The top 5 percent of leading brands in customer experience perform disproportionately better than other ranked brands
A new report released today by KPMG International's Global Customer Center of Excellence reveals that brands that deliver the best customer experiences achieve 54 percent higher revenue growth than brands that are ranked poorly by consumers for their experiences. 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.
“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.
The leading brands in each market were chosen by customers for their performance against The Six Pillars of Customer Experience.
“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.”
The Six Pillar model of Customer Experience Excellence was developed to provide a precise and practical definition of the kind of emotional outcome a successful experience needed to deliver. Based on nearly a decade of research and more than 2 million evaluations across multiple markets, the model represents the fundamental components of every great customer experience.
Conducted through an online survey and completed in Q4 2017, the research took in the views of almost 55,000 consumers in 14 different markets: Australia, China, Denmark, France, Italy, India, Luxembourg, Mexico, Netherlands, New Zealand, Norway, UAE, the United Kingdom and the United States. More than 1,400 brands were reviewed in total, resulting in almost 600,000 individual brand evaluations. The research was conducted on behalf of KPMG International by KPMG Nunwood's Customer Experience Excellence Center. Available local market data can be found on our website at kpmg.com/customerfirst.
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Amy Greenshields, KPMG International
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