- 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 15th 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:
- First direct
- Nationwide
- Ocado
- Coventry Building Society
- 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 57th. 2024 also saw four new entrants with 100Green (Green Energy UK) (43rd), Simplyhealth (46th), Klarna (58th) and Vinted (86th) all entering the top 100 for the first time.
The future of customer experience will be AI-driven
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.
