becoming a cx leader

Becoming a CX

Leader

August 18, 2020

PA Technology Conference

2© 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Chat Question: When Thinking about Customer / Citizen Experience, What

Challenges are Top of Mind?

Please Type Response in the Chat Box


CX Trends

There are 5 generations of workers meeting the needs of 5 generations of customers

CX and EX convergence (according to Gallup, business units with top quartile employee engagement are 21% more profitable compared with those in the bottom quartile)

More of a focus on localization over globalization (customers are more interested in buying local products and services)

Less personal and more digital interactions (trend that had been occurring for a while has been accelerated due to COVID)


Why is Delivering a Good CX so

Difficult?

4


Entities need to Strike the Right Balance between Expectation & Experience (to Enhance the Experience while being Good Stewards of Public Funds)

Economic value is lost when experience fails to meet

expectations resulting in lost revenue and share.

Economic value is maximized when customer expectations and experience are in alignment.

Experience delivered

Economic value is lost when experience significantly exceeds expectations resulting in higher than necessary operating costs.

Citizen expectation+1x

-2x


Having a Structured Methodology that is Consistently followed Ensures CX Efforts are Implemented to Maximize Economic Value

DESIRABILITYWhat do people

desire?

VIABILITYWhat is

financially viable?

FEASIBILITYWhat is

technically and organizationally

feasible?

START HEREKPMG uses a proven prioritization approach that evaluates CX initiatives across their desirability, feasibility, and viability.

The reason our method has been successful is because it enables organizations to:

1. Help identify a problem(s) users want to see solved

2. Develop solutions that solve this user problem(s) for a sizeable segment

3. Develop a feasible and viable business model

4. Validate the business model, so the organization can build a business case


Polling Question #1: How Often Does Your Organization Employ a Rigorous

Methodology / Approach to Prioritize CX Initiatives?

1. All the time

2. Most of the time

3. Sometimes

4. Rarely

5. Never

CONFIDENTIAL SCOPING DOCUMENT

What Does Good CX Look Like?

8


About the Customer Experience Excellence Study: 2020

101,00+ consumers interviewed

7,500+ consumers interviewed

Annual research conducted since 2010

Research conducted in May 2020

2,073 brands measured

209 brands in the final result

Research in 27 countries in 2020

Research spanned across 10 sectors

Internationally USA Sectors Methodology

• Surveys conducted via online survey methodology with nationally representative consumer sampling targeted in terms of age and gender, while also targeting regional representation

• To participate, respondents must have interacted with that company in the previous six months.

• Interaction is defined as making a purchase, using the company’s products and services, contacting a company with a query or even browsing their website—sonot all respondents are existing customers of the brand they evaluated.

• In order to be included in the final rankings for a country, each brand must have achieved a minimum of 100 consumer responses.

Non-Grocery Retail

Financial Services

Travel & Hotels

Telecoms

Entertainment & Leisure

Grocery Retail

Restaurants and Fast Food

Logistics

Public Sector

Utilities


A proven CX approach: KPMG Six Pillars of Experience Excellence

The 6 Pillars of CX

PersonalizationUsing individualized attention to drive an

emotional connection

IntegrityBeing trustworthy and engendering

trust

ExpectationsManaging, meeting and

exceeding customer expectations

ResolutionTurning a poor

experience into a great one

Time and EffortMinimizing customer effort

and creating frictionless processes

EmpathyAchieving an under-

standing of the customer’scircumstances to drive

deep rapport

…drive NPS (2020) and Loyalty (2020)Personalization

Time & Effort

Expectations

Integrity

Resolution

Empathy

18%

16%

18%

18%

16%

14%

The Six Pillars are fundamental components of every great experience identified and validated through more than 3 million evaluations across multiple markets and 10 years

— 1% ↑ in CEE metric, top 10 brands ↑ 2 points in NPS

— 1% ↓ in CEE metric, bottom 10 brands ↓ 2.5 points in NPS


The “Six Pillar” hierarchyThe “Basics” must be mastered before the value of differentiators can be realized.

@ 2019 KPMG Nunwood Analysis: Engineering a human touch into a digital future

KPMG Pillar Characteristics

“Human”differentiators

Digitalbasics

— Human and empathetic cues— Solves a life problem— Enjoyable for its own sake / evokes emotion

— Surprises me with something relevant— Reflects our history together— Shows you know me

— Simple – maximum of three steps to objective— Focus on proactively mitigating loss of

functional services— Single source of truth data

— Usable, easy – delivers on the brand promise— Intuitive – in-line with the user’s mental model— Sets expectations appropriately

— Reversible errors— Rapid resolution and back up support— Meaningful and easy to follow the remedy

— Increases the integrity of the brand promise— Protects customer safety and data— Transparency of pricing

Expectations

Personalization

Integrity

Expectations

Resolution

Time and Effort

Empathy

Implications for Public Sector

— The relationship is viewed as a as a way to meet citizen needs, ensure citizen safety, and enhance citizen well-being

— View citizens as part of a relationship, not just a transaction

— Very easy and customer friendly service when customers contact agency with questions or issues

— Government policies are easily understood by citizens

— Resolves customer issues or questions in a timely manner

— Provides integrity via transparent information and maintaining the highest levels of trust0 - 3

3 - 4

4 - 5

5 - 7

8 - 9

10

NPS Score


The 2020 U.S. Customer Experience ChampionsFinancial Services, Restaurants and Foods and Grocery Retail brands dominate the Top 10 this year, leaving all Non-Grocery brands in their wakes

02.H-E-B

In-N-Out Burger

06.

Chick-fil-A

03.

07.Costco

01.USAA

04.Navy Federal Credit Union

05.Edward Jones

10.Charles Schwab

08.Publix

09.Wegmans


The 2020 U.S. Customer Experience Top 100Brand 2020 vs.

PreviousUSAA 1 3H-E-B 2 0Chick-fil-A 3 0Navy Federal Credit Union 4 -3Edward Jones 5 0In-N-Out Burger 6 6Costco Wholesale 7 1Publix 8 6Wegmans 9 4Charles Schwab 10 19Sherwin-Williams 11 14Zappos 12 68Nordstrom 13 7Trader Joe's 14 9Polo Ralph Lauren 15 -5L.L Bean 16 -9Southwest Airlines 17 1Amazon 18 -12Calvin Klein 19 17Hannaford 20 137Victoria's Secret 21 65Krispy Kreme 22 -3Foot Locker 23 15The Vanguard Group 24 8Kohl's 25 25

Brand 2020 vs. Previous

Hilton 26 1Apple Store 27 3Aldi 28 19Hampton Inn & Suites 29 -13Alaska Airlines 30 39JetBlue Airways 31 -16AAA 32 -23Hy-Vee 33 28Fidelity 34 12Red Lobster 35 30Sephora 36 63Subway 37 57Discover 38 17Kaiser Permanente 39 N/ATommy Hilfiger 40 -7Food Lion 41 17Kroger 42 28Starbucks 43 -2Olive Garden 44 -20Petsmart 45 -5Barnes & Noble 46 41American Express 47 -8Chilis 48 30The Home Depot 49 8Marriott Hotels & Resorts 50 -29


Under Armour 51 -7BJ's Wholesale Club 52 36Netflix 53 14Target 54 23Shop Rite 55 17GEICO 56 49Disney Parks 57 -46Humana 58 37Panera Breads 59 -24Five Guys 60 36Merrill Lynch 61 N/ADominos 62 13Hallmark 63 -10Ace Hardware 64 -4Ruby Tuesday 65 85Lowe's 66 27Courtyard by Marriott 67 -25Sam's Club 68 -51State Farm 69 -20PayPal 70 -36Lidl 71 68Dunkin Donuts 72 -18American Eagle Outfitters 73 -5IHOP 74 69Chipotle 75 14


Wendy's 76 36Meijer 77 -40TD Bank 78 84JCPenney 79 30Walgreens 80 10Applebees 81 -10T.J. Maxx 82 -16CVS 83 31Capital One 84 53Whole Foods 85 -26Advance Auto Parts 86 21Pizza Hut 87 47Old Navy 88 -5Levi Strauss & Co 89 -16Arby's 90 39Marshalls 91 19DSW 92 -29TD Ameritrade 93 N/AT-Mobile 94 -9Taco Bell 95 43Allstate Insurance 96 50UPS 97 19Holiday Inn 98 10Bed, Bath & Beyond 99 4MetroPCS 100 28

Note: Dark blue shaded cells are the biggest movers from 2019 to 2020 (both positively and negatively)Note: Orange shaded cells are brands that were not in the survey in 2019


Key Learnings from This Year’s Survey

Need to have interactions with your customers / citizens to be a CX leader

Commonality of biggest risers in the survey – digital strategy to create personalization in place pre-COVID-19 so they could be agile when the pandemic hit

Employee experience drives customer / citizen experience


Polling Question #2: Which Pillar is the Most Difficult to Deliver on When You

Think About Enhancing Your Customer / Citizen Experience?

1. Empathy

2. Personalization

3. Time & Effort

4. Expectations

5. Resolution

6. Integrity


How Do You Balance CX and EX?

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The Six Pillars Enables Organizations to Take Action to Improve CX and EX

Empathy• Issues are dealt with sensitively and with emotional

intelligence• Leaders react positively and in line with our values

when under pressure

Personalization• Help me develop as an individual• A job role that enables me to utilize my unique talents

Time and Effort• Employee journeys to achieve a personal objective

are clear and straightforward• Leaders and managers show respect for my time

Expectation• Leaders are clear on their expectations• Leaders provide helpful and constructive feedback

Resolution• I am able to participate in decisions that affect me

and my team• I am supported by leaders to learn from mistakes

without blame

Integrity• The business has a higher purpose than just making

money• Interpersonal relationships are based on trust

Empathy• Invest quality time to really understand us• Show that you care about our business and us as

individuals

Personalization• Make us feel important to you as a client• Make us feel special as individuals and more confident

about being successful

Time and Effort• Show a desire to reuse existing assets• Find ways of saving us costs by thinking cleverly

Expectation• Do not over promise and under deliver• Communicate clearly and openly with us

Resolution• Senior people should be visible not invisible when things

get difficult and lead the resolution• Provide us with timelines, updates and plans for problem

resolution

Integrity• Deliver on your promises• Be transparent and open

Achieving an understanding of the

citizen’s circumstances to drive deep rapport

Employee Experience Customer / Citizen Experience

Using individualized attention to drive an

emotional connection

Minimizing citizen effort and creating

frictionless processes

Managing, meeting and exceeding

customer expectations

Tuning a poor experience into a

great one

Being trustworthy and engendering

trust

BASI

CD

IFFE

REN

TIAT

OR

SEmployee experience and customer / citizen experience are inextricably linked


Polling Question #3: Which Pillar is the Most Difficult to Deliver on When You

Think About Enhancing Your Employee Experience?

1. Empathy

2. Personalization

3. Time & Effort

4. Expectations

5. Resolution

6. Integrity


How Have Organizations Successfully Transformed their CX?

19


One of the World’s Largest Airports (75m passengers) Overhauled their Building Experience Design Capability to Reimagine their Customer Experience

Challenge Solution Outcome

• Airport prided itself on being operationally efficient.

• In order to grow against stiff competition from global aviation hubs, airport recognized it needed to move beyond its operationally efficient heritage and compete on service.

• CEO of the airport said it was the airport’s ambition to “become the best airport in the world for service; however, the organization lacked the capability and tools to both understand the current experience and re-design the future experience that would unlock additional revenue.

• Using real-time insights from real passengers, KPMG mapped the customer experience across all four terminals; using these journey maps, we developed prioritized lists of initiatives across multiple time horizons and then determined the appropriate capabilities required to deliver them.

• We helped develop the in-house skills of the airport team and forged a community of 70 journey mappers, equipping them with the necessary software tools and design methodology. KPMG developed new business models and experiences to drive new revenue to better meet passengers’ needs.

• All journeys were mapped end-to-end with 1,800 pain points identified and 700 projects assessed, including quick wins selected for design.

• 75 airport personnel were trained on the CX tools

• New business models were developed and detailed.

• All investment projects covering the next regulatory time period aligned with the journeys.

• Journeys were re-designed for select segments articulating what passengers will do, think, and feel in the future.


U.S. Water Utility Developed a Customer Experience Strategy and Capability Roadmap to Transform its Customer Experience

Challenge Solution Outcome

A large global water utility had a fragmented and poorly documented customer experience model with significant variations in customer satisfaction and current customer experience across different states and divisions.

As part of a broader organizational focus on customer centricity, there was a desire to drive improvements to the customer experience, while also identifying digital/online use cases that support a fundamental shift in the organizations cost baseline (e.g. self service adoption).

• Performed current state customer journey mapping across key target customer segments, voice of the customer (VoC) research, and voice of the business (VoB) research.

• Identified opportunities to enhance the customer experience, digital use case development, high level benefits modelling and initiative prioritization.

• Designed the future state customer journey for key customer segments, and the development of a supporting implementation roadmap and deployment plan taking into account broader strategic initiatives and planned upgrades to the technology roadmap.

• One year after performing a CX Transformation, company saw a customer satisfaction score of 84%, highest in its history.

• Significantly improved customer experience - greater service consistency, fewer handoffs, multichannel enablement

• Improved quality and performance – enabled by process standardization.

• Lower level of effort – less duplication and re-entry, labor arbitrage, reduced support costs.

• Greater agility – faster decision making and change execution, easier to adopt better practices and adapt to technology change via dedicated CX governance.


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