As featured on PhilStar: Customer experience excellence in this digital world
The Philippines is accelerating its digital transformation, with artificial intelligence (AI) at the forefront. AI brings both challenges and opportunities in enhancing customer experience (CX). While AI-driven personalization enables more tailored, efficient, and seamless customer interactions, it also raises concerns about labor market disruptions, ethical implications, and data privacy regulations. KPMG’s Customer Experience Excellence (CEE) 2024 Report explores how leading organizations combine AI with human ingenuity to power CEE.
Evolving customer expectations and the role of AI in customer experience
Insights from the CEE 2024 Report reveal shifting consumer expectations in the Philippines. Surveying over 10,200 Filipino customers across 61 brands in eight (8) industries, the report underscores the growing importance of empathy, responsiveness, and ethical business practices.
AI presents an opportunity to fine-tune the customer experience in a way that resonates with the discerning preferences of the Filipino consumer
Imelda H. Corros
Management Consulting Head
Local Lead Partner for Customer Advisory
R.G. Manabat & Co.
The study evaluates customer experiences across brands and geographies, using KPMG’s Six Pillars of Customer Experience Excellence: (1) Personalization, (2) Time & Effort, (3) Expectations, (4) Integrity, (5) Resolution, and (6) Empathy. This year, Integrity and Personalization emerged as key factors influencing Filipino consumer confidence. These pillars highlight the growing need for brands to balance AI-driven efficiency with ethical business practices and meaningful customer connections.
Key customer preferences
Filipino consumers value brands that integrate advanced technologies while maintaining ethical, empathetic, and customer-focused practices. KPMG’s CEE 2024 report identifies several crucial themes businesses must consider:
- Empathy & Compassion – Customers favor brands that demonstrate genuine care, especially in challenging times. One respondent noted, “Brands that have compassion and concern for their customers embody empathy and compassion”, emphasizing the role of emotional connections in fostering loyalty.
- Customer Service Excellence – While perfection is unattainable, customers prioritize timely and efficient support. AI can enhance service quality through automation, but human oversight remains essential to maintaining customer trust.
- Effortless Experiences – Consumers appreciate hassle-free interactions. One customer shared how a brand resolved a second-hand product issue “without extra cost” and with minimal documentation, highlighting the demand for seamless, frictionless experiences.
- Ethical and Sustainable Practices – Filipino consumers are increasingly drawn to brands that balance environmental responsibility with quality. Forty-five percent (45%) expressed extreme willingness to pay more for companies that uphold ethical practices and contribute positively to society. Generational differences also shape spending habits. Younger consumers are more inclined to invest in personalization, convenience and social validation, while older consumers prioritize value, reliability and cautious spending.
Industry leaders in CX excellence
Certain industries and brands excel in meeting consumer expectations:
Top 5 Industries in CX Performance (CEE 2024 Score)
- Restaurant & Fast Food (8.27)
- Grocery Retail (8.16)
- Non-Grocery Retail (8.13)
- Travel & Hotels (8.00)
- Logistics (7.88)
Shifting market dynamics in customer experience
For the first time, ‘Gas/Petrol Station’ sub-sector outperformed ‘Banking’ in CX rankings, reflecting changing consumer priorities. Meanwhile, ‘Supermarkets’, ‘Payment Services’, ‘Airlines’, and ‘Online Retail’ sub-sectors showed notable improvements, while ‘Cable & TV/Internet Services’, ‘Delivery Service’, and ‘Telecoms Providers’ fell below the market average CX score of 7.91.
Top 10 Sub-Sector Brands:
- Gas Station/Petrol Station
- Fast Food
- Banking
- Supermarket
- Payment Service
- Airlines
- Online Retail
- Cable & TV/Internet Services
- Delivery Service
- Telecoms Provider
Elevating CX excellence in the AI Era through KPMG’s Advisory
To navigate the evolving AI landscape and ensure superior CX, businesses need expert guidance on responsibly harnessing AI. KPMG’s customer advisory services help organizations:
- Optimize customer service operations by balancing automation with human touch.
- Develop ethical AI frameworks addressing data privacy, job security, and emotional intelligence.
- Implement AI-driven personalization strategies that maintain authenticity and trust.
- Align CX strategies with the Six Pillars of Customer Experience Excellence, ensuring customer expectations are met with integrity and empathy.
As AI reshapes customer interactions, businesses that prioritize transparency, ethical responsibility, and human-AI synergy will lead in delivering world-class customer experiences.
Methodology
The survey, conducted from May-July 2024, targeted a national representative sample in each market. Respondents interacted with the brands in the previous 6 months, with interactions including purchasing; using products/services; contacting brands; or browsing websites. The CEE score was calculated using the weighted average of the Six Pillar scores of each brand, measuring overall performance.
Mary Grace N. Chung
Director
R.G. Manabat & Co.
