Australian brands are in tough competition when it comes to providing an outstanding customer experience, with financial services dominating other sectors, according to the KPMG Customer Experience Excellence 2019 report.
While Singapore Airlines took first place for the second year in a row, it was Financial Services firms which dominated the top 10 brands in Australia, accounting for seven out of the ten highest ranked brands led by RACQ Insurance (#2) and Bendigo Bank (#3) and PayPal (#4). Dan Murphy’s (Grocery Retail, #8) and Subway (Restaurant & Fast Food, #10) completed the top 10.
The KPMG Customer Experience Excellence 2019 report is based on one of the world’s most extensive studies of consumer preferences, and surveyed more than 2500 Australian consumers about their interactions with over 110 local and international brands. It shows that brands that deliver a strong experience, in addition to being authentically, community-led are viewed as delivering intrinsic customer value, which is higher-order value than the product or service experience in isolation.
Customer experience scores in Australia reflect good but not great delivery, according to consumers. In the 2019 study the average CEE rating in the Australian market was 7.14 out of 10, with about three-quarters of companies clustered between 6.5 and 7.5. The overall CEE rating in Australia was only marginally higher (0.04 points) than last year’s result.
Consumers are not only looking at a brand’s competitors to set their expectations of customer experience. Instead, they are looking across sectors and wanting the best experience they receive in any one sector to be matched by all the other sectors.
Amanda Hicks, Partner in Charge - Customer, Brand and Marketing Advisory, KPMG Australia says Australian businesses are struggling when it comes to taking a holistic approach to delivering an excellent customer experience.
"Responsibility for the customer experience of each channel sits in siloed business units in many Australian companies. This means there’s a lack of overall strategy, or indeed a sense of what ‘the big picture’ looks like," she says.
"Customer experience has been heightened as a topical conversation in the Australian market through increased attention over the past 18 months in areas as diverse as aged care and financial services. Traditional Australian organisations, which are often tied to legacy ways of working, are struggling to match the digital experience offered by new market entrants. The future challenge for these organisations will be successfully translating their physical presence into a digital blueprint that captures the essence of their brand."
Brands that "cast their experience net" further than immediate customers make up 8 of the 10 top Australian organisations in the CEE rankings. They do so by embedding purpose-driven values within their wider strategy and corresponding brand promise; consistently prioritising and delivering initiatives that represent the core values of their organisation. The CEE findings depict Integrity (18.8 percent), in tandem with Personalisation (18.9 percent) as the strongest drivers of Net Promoter Score (NPS), indicating that brands that authentically connect and build trust (Integrity) with the wider communities they operate in typically out-perform other brands in the CEE rankings.
The rewards for improving CEE are significant. CEE leaders continue to see unparalleled success:
Sudeep Gohil, Partner – Customer, Brand and Marketing Advisory, KPMG Australia says that Australian consumer expectations have moved beyond placing the customer at the forefront of organisational decision making to being altruistic-driven and community-led.
"The Customer Experience Excellence (CEE) findings suggest that brands that are community-led, abiding by collective values and playing an active role in the community are likely to engage customers over brands that are focused solely on building their customer base. It’s evident amongst customer experience leaders across industry that holding an altruistic stance has become common practice and therefore organisations that choose not to be community focused risk falling behind in years to come," he says.
“The top-ranking Insurance brands in Australia (RACQ insurance, RACV Insurance and NRMA Insurance) have all made significant in-roads in delivering a meaningful customer experience. Members continually praise these brands for the significant impact they have on communities across Australia. They do so by partnering with not-for-profit organisations and charities to practice purpose-driven promises they promote to their respective membership bases,” he added.
|Brand||Industry||Rank 2019||Movement vs. previous|
|Singapore Airlines||Travel & Hotels||1||0|
|RACQ Insurance||Financial Services||2||N/A|
|Bendigo Bank||Financial Services||3||0|
|NRMA Insurance||Financial Services||7||N/A|
|Dan Murphy's||Grocery Retail||8||-1|
|RACV Insurance||Financial Services||9||N/A|
|Subway||Restaurant & Fast Food||10||N/A|
©2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.