Foreword
The KPMG Customer Experience Excellence (CEE) annual report underscores the pivotal role of orchestrated experiences in shaping the landscape for leading companies and brands. These experiences aren't just random occurrences. They're the result of carefully planned efforts to create smooth interactions that help customers achieve their goals and make them happy along the way. Against a backdrop of heightened global uncertainty, the imperative for accelerating digital transformation in business looms larger than ever before. Customers, empowered by digital technologies, now demand a more fluid and cohesive journey, with little tolerance for subpar experiences. As the ubiquity of AI continues to permeate organizational frameworks, the potential for its transformative influence on redefining the paradigms of customer experience excellence across industries becomes increasingly pronounced.
This year, our global report confirms a declining trend in customers’ perceptions of their experiences, and UAE is not immune to this fact. Although we witness a positive evolution in 17% of the brands, the remaining market shows a decline pushing the UAE’s CEE score to an overall drop this year compared to last year (-1.5%).
Customers attribute this decline to an overall failure of brands to meet their expectations. Technology also contributed to the fall, specifically in the way companies implemented technology that shepherded customers into low-cost and low-satisfaction channels - channels that lack empathy and the human touch.
For the last 14 years, we’ve looked at how the world’s best organizations connect customer excellence to lower costs and faster growth. In 2023, we reached a tipping point in business adoption of artificial intelligence (AI), which is radically rewriting the rules of the game.
Trendsetters have already successfully built practical use cases for AI applications, many organizations are still assessing how AI can be successfully implemented, while balancing opportunities and inherent risks, in a context where both regulators and customers are increasingly concerned with transparency, data privacy, and ethical use of AI.
Despite these concerns, our prediction is that AI trendsetters will have the advantage of illustrating the extraordinary opportunities the technology can provide while leading the upcoming social and economic changes to come.
We can anticipate that part of these innovations will first happen in the region, driven by the UAE's 2017 National AI Strategy, which aims to catalyze innovation in both the private and public sectors. The strategy aspires to make the UAE a global AI leader by 2031 through AI integration into customer services to enhance citizen life and government efficiency.
Finally, despite concerns about the cost of living, most consumers prioritize environmental and social responsibility in brands, as evidenced by 58% of young GCC Arabs willing to boycott environmentally neglectful firms.
Customers are showing increased interest in sustainable and eco-friendly practices, as well as a willingness to pay the right price for goods and services that are consistent with their personal values. This phenomenon has recently urged some brands to issue communications and marketing campaigns to highlight their values, ethics, and social involvement, among other factors.
Being a Customer Experience leader in the UAE requires delivering the right combination of seamlessness, convenience, personalization, and purpose.
The six pillars of customer experience excellence
Even in a world fueled by technology, the KPMG Six Pillars of Customer Experience Excellence still define the elements of great experiences. They act as design principles providing guidance on how to incorporate best practice into creating world-class customer journeys.
Personalisation
Using individualised attention to drive an emotional connection.
Integrity
Being trustworthy and engendering trust.
Time and effort
Minimising customer effort and creating frictionless processes.
Expectations
Managing, meeting and exceeding customer expectations.
Resolution
Turning a poor experience into a great one.
Empathy
Achieving an understanding of the customer's circumstances.
Leading in the UAE
customers interviewed
brand evaluations
brands
Market view
Despite global economic challenges, disruptions in supply chains, and high inflation, the UAE economy has remained remarkably resilient. While oil continues to be a significant contributor to the UAE's robust economy, other sectors are also on the rise. The country has made substantial investments in various sectors such as tourism, real estate, retail, and technology. This diversified approach has helped the economy grow and remain strong. For instance, in 2022, the non-oil sector expanded by 6.6%, fueled by thriving real estate and tourism industries.
The real estate sector is experiencing a boom, with property sales hitting a 12-year high. Sales increased by 60% compared to the previous year, reaching a total value of AED 265 billion. This surge can be attributed to several factors, including government initiatives, a positive economic outlook, and the country's attractiveness to high-net-worth individuals as a secure investment destination.
Tourism in the UAE has also seen significant growth, primarily driven by the reopening of international travel and major global events like EXPO 2020 and the FIFA World Cup in neighboring Qatar. Additionally, government initiatives such as visa reforms and the launch of the National Tourism Strategy 2031 have further boosted tourist arrivals. As a result, the total number of international visitors to the UAE more than doubled, reaching 14 million.
From a consumer perspective, even though the cost of living has increased, optimism about the economy is growing. The UAE boasts one of the highest per capita incomes in the world, providing consumers with greater purchasing power.
Hall of fame
The lifting of global travel restrictions related to the pandemic, along with the ongoing recovery of both business and individual international travel, has positioned the UAE as a major travel hub and a top tourist destination. The country's strategic location between Europe, Asia, and Africa, as well as an increasing number of available routes, further enhances its appeal. This has enabled the two local top airlines – Emirates and Etihad Airways – to see their passenger carrying capacity used at about 80%, a huge increase compared to the previous year. In this year's survey, we have seen a significant rise in the rankings of low-cost carriers. - but also to marked improvements in service quality, including route options, punctuality, in-flight entertainment, comfort, and digital platforms for travel planning and booking. Government investments are also supporting this growth, as illustrated by the opening of a new state-owned terminal at Abu Dhabi International Airport in early November - The Midfield Terminal - which was designed to complement the growth of Abu Dhabi’s Etihad Airways as it competes with neighboring global carriers Emirates and Qatar Airways.
Hall of fame brands
This year's top rankings in the CEE report showcase the continued dominance of airlines, with Emirates maintaining its leadership position for the third consecutive year. However, the landscape is shifting, with Etihad Airways challenging the leader and bagging the third spot. Financial services organizations are making a strong comeback, propelled by enhanced digitization, expanded service offerings, and a more personalized approach to customer service.
Top three movers
In this year's CEE report, three companies – Air Arabia, HSBC and Deliveroo - have made remarkable strides, positioning themselves at the forefront of customer satisfaction and efficiency. Each witnessed a notable increase of 3% on the CEE metric. Their ascent can be attributed to concerted efforts in minimizing customer effort and establishing frictionless processes. Moreover, they have demonstrated a remarkable ability to transform poor experiences into exceptional ones, showcasing a commitment to excellence and innovation in their respective industries. As leaders in their fields, these companies serve as exemplars of what it takes to not only meet but exceed customer expectations in today's competitive landscape.
Leading in the age of AI
AI and customer experience: insight from the UAE
In the UAE, the adoption of AI reflects and amplifies the global trend towards enhancing customer experience (CX), with the region emerging as a leader in AI integration across various sectors. From aviation to retail, the UAE's public sector and businesses are using AI to exceed citizen and customer expectations, establishing a standard for both regional and global markets.
The UAE is actively integrating AI into CX strategies, with companies embracing digital transformation not just as a response to the pandemic, but as a strategic initiative to improve customer engagement and keep pace with changing consumer behaviors. This shift underscores the critical role of AI in transforming customer interactions.
The use of cloud computing and AI in CX strategies marks a significant advancement for the UAE's business environment, making advanced technologies more accessible to a wider range of organizations and fostering innovation and competition across sectors. Despite these advancements, there's still a gap in technology adoption among businesses, indicating room for growth in the UAE's CX domain. As more companies integrate cloud and AI into their strategies, the expectation is for a more inclusive market where excellent customer service is a standard feature.
The emergence of data-driven personalization in the UAE
In the UAE, AI's impact on customer experience (CX) has evolved beyond simple automation to include advanced, data-driven personalization. Businesses are using AI to analyze customer data and deliver tailored experiences that align with individual preferences and behaviors. This approach is enhancing the quality of customer interactions, improving CX metrics, and adding significant business value. This progress highlights a key phase in the UAE's move towards an AI-enabled future, embodying the global view of AI as a driver of innovative, customer-focused business models.
The UAE exemplifies the transformative power of AI in CX strategies, demonstrating its ability to meet current market demands and predict future trends.
In this report, we have selected case studies highlighting how AI is innovatively used to increase customer satisfaction and loyalty locally.
AI implementation
Looking ahead
Integrating AI into customer experience has shifted from a mere trend to a critical strategy for companies, especially within the UAE's dynamic market. Insights from our report highlight how effective and ethical AI can support companies with driving higher customer satisfaction and growth. As the UAE solidifies its position as a technology leader, AI's role in customer experience is expected to grow. Companies that skillfully use AI are more likely to meet current needs and anticipate future customer expectations, leading in technological adoption and customer journey innovation. The UAE's government and businesses have shown foresight in adopting AI, showcasing its ability to improve customer interactions and streamline operations. Moving forward, evolving and refining AI strategies will be crucial for staying competitive and offering outstanding customer experiences. Integrating AI into customer experience is a journey of continual innovation and improvement. Companies that approach this journey with a strategic mindset will not only thrive in the UAE but also set global standards.
Read the full report
Customer Experience Excellence 2024: United Arab Emirates
Extraordinary engagement powered by intelligence
Download the report (8 MB) ⤓
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