Brazil is feeling the impact of new data protection legislation. Determined by federal regulatory agencies, the Brazilian legislation imposes strict rules on companies in terms of how they should handle customer data. Unlike some European countries, however, such an initiative is less frustrating to Brazilian customers. In fact, the legislation appears to be improving the level of trust they have in organizations, and Integrity is one of the most impactful pillars for loyalty and advocacy.
At the same time, Brazilian consumers are commanding personalized, seamless experiences from brands, and such virtues are expected to be in evidence as standard rather than optional extras. This is partly due to the pressure that various fintech and insurtech companies are applying; they’re re-educating consumers as to what an optimized CX looks like. Some of this influence is also reaching Brazil from abroad, prompted by some of the larger international brands from many different industries.
As such, Brazilian companies are becoming aware of the importance and value of CX, but few have been able to transform such thinking into action. The most successful brands, though, can be found in the retail sector (grocery and non-grocery) – 7 of the top 10 brands in the Brazilian market are in retail. These brands outperform not only in Integrity but also in Empathy when compared to the Brazilian average.
The chocolate and coffee chain Kopenhagen ranks at number three in the 2019 results. It is a company that has existed for over 90 years, and it currently operates more than 300 outlets across Brazil, as well as an online store.
Performing well across each of The Six Pillars, Kopenhagen particularly stands out for the pillar of Personalization. The brand presents its outlets more as ‘experience destinations’ rather than simply coffee houses or chocolate gift shops, paying great attention to the décor and ambience to create environments that are intimate and cozy. Much of this is heightened by a wish to relive a part of one’s childhood; many Brazilian customers have fond memories of the brand and its products from young ages. Its employees are attentive to this warm ethos, being cordial to their guests and helping them to feel welcome.
"Brazilian customers are increasingly pushing companies from all sectors to deliver higher quality experiences. Consistently offering a seamless, frictionless and personalized experience throughout all channels and interactions between a brand and its customers is starting to move from a ‘nice to have’ to a ‘must have’, and the companies that reach this status will be in a stronger competitive position."
Partner, Customer Experience,
KPMG in Brazil
Indeed, Kopenhagen11 states that its mission is to “preserve” the traditional taste of its chocolates with “sophistication and quality.” The brand is “concerned about providing happiness” through its products and aims to work “with pleasure and emotion” to “meet the preferences of customers.”
Similarly, Brazil’s second highest-ranking brand – the financial services organization Nubank – also operates from a position of customer centricity. This is partly because of the autonomy Nubank gives its employees, who are empowered to make certain on-the-spot decisions about the best ways to serve at a given moment. For example, Nubank’s Xpeers (CX attendants) are able to adjust credit card limits based on pre-approved conditions. They also have a specific budget to bestow gifts upon individual customers where it feels appropriate. When such acts occur, the events sometimes go viral on social networks, highlighting the joy and gratitude that the individuals experience.
Such consideration for the customer can also be seen with the grocery retailer Verdemar12 Supermercado, which is Brazil’s highest-ranking organization. For instance, its cashiers are trained to ask shoppers if there were any products they were unable to locate. If so, the person’s details are taken and when the item arrives in store a few days later, a relationship manager will call the customer to let them know it is now available.
Verdemar works with the best brands and products in the market and produces its own fresh products, which are recognized and even awarded for their high quality. A key differentiator for Verdemar is having one of the most diversified wine assortments among supermarkets in Brazil, mostly composed of wines directly imported and selected by the company. As one customer stated: “I love shopping at Verdemar because I always find differentiated products and with higher quality than other supermarkets.”
And like Kopenhagen, Verdemar aims to offer more of a destination rather than a conventional shopping experience. As a more upmarket retailer, it places a greater emphasis on relaxation and luxury, helping shoppers to experience the leisure of their visit rather than to feel as if it’s a chore. Indeed, many of Verdemar’s products are presented in a rustic and artisan fashion, and its Instagram feed arguably looks more like an upmarket cookbook as opposed to the social account of a supermarket.
As such, Brazil’s strengths in the pillar of Personalization extend beyond adapting to the specific needs of the individual. A broader sense of customer centricity is a theme that unites the strongest organizations, with many companies on a mission to foster joy at the most important touchpoints.
L’Occitane Au Brésil