AI adoption improves customer satisfaction scores for leading brands

• UK plc is improving: customer satisfaction levels increased 1.4 percentage points in 2024.
• Generative AI is transforming customer experience: the leading companies are those that are embracing the technology.
• The best keeps improving: Banking and retail brands lead in customer excellence.

The UK’s best-known brands saw their most significant uplift in customer satisfaction scores in three years, according to KPMG’s 2024 Customer Experience Excellence (CEE) report. The increase of 1.4 percentage points marks a change in focus from previous years, from cost-cutting technology upgrades, to focusing more on improving customer experience through the adoption of artificial intelligence (AI).

The global study, now in its 15^th year, asked over 13,000 UK consumers for their views on 399 brands, ranking them based on how well they score across six areas. This includes empathy, integrity and personalisation.

Financial services and retail brands have a strong presence in this year's overall top five for customer experience:

1. First direct
2. Nationwide
3. Ocado
4. Coventry Building Society
5. John Lewis & Partners

first direct has retained its number one position for a second year, having only been out of the top three once in the past decade. All organisations in this year’s top 10 have featured in previous years, and six featured in the top 10 last year. Organisations in this year’s top 10 have experienced a 1.8 percentage point improvement in CEE score, whereas organisations in the top 100 have experienced a 1.1 percentage point improvement on average.

Other brands that have seen their scores improve are Fidelity International, who rose 201 places to number 56, and Netflix, who rose 106 places to 57^th. 2024 also saw four new entrants with 100Green (Green Energy UK) (43^rd), Simplyhealth (46^th), Klarna (58^th) and Vinted (86^th) all entering the top 100 for the first time.

Over the 15 years the research has run, customer experience has evolved with the introduction of new technologies. This year’s report finds that companies who invest in AI with a rigorous understanding of their customers are seeing the opportunity to create intelligent, seamless, and hyper-personalised customer experiences. Whereas for some UK brands, the “lets experiment” approach is less systematic and has led to reduced customer satisfaction, creating a more disconnected and disjointed experience.

The research also highlights distinct generational divides in attitudes and concerns around how brands adopt AI into their services. Younger people are more likely to be fearful of AI displacing human jobs. They are worried about AI’s impact on entry-level positions and the long-term impact on career opportunities. Whereas older customers place greater value on the personal touch and human interactions. They find AI interactions impersonal and less satisfactory, especially when dealing with complex or sensitive issues.

Commenting on the findings, Tim Knight, UK Head of Customer Advisory at KPMG UK, said:

“Over the last 15 years we’ve seen major UK brands get automation very wrong: chasing lower costs, but frustrating customers and jeopardising long-term performance.

“This year’s research shows that getting AI right promises something better: deploying the creative power of the new technology to create deeper, more human relationships with customers. The best UK brands are already reaping the benefits of this: becoming more agile, but also more considerate. However, others are missing the opportunity and creating risks: allowing the lure of AI quick wins to undermine what their brands stand for, failing to build strong foundations in trust, or adopting too many different technologies at once.”

The report forms part of a global study that looks at 2,500+ organisations in 23 markets this year.

 

-ENDS-

 

Notes to editors:

For media enquiries, please contact:

Claire Barratt, Deputy Head of Media Relations

T: +44 (0)7923 439264

E: claire.barratt@kpmg.co.uk

KPMG Press Office

Tel: +44 (0) 207 694 8773

 

Research Methodology:

The 2024 UK Customer Experience Excellence research was conducted online between 17^th May and 27^th June 2024, exploring experiences with organisations over the previous six months. 13,053 UK consumers were interviewed, and 399 brands were included in the final ranking.

The Customer Experience Excellence (CEE) score is a weighted average of each brand’s score, as mapped against The Six Pillars that drive brand advocacy and loyalty. The Six Pillars of Experience comprise of the following:

• Personalisation –Using individualised attention to drive an emotional connection
• Integrity – Being trustworthy and engendering trust
• Expectations – Managing, meeting and exceeding customer expectations
• Resolution – Turning a poor experience into a great one
• Time & Effort – Minimising customer effort and creating frictionless processes
• Empathy – Achieving an understanding of the customer’s circumstances to drive a deep rapport

 

Top-5 UK brands in the 2024 UK Customer Experience Excellence analysis:

2024 Ranking	Brand	Industry	Rank movement vs previous year
1	first direct	Financial Services	No change
2	Nationwide	Financial Services	+3
3	Ocado	Grocery Retail	+11
4	Coventry Building Society	Financial Services	+5
5	John Lewis & Partners	Non-Grocery Retail	-1

 

UK overall customer experience performance over time: 

Year	Overall Customer Experience Excellence (CEE) Score
2013	7.21
2014	7.25
2015	7.25
2016	7.33
2017	7.08
2018	7.13
2019	7.21
2020	7.45
2021	7.36
2022	7.37
2023	7.09
2024	7.19

 

Sector performance ranking and comparison to previous year: 

Industry	CEE Score vs. previous year (%)	2023 sector ranking
Non-Grocery Retail	+1%	1
Grocery Retail	+2%	2
Financial Services	+1%	3
Restaurant & Fast Food	+2%	4
Telecoms	+1%	5
Entertainment & Leisure	+3%	6
Travel & Hotels	+2%	7
Logistics	+6%	8
Utilities	+3%	9
Public Sector	0% (No change)	10

 

About KPMG in the UK:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023. 

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.