Scaling personalized customer experiences with AI
Artificial Intelligence (AI) is opening up new and profound possibilities for organizations to deeply personalize the customer experience like never before.
With AI, companies can transform the customer journey and radically rewrite the rules of the game. They can also improve costs to serve, reduce friction and improve customer satisfaction.
For 14 years, KPMG professionals have been asking consumers about their individual experiences with brands. This year, the KPMG Global Customer Experience Excellence (CEE) 2023-24 report explores what AI will mean to the customer experience. It investigates how companies can use AI to orchestrate journeys across the enterprise to deliver stand-out experiences that will win customers time and time again.
Yet, today's technology is holding brands back. The 2023-24 CEE report saw a global decline in customer perceptions of their experiences. Only two countries out of the 21 included in this year's study, saw a rise in customer satisfaction. The remainder all witnessed declines, and in some countries, a significant decline. Customer attribute the decline to an overall failure of brands to meet their expectations. Technology was also identified as a contributor.
The Six Pillars of Customer Experience Excellence:
Even in a world fueled by technology and affected by a cost-of-living crisis, the KPMG Six Pillars of Customer Experience remain the essential dimensions of great customer experiences. They act as design principles, providing guidance on where companies should focus to improve experiences for customers.
Personalization
Using individual attention to drive an emotional connection
Empathy
Achieving an understanding of the customer's circumstances to drive deep rapport
Expectations
Managing, meeting and exceeding customer expectations
Time and effort
Minimising customer effort and creating frictionless processes
Resolution
Turning a poor experience into a great one
Integrity
Being trustworthy and engendering trust
Customer Experience in The Netherlands
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
Top 10 companies
In alphabetical order
- bol.com
- Coolblue
- De Echte Bakker
- Keurslager
- Lush
- Nespresso Boutique
- Pearle Opticiens
- Picnic
- Rituals
- Van der Valk Hotels & Restaurants