The third edition of our Luxembourg Customer Experience Excellence Survey comes as an insightful indicator of the way brands in Luxembourg managed — or not — to maintain a great customer experience and outstanding customer service during the crisis.
Research for this survey was carried out in April and May 2020 by TNS ILRES, a local research company, via an online survey sent to a nationally representative customer sample of 1,040 respondents. Eighty brands with a large customer base and local network across nine sectors were selected.
The Customer Experience Excellence (CEE) methodology, including The Six Pillars, analyzes the DNA of outstanding customer experience and how this fuels rapid business growth. The Six Pillars are the core structure on which this research is built, as they make up the fundamental components of an ideal customer experience.
The analysis is based on quantitative research data, written customer feedback and qualitative customer experience insights provided by various brands. Together, these elements offer a detailed snapshot of Luxembourg’s customer experience performance. The characteristics of the Luxembourg market were then compared against global trends identified in parallel research in 26 other markets, and incorporated into KPMG’s international, large-scale customer experience study.
Brands included in the final ranking
The impact of COVID-19 on customer behavior was immediate and widespread across all brands and industries. The expectations of Luxembourg respondents heightened as their priorities shifted to health and safety first. As a result, what was previously considered to be a great customer experience is no longer good enough. This year’s research has shown that customer experience leaders demonstrated significant resilience and were able to adapt to new customer expectations more rapidly than ever before.
In this third Luxembourg Customer Experience Excellence report, we look at the research findings in the light of COVID-19 and put the spotlight on the sectors that have best responded to new and emerging customer expectations.
Banks are facing unprecedented disruption due to the COVID-19 crisis. Institutions of all types and sizes are dealing with new challenges and risks. And while introducing new measures to support their employees and customers, banks are also trying to strengthen their financial sustainability. All of this is happening on top of the ‘usual’ higher capital requirements, shrinking interest rate spreads, costly regulatory burden and overall market volatility: the modern banking sector has a lot to handle.
And even with all of these challenges, the financial services sector remains the best-performing sector for the third year running. With a CEE score of 7.63, the retail banking sector’s performance exceeds the national average by 3 percent. In Luxembourg the sector demonstrates a better performance than the market average, across all the Six Pillars. The pillars of Time and Effort, Personalization and Integrity were the dimensions that customers appreciated most in their banks during the period of the pandemic.
Insurance is fundamentally about protection, which is especially needed in turbulent times. COVID-19 reinforces consumers’ need for more transparency regarding their insurance policies and the details of their cover. Clarity on what is and isn’t covered will help insurance businesses further build trust with their customers.
The insurance sector’s performance exceeds the average across all the Six Pillars, with a particularly outstanding performance in Empathy (at 11 percent above the market performance). The highest scores among The Six Pillars were for Time and Effort (8.09) and Personalization (8.05) — meaning that insurance firms succeeded in minimizing customer effort and creating frictionless experiences while giving individualized attention to their clients during the pandemic. The pillar of Integrity made the top three pillars for insurers in the Luxembourg market (with a score of 7.98), as customers have needed to trust their insurance companies during the crisis.
While deploying resources to safeguard the health and wellbeing of the population was a critical and primary concern over the last few months, governments in Luxembourg and abroad also had to move quickly to reduce the wider economic impact of the outbreak on household finances, business performance and cashflow. Contrary to the prevailing stereotype of bureaucratic foot-dragging, governments demonstrated how quickly and decisively they can act in a crisis.
Our analysis shows that respondents appreciated the Luxembourg government’s efforts, scoring the public sector 2 percent above the study’s average. The sector was awarded the highest score of all industries for Integrity (at 6 percent above the market average) — showing the ability of Luxembourg’s public services to build trust in uncertain times. The public sector also earned a high Personalization score, demonstrating the government’s and public agencies’ ability to respond to COVID-19 by recognizing the personal needs of both citizens and companies, and providing relevant circumstance-based information. While Empathy is still the sector’s lowest score, it is also the pillar which saw the biggest improvement over the last year (+4 percent).
The non-grocery retail sector has witnessed a heterogeneous impact on its subsectors with impacts varying widely depending on the types of products sold and the distribution channels used. Consequently, retailers who were able to offer essential goods via channels other than physical stores found themselves in a better position than small local shops selling non-essential products.
The non-grocery retail sector takes sixth place, moving down two places from last year’s survey. Performance is below average across all pillars, with the non-grocery retail sector’s highest scores being for Personalization and Time and Effort. Gone are the days when, in order to be a successful retailer, it was sufficient to have a store in a prime location. Today, and most likely in the post crisis period, non-grocery retailers will need to rethink and adjust their value chains, potentially integrating new channels and technologies in order to better serve both online and offline customers and ensure a good balance between inventory stock and smart use of space.