pillar of Personalization, achieving Fiesta Inn Hyatt Costco the highest score of all brands 08 09 10 measured in Mexico. PayPal’s Travel & Hotels services enable users to choose how, when and where they make payments in innovative, secure and convenient ways. Moreover, this room keys and order specific items With organizations such as Hilton and can be done in over 25 currencies, for their rooms ahead of their arrival.37 Fiesta Americana redefining what CX and it typically takes less than 20 excellence looks like in Mexico, it’s seconds for a person to receive the Hilton also stands out for its only a matter of time before other money.36 The payment platform is transparency, which bolsters its organizations start to recognize the continually innovating, investing in score in the pillar of Integrity. An commercial potential of The Six Pillars. new technology and building new example of this can be seen with its Indeed, customer expectations are partnerships that extend the reach Roomkey38 service – a hotel search slowly shifting, and many companies of its services, to offer even more engine which is Hilton’s reaction may soon find themselves in a personalized experiences for against a booking industry that “isn’t position where they need to compete the customer. always honest.” Hilton states that more tenaciously in order to survive. it believes booking travel should be The third highest-ranking organization honest and transparent, and therefore in Mexico is the international offers a hotel search service “without hotel chain Hilton. It’s a brand that the gimmicks” that other travel has mastered the multichannel sites employ, such as “misleading experience, offering connectivity information, false urgency, and lost across a range of platforms. An reservations.” Customers can use example of this can be seen with Roomkey on the Hilton website or its Hilton Honors app, which allows download an extension for their guests to use their smartphones as browser.39

Everybody talks about how important it is to build customer-centric organizations, but only a few are successful in turning customer experiences into real brand differentiators. Unless traditional companies adopt an outside-in approach, where insights reflect what customers require of products and services, new disruptors will take the lead. CX has to become part of the organization strategy and culture, so it can be successfully experienced externally.”

Manuel Hinojosa, Customer Advisory Partner, KPMG in Mexico

35 https://apps.apple.com/usapp/grand-fiesta americanaid1002238985 36 https://www.paypal.com/uk/webapps/mpp/send-money-online 37 https://hiltonhonors3.hilton.com/rs/hilton-honors-mobile-app/ 38 https://www.roomkey.com/ 39 https://www.hilton.com/en/

Netherlands

Customer experience is strong in the Netherlands. Amongst the leading brands, mastering the basics of CX is regarded as a hygiene factor rather than a differentiator; a significant number are conscious of the value that carefully cultivated experiences can bring.

This year’s research shows that However, for Dutch organizations, customer’s advantage. A strength customer expectations are escalating it is the pillar of Personalization in one area alone is insufficient; the in The Netherlands; many customers that drives loyalty and advocacy strongest organizations should be will enjoy a first-class interaction the most. Personalization remains able to integrate digital considerations with one particular brand and then one of the key building blocks for into the physical setting. expect the same standard to be offering a great CX and customers are For companies such as Lush, which maintained elsewhere, perceiving collectively embracing higher levels is the third highest ranking brand in ‘excellent’ to be the norm. And whilst of Personalization throughout the the 2019 Netherlands research, CX this puts pressure on a number different sectors. best practice is exemplified through of organizations, the overall result But of course, the market continues the pillar of Empathy, with its score has been a favorable one, with the to face challenges. One of these is standing at 13 percent above the pillar of Expectations seeing both knowing how to create the optimal market average. The cosmetics increased importance and increased ‘phygital’ experience – that is, a CX retailer trains all employees to ask performance in 2019. that combines the best of both the diagnostic questions to build a physical and digital channels to the deep understanding of an individual

customer’s unique situation Leading CX brands in the Netherlands and needs. And as a retailer that specializes in bol.com Lush Rituals hand-crafted products – all of which are created in ways that respect 02 03 04 the environment and the animal 01 kingdom – Lush is an organization that operates with a clear brand purpose, Pearle Coolblue Specsavers and one that seemingly extends Opticiens beyond the simple need to ‘make Van der Valk money.’ As a result, its score for the Hotels 05 06 07 Pillar of Integrity stands 8 percent above the market average and is among the highest in the market. Eye Wish ANWB KLM Opticiens “My favorite shop!” said one consumer in the Customer Travel & Hotels 08 09 10 Experience Excellence research. “They care about animal and environment-friendly products and always ensure personal attention and service, no matter how busy it gets in delivery service in some postcodes listen. They support. They care. Van the shop!” - for shoppers who need items within der Valk delivers every single time.” a short timeframe. And to ensure In second place in the Netherlands For the Netherlands, these shifts will minimal impact on the environment, 2019 rankings is retailer and become all the more apparent as the retailer uses electric delivery marketplace bol.com – a company the digital considerations continue tricycles for its fast delivery service.40 that scores highly in the pillar of to evolve. With 98 percent of the Integrity, with a result that’s also 8 The Netherlands’ CX leader in 2019 is country’s homes having access to percent above the market average. In the travel brand Van der Valk Hotels, the internet, it’s the most connected the words of one respondent to the which has risen four places in the country in the European Union.42 research, “bol.com understands what last year. And with an economy that is still an online shop should do” and “they growing, the Netherlands finds itself Van der Valk aims to deliver a never let me down in the service with a customer base that truly is customer-centric experience. The they promise.” king, with a voracity to see its high family-run business states that expectations met. The challenges are Speed and efficiency are also key “hospitality is in our genes” and many, but in 2019, a number of strong components of its CX best practice. that it renews itself constantly, organizations are rising ably to them. One of bol.com’s greatest strengths emphasizing its commitment to is in its optimization of the digital finding new ways to surprise and experience, and respondents have delight.41 Arguably, this is one of commented on the simplicity and the qualities that’s necessary for a seamless nature of its website country leader - an acknowledgement platform. Bol.com is also the front- that CX management never stands runner in quick and easy ordering and still, and that continual awareness of delivery, offering a range of same- the changing customer is essential. day delivery services - even a 2-hour As one respondent stated: “They

With the digital economy continuing to grow in NL, NL CX champions stand out because they succeed in balancing the phygital model with extreme focus on the customer.”

Nienke Wichers Hoeth, Customer Advisory Lead, KPMG in the Netherlands

40 https://www.channelengine.com/marketplace-blog/dutch-marketplace-bolcom-starts-2-hour-delivery-in-the-netherlands/ 41 https://www.valk.com/en 42 Eurostat 2018

New Zealand

One of New Zealand’s greatest strengths lies in its empathetic connection with customers. Individual interactions are paid considerable attention and many companies have a keen desire to meet people’s expectations in a highly personalised manner.

Indeed, this is a successful endeavor This consideration is all the more That being said, a number of stand- amongst the strongest of the important given that many sectors out companies have emerged over country’s brands. However, for are feeling the pinch of heightened the course of the latest study. The many of the brands who struggle to regulatory focus, with a greater first of these is the airline Air New consistently provide great customer degree of concern over the delivery Zealand, which ranks in third place. experiences, there is room for of acceptable customer outcomes. For this organization, the delivery of a improvement when it comes to Moreover, an increasing number strong CX begins with the employee. supporting customer insight with of international organizations Air New Zealand is intent on scientific rigor. In this respect, are entering the New Zealand humanizing its CX through exceptional technological considerations and data marketplace, raising the bar for what passenger interactions, many of science capabilities have yet to catch ‘good’ looks like. This is applying which tap into the unique ‘Kiwi’ ethos up, and there is room for a more additional pressure to the native of being good-humored and down- disciplined process to underpin New brands, many of whom now have to to-earth. As a result, a flight on an Zealand’s CX management. find new ways to differentiate through Air New Zealand plane is typically a CX excellence. warm and welcoming one, with one

respondent to the research praising Leading CX brands in New Zealand the way its attendants were able to resolve problems “without making a Singapore Air New Mighty Ape big deal out of it.” Airlines Zealand Following Air New Zealand is 02 03 04 Singapore Airlines, which takes 01 second position in 2019. The airline’s Customer Experience Division is something of a ‘laser-focused’ Mitre 10 Unichem Kiwibank operation, with a cross-functional team of insights specialists TSB 05 06 07 scrutinizing the CX in meticulous detail. The aim of this division is to arrive at a deeper understanding of passengers’ myriad expectations, PAK’nSAVE BNZ New World which can sometimes be as high as 08 09 10 they are diverse. Financial Services This is symptomatic of Singapore Airlines’ wider CX vision – that is, to leave no stone unturned in the pursuit of a first-class travel experience. For TSB, this customer-centric method the pillar of Integrity has considerable Inevitably, this involves a degree of of working is rooted in the employee impact on customer loyalty and flexibility on the brand’s part, with experience. Having abandoned advocacy. employees being trained to adapt the more traditional sales-based However, it’s the pillar of seamlessly in the event of unforeseen incentives, TSB measures people’s Personalization that is the most circumstances. performance based on how well resonant in 2019. Companies such as they achieve positive outcomes for Finally, New Zealand’s top-ranking TSB, Singapore Airlines and Air New customers. As a result, employees brand is the financial services Zealand have an obvious proficiency are constantly encouraged to go organization TSB, which lands in first in this area, showing an ability to above and beyond; the brand operates place. Having been founded over 160 adapt the CX to the specific needs a peer recognition system which gives years ago, the organization has grown of the individual. It’s this quality that people the chance to highlight when to become the seventh largest bank sets them apart from their peers, and one of their colleagues goes the extra in the country. indeed, with continued focus, it will mile. Good conduct is continually differentiate them from their many And with this long history comes rewarded, and this helps to inspire international competitors in the years a certain level of tradition. TSB and motivate other individuals to come. was founded on the core values of to deliver exceptional customer community focus and a sense of experiences. working diligently in its customers’ In short, what companies such as best interests. As such, TSB is owned TSB demonstrate is that they stand by a trust, with money being regularly for something more than just ‘being a invested back into the communities business.’ This is a key consideration in which its customers and in New Zealand as a whole, where employees live.

The results from the New Zealand 2019 leaders confirm that customer experience excellence is a source of advantage. The leaders experience 1.7 times more revenue growth and 13 times more EBITDA (earnings before interest, tax, depreciation and amortization) growth than their laggard peers. This payback is critically important in an environment where growth can be hard to realize.”43

Baxter McConnell, Customer Experience Lead, KPMG in New Zealand

43 Experience to Value - 2019 KPMG New Zealand Customer Experience Excellence Report

Norway

There has been a shift in CX in Norway over the last year, with customers perceiving their interactions with brands more positively. Indeed, since the last study, all industries have seen a lift of 6-7 percent, with the exception of the utilities sector.

This progress has happened in the The pillar of Personalization will within the international marketplace, face of rising consumer expectations undoubtedly be central to this fulfilling orders to 17 countries. in the market. The 2019 research endeavor, having the greatest With such a large delivery operation, shows that the weighting of the weighting on customer loyalty and it’s fortunate that one of the brand’s pillar of Expectations has increased advocacy. Norwegian consumers are greatest strengths is in the pillar of commensurately. Many customers receptive to a CX that’s adaptable to Time and Effort – something that’s are appreciative of the first-class their specific needs, although brands made possible, in part, by the way efforts of both local and international face increasing competition from Zalando co-operates with local brands, and use these as benchmarks online retailers and from organizations delivery suppliers in order to have against which all other experiences operating in neighboring countries. packages sent to customers’ nearby are compared. Therefore, a company post offices and supermarkets. In terms of Norway’s strongest that’s able to optimize its CX can gain brands, the online fashion retailer In addition, Zalando’s smartphone a competitive advantage, and several Zalando is the third highest-ranking app helps to deliver a more seamless Norwegian brands already recognize organization, having moved up nine retail experience. For example, one of this fact. places since 2018. Zalando operates its features enables customers to take

a photo of a color or a pattern that Leading CX brands in Norway they like and use the Zalando app to match the image to similar products in its online store.44 It also comes with a Vipps Zalando Boots barcode scanner so that shoppers 02 03 04 can compare Zalando’s prices with 01 other retailers.45 Similar innovations can be seen with Norway’s second highest- Sbanken Flytoget Specsavers ranking brand, the financial services organization Vipps, which is new to Vinmonopolet 05 06 07 the research in 2019. It’s an app-based service, enabling customers to carry out transactions using their telephone Radisson Vitusapotek KLP numbers, and to pay for bills. For Blu instance, users can take photographs 08 09 10 of their physical documents and scan Non-Grocery Retail them into the app, which will then determine how much needs to be paid and guide the person through the process.46 approach to business and is intent it’s the act of not being “too In addition, Vipps has made its service on honoring people’s needs. pushy” that makes the difference compatible with the Chinese payment Because of this, the retailer trains for Personalization – the country’s platform Alipay, improving the ease of its employees intensively, ensuring most impactful pillar. With Norway use for a wider range of people.47 they’re sufficiently knowledgeable seeing a growing number of local This means that – for merchants who about its products in order to offer and international competitors, using offer Vipps as a primary payment effective guidance. individualized attention to gain a method for customers – Alipay users competitive advantage is a key As one shopper noted: “The will not find themselves excluded, consideration for brands in 2019 – employees are not too pushy and are and can use Alipay to make Vipps particularly as customers begin to discreet in their approach. There’s an payments. This is an important perceive such services as ‘the norm.’ effective check-out system and it’s consideration for Norway; it sees time-efficient when moving from the approximately 450,000 Chinese store to the register.” visitors staying in its hotels each year, and Alipay itself has over 700 million This sentiment was echoed in our active users.48 interview with the company’s Director for Strategy & Organization, who Norway’s highest-ranking organization states that Vinmonopolet “lives and is the beverage retailer Vinmonopolet, breeds for meeting the customers,” which has risen three places to and that the magic happens in the 33 number one. This brand is notable million face-to-face interactions they for the pillars of Personalization have every year.49 and Integrity; Vinmonopolet has a particularly customer-obsessed And as the customer explained,

It is great to see a substantial lift in how customers perceive their experiences with brands in the Norwegian market. All industries see a lift of 6-7% from the last survey, with the exception of utilities. There’s a higher focus on customer experience, with many businesses making investments in their offerings and people, and these investments are paying off with higher scores from customers.” Yngve Fjell, Director for Customer, KPMG in Norway

44 https://www.zalando.no/zalando-apps/ 45 https://apps.apple.com/de/app/zalando-fashion-and-shopping/id585629514?l=en 46 https://apps.apple.com/no/app/vipps/id984380185 47 https://www.tek.no/artikler/alipay-og-vipps-gar-for-felles-losning/467323 48 https://www.vipps.no/produkter-og-tjenester/bedrift/ta-betalt-i-butikk/ta-betalt-med-vipps/ta-betalt-med-alipay/ 49 KPMG interview with Trond Idar Nilsen, 2018

Poland

Customer experience management continues to mature in Poland. In the non-grocery retail sector in particular, there is a high level of competition amongst brands, with many organizations using CX to try and gain an advantage over their peers.

This is usually a two-pronged strategy: At the forefront of this thinking is pillar of Personalization is often about first, brands use customer insight Personalization – the pillar which has guiding individuals towards the most to deepen their understanding of the greatest weighting on customer appropriate purchases, rather than consumers and their lifestyles. Second, loyalty and advocacy in Poland. trying to secure a quick sale, and this is they look at ways of harnessing Customers value the way in which undoubtedly one of Vox’s strengths. technology to form more seamless organizations can tailor the experience One of Poland’s highest-ranking brands experiences across multiple channels. to their specific needs. is the jewelry retailer W.Kruk, moving The most adept brands in Poland This is certainly exemplified in up 69 places in the last year to third recognize the prevalence of the companies such as the furniture place. One respondent described the smartphone in consumers’ lives and retailer Vox, which is Poland’s biggest retailer as “a very reliable company of offer services which allow people to mover in 2019’s rankings. Vox made high-class products,” and its website ‘dip in’ seamlessly – or choose a improvements by closely mapping evokes these characteristics. Its different channel and reach their goal the customer journey and striving to customer obsession manifests in its with no impediments. deliver value at each touchpoint. And in attention to detail: visitors are free to terms of the in-store experience, the browse, or they can dig a little deeper to

receive guidance on long-term jewelry Leading CX brands in Poland care50, or even read about the best methods for choosing the correct ring size.51 W.Kruk also humanizes many Pandora W.KRUK Hilton of its jewelry collections, drawing on 02 03 04 themes such as friendship and freedom 01 for inspiration, further heightening the perception that it’s a company that 52 honors the individual. Bank Swarovski Nike store Millennium In second place is another jewelry retailer - Pandora. Pandora states that iSpot (Apple) 05 06 07 it has “for years… inspired women to express their individuality and personal style through feminine jewelry, symbolizing extraordinary moments of Ziaja Spotify Ye s life and the most important values.”53 08 09 10 Like W.Kruk, the brand recognizes Non-grocery retail the importance of the pillar of Personalization. Pandora is also the leading brand for the pillar of Resolution within Poland. Poland’s highest-ranking brand is need to advise on a number of complex This is partly due to Pandora extending the non-grocery retailer iSpot. It’s a scenarios, many of which will be unique the time for people to return purchased company that describes itself as to a particular customer. goods from the online store from 14 “the largest Apple Premium Reseller However, this is a discipline that days to 30. Moreover, the brand also in Poland”54 and specializes in iPhones, iSpot appears to have mastered, offers a service whereby defective iPads, and Macs. And not unlike with one respondent to the 2019 goods can be replaced up to 2 years organizations such as the Apple research commenting on the brand’s after the date of purchase. Even a Store, iSpot offers repair and “competent service that can advise receipt is unnecessary in this scenario; education services to customers, on any purchase.” Additionally, iSpot Pandora is happy to refer to the making Personalization a key pillar scores highly for Empathy, leading the customer’s bank account for proof for this retailer. market in this pillar; it understands the of purchase. For iSpot, being able to offer a inconvenience of a customer having “Customer service solved my problem personalized experience relies on the to be without their phone whilst it’s very efficiently,” said one customer. training of its employees – such is the being mended, and offers replacement “They exchanged a product and I got breadth of knowledge that’s required devices for the duration of the a new bracelet without the need to to cover the large range of Apple repair period. provide proof of purchase.” products. Moreover, these individuals iSpot epitomizes CX best practice in its cross-channel offerings – one of the factors that’s a key differentiator in Poland. For example, customers can This year’s study points to a highly competitive track the repair work on their devices Polish market, with companies providing better in a number of different ways – not only by phoning the store directly, but customer experiences year after year. The most also by using the brand’s website or competitive sector is non-grocery retail, where via a smartphone. It’s this seamless connectivity that has delivered a boost many companies are fighting for the customer to companies such as iSpot, and it through the implementation of pro-consumer sets a high standard for Polish peers in actions. Brands in this sector also have many other sectors to mimic. years of experience in digital channels, both in marketing and sales, and provide a highly personalized online service which is fast and seamless. These attributes could be the key to standing out from the competition in Poland.”

Jan Karasek, Partner, KPMG in Poland

50 https://wkruk.pl/jak-dbac-o-bizuterie 53 https://pl.pandora.net/pl/about-pandora/?srcName=About%20the%20PANDORA%20 51 https://wkruk.pl/jak-dobrac-rozmiar-pierscionka brand&src=categorySearch&position=bottom 52 https://wkruk.pl/historia-marki 54 https://ispot.pl/s,dlaczego-ispot

Romania

In recent years Romania has been one of the fastest-growing economies in the EU.55 Much of this has been driven by private consumption and has polarised the country’s customer experience, with some companies focusing purely on sales targets and others recognising the value of a carefully nurtured customer relationship.

At the moment, the story in Romania its staunch customer-centricity and performing brands in Romania in can sometimes be one of frustration. its ability to look beyond traditional 2019. The first of these is the financial Customers can find themselves marketing tropes such as happy hours services organization ING Bank, forced into unhappy relationships with and loyalty cards, to focus instead on which ranks in third place. With some brands owing to a lack of alternative a love of reading and hosting cultural 54,000 employees serving around choices. And this unease seems to events. As one respondent to the 38.4 million customers, corporate stem from a lack of ability in the pillar research described, “My experiences clients and financial institutions in of Empathy, according to respondents with Carturesti have always been over 40 countries56 , ING Bank’s to the Customer Experience pleasant... The atmosphere as a operation is a large one, and the scale Excellence research. whole is very pleasant and urges you of its customer-centricity is equally to stay and come back whenever you impressive. It has a clearly laid-out Conversely, there are companies feel the need to relax and disconnect strategy which aims to “make banking such as the non-grocery retailer from everyday life.” clear and easy, available anytime Carturesti, which ranks at number and anywhere and to keep getting five in the study. Bookstore chain Customer-centricity is a quality better.”57 Carturesti stands out particularly for that is shared amongst the highest

However, ING Bank does not rest Leading CX brands in Romania on its laurels. The brand concedes that the world of financial services is evolving at an unprecedented Revolut ING Bank Uber rate, disrupted by newcomers using 02 03 04 robots and AI technology. ING Bank 01 is committed to “[being] where they are,” and aims to “remain relevant and continue delivering differentiating Carturesti Netflix IKEA experiences for customers.”58 Samsung This raison d’être is shared by Store 05 06 07 Romania’s second highest-ranking brand. The digital financial services organization Revolut allows customers to manage their monetary matters via Sephora Decathlon Lidl a smartphone app. Non-Grocery Retail 08 09 10 Despite its technical prowess, one of Revolut’s distinguishing features is in the pillar of Personalization. Revolut sees itself as a brand that is ready to The pillar of Personalization is also a recognize the commercial value that adapt to customers’ needs and let top consideration for The Samsung can be unlocked from CX. But with them dictate the shape of the CX. Store, with many branches offering consumers spending at one of the “Whether you’re running a business one-to-one tutorials and on-hand fastest rates in Europe, the need to or running out for bread, Revolut is expert advice. There’s a sense that the compete is becoming increasingly building a global bank to suit your brand invests in delivering the right important – and it’s companies such lifestyle,” it says.59 information at the right time, rather as The Samsung Store and Revolut than securing a fast sale. that are already spearheading this This ethos is in evidence in the battle, and will inspire others to follow The ‘fast sale’ culture is still prevalent brand’s smartphone app, with their example. a number of innovative optional in Romania in 2019, and it may take features. One of these allows a while for every organization to customers to round up every card payment to the nearest whole number, with the app stashing away the spare change into a special savings pot. The application also We see today a Romanian customer that is allows people to set up monthly budgets for specific transactions, more connected than ever, more demanding such as restaurants and groceries.60 and willing to switch providers with And with such innovation being little or no effort. Competitive advantage practiced in Romania, it’s perhaps unsurprising that the highest-scoring is increasingly based on knowing your brand is The Samsung Store, which client and creating tailored experiences, ranks in first place. Like all top performers, The Samsung Store as well as on building honest, transparent delivers across The Six Pillars, and is relationships. The Romanian market, albeit Romania’s leading brand for almost all being reasonably polarized, has generally of them. embarked on a serious journey to delivering Undoubtedly, one of The Samsung Store’s key capabilities is in the pillar customer excellence.” of Time and Effort, owing to the ease with which customers can access Dr. Victor Iancu, Customer Advisory Lead, KPMG in Romania relevant information and achieve their goals. As one customer explained: “Samsung means to me the assurance of quality, and Samsung Store does not disappoint. Everything is simple, at the fingertips of anyone, from products, information, etc.”

55 Eurostat, 2019 59 https://www.revolut.com/about-revolut 56 https://www.ing.com/About-us/Profile/ING-at-a-glance.htm 60 https://www.revolut.com/ 57 https://www.ing.com/About-us/Profile/Purpose-strategy.htm 58 Ibid.

Singapore

Customer experience management is an emerging discipline in busy Singapore, where many companies are focused on providing experiences that leverage the Time and Effort pillars. Visa, for example, is notable for having developed a ‘tap to pay’ service for commuters on buses and trains, allowing for faster and more seamless payment transactions.

But beyond convenience, Visa, like apps and digital brands. experiences. Companies that operate many companies in Singapore, is now in the international travel sector are Yet, the Integrity pillar has proven to aware of the need to follow The Six particularly strong in this respect, be the most important for advocacy in Pillars framework as a whole. This so it is not surprising to see that the the finance sector in Singapore. This helps to engage with Singaporean country is home to Singapore Airlines. is clearly a consideration that Visa has consumers, who are increasingly taken into account to become the third Despite being born in one of the expecting companies to find new highest ranking brand in the country. smallest countries in the world, the ways to become truly multichannel, by It is evident from the research that company is recognized internationally connecting digital capabilities with a Visa’s customers appreciate the robust for being a leader in offering physical experience, in ways that are security of its payment services. personalized, customer-centric, and surprising and delightful. innovative experiences. For its Senior When it comes to loyalty, the In light of this, Visa has launched an Vice President Yeoh Phee Teik, the pillar of Personalization is the innovation center in Singapore to brand’s success is built on strong, strongest driver, with consumers develop new technologies, refine older underlying principles: “We continually increasingly demanding personalized ones as well as tie up with relevant train our people to have the right

mind-set, values and skills to deliver Leading CX brands in Singapore exceptional service,” he says. “We leverage on customer insights to Changi Visa Apple Store better understand our customers’ Airport needs and deliver what they need, 02 03 04 want and expect at every stage of 01 their journey.” This explains why Singapore Airlines NTUC MasterCard DBS is the country’s highest-ranking Fairprice brand, in Singapore and in three of Singapore the four markets in which it features Airlines 05 06 07 in the 2019 Customer Experience Excellence research.

Singapore is also home to Changi NETS Decathlon PayPal Airport, which has been named the world’s best airport in the 2019 World Travel and Hotels 08 09 10 Airport Awards. This is the country’s second highest-ranking brand in the survey. “No one comes even close! … Free movie theatres, thematic gardens, foot massage, free internet, Despite this, the brand does not To succeed, the strongest sometimes I wish I can get in even if neglect its core responsibilities. organizations are now working I’m not flying…” said one respondent Changi Airport is also notable for hard to grow their CX, ‘know’ their to the research. the pillar of Time and Effort, and has consumers on a more intimate level, worked hard to deliver a smooth and create intimate experiences both Changi Airport positions itself as more CX. Indeed, the building has been online and offline. Only when an of a ‘destination’ than just a functional designed to allow people to pass organization fully knows how to meet airport, and takes a holistic approach through in the most efficient and anticipate the various needs of its to CX, paying close attention to the way possible. consumers can it become successful. happiness and comfort of its travelers. In 2019, brands such as Visa, Changi Whilst Changi Airport is a serial award The presence of such experience Airport and Singapore Airlines are winning airport, it does not rest on leaders has led to a case of doing this most successfully in its laurels, opening “Jewel” earlier in ‘expectation transfer’ for other Singapore. Tomorrow, it could be 2019, which hosts the world’s largest brands, with consumers desiring a your country. indoor waterfall, together with a rain comparable level of service regardless vortex, a canopy park and a forest of of the organization. 1,400 trees.

CX-leading companies in Singapore now work towards having a more intimate conversation with customers, getting to know them first-hand. Our leading brands have also invested significantly in understanding what their customers want, and provide new products and services to meet these ever-evolving expectations. However, there is a balance to be kept in leveraging the technology to meet CX expectations and managing the cost required to do so.” Bradley Styles, Partner, Customer Lead, KPMG in Singapore

Slovakia

In Slovakia the concept of CX is often discussed; it’s a familiar topic in many of the country’s boardrooms. However, some brands are finding it hard to translate these conversations into reality. A number of organizations find themselves operating in silos, resulting in a sometimes-disconnected experience for the end consumer. In some sectors, what is lacking is a more holistic approach to CX.

In addition, there appears to be and advocacy; for the companies it’s a brand that is notable for the less impetus for change in Slovakia, that have their finger on the pulse, way it tailors the CX to the specific compared with other countries. it’s a discipline that can be used to needs of the individual; visitors to Reportedly, the Slovakian consumer a commercial advantage. Indeed, an Yves Rocher store often praise is comparatively indifferent to a Personalization success stories are the uninterrupted attention they mediocre CX and is less likely to make often seen in Slovakia’s mid-size receive from employees, and are a complaint. This can pose a challenge companies and start-ups, who are guided towards purchases that are for some brands in that it can be hard perhaps less entangled in legacy appropriate to their circumstances. to correctly identify where the pain systems and are able to implement As one shopper noted: “I was points reside for their customers, new ways of working from the buying a product and got a birthday in order to improve. ground up. coupon with a discount. The shop assistant advised me really well One particular pillar that requires One of Slovakia’s top performers is and I am absolutely satisfied with focus among Slovakian organizations the cosmetics company Yves Rocher, the products.” is Personalization. This is the which ranks third in 2019. According country’s key driver of both loyalty to respondents to the research,

Similar qualities can be seen in the Leading CX brands in Slovakia country’s second highest ranking organization, Panta Rhei – a non- Yves Panta Rhei IKEA grocery retailer specializing in books, Rocher whose name literally translates to 02 03 04 mean “everything flows.” Many 01 customers report having a smooth and satisfying experience when visiting one of its stores, with one Drácik Starbucks Zara individual stating: “I enjoy visiting Panta Rhei. They advise me really well Martinus 05 06 07 every time and I always find exactly what I am looking for.” As such, it’s perhaps unsurprising that the brand’s highest score is in the pillar of Time Tchibo O2 Kaufland and Effort. 08 09 10 What drives this success is the Non-Grocery Retail company’s customer-centric approach. Panta Rhei aims to work for the betterment of the individual, and trains its employees as such; they are passion, being human, and delivering we try to remember people rather typically passion-driven and attentive the ‘wow’ effect to the customer. As than money.”61 and, like Yves Rocher, are willing to Martinus explains, it’s about creating help their customers to find the exact As such, companies such as Martinus the “little things that complete products that they’re looking for. and Panta Rhei are demonstrating a unique experience,” and it’s an that successful CX management is Another book retailer takes Slovakia’s approach to CX design that’s forever not exclusive to the start-up brands number one spot for CX in 2019: evolving and improving. in Slovakia. A willingness to learn and Martinus is the highest-ranking “At Martinus, we know that [the re-invent can be a virtue, and even organization in Slovakia for the second little things delight], and therefore organizations that have operated year in a row. Like many of its peers in we always try to think of something for many decades can score highly. the top 10, the brand is committed to new to please you,” the brand Ultimately, success in this country is creating personalized experiences for says. “Sometimes we will attach a typically about customer centricity its customers. bookmark to your order, sometimes and a first-class attention to detail in Martinus’ story began in 1990, by a tea bag… We want to prove that a the pillar of Personalization. two brothers inspired by a love of company does not have to be a shark books. At its core are the values of in the market to grow. In other words,

In Slovakia, CX is widely spoken about in boardrooms as a new space for differentiation. In reality, it’s delivered in a fragmented way, lacking a holistic, connected approach. Despite this, there is a positive trend emerging, with an increase in small, niche Slovak companies that are showing great enthusiasm for delivering superior CX, with business models set up to understand the customer and deliver unique concepts.”

Rudolf Sedmina, Partner, KPMG in Slovakia

61 https://www.martinus.sk/pomoc/preco-nakupovat-u-nas

United Kingdom

In 2017, the UK recorded its lowest ever Customer Experience Excellence score since the study began. In 2018, this result improved, and now in 2019 the average score has progressed once again. An increasing number of organizations are embracing the commercial advantages of operating in line with The Six Pillars, which are shown through research to be linked to customer loyalty and advocacy.

However, the way in which companies and their managers. As such, the implementation of this are tackling CX has shifted slightly. In understanding is at the heart of CX Connected with this is the concept the UK there’s a growing recognition design for many of the UK’s of the Human Value Chain, which of the power of the employee strongest organizations. successful organizations are utilizing experience, and businesses are looking – together with The Six Pillars as a In the latest study, the cosmetics at ways to honor and understand framework – to create a seamlessly retailer Lush is the third highest- their workforces for the betterment connected CX. In a sense, it’s like a ranking brand for 2019. It promotes of the consumer. Much of this is to line of dominoes: the company culture itself as an ethical company, do with trust; several businesses are impacts the colleague experience, highlighting the fact that it’s against asking, “If our employees don’t trust which in turn impacts the colleague animal testing and that its products us, how will the customer?” Therefore behaviors. This then impacts the are vegetarian. Respondents to the some renewed effort has been CX, which impacts the customer research cite these endeavors as put into fostering dynamic working behaviors, which impacts the contributing factors to the brand’s high environments, where open dialogues business outcomes. score in the pillar of Integrity. are encouraged between employees

Whilst all of Lush’s employees are Leading CX brands in the United Kingdom given rigorous training to aid product knowledge, they’re also given Richer Monzo Lush autonomy – an example of how the Sounds company culture can impact the 02 03 04 colleague experience in the Human 01 Value Chain. For instance, each Lush shop has the option of opting out Nationwide of a window campaign if they have John Lewis Lakeland Building Finance objections to it. And in reaching this Society decision, shop managers take into first direct 05 06 07 account the opinions of all their staff members, coming to a collective and democratic decision. Virgin Ocado QVC UK As one employee stated: “I was Atlantic treated amazingly and all staff were 08 09 10 so helpful and lovely. I was given so Financial Services much experience in working with customers, and gaining confidence to talk about products that will benefit them.” engendering trust; it’s also about online banking, then it changed to A similar sense of democracy can helping workers to feel enabled app banking and then today to Open be seen with the digital-only bank and empowered. Banking. Our ability to cope with that Monzo, which ranks in second place. change and understand that change in The highest-ranking organization in Although it’s a company made up today’s environment, as well as being the UK 2019 research is the bank first of individual teams, they are non- consistent with our focus, is key.”62 direct – a company which has taken hierarchical, and often comprised of the top spot four times in the last In achieving this vision, first direct the best analysts from elsewhere 10 years. It describes its purpose as cites its employees as one of its most in banking. The company pays close being to “deliver pioneering service” important assets. According to Helen attention to customer analytics, and and it puts the customer at the heart Priestley, Head of Brand, the company all employees – including the CEO – of its operations. This means being acknowledges that whilst certain receive insights on live dashboards, ready to react to the ever-changing processes can always be replicated meaning that everyone is aware of needs of the customer. “Customer and automated, human beings how their decisions are impacting expectations change, technologies cannot. To first direct, they are “much the consumer. change,” says Head of first direct more valuable,” with Priestley adding, Furthermore, employees are Joe Gordon. “In 1989 we set up to “that’s why people will always be at encouraged to contribute to matters pioneer amazing service and the the heart of the business.”63 of strategic significance. For Monzo, how of today then was telephony. It’s the motivation and attitude of the company culture is not just about Then it changed and we changed to these employees that impacts the CX – and the future loyalty of those being served. For Lush, it might manifest in the individualized care and attention given to shoppers. For first direct, This year we see an increasing number it might be in showing Empathy to those customers with a pressing of brands getting real returns from their issue. There’s no single action to hard work to improve their customers’ optimize a CX; it’s a holistic discipline, experiences. However, keeping pace with working towards the creation of a harmonious value chain. rising customer expectations continues to be extremely tough. The latest research shows that it’s those brands with the most motivated employees that are best reacting to change, whilst also generating the best returns for shareholders.”

Martin Wells, Head of Customer Consulting, KPMG in the UK

62 KPMG Nunwood UK 2019 Customer Experience Excellence report 63 Ibid

United States

The diversity of the US consumer can make CX management a challenge. As per the global trend, consumer bases and workforces can comprise up to five different generations, each with varying needs and expectations. The challenge is perhaps greater in this expansive nation than most. Doing a million things well every day requires an organizational focus on consistency. Many organizations can deliver a good experience some of the time, but delivering a high-quality experience, each time, every time, demands high levels of connectivity across key processes and customer journeys.

In addition, many businesses are what it means to offer an optimized that the employee experience can competing with the exemplary CX on paper, but are unable to have on the customer outcome. In standards in eCommerce, whose first- use this understanding to drive addition, there’s a strong grasp of class offerings are being perceived meaningful change. what an optimized experience looks as the norm. This often leads to like across the full channel mix, and a However, those companies that ‘expectation transfer,’ with many good understanding of The Six Pillars. feature at the top of the US brands caught in a swirling vortex of rankings are using their customer It’s the pillar of Personalization expectations where no satisfactory understanding to drive change and that’s most important in driving the outcome is possible. as such, are breaking away from the commercial outcomes of loyalty There is also the challenge of being pack. The highest ranked brands have and advocacy. This is undoubtedly a able to transform CX thinking into broken down the internal silos that strength of the country’s third-highest meaningful action. In the US, a prevent a connected view of the CX ranking organization – the restaurant number of companies understand vision, and they recognize the value brand Chick-fil-A. It’s a company

that’s intent on delighting its diners Leading CX brands in the United States through what the organization calls “second mile service” - ensuring that every diner has a friendly, helpful and H-E-B Chick-fil-A USAA enjoyable experience. For Americans, 02 03 04 the highly trained employees’ oft- 01 used response at Chick-fil-A of “It’s my pleasure!” is a heartwarming catchphrase which is truly meant. Edward Amazon L.L.Bean Customer centricity is one of the Navy Federal Jones restaurant’s defining qualities, and 05 06 07 this is exemplified in its strong Credit Union performance in the pillar of Time and Effort. Staff members frequently take Costco Polo Ralph orders from customers while they AAA Wholesale Lauren stand in line, speeding up the ordering process so that they don’t have to Financial Services 08 09 10 wait as long for their food. Chick-fil- A’s consistent efforts have seen the brand rise in the American rankings, moving into the top 10 after a shift of eight places. As one diner explained: The highest-ranking organization is “How do we make life easier for you,” “Just the environment at Chick-fil-A the Navy Federal Credit Union – a and “What else can we do to make gives off a great vibe. Everyone and financial brand that provides services this work better for you?” One such everything is in such a positive mood for those who serve in the US military development is a comparison chart on that it makes the customers happy.” and their families. It has maintained its website, allowing members to see its number one position for a second which handset will be the most useful The grocery retailer H-E-B ranks in year, with the highest Personalization for accessing the app.65 The credit second place in the US study and is score of all brands included in the union is committed to doing business the top performing brand for the pillar US research. Adapting to individuals’ whenever and however it is easiest of Time and Effort. H-E-B cleverly uses needs is one of the brand’s strengths for their members, who may be technology to enhance the in-store and for Navy Federal this begins serving in locations around the world. grocery shopping experience, with an with the employee base. Its workers app that can create your shopping list In summary, the leading organizations are encouraged to show empathy from scanned receipts. It can even tell in the US are breaking away from with the people they serve and to you in which aisle a specific product the pack because they’ve built firm make on-the-spot decisions based can be found in each store. foundations for CX success that on the needs of the moment. As one appeal to the complex consumer Moreover, H-E-B is notable for its respondent said, “Navy Federal is the base and economic environment performance in the pillar of Integrity. It best bank I have ever dealt with. They they are dealing with. It’s a has a community focus, which H-E-B actually care and work with you if you connected approach to CX that describes as “Our way of saying have any problems or need help.” enables closeness to the customer thank you for allowing us to be your On a continuous quest to make life and room for innovation and neighbor.” Its contributions include as easy as possible for its members, continuous improvement. the H-E-B Food Bank Assistance Navy Federal has co-created its app Program, and a Spirit of H-E-B trailer with members. In the development that provides on-site relief in areas process the key questions are devastated by natural disasters.64 “How do we help you faster,”

Organizations that are moving CX forward create a direct link between CX and results. They consistently measure their level of success and strive for continued improvement.”

Jeffrey Mango, Managing Director, Customer Solutions, KPMG in the US

64 https://www.heb.com/static-page/Community-Involvement 65 https://www.navyfederal.org/mobile/mobile.php

Amanda Hicks Tomáš Potměšil Tom Lurtz Sudeep Gohil Lukáš Cingr Rolf Christian Kuppler Clemens Scharf Jan Klimeš Nadine Kirchhoff Theresa Elliot Jan Běleš Simona Mieger Jacob Sibbald Kamila Boudová Marina Cheung Kateřina Coops

Werner Girth Martin Andersen Isabel Zisselsberger Thomas Schmutzer Kenneth Ipsen Serene Chan Karolina Berger Michelle Dyrby Kevin Chhor Cecilia Cosnard des Closets Jessica Hong Katrine Lightstone Marta Poch Caroline Smyth

Augusto Puliti Emmanuel Hembert Paolo Capaccioni Renato Keila Alain Jarlot Pasquale Ambrosio Emmanuel Papadacci Pierre Durand Irène Miquel

Jean-Pascal Nepper Yngve Fjell Rudolf Sedmina Stanislas Chambourdon Maiken Mandal Karin Nemcekova Jérôme Bernard Mona Øverby Dominika Malejcikova Patrick Wies Cyprien Sapède Steffi Schenkewitz Lis Dahm

Manuel Hinojosa Jan Karasek Jeffrey Mango Carlos Morgado Andrzej Musial Jeff Somers Diego Barrera Konrad Gaponiuk Brenda Hill Maria Fernanda Chapa Julio Rivera Vamsi Duvvuri

Nienke Wichers Hoeth Victor Iancu Tim Knight Sarah Tracey Leonie Vervelde Ramona Jurubita David Conway Connor Stewart Tamsin Jenkins Lee Jolley-Brown Andrew Hume Jennifer Symons

Simon Hunter Bradley Styles Global Customer Center of Excellence Baxter McConnell Chelsea Heng Julio Hernandez Hugh Baird Urvashi Roe David Clay Dylan Marsh

Funding contributed by the KPMG Global Customer Center of Excellence and participating markets.

Sector coverage Key metrics For this report we analysed brands The Six Pillars across 10 sectors: The Six Pillars framework is a key metric for customer experience best practice within the survey.

Financial services Grocery retail Personalization Integrity Expectations

Non-grocery retail Restaurants Resolution Time and Effort Empathy and fast food

Advocacy In order to understand the respondent’s likelihood to recommend, we ask them to rate how likely they would be to recommend each company to a friend or colleague.

Entertainment Travel and hotels Loyalty and leisure To understand likelihood to repurchase, we ask respondents to rate how likely they are to continue buying goods /services from each company in the future.

Critical incident technique questioning An open question is included to explore more about a respondent’s Logistics Utilities experience with a particular brand. Example responses cover details of a specific experience, what happened, and how it made them feel about the company.

Customer experience excellence (CEE) scores The rankings for each country are determined by the CEE scores of the brands surveyed. Telecoms Public sector The CEE score is derived for each brand via a weighted average of the brand’s score for each of The Six Pillars. The weighting is calculated through regression analysis to understand the relative importance of each pillar in driving the two commercial outcomes measured in the analysis: advocacy and loyalty.

*Technology and Automotive also included Methodology developed by the Customer Experience in some markets Excellence Center Customer first. Customer obsessed 91 How KPMG can help

It pays to get customer experience right Today’s businesses invest heavily in the customer experience to meet the increasing demands of their Customer experience customers. But many struggle to achieve the desired return on these investments. is overtaking price and product as the number KPMG professionals help companies optimize spend and investments while delivering winning customer one brand differentiator. experiences suited for the digital age. Combining expertise Organizations are investing in financial analysis with an in-depth and research-based record amounts on customer understanding of customers, the KPMG global network of customer advisory consultants can help you develop related initiatives, but not a customer experience strategy that drives financial all are seeing a credible performance, including: return on investment. KPMG consultants work

a richer, rounder picture of your customers, alongside organizations industry and market; on their journey to help them become customer centric, balance cost against a detailed outline of your current customer customer satisfaction and interactions, including insights on which matter most; identify opportunities to increase revenue.”

a customer experience strategy and delivery Julio Hernandez model that aligns to your customers and Head of Global Customer Center of delivers ROI; Excellence, KPMG International US Customer Advisory Lead, KPMG in the US

a tactical plan for your entire organization to cost- effectively deliver at each touch point.

Together, we help you develop and deliver seamless, personal customer experiences that drive engagement, satisfaction and loyalty—and profitable growth. Master the economics of the customer experience and strategy.

Talk to us today. Get in touch

Contact the contributing authors:

Julio Hernandez David Conway Head of Global Customer Center of Excellence, Director, KPMG Nunwood KPMG International, E: [email protected] US Customer Advisory Lead, KPMG in the US Tim Knight E: [email protected] Partner, Head of KPMG Nunwood E: [email protected] Urvashi Roe Global COO, Customer Center of Excellence, Tamsin Jenkins KPMG International Executive Advisor, KPMG Nunwood E: [email protected] E: [email protected]

Contact your local Customer Experience leader:

Amanda Hicks Paolo Capaccioni Bradley Styles KPMG in Australia KPMG in Italy KPMG in Singapore E: [email protected] E: [email protected] E: [email protected] Werner Girth Jean-Pascal Nepper Rudolf Sedmina KPMG in Austria KPMG in Luxembourg KPMG in Slovakia E: [email protected] E: [email protected] E: [email protected] Augusto Puliti Manuel Hinojosa Martin Wells KPMG in Brazil KPMG in Mexico KPMG in the UK E: [email protected] E: [email protected] E: [email protected]

Tomáš Potměšil Nienke Wichers Hoeth Jeffrey Mango KPMG in the Czech Republic KPMG in Netherlands KPMG in the US E: [email protected] E: [email protected] E: [email protected] Kenneth Ipsen Baxter McConnell KPMG in Denmark KPMG in New Zealand E: [email protected] E: [email protected] Emmanuel Hembert Yngve Fjell KPMG in France KPMG in Norway E: [email protected] E: [email protected] Tom Lurtz Jan Karasek KPMG in Germany KPMG in Poland E: [email protected] E: [email protected] Isabel Zisselsberger Dr. Victor Iancu KPMG in Hong Kong (S.A.R.), China KPMG in Romania E: [email protected] E: [email protected]

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The statements made in this report and the related case studies are based on the results of our survey and should not be construed as an endorsement by KPMG of the companies’ goods or services. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities © 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firms vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Designed by CREATE | October 2019 | CRT107437