The FINANCIAL -- Brands that deliver the best customer experiences achieve 54 percent higher revenue growth than brands that are ranked poorly by consumers for their experiences, according to a new report released by KPMG International's Global Customer Center of Excellence. Leading brands are leveraging technology to improve the overall customer experience in a number of ways including: using remote diagnostics and internet-enabled devices to pre-empt customer problems, as well as enabling intelligent interactions harnessing voice commands to simplify customer engagement and complaint resolution.
MAIF in France, Marriott in Mexico, Emirates in the UAE and Navy Federal Credit Union in the US were among the list of brands nominated by consumers as exemplars of customer experience in their national markets.
“Great customer experience significantly fuels growth and underpins strong performance,” said Julio Hernandez, Global Head of KPMG's Global Customer Center of Excellence. “Brands that know the most about their customers and use that insight to deliver truly exceptional customer experiences are outperforming those that do not. This isn't just about driving return business. It's also about making smart investments that reduce friction in the customer journey which not only improves the overall customer experience but also reduces costs - a winning combination.”
Based on a survey of almost 55,000 consumers across 14 markets, the report identifies which brands consumers ranked highest for customer experience excellence. Brands were ranked across The Six Pillars of Customer Experience Excellence to identify the leaders in each country: Personalization; Integrity; Expectations; Resolution; Time & Effort and Empathy. Approximately the top 5 percent of brands, in each market, broke away from the rest of the index.
While technology is clearly transforming the customer experience, many organizations continue to struggle to drive value from their investments due to poor internal alignment around customer experience outcomes.
Leading brands are leveraging technology to improve the overall customer experience in a number of ways including: using remote diagnostics and internet-enabled devices to pre-empt customer problems, as well as enabling intelligent interactions harnessing voice commands to simplify customer engagement and complaint resolution.
“Companies are investing significant capital into digital and new technologies so they can deliver a more personalized experience than their competitors. Integrating new technologies into the customer journey is great, particularly if they reduce costs, remove friction and deliver value to the customer. But if the investments aren't focused on executing against targeted customer outcomes, they often come across as impersonal and inauthentic. It's a fine line,” notes Tim Knight, Managing Director at KPMG Nunwood.
Hall of Fame Brands
The leading brands in each market were chosen by customers for their performance against The Six Pillars of Customer Experience.
Australia: Singapore Airlines
India: Taj Hotels, Resorts and Palaces
Italy: Apple Store
New Zealand: Farmlands Co-operative
UK: QVC UK
US: Navy Federal Credit Union
“Brands are thinking about how they can move their customers onto the balance sheet,” added Hernandez. “Leading brands recognize the power of their customer base and are creating their customer franchise as an asset to be protected, invested in and nurtured. We are seeing investors incorporating customer experience into their valuation approach as a proxy for sustainability. It only makes sense for brands to start regarding their customers as assets, rather than simply as transactions.”