HONG KONG, Dec. 5, 2019 /PRNewswire/ -- Hong Kong-based consumers have named logistics brands as top performers for customer experience excellence (CEE), according to an online KPMG survey of 1,999 consumers in the city. Financial Services brands meanwhile received the poorest performance score. Other sectors surveyed included Travel and Hotels, Retail and Grocery.
The survey asked the participants to evaluate 94 local and international brands, with companies rated on KPMG's Six Pillars of Customer Excellence -- Personalisation, Integrity, Expectations, Resolution, Time and Effort, and Empathy. The analysis shows that 'Personalisation' and 'Expectations' were leading drivers of brand loyalty in Hong Kong, while 'Expectations' and 'Integrity' were the most important for driving brand advocacy in Hong Kong.
Logistics
Logistics (score: 7.08/10) achieved the highest scores on Personalisation, Time and Effort, and Resolution. Personalisation and Integrity are found to be the biggest drivers of loyalty for logistics brands, while the study shows that delivery on Expectations is key for brands looking to grow their customer base, especially among Generation Z consumers.
With increasing competition, integrated partnerships between logistics companies and retailers where data is shared are integral to better deliver on customer experience. Brands also need to harness data with actionable insights to deliver on Integrity and reassure customers on successful delivery.
Financial Services
The Financial Services sector is a particular laggard in the survey (score: 6.78/10). Regarding sub-sectors within Financial Services, the results show Banking ranked last for customer excellence with a score of 6.62 out of 10, while Insurance meanwhile was given a score of 6.85 out of 10. Payment players performed significantly better than the rest of their Financial Services counterparts, especially in Personalisation and Expectations.
Isabel Zisselsberger, Head of Customer and Operations, Hong Kong, KPMG China: "While the Financial Services industry has made considerable effort to deliver better customer experience, customer expectations are constantly evolving as new digital initiatives and capabilities such as the Faster Payments System and Fast Track Insurtech initiative continue to raise the bar and challenge the sector. At the same time, while digital services are now seen as a norm, consumers also still value in-person interactions. The industry needs to catch up quickly and work to improve customer experience at every interaction, be it online or offline."
Retail
The strong performance of the Luxury and Luxury Jewellery segments boosted the scores for the Retail sector (score: 6.95/10). Gen Z respondents identified 'Personalisation' and 'Integrity' as particularly important drivers of brand loyalty and advocacy respectively. Digitalisation and e-commerce have allowed traditional retailers to deliver a more tailored shopping experience. The industry is using experiential marketing to engage and interact with their customers through unique and exclusive experiences aligned to their customers' interests.
Alice Yip, Partner, Head of Consumer & Industrial Markets, Hong Kong, KPMG China: "Generation Z consumers, a key market segment for many Logistics and Retail brands, clearly view personalisation as a key driver of their loyalty to these brands. Understanding what motivates, inspires and influences customers is thus paramount for companies in these sectors. They should make it a top priority to invest in digital capabilities to analyse data and customer insights, and link these insights to customer journeys and individual touchpoints to solve existing pain points and deliver experiences that differentiate them from their peers."
Groceries, Travel and Hotels
For the Grocery sector (score: 6.87/10), the survey shows that in-store shopping is the most used channel in Hong Kong despite the availability of digital channels. Nonetheless, the sector is score relatively poorly on 'Time' and 'Effort' - the most important determinant of brand loyalty according to respondents, particularly Millennial and Generation Z consumers -- suggesting that grocery brands should pay particular attention to these customer segments as they strive to remain relevant to younger generations more familiar with digital channels and e-commerce alternatives.
For travel and hotels companies (score: 7.06/10), changes in travellers' behaviour are creating higher expectations for brands to provide a differentiated and highly personalised experience. Brands scored higher than the study average in 'Empathy' by recognising the importance of human interactions and empowering their customer-facing teams to deliver exceptional experience. This shows that, while partnerships and digital innovations play a role in understanding travellers' behaviour and motivations in order for brands to differentiate themselves and provide a unique experience, in the process they must not lose their 'human touch'.
Customers' expectations are on the rise, as leading brands constantly redefine "good experience". Brands require a deep understanding of customer motivations and needs, along with the ability to operationalise and implement activities, platforms and processes that achieve the desired experience to secure customers' recommendations, loyalty and advocacy.
About KPMG China
KPMG member firms and its affiliates operating in mainland China, Hong Kong and Macau are collectively referred to as "KPMG China". KPMG China is based in 22 offices across 20 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Wuhan, Xiamen, Xi'an, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 153 countries and territories and have 207,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG's appointment for multi-disciplinary services (including audit, tax and advisory) by some of China's most prestigious companies.
