How to reap the rewards of customer loyalty

By Andreas Marathovouniotis

Brands with a strong commitment to personalizing customer experience (CX) and that consistently deliver high-quality CX reap the rewards of customer loyalty, according to a new KPMG report titled, “The Connected Experience – U.S. Customer Experience Excellence Report.”

“Leading organizations in our research are delivering exceptional experience across the customer lifecycle, and have been successful in building unique emotional connections with their customers,” said Julio Hernandez, who leads KPMG’s U.S. Customer Advisory practice. “Organizations that move beyond the ‘consumer’ to the ‘individual,’ with a focus on purpose and personalization, achieve greater customer loyalty – which can translate to sustainable financial gains, increased profitability and enhanced shareholder value.”

U.S. organizations are making steady progress this year with the U.S. CX score increasing to 7.71 out of 10 in 2019, from 7.65 out of 10 in 2018. Averages have increased because laggards have improved and it is being acknowledged by the consumers surveyed. However, a strong convergence of scores in the upper range makes differentiation more difficult. According to the report, this results in increased customer expectations and performing well becomes the minimum standard required.

Results from the global CX excellence survey also show that CX quality is improving around the world. All countries researched in 2018 have seen an uplift in their overall Customer Experience Excellence (CEE) score this year. The top-ranked brand in each market typically outperformed the respective market average score for each of the six pillars of Customer Experience Excellence (Personalization, Time and Effort, Expectations, Integrity, Resolution, Empathy) by around 10 %. More information about the global findings of the survey can be found in the “Customer First. Customer Obsessed” report.

The 2019 Top 10 U.S. Brands

The top 10 U.S. brands continue to stand out against the rest of the pack, with an average increase in their scores over the last year. Five brands achieved a score of 8.5 or more in 2019 (Navy Federal Credit Union, H-E-B, Chick-fil-A, USAA, and Edward Jones), compared to just three in 2018. Below are the 2019 U.S. top 10 brands:

1. Navy Federal Credit Union

2. H-E-B

3. Chick-fil-A

4. USAA

5. Edward Jones

6. Amazon

7. L.L. Bean

8. Costco Wholesale

9. Polo Ralph Lauren

10. AAA

Top Industry Performance

This year’s results demonstrate that top ranking is not exclusive to any particular industry, but can be achieved by companies in any sector if they have a strong enough commitment to deliver a high-quality customer experience every time. Below are the 2019 U.S. top 10 industries:

1. Grocery retail

2. Non-grocery retail

3. Restaurants and fast food

4. Financial services

5. Entertainment and leisure

6. Travel and hotels

7. Logistics

8. Utilities

9. Telecommunications

10. Public sector

Methodology

The research for this year’s U.S. report was conducted via an online survey and was completed in May 2019. A total of 7,552 U.S. consumers who had interacted with a brand in the last six months were interviewed. Each brand needed a minimum of 100 consumer responses to be considered.

Findings of the global report were based on 84,066 consumers in 20 countries, regions and jurisdictions, providing feedback on 2,075 cross-sector brands to determine which organizations are delivering standout customer experiences in 2019.

This week at Salesforce Dreamforce, Julio Hernandez and other KPMG leaders are discussing customer experience excellence. For more information or to arrange an interview, please contact Christine Curtin or Andreas Marathovouniotis.