Artificial Intelligence and the orchestrated customer experience

The Australian customer experience

Consumers in Australia are becoming savvier and demanding more from their brands: more personalized experiences, more value for their dollar and more seamless omnichannel experiences. These higher demands have led many brands to see a drop in their Customer Experience Excellence metrics scores this year versus 2021, when the survey was last conducted in this market.

Leading the brand rankings this year is Bunnings Warehouse, who climbed from fourth place in 2021. Over the last two years, the home and lifestyle retailer has invested in expanding its digital data capabilities to improve personalization for their DIY and commercial customers. They also introduced a new e-commerce platform and in-store technology to reduce the time that staff spend performing tasks, which is better spent servicing customers and improving the shopping experience. These investments led Bunnings to be the market leader for three of the six pillars, including Integrity, Time and Effort, and Resolution.

The Body Shop has risen back into the Top 10 this year, taking second place and leading the Empathy pillar. A key strategy behind their move up the rankings appears to be the brand's decision to incorporate sustainability into their value chain. In doing so, they embraced the growing number of sustainably conscious consumers and offered them experiential initiatives in-store.

Long renowned for their in-store customer experience, Mecca who came in third place this year, has shifted its focus to blending content, commerce and customer experience online, while also maintaining their strong in-person retailing presence. Mecca's focus on personalization and experience are at the core of their technology and digital investments. They now have a single view of the customer, which they can recognize at any point in their journey to better cater to individual needs and preferences. The brand's willingness to adapt to consumers' new way of shopping with their ecommerce investments has contributed to their becoming a market leader in meeting customer expectations.

The grocery retail sector performed well on the Time and Effort pillar, landing them in the top industry spot for customer experience. As hybrid and work from home arrangements persist, consumers prefer “single basket visits” over weekly or bi-weekly hauls. To capture this segment, the major retailers have continued to invest in small market stores conveniently located near public transport. The non-grocery retail sector, on the other hand, has been challenged in the second half of 2023, as inflationary pressures have reduced discretionary spending for many consumers.

“Personalization continues to be recognized as the number one driver for customer experience in Australia. Customers are looking for brands to not just know them, but understand them. AI is increasingly becoming an ally in a brand's technical transformation; although, we continue to see the importance of a customer centric, and often human, approach to digital transformation. These changes allow brands to establish a new foundation for differentiation via personalization and omnichannel experience orchestration.”

Karen Halligan
Partner, Customer & Operations Advisory
KPMG Australia

The indonesian customer experience

Integrity is of high concern for consumers in Austria. They are looking to brands to be open and honest, match prices to the value of goods, and deliver on their promises. Each of which has become ever more critical as the country struggles with rising costs of living and persistent inflation challenges.

Such transparency was a key contributor for Spusu maintaining its spot as the country's top brand in terms of customer experience. The telecommunications leader, according to survey, spent the past years building on its customer-centric approach by ensuring pricing and fees were clear and contract terms straightforward, creating an honest and hassle-free experience for shoppers.

Consumers are demanding brands be more transparent around their price increases, while also ensuring they are offsetting higher prices with higher value customer experiences. Fielmann, a leading eyewear retailer, has earned its third place among the brand rankings with their in-house manufacturing and cost-effective products that do not compromising on quality. The company's investments in digital transformation, e-commerce and globalization have also contributed to the company's high scores in the Time and Effort pillar.¹

The straightforward and personalized shopping experiences as exemplified by Fielmann as well as second-place pet store brand, Fressnapf, helped the non-grocery retail sector outperform the others. The grocery retail industry follows in second, impressing customers with swift restocking, a diverse selection of choices and friendly staff, all while maintaining high-quality products.²

On the lower end of the spectrum, the insurance industry has seen more and more dissatisfied customers since 2022. The survey suggests this result has been the perceived disparities between higher indexed premiums and value for money. Yet, insurance company, Generali, saw the biggest move up the brand rankings in large part to its investments in amping up its personal interactions with customers via its insurance agents, strengthening its client relationships and highlighting the value of its products.

Value and trust continues to be important factors to consider, especially as the larger retail sector is challenged with sweeping structural changes. The aftermath of the Covid-19 pandemic and the ongoing consequences of the Russian government's war on Ukraine, the number of retail stores in Austria continues to decline. At the same, retail agglomerations are rising, while e-commerce continues to grow – all of which will likely impact retailers in developing strategies to create customer experiences that delight customers online and in store.

“In an era where inflation is on the verge of becoming ingrained in the mind of customers, leading brands must manage to improve the perception of the value they offer to their customers. Excellent customer experience is all about being valued as a person in an environment where everybody just seems to be after your money.”

Werner Girth
Partner
KPMG in Austria

¹KPMG in Austria client interview, March 2023
²KPMG analysis

The Czech Republic customer experience

Consumers in Czech Republic are looking for the simple things: good customer service, quality products and no-hassle shopping. And, they want it in-store and online. As brands battle labor shortages, the impact of higher costs of living in the country, and a slowing export economy, keeping up with the simple things is not always, well, simple.

Air Bank, the reigning brand in the country for a second year, can attribute its lead to its holistic investments to deliver customer service. The bank has prioritized employee training and has revamped its mobile app with chatbots and AI-powered customer support systems.¹ They also introduced new products that directly respond to customer feedback. ²All-in-all, the bank retailer continues to foster its customer-centric culture and ensures each customer is on the receiving end of an exceptional experience.

Delighting customers is a key strategy for Gran Moravia. The cheese supplier does this with quality ingredients, while also engaging their customers in product development, ensuring they create cheeses that meet the country's esteemed, yet diverse, palates.³ Adding to this, the brand has invested in technologies to make shopping online interactive and convenient, while also streamlining operations to ensure efficient order processing and timely deliveries.⁴

Delivering goods is the heart of Zásilkovna's business – a logistic company that has remained the third top brand for a second year in a row. With top marks in Time & Effort, Integrity, Resolution and Empathy, the shipping brand has augmented their customer-centric approach by investing in its online and mobile platforms to increase transparency, while making the full delivery process seamless for its customers.

Zásilkovna, among others, helped boost the logistics sector into the leading position, just ahead of the non-grocery retail. Yet, the two industries are intricately linked as logistics brands are responding to the increased demands for shipping coming out of the increased investments in building out online shopping capabilities by non-grocery retailers.

The country's recent economic growth is a key driver behind the success of both the logistics and non-grocery retailers. For now, such growth has also given Čedok a boost, moving 86 positions up this year's rankings. In response to the growing desires to travel, the travel agency

"It is remarkable that on the Czech market we have 4 banks in the Top 10. It shows that in the banking sector, brands are clearly more focused on the customer and their needs than in other sectors.

Zásilkovna is a traditional member of the TOP 10. However, this year its competitor PPL also entered the TOP 10. We will see how the situation develops in the next year.

La Formaggeria Gran Moravia has already placed in the TOP 10 in the past, so it can be seen that customers continue to rate this brand above average. A wide selection and quality of cheeses together with a selection of wines etc. complementing the main cheese offer and tasting options are characteristic of this brand and customers appreciate it.

The travel and leisure sector are finally getting fully out of all post-Covid restrictions. Travel agencies now offer more flights to exotic destinations such as the Maldives and Vietnam, and customers appreciate that. Čedok has really jumped up a lot of positions and we will see if other brands in this sector will follow it in the following years.""

Lukáš Cingr
Director, Management Consulting - Customer & Digital
KPMG in Czech Republic

¹https://www.airbank.cz/co-vas-nejvic-zajima/virtualni-asistentka-aneta
²https://www.idnes.cz/ekonomika/domaci/air-bank-karel-horak-ppf-banky-hypoteky.A230915_144809_ekonomika_alis
³https://www.laformaggeriaonline.com/?gclid=CjwKCAjwp8OpBhAFEiwAG7NaEi1ny3m6NsVUH3AoeWt1sk8sx54WFVET74IyI6WkJFHw0LrmvmQ0TxoCr2EQAvD_BwE
⁴https://archiv.hn.cz/c1-67189870-bdquo-parmazanu-ldquo-z-litovle-se-dari-vyrobce-syra-gran-moravia-se-v-trzbach-priblizil-ctyrem-miliardam

The French customer experience

Consumers in France expect personalized experiences that cater to their unique needs and preferences. Brands are responding by mastering consumer data insights to deliver hyper-personalized content, products and services. This is deepening loyalty to brands that even rising inflation has yet to deter.

MAIF is considered France's most loyal company in 2023. Taking the top spot on the CEE rankings, the insurer has been on a five-year journey to improve its customer experience. This has led to the insurance brand scoring particularly well on all pillars, leading with Time and Effort. MAIF has also taken steps to showcase their dedication to policyholders' well-being and satisfaction. For example, the company reimbursed €100 million during the pandemic and offered innovative new on-demand insurance for leisure boating.¹

Chanel and Louis Vuitton take the second and third spots on this year's brand listing. The two luxury brands both made impressive climbs up the list, moving up 8 and 23 spots, respectively.

Chanel's rise comes from their intentional focus on aligning the quality of their high-end experience with the consumer expectations for exceptional products. KPMG in France has supported Chanel's strategy to grow by adding new point-of-sales and extending its market, yet they have been strictly controlling their speed of growth to ensure they can deliver the exceptional brand experience consumers expect at all touchpoints. For example, the luxury brand has made the unique choice to limit ecommerce to products like fragrance and beauty, whereas high-end products (i.e., fashion, jewelry) are only available through brick-and-mortar stores in limited number.

Louis Vuitton scored high marks for Time and Effort, and Personalization. Yet, they led the way in the Integrity pillar, a result of the brand's unwavering commitment to transparency, trustworthiness and ethical business practices – all of which resonate strongly with its discerning customer base.

In addition to Chanel and Louis Vuitton, six other retail brands made it into the Top 10 of this year's rankings. As a result, the non-grocery retail sector was the leading sector for the second year in a row. Across the sector many brands have invested in their omnichannel journey, creating seamless experiences between digital and brick and mortar touchpoints. Further, the sector has done well in addressing ESG issues with sustainable production, new sales models and supporting the circular economy.

French department store, Printemps, made the greatest leap on the brand rankings in 2023, seeing significant progress in their scores for the Expectation, Integrity and Personalization pillars. The brand has introduced stronger customer feedback loops to make more effective data-driven customer experience decisions. In addition, Printemps has demonstrated its commitment to ethical practices and transparency.

As brands face continuing rising inflation rates, they will want to be sure to create exceptional, deeply personalized experiences for their customers by mastering customer data analytics.

“Once again this year, CEE's French rankings bring us their share of surprises and trend confirmations. The insurer MAIF, well known for its focus on customer experience quality, takes first place in the ranking. Luxury brands confirm their positioning. The French play with paradoxes: inflation leads them to consume differently daily, but they remain attached to strong brands and memorable experiences. Leaders are constantly testing and innovating to master the codes of the new, vocal and demanding generations of customers. Omnichannel is now the norm. Differentiation is achieved through the relevance of the message, the immediacy of interactions, and the quality of the customer experience.”

François-Xavier Leroux
Partner Customer & Digital
KPMG in France

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¹https://www.europe1.fr/economie/la-maif-rend-100-millions-deuros-a-ses-assures-il-y-a-une-baisse-considerable-des-accidents-de-la-route-3959465

The German customer experience

Consumers in Germany expect great things from their brands. They want highly personalized in-store experiences. Online shopping should be seamless, flexible and easy. They are also more cost conscious as compounding pressures of high inflation, rising costs of living, and higher prices of food and energy affect about 95 percent of consumers, according to survey data. Altogether, the way customers buy and interact with brands is shifting.

Fielmann has been able to ride the wave of changing consumer behaviors to remain the top brand in Germany for a fourth consecutive year. According to respondents, the optician has been delighting customers with its new omnichannel services, such as a virtual fitting room, which has led to 37 percent growth in its ecommerce business. The family-owned brand also provides employees with training and education to prepare them to provide top tier, customer-oriented service across the sales journey.

Following suit is Lego, which came in as this year's number two brand. With several new stores added to its German footprint, the toy maker continues to invest in ways to make for nostalgic, haptic in-store experiences for their customers. This includes expanding its product portfolio by 48 percent to better meet the needs of customers with diverse interests and wallet sizes. Lego has also reinforced its ESG commitments – a growing concern for its customers – by supporting children through its Learn through Play initiative.¹

ESG remains a major challenge for many companies in Germany's non-grocery retail sector. While many are attempting to become more sustainable, for example by offering more sustainable clothing lines, retailers continue to see retailers to be a drain on the environment. Making things trickier, inflation is expected to reduce retail sales in 2023, compared to last year.² Despite the challenges, the sector topped all the others in terms of customer experience, with 52 of the 77 brands surveyed securing a place in the Top 100.

While the environment is a key concern, especially as the country continues its energy transition, consumers highly prize their time and effort. It's no surprise, then, Uber had the biggest jump in this year's list, moving up 68 places. After 19 months in Berlin, the company has expanded Uber Eats to more than 60 cities in Germany.³ According to our data, the company has also been making strides to personalize their customer experience, seeing the largest improvement in this pillar. They've done so by expanding their services with wheelchair-accessible and last mile services in its ride-hailing business.

“For the first time since conducting the study more than five years ago, Germany's CEE score has dropped. This development is mainly driven by the performance decline in the Expectations pillar – companies are facing increasing difficulties in meeting their consumers' expectations. In order to differentiate themselves from the strong competition, companies should therefore focus on targeted expectation management.”

Tom Lurtz
Partner, Consulting, Value Chain Transformation
KPMG in Germany

¹https://www.lego.com/cdn/cs/aboutus/assets/blt70ef2efdd8d21dc7/LEGO_Annual_Report2022_Final_WEB.pdf ²https://www.zeit.de/zustimmung?url=https%3A%2F%2Fwww.zeit.de%2Fwirtschaft%2F2023-07%2Feinzelhandel-umsatz-gesunken-inflation ³https://www.uber.com/de/newsroom/uber-eats-angebot-in-sechs-weiteren-stadten-verfugbar/

Hong Kong customer experience

Coming Soon.

The indonesian customer experience

Integrity matters to consumers in Indonesia. Trust and transparency in advertising, products and services are key tenets for brands to achieve with their customers. This response may be a result of unfortunate fraudulent practices that are growing across the country, deceiving buyers and cheating honest businesses.

Each of the top three brands in the customer experience rankings scored high in the Integrity pillar. Adidas and Nike, the first and second place customer experience brands in the country, have gained the public’s trust in delivering durable, high-quality products. Adidas talks openly of its data-backed processes behind its latest shoe innovations. Nike has been building their sustainability credibility with by creating more environmentally friendly product lines.

The country's leading Integrity brand is Samsung Store, which rounds out the top three brands. Samsung's customers comment on the knowledgeable and supportive in-store staff that help them determine the best choice to buy, while investing to make their popular products and features are durable, long-lasting and high-performing.

Even with all three of this year's top brands being part of the non-grocery retail, the travel and hotel sector outperformed all the other sectors. The end of pandemic travel restrictions has allowed Indonesian tourism to gradually recover and flourish once again for domestic and international visitors. ESG is increasingly encouraged by the Indonesian government. This has led prominent hotels to adopt ESG practices by implementing energy, water and carbon reduction efforts, as well as providing more sustainable food and beverages.

In addition to environmental concerns, addressing the social challenges facing the country can improve a brand's standing. This includes persisting economic inequality that contributes discrepancies in better education, healthcare and other vital services. Plus, there remains a 26 percent gap in digital literacy and access, which will require investment in infrastructure.

Mobile telecommunications operator, XL Axiata, has been investing in various initiatives and innovations to enhance network performance to maintain signal availability and quality coverage across the country, while increasing network capacity. These efforts have enabled XL Axiata to jump 28 places – the most of any brand.

"In the digital era, the rapid dissemination of negative news regarding mis-selling or product issue has the potential to swiftly erode brand equity painstakingly built over years. While it takes time to cultivate trust, a brand's reputation can be jeopardized in an instant. Thus, prioritizing the seamless integration of digital capability and authentic human connection within the sales force becomes paramount, serving as a safeguard against the pitfalls of mis-selling and fortifying the resilience of a brand's integrity in the fast-paced landscape of today's digital world."

Susanto
Partner, Head of Clients and Market
KPMG in Indonesia

The Italian customer experience

Consumers in Italy are becoming increasingly environmentally conscious. Coming out of a spate of global events – Covid-19, international conflicts, environmental crises – more consumers are seeing it as their duty to do their part to protect the planet. This is influencing their purchasing decisions and their choice to buy from companies who are demonstrating their environmental commitments.

Giorgio Armani's commitment to sustainability and ethical practices in its business operations helped boost the company into the third spot of this year’s top brands, sitting behind Amazon and Apple. According to CEE survey results, Armani consistently ranks among the highest values in the Empathy pillar (7.92).

Empathy extends beyond ESG factors. Facing economic instability and higher inflation rates, consumers are assessing companies in their ability to ensure a fairer distribution of economic benefits. They are also choosing companies that offer competitive pricing – a key reason behind Amazon's jump to the top spot in this year's rankings. Italian consumers also appreciate Amazon's diverse selection of products, quick delivery options and its loyalty program, Amazon Prime, that offers discounts and free shipping.

Amazon is also making significant investments in generative AI to further elevate the customer experience, while optimizing operational efficiencies and provide more advanced services and solutions. Likewise, the Apple Store is actively exploring opportunities to integrate generative AI, to offer customized experiences and to improve the in-store experience even more. ¹

Fostering digitization and adoption of innovative solutions has also been a factor behind Banco BPM's leap up 67 spots in the ranking. Enabling customers with an omnichannel experience, the bank has integrated digital offerings with various engagement methods to create a cohesive, unified journey be it within a branch or online. ²

Despite the potential benefits AI brings to the customer experience, many consumers in Italy and across the European continent are wary about AI. As a result, the European Commission has introduced the AI Act, the world's first law to regulate the use of artificial intelligence toprotect users' privacy rights and data security. This seeks to limit the usability of AI solutions, which may pose challenges in the coming years for brands as they find the perfect balance between innovative AI solutions and compliance with regulations.

“Technological evolution has undergone exponential acceleration in recent years, and hyper-personalization becomes increasingly tangible with the use of big data, AI solutions and predictive analytics. The customer experience becomes seamless, unique and designed to the basis of the context in which they live, their daily habits and needs. In the near future, digital and human experiences will likely have the ability to handle an empathic approach and blend into an inseparable mix.”

Pasquale Ambrosio
Partner, Management Consulting
Customer & Growth – Center of Excellence
Fintech Lead
KPMG in Italy

¹https://www.ilsole24ore.com/art/amazon-sbarca-nell-intelligenza-artificiale-e-sfida-microsoft-e-google-AEsskKHD?refresh_ce=1 ²>https://www.financialinnovation.it/elements/Banking/Opinion-Leader/Digital-Transformation-e-innovazione-nei-modelli-di-servizio-evoluzione-dell-Experience-per-il-Cliente-bancario/

The Japanese customer experience

Consumers in Japan want to be entertained. This comes, in part, as an aftermath of continuous pandemic lockdowns and restrictions. Moreso, it's a result of a long-tradition of Japan's retailers perfecting the customer experience with personalized services and exclusive experiences. Such high standards have empowered consumers to expect great things from the brands worthy of their loyalty.

Tokyo Disney Resort (TDR) and Universal Studios Japan (USJ) are this year's most-favored brands by consumers. Consumers believe they continue to create exceptional experiences worthy of their rising ticket prices. For TDR, it continues to look for ways to improve its customer experience – before, during and after visits to Tokyo Disneyland, Tokyo Disneysea, or its surrounding Disney hotels and facilities. It attempts to do this by regularly updating attractions, shows and park perks with the goal of pleasing its visitors.

Improving resolution in the customer experience is something the country's amusement parks, department stores and luxury brands do well. As a good example, luxury brand, Dior, which ranks third among this year's top brands, turns around accidents and inadequacies that occur in the customer experience to create an exceptional experience for customers. However, for many others, resolution continues to be a sticky point for consumers, producing the lowest average scores across The Six Pillars since 2021.

Many of Japan's brands are finding it difficult to fulfill consumers' expectations. Expectation was the only pillar to have seen a decrease in satisfaction scores compared to the previous year. This downshift comes from brands being unable to consistently deliver against what consumers expect – often in terms of frequent system problems, poor response at support desks, or unilateral changes in service levels customers enjoyed in the past. In addition, customers may have higher expectations for brands because they are equally and continuously comparing customer experiences across industries, including those from brands with leading customer experience, such as GAFAM.

Moreover, differentiated experiences remain a critical tactic for brands in Japan. This may be difficult to achieve especially for retailers that offer similar business models, products or services. Department stores and convenience stores are a prime example where this happens, which makes it easy for consumers to switch to competitors. Looking ahead, brands may want to focus on strategies that will differentiate their customer experience to keep their fans engaged and coming back for more.

Even in such a challenging environment, the desire for luxury among wealthy consumers was the impetus behind Isetan's jump into the top 10 of brands. The department store, which rose 54 points in the rankings, has successfully created seamless customer experiences both online and in-store for consumers. They've done so by enhancing their online shopping experiences with real-time advice and guidance from store employees. This has improved the customer experience and significantly increased the retailer's Time and Effort pillar scores. Isetan has also delivered fun, exclusive events in store.

“For Japanese consumers, Personalization, Integrity and Empathy are linked, to a certain extent, where brands with these high scores in these three pillars results in higher brand loyalties. In these brands, customers often do not expect reasonable price, rather they prefer excellent experiences. These brands offer an exclusive and extraordinary feeling, propose a much-desired lifestyle to consumers, or they are amongst Japan's large specialty store segment (like furniture/homeware retail, book and stationary stores). The focus on in-person experiences, such as accessing physical, personalized products in store, while also offering online touchpoints in the front and back. Currently, there are not many brands in the Japan market that have a clear customer experience strategy. This research shows that customer experience is directly linked to loyalty, so we should recognize the importance of customer experience strategies.”

Hiroaki Ijima
Partner, Head of Customer Experience Strategy
KPMG in Japan

The Malaysia customer experience

Consumers in Malaysia have been forever changed by the pandemic. Online shopping reigns supreme. Mobile payment options and click-and-collect services are also preferred as they make shopping accessible, convenient and budget-friendly. Other pandemic side effects continue to persist: supply chain bottlenecks and consumer good shortages. Inflation is also restricting consumer spending as the demand for basic necessities like rent, services and food remain high.

Maybank, or Malayan Banking Berhad, was able to pull on many of these consumer levers to move up four places to take over the top brand in 2023. The bank continues to build customer-centric omnichannel capabilities. It released the country's first-ever digital home financing solution, Maybank Home2u, and improved its e-wallet, MAE, offering to make budgeting, spending and managing payments easier than ever.^1,2 Maybank also expanded its product portfolio to offer affordable and accessible insurance options to lower-income individuals, while also delivering financial literacy programs and initiatives.³

Social giving, as well as environmental sustainability, are leading values consumers look for in brands. PETRONAS, energy provider and the second leading brand in the country, launched their 12-week accelerator program that offers tech startups mentoring, workshops and industry access to new markets.⁴ Whereas, third-place brand, Watsons, is using their ESG commitments to introduce sustainable products and ingredients, while also offering customers easier ways to reuse and recycle their bottles.⁵

In addition to their ESG efforts, PETRONAS and Watsons also offer their customers convenient, elevated experiences when shopping. The Setel app at PETRONAS makes paying at the pump almost effortless, while also offering the ability to purchase other car-related services, such as car insurance or parking. On top of that, PETRONAS recently launched the Setel Lite app, which is the lightweight version of the app, offering the same refueling experience while consuming less space and mobile data to cater to users with budget smartphones.⁶ For Watsons, they continued to build on their offline plus online shopping experiences, offering customers the ability to “click and collect” their purchases through a drive-thru, while also having access to augmented reality technology in store.⁶

Like the omnichannel experiences being built by Watsons and Maybank, others in the non-grocery retail sector have also made online shopping accessible to their consumers. This is a key win that boosted the sector ahead of all the rest, especially as 77 percent of Malaysian consumers expect retailers to deliver the same cross-channel flexibility they provided during the pandemic⁸

Unifi, Malaysia's telecommunications provider, saw the biggest jump up the brand list, moving 31 spots to 21. The leap appears a result of improvements across all pillars; however, the brand saw the highest increase in Integrity, a result of delivering on their promise to improve their services and cater to its diverse customer base.

As retailers look ahead, they will want to carefully consider the impacts of the economic downturn on consumer spending, which may become more restricted if wages cannot keep up with increasing inflation rates and high costs for essentials.

“In adapting to the changing landscape and shifting priorities post-pandemic, this year, brands continue to actively harness diverse technological innovations to enhance customer experience. Brands are also exploring the expansion of their ecosystem to push boundaries and deliver heightened value to their customers, all with the overarching goal of driving loyalty.”

Alvin Gan
Executive Director, Head of Management Consulting
KPMG in Malaysia

¹>https://www.maybank.com/en/news/2022/03/03.page
²https://www.nst.com.my/lifestyle/bots/2023/05/914946/tech-maybank-launches-cross-border-qr-payment-service-malaysians
³https://www.thestar.com.my/business/business-news/2023/04/24/maybank-mobilises-rm3437bil-in-sustainable-finance
⁴https://www.nst.com.my/business/2023/02/884368/futuretech-30-expands-asia-pacific
⁵https://www.watsons.com.my/pressReleases

⁶https://www.hmetro.com.my/bisnes/2023/04/958910/setel-lite-mudah-diguna-ringkas
⁷https://www.watsons.com.my/delivery-modes-cces
⁸https://kpmg.com/xx/en/home/insights/2022/05/kpmg-adyen-retail-report.html

The Mexico customer experience

Cracking the code on personalization can help unlock customer experience success in Mexico. Yet, for many of the country's companies, from big brands to medium and small companies, this continues to be a long, challenging journey. One that will likely require the strategic use of AI and analytics to really understand their customers – their needs, wants, values and so much more.

This attention to customers is what has enabled the clinical laboratories sector to take off this year. By understanding customer preferences, the industry saw widespread digitalization that is enabling customers to complete time-consuming processes online, and access their records electronically. Leveraging mHealth technologies, consumers are also enjoying more personalized physical and mental health treatments.

Marriot, the hotel brand, rose to second place in this year’s brand rankings as a result of its guest-centric efforts over the year. Sandwiched between Nike in the top spot and Adidas in third, the company has been exploring technologies that can better predict guests’ desires so they can proactively present experiences that are more accessible, inclusive and delightful.¹

Brands across the country are looking to create seamless omnichannel experiences. Nike is doing this exceptionally well where customers are leveraging the app to review products before coming into the physical store to try on their favorite selections and going back onto the app to make their purchases.²

Following in Nike’s footsteps is Berel, part of Mexico’s industrial paint brands. Jumping 64 spots in the country’s brand rankings in 2023, the company has invested in real improvements in POS interactions, ranging from demos to advising customers, while also enhancing its virtual online experience.³

These are steps in the right direction, yet in Mexico, consumers are feeling the impacts of rising costs of living and inflation. With more than a quarter of consumers in Mexico saying inflation is greatly influencing their purchasing decisions, brands should seek out better ways to manage their operations in order to extend cost efficiencies to their customers.

Whereas consumers are looking for a good deal, they are also more socially and environmentally conscious than ever, with 45% of consumers saying they are willing to pay more to a company they see are being ethical or giving back to society.

“Improving and maintaining a high performing levels of customer experience is key to providing value to customers. AI can be very relevant to help develop frictionless customer journeys and implement innovative solutions in record time. Technology offers brands the customer insights it needs to offer customers personalized offerings. However, the human factor remains imperative to inject customer experiences with empathy and trust. The combination of both elements can build a closer, lasting, and more profitable relationship with our customers.”

Manuel Hinojosa
Customer Solutions and CRM Partner
KPMG in Mexico

¹https://es-us.finanzas.yahoo.com/noticias/5-razones-aplicar-inteligencia-artificial-152300767.html<
²https://webmeridian.net/ecommerce/nikes-customer-loyalty-and-retention-strategy/
³https://www.berel.com.mx/quienes-somos

The Netherlands customer experience

Quality is worth paying for in The Netherlands. Consumers, despite feeling the financial pinch in rising costs of living, continue to demonstrate that they are willing to pay a little more for quality products. Dutch consumers also continue to buy from brands that offer human-centered experiences across their offline and online platforms.

Keurslager, a national butcher brand, remains the top brand in The Netherlands – a spot they''ve coveted since being included in the research three years ago. A result that seems surprising as the country becomes more conscious about their meat consumption and its sustainable impact. This consciousness, however, translates into a higher appreciation of a certain quality level of meat, which can be found at Keurslager. Furthermore, what's not surprising, is thatKeurslager remains true to offering highly personalized, truly local in-store experiences, which they enhance by placing stores in the center of small villages and neighborhoods to encourage social interactions among customers. Both the quality, and local and personalized experiences this brand offers, contribute to their top marks in the Integrity pillar.

Similarly, De echte bakker, which returned to third place in the rankings after rising to second in 2022, has demonstrated its commitment to providing its customers with the finest breads and baked goods. Similar to Keurslager, the bakery consistently delivers a local, friendly and positive in-store experience.

With Keurslager and De Echte Bakker in the top three, it's no surprise that the grocery retail sector came out on top in this year's rankings – as has been the case since the start of this survey six years ago, with the exception of 2020. The sector's success comes from retailers creating a truly integrated omnichannel experience that leverages the power of human emotions at key points across the customer journey.

Bol.com does this well. The ecommerce giant, which moved up two spots to second place, received top marks in Personalization, Expectations and Resolution, and continues to outshine its direct competitor, Amazon. This is a result of Bol.com's ability to weave in Dutch culture into its customer experiences and employee benefits.

Consumers have a declining trust in governmental organizations, due to a variety of recent issues. As a result, this affects broader corporate organizations, since consumers have a tendency to perceive large corporates in the same way as governmental organizations. Consumers are looking to traditional brands to put their customers first, engaging them through genuine, empathetic and transparent communications.

KLM has been doing just this. As the airline carrier recovers from the aftermath of the pandemic – where airlines couldn't keep up with high travel demands once restrictions were lifted, it has made strategic investments to improve the customer experience onboard and beyond. This has enabled the airline to rise 76 places – the biggest jump on this year's list.

“Technology remains pivotal in providing the right omnichannel experience, however, equal investments should be made in integrating the human touch into the experience. That, in the end, can really set brands apart and accelerate growth.”

Edgar Molenaars
Customer & Brand Advisory Leading Partner
KPMG in The Netherlands

The Philippines customer experience

Consumers in the Philippines are loyal to their brands. Their loyalty, however, demands integrity. Current economic conditions are also influencing buying decisions as consumers look for brands who can offer competitive prices, discounts and promotions. Convenience is also in focus as consumers select brands that make shopping easy.

Rising two spots from 2022, Jolibee, the country's largest food chain, scored high marks in the Loyalty pillar as it has adapted to various market trends while preserving their roots. To keep customers coming, Jolibee continues to invest in building stores, aiming to add more than 550 stores in 2023.¹

Further, the brand is adding to its growing list of foreign franchises they manage through its joint venture company.

Wendy's saw the biggest move up this year's brand rankings, moving up 17 places. The foreign fast-food restaurant is aggressively expanding across the country, planning to add upwards of 200 new stores, which will double their existing footprint. This expansion will be supported by pursuing franchising option.²

The restaurant and fast-food industry was also the leading sector in the Philippines. In addition to consumers' love for food, brands across this sector have made good use of social media marketing to generate interest in diverse dining experiences and novel food concepts. The sector has also introduced food delivery platforms to make it more convenient for consumers to access their favorite food brands.

Outside of the food sector, Philippine National Bank (PNB) and Metrobank, which sit in the second and third spots on the 2023 brand rankings, were given high marks by consumers and recognized for their integrity.

Metrobank was ranked as one of the preferred choices in banking in the country. Metrobank showed stronger performance this year, and was hailed for their exceptional asset quality and liquidity as compared to its peers. The bank's growth was fueled by their strategic planning as well as their efforts to bring innovative financial solutions and an extensive branch banking network to its customers – all of which varied its banking products, improved client coverage, service delivery and competitive rates, and greatly contributed to its popularity among the public.

PNB has been a financial option for the Filipinos for more than a century now. PNB focuses on delivering an engaging experience to its clients while deepening customer relationships by supporting them through their banking journey. The bank also provides customers with multi-channel financial services through a reliable, easily accessible and secure platform along with amiable rates, which paved the way to attract more customers.

The Philippine market is seeing much growth and competition. This gives consumers power to make selections on the values that are most important to them. It also pressures brands to develop well-defined and compelling brand images that can be backed up with integrity. Simultaneously, companies are investing in innovations and digitalization to keep costs down and enhance accessibility to their products.

"As the country embraces a digital economy, companies and organizations see this as a change and an opportunity for them to place customer experience at the heart of their digital transformation. Amidst all these initiatives, the focal point remains clear, elevating and enriching the lives of the customers where every click, tap and interaction is a step into a world of amazing experiences.”

Imelda H. Corros
Partner, Advisory, Management Consulting
KPMG in the Philippines

¹https://business.inquirer.net/391372/jollibee-group-sets-record-store-expansion-in-2023-after-beating-prepandemic-performance
²https://news.abs-cbn.com/business/03/15/23/udenna-eyes-growing-wendys-contis-store-network

The Singapore customer experience

Consumers in Singapore want pleasant experiences. That is, they want their interactions with brands to leave them feeling happy, personally cared for and on the receiving end of value- added services. Singaporeans are also soaking up the many conveniences that AI brings. At the same time, they prefer customer experiences where they interact with people in real time.

This ability to balance digitization with human-centered service, is what has kept Apple and Apple Pay as the reigning top two brands in Singapore for a second year in a row. In the first instance, Apple uses technology to swiftly respond to customer issues and book in-store service appointments. Service calls, however, are provided one-on-one by an Apple employee either over the phone or in person at the store. As a result, Apple has once again improved their scores in both Personalization and Time & Effort.

Apple Pay stands out in the Time & Effort pillar as well. The e-wallet industry has grown to 70 percent adoption rate in 2023, up from 30 percent before the pandemic.¹This has created an increasingly competitive and crowded market. To differentiate their services, Apple Pay continues to innovate new ways to provide customers with value-added services in safe and hassle-free ways.

Innovation continues to be the heart for Changi Airport. Already consistently ranked the World's Best Airport for 12 years running, among other industry accolades, consumers have now ranked it the country's third top brand in 2023.² The airport's move up four spots, comes as the airport continues to look for ways to make memorable experiences for customers at the airport and beyond. Onsite, the airport offers a gym and swimming pool, shower facilities, nap rooms, and children's play structures. Non-travel consumers can also use the app and benefit from exclusive privileges and rebates.

Aligning with the top three ranking brands, Singapore's non-grocery retail sector placed ahead of the rest. Their lead comes as a result of their growing focus on delivering sustainable and eco-friendly products to customers, while continuing to look for ways to reduce their overall carbon footprint. In addition, retailers across the industry have also continued their efforts to make their processes more efficient, improving overall Time & Effort pillar scores.

Efficiency, especially through the use of technology, is a key driver behind Singapore General Hospital jumping 43 spots up the brand list. For example, the hospital has expanded its use of Robotic Process Automation, which has saved 1,350 hours over a 10-month period.³ However, consumers recognized the hospital for the improvements made to support higher scores in Integrity and Personalization.

As brands look ahead, they'll want to continue to seek out ways to please their customers with human-led digital experiences and value-added services, all the while considering the expected impacts of inflation on spending.

“In an increasingly digitalized world, brands need to tame the tension between the growing influence of technology, driven by the emergence of generative AI, and customers' desire for human touch and empathy. The winning brands will be the ones who can embrace technology while maintaining a human connection with their customers."

Guillaume Sachet
Head of Customer Practice
KPMG in Singapore

¹ https://www.mordorintelligence.com/industry-reports/singapore-payments-market
²https://skytraxratings.com/singapore-changi-airport-is-named-the-worlds-best-airport-2023
³https://www.sgh.com.sg/news/patient-care/more-quality-time-with-patients-thanks-to-bot

The Slovakia customer experience

Like their increasing expectations for quality of customer service, Slovakia consumers' price sensitivity is growing. Faced with higher inflation rates, shrinking disposable incomes and mounting uncertainty, consumers are increasingly influenced by price in their buying decisions.

Our survey suggests that the some of the best bookstores are in Slovakia. This year they occupy the top two places in this year's survey. Martinus, the country's top-ranked brand for the six consecutive years, has paired exceptional customer services with lower prices with its used book purchase and resell strategy. The recycling program purchases books back from customers and resells them at a lower price to readers. In addition to its obvious sustainability benefits, the program keeps prices low enough to allow for sales to continue to flow.¹

The book retailer has also invested in enhancing its user interface within their e-book shop with better book filtering, a strong book recommendation system and other improvements that are enabling a truer omnichannel experience for customers.² A similar effort was made by Fio banka, the third best brand in the country. Coming out of the Czech Republic, the brand has been catching up with bigger national banks by introducing digital services like instant payments and the ability to control finances and investments via an online portal.

These digital investments come as a result of consumers' rising expectations for seamless, frictionless omnichannel experiences. With even minor problems within a digital experience as a possible point of consumer dissatisfaction, many brands are challenged with keeping up with consumers' digital demands, while also creating balanced in-person experiences customers want.

Panta Rhei, another national bookstore brand, is doing this well. The retailer already manages the largest network of bookstores in the country.³ Its strong physical presence allows it to use its well-designed in-store experience where customers can spend a pleasant, cozy time in the café. The brand's dedication to delivering a seamless, personalized omnichannel experience, along with efforts across each of the pillars has allowed Panta Rhei to jump back to the second spot in the brand listings, after being ranked 15 in 2022.

Personalization is the stand out pillar for the logistics sector, which led the market this year. Surpassing the grocery and non-grocery retail sectors for the first time, the sector’s boost was contributed by three of its brands making their way into the Top 20 brand rankings. Whereas notable progress against the Time and Effort pillar helped Prvá stavebná sporiteľňa (PSS), a building savings bank, see the largest positive move in brand rankings, moving from 121 in 2022 to 62 in 2023.

“In 2023, Slovak businesses faced many challenges amid high inflation, economic growth and geopolitical uncertainties. However, despite these headwinds, 15 percent of brands have improved their customer experience score and demonstrated their resilience by refining pricing strategies to maximize value for their clients. Amid this adversity the Time and Effort pillar proved to be the strongest this year, demonstrating the importance of streamlining processes and maximizing efficiency to meet customer needs. As inflation falls bring with it greater economic confidence, these steps can help Slovak businesses to build resilience and take advantage of what the future may hold.”

Quentin Crossley
Managing Partner
KPMG in Slovakia

¹https://www.martinus.sk/knihovratok
²https://www.martinus.sk/pomoc/e-knihy/info
³https://www.pantarhei.sk/predajne/

The Thailand customer experience

Consumers in Thailand are quickly becoming digital gurus. Since the pandemic, the digital evolution has revolutionized the way customers live, shop and engage with companies. Adding to this shift and focusing consumers on their perceived value interacting with businesses, has been the rising cost of living in the country where GDP growth has been low and inflation high.

KASIKORNBANK (KBank) is this year's top brand in Thailand, scoring highest in Time & Effort (8.56) and Personalization (8.53). KBank's move up from second place in 2022 came from its investment in advancing its mobile app and from expanding its digital ecosystem to include ecommerce, payments and wealth advisory. KBank has also begun to bring in value-added services in segments such as clean-energy transportation, education, public health and tourism.

Apple, which sits in the number two spot this year, has achieved outstanding scores for Integrity (8.95) and Personalization (8.62). The brand not only delivers innovative products that seamlessly connect to each other, they offer in-store workshops to train users to make the most of their technology.

In third place is Siam Commercial Bank (SCB). The bank jumped 26 places over the previous year due to their offering a range of financial services that are delivered in-person and online. SCB also continues to attempt to infuse a human touch in what they do, with the goal of enhancing their services and meeting their customers' changing needs, while also leveraging customer data collected through its mobile app and other technologies.¹

With two of the country's largest banks, SCB and KBank, being in this year's top three brands, it's evidence that the banking sector leads the way for other industries in Thailand. A significant portion of the Thai population has access to financial services this and makes winning new customers challenging forthose in the sector so a tailored and seamless customer experience is key to retaining market share. The country's high digital penetration for financial services – the most in all of ASEAN – drives banks to meeting consumers' digital demands with cutting-edge digital products and services that cater to a wider demographic and deliver a positive experience.

ESG in banking and across all sectors is also becoming a key criteria consumers consider when choosing brands. This rise in sustainability is leading consumers to favor sustainable products as well as those made and packaged in recycled materials. In addition, the Thai government recently updated its climate targets to reduce greenhouse gas emissions by 30 percent by 2030.² Altogether, companies will need to take a closer look at their ESG practices across their products as well as their operations. KBank, for example, has installed solar panels on office buildings and is moving to electric company vehicles. ³SCB now offers “green loans” to encourage its retail customers to adopt alternative energy products.⁴

“We have seen an overall decline in the scores across all CX pillars in 2023 which is driven by a change in customer expectations post pandemic, during which time the acceleration of digital adoption providing a more optimal CX is now becoming the norm. This tells us that the pursuit of excellence in CX will never be over and with this in mind, investments in technology, digital and data capabilities need to be maintained and not just be seen as a one-off initiative. This is evidenced by the results of large domestic banks in this year's survey, who have very much maintained a focus on significant investments across these areas.”

Christopher Saunders
Partner, Head of Advisory
KPMG in Thailand

¹https://www.scb.co.th/en/about-us/news/feb-2023/2023-scb-vision.html
²https://unfccc.int/sites/default/files/resource/Thailand%20LT-LEDS%20%28Revised%20Version%29_08Nov2022.pdf
³https://www.kasikornbank.com/th/career/Pages/possible-story/life-esg-kbank.html
⁴https://www.thairath.co.th/news/sustainable/2712671

The Türkiye customer experience

Consumers in Türkiye appreciate luxury products. Even as the country faces higher inflation rates and rapidly escalating tax rates, consumers are using their purchasing power to invest in long-lasting, quality brands that prioritize the customer experience with personalized products, cost effective offerings and a commitment to ESG practices.

The non-grocery retail has made investments across each of these areas. As a result, the sector ranks at the top of Türkiye's first-ever customer experience rankings with scores above 8 across all six pillars. Several sub-sectors, namely electronics and petrol stations, have emerged leaders within the non-grocery retail space.

Dyson and Apple rank the top two brands, respectively, in the country. Both are high-end brand that offer time-tested and innovative products that consumers deem worthy of the higher price tag. However, consumer loyalty comes as a result of each company's efforts to invest in the areas most important to their customers. Dyson, for example, offers a customer-centric local e-commerce platform at dyson.com.tr. Moreover, Dyson allows customers to buy their product directly from the manufacturer. Customers can also customize their products with their initials when buying in store. Also, Dyson strategically places their pop-up stores in premium shopping malls, and offers fast, free shipping and an easy return policy to increase customer satisfaction.¹

Notably, Dyson's has demonstrated its ESG commitments to diversify their workforce. At the retail level and behind the scenes across its engineering teams, Dyson has made concerted efforts to better balance its human resources in terms of genders, cultures and backgrounds.

Integrity has been a key pillar of Apple's success in 2023. Despite inflationary pricing and higher taxes on high-tech products, consumers trust Apple's high-speed and reliable customer services, unbreachable firewalls and data privacy measures. As a result, they are opting for previously owned products, which they are able to customize and purchase in-store as easily as they can online. To make this easier for consumers, Apple has authorized prominent resellers and distributors to sell their products and services, and provide support.

Opet is a good case in point. The national petrol retailer ranks third in the country's brand rankings and proficiently tapped into the emotions of the Türk consumer, connecting customers with advertisements that resonate with cherished values and sentiments. Something international competitors have been unsuccessful in doing. Opet has also invested in customer-centric programs that have elevated the experience at their petrol stations. As they fill up their cars, they can also access well-maintained and high-tech toilets, well-stocked markets and cheerful station personnel.

“The organizational structure of any institution no longer consists solely of its employees. Every person you see on the street and every customer can become a part of your organization, making strategic decisions and shaping the future together. Each individual is both a requester of the demand and a shaper of the supply. The companies, who can leverage what they see today, will likely be the ones who shape the future for tomorrow.”

Ayşegül Eser
Director, Strategy & Operations
KPMG Türkiye

¹https://www.dyson.com.tr/

The UAE customer experience

Consumers in the United Arab Emirates want to engage with friendly, attentive staff who are willing to support them at key points along the customer journey. Yet, companies are challenged in providing seamless omnichannel experiences as well as the effective digital tools (e.g., chatbots) or skilled customer service staff to effectively address customer inquiries.

For brands like Emirates, offering comfortable, safe and reliable flights supported by advanced technologies, and friendly staff attentive to every little detail is a key strategy that has kept it the top brand in the UAE for three years running. The airline offers extensive movie selection and quality food on board. Emirates focuses on personalizing the experience for its customers at every touchpoint of the journey, such as observing global holidays and offering premium economy seating.

Etihad Airways is catching up to Emirates, climbing four places to become the third top brand in the country. Over the past five years, the airline has been committed to enhancing its customer experience, investing in advanced technologies to offer more personalized and seamless services, empowering their employees, and attending to the finer details like crew behavior, food quality and aircraft quality.¹

The airline industry, overall, has made a strong comeback from the pandemic as global travel has increased and the UAE is increasingly becoming a business and travel hub. While the oil industry continues to lead the economy, the country has made substantial investments in various sectors, such as tourism, real estate, retain and technology. This diversified approach has resulted in a 6.6 percent growth of the non- oil sector over the last year, fueled by thriving real estate and tourism industries.²

Air Arabia, the low-cost airline, has expanded its flight routes, while also putting in place strategic investments to offer in-flight customer service that comes closer to luxury airlines and resolve issues in a timely and friendly manner.³As a result, the airline jumped 36 spots up the brand rankings, achieving the biggest positive move.

UAE's airlines offer other brands a guide to improving their customer experience. Where companies should favor human-provided, empathetic customer service over emotion-less chatbots and FAQs. They should also look for ways to integrate technologies and processes that cross departments to create more cohesive, seamless experiences for customers. The challenge here, however, will be companies overcoming cultural hierarchy norms that maintain strong siloed ways of working. Companies are also challenged by the shortage of skilled professionals in the key areas like technology, customer-experience design, and data and analytics.

"In this year's study, we witness the UAE's CX landscape flourish through heightened technology investments, unwavering customer service focus, and an expanding array of diverse offerings. A data-driven ethos empowers these advances, underpinning operational efficiency. Yet, amidst this progress, challenges persist, notably in technology maturity, siloed workflows and channel-consistent experiences. Addressing these hurdles with empathy while refining CX measurement will drive the UAE towards an even brighter CX future."

Goncalo Traquina
Partner, Head of Customer Advisory
KPMG in the United Arab Emirates

¹https://www.etihadhub.com/en-ae/news/special-meal-requests
²https://www.majidalfuttaim.com/docs/default-source/reports/state-of-the-uae-retail-economy-q4-2022.pdf
³>https://www.airarabia.com/en/investor-relations

The UK customer experience

In tougher economic times many organisations have struggled to keep customers on-side and are having to work harder than ever to maintain and build great customer experiences. This year overall perceptions of customer experience have dropped to pre-COVID-19 levels, falling 3.8% in the UK in the last year. A combination of rising expectations, concerns over value and, as organisations rely more and more on digital channels, a marked fall in empathy.

UK consumers want organizations to resolve their problems quickly and with little friction. Knowing this, brands are turning to AI to play ever-bigger roles in their customer and colleague experience. With chatbots, personal assistants and more, organizations are testing AI and other technologies with simple models and algorithms in key processes to better understand how it can fuel their customer experiences.

However, customers do not want to interact with faceless technology, they want the technology to reflect the brand and personality of the organization they are dealing with, they also want a human in the loop, there when needed.

The leading organizations in this year's index understand the need for the technology to have human attributes and to be, in effect, a virtual colleague.

Each of the top three organizations in 2023 are leveraging humanized AI tools effectively. first direct, ranked first in the UK, is striking the right balance between human and machine when anticipating and responding to customer needs, so much so its digital bot “Dot” creates the same high level of satisfaction as its human colleagues.

Lush, coming in second place, has also introduced an AI chatbot called Marvin to keep pace with the rising volumes in customer experience as the business continues to expand. Marvin, like Dot, is designed with the goal of achieving high levels of customer satisfaction, while at the same time serving as a helpful colleague for members of Lush's contact center.

Ranked third, American Express has also been operationalizing AI in small, secure use cases, all focused on making their customers' lives simpler and easier. Its generative AI implementation 'Gen X' was believed to be one of the largest AI implementations in a commercial business when it was launched.

“Artificial intelligence is a quintessentially human problem. It's not about technology, use cases and lowering costs, but creating human value, safely and with integrity. So many organizations are embarking on their AI journeys haphazardly – there's never been a more important time to look to the world leaders.”

Tim Knight
Partner, UK Head of Customer & Operations
KPMG in the UK

¹firstdirect.com/press-releases/articles/dot-the-bot-launch
²https://www.ultimate.ai/customer-stories/lush
³emergingtechbrew.com/stories/

The US customer experience

American consumers have great expectations of the brands they do business with – superior service, convenience, sustainable options and lower prices. Feeling the sting of higher prices across industries, shoppers are keen to stretch their budgets. Yet, their aim to make more cost-conscious spending decisions is often challenged by their desire to choose more sustainable goods. Convenience is also prized, but sophisticated shoppers want to ensure the advanced technologies making their lives easier are infused with human interaction points that don't take away from the overall customer experience.

H-E-B, a grocery retail chain, has been awarded the top brand spot in the US market for delivering excellent customer experiences. A key element of their success has been achieving the highest scores in the Personalization pillar, which they demonstrated by investing in their communities and bringing local brands into their stores. To further personalization while improving efficiencies, the retailer leverages machine learning models to analyze shopper and cart data from their online store to inform decisions around product inventory and pricing, as well as product positions in-store and less obvious product substitutions. All of which creates frictionless interactions in-store and with scheduled pickups from online grocery shopping.¹

The grocery retail sector continues to outperform all other sectors, grabbing top scores across all six pillars. Changes to the grocery market are happening fast, and trends that first emerged during the pandemic are persisting and reshaping the industry. The use of AI and other advanced technologies is a key trend in the industry, which is being used to improve in-store experience and create seamless omnichannel strategies that support customized inventory and lower prices.

Advanced technologies, like Natural Language Processing (NLP), have been a key contributor to USAA snagging the second spot among top US brands. Using this AI capability, the insurer is able to better categorize customer issues and calls, while pinpointing where human interventions would be most valuable to customers during the auto insurance claims journey or in building summaries for life insurance underwriting.

As more brands integrate technology into their operations, their challenge will be to create meaningful customer experiences. Humana achieved this in 2023, making the biggest leap up the brand ranking. The health insurance provider moved 119 places by using data inputs to inform and personalize their offering to better meet the needs of their customers.

As other brands look to improve their scores next year, they will want to find a fine balance between leveraging the power of data with continuous and measurable customer feedback.

“Customers are looking to feel valued after the pandemic. In a tight labor market, the overall experience has declined and prices have risen sharply. Companies seeing profitable growth are delivering technology efficiency with intimate customer empathy and understanding.”

Jeff Mango
US Customer Experience Practice Lead
KPMG in the US

¹>https://www.calligo.io/client-success/machine-learning-data-science/heb-stores/

The Vietnam customer experience

Integrity is paramount for consumers in Vietnam this year. As customers tighten their budgets due to rising inflation, they choose to purchase from brands they can trust to deliver on what they promise without taking advantage of those with limited knowledge in specific sectors. Integrity also stretches into personal data protection especially with the exponential growth of data collection and processing.

Shoe giants, Nike and Adidas rank first and third among the top customer experience brands in Vietnam. Each of these brands performed well in the Integrity, Time & Effort, and Expectations pillars. In the first instance, Nike unveiled its flagship store in Hanoi that emulates a home that includes household items and shoe shelves that one might find within their own living space. ¹ Evoking domestic comfort, Nike has attempted to build trust with its customers by localizing its retail experience.

Adidas, has also focused on localization. Earlier this year, in the spirit of The Year of The Cat, Adidas launched a new collection called “Spring Forward” that was designed to motivate Vietnamese youth to seize opportunities and pursue their goals. The brand is also working to support its community, bringing its global initiative to the country to create safer sports environments for women, with the goal of enabling women to engage in physical activity confidently.²

Such ethical behaviors that give back to society is highly prized among Vietnamese consumers. A majority (87% based on CEE data) are willing to pay more for products and services offered by eco-friendly and ethically conscious brands. Consumers also embrace the circular economy with a higher tendency to purchase second-hand items more regularly compared to the global average. Ethical shopping practices are particularly pronounced among Vietnamese Gen Z and Millennials, surpassing the levels seen among Baby Boomers.

Viettel is known by its customers for technologically advanced mobile services. It ranks second among the top brands for customer experience, a result of its use of AI in its network management and monitoring activities. With AI, the brand is able to capture and analyze customer demands and real-time network capabilities, anticipate development trends, proactively identify situations, issue alerts and requests for intervention – all with the goal of reducing customers' time and effort.

As other brands look to improve their scores next year, they will want to find a fine balance between leveraging the power of data with continuous and measurable customer feedback.

Consumers ranked the Restaurant and Fast-food industry as the leading sector this year. Two out of five brands from this sector rank among the top 10 brands – a result of significant improvements each brand has made across customer experience pillars. As of November 2022, Highlands Coffee underwent a rebranding to embrace community values. Committed to infusing the essence of the "heart" into their daily operations, the brand has adopted an approach where customers are treated with the same care and respect as one would offer to their loved ones. Through this strategic shift, Highlands Coffee has not only elevated their service quality, but has also fostered a genuine connection with their customers.

"In this era of uncertainty, businesses face both challenges and opportunities. It's crucial for them to adapt to changing dynamics, leverage technology, and prioritize Integrity as well as Expectations. Customers, even with tightening budget, value fulfilling experiences and will invest in brands that embody these qualities, positioning them for success in the future.”

Nguyen Tuan Hong Phuc
Partner, Head of Customer & Operations Consulting
KPMG in Vietnam

¹https://vnexpress.net/nike-ra-mat-khong-gian-mua-sam-the-thao-moi-tai-ha-noi-4614115.html
²https://www.globalbrandsmagazine.com/new-adidas-study-finds-92-of-women-are-concerned-for-their-safety-when-they-go-for-a-run/