New Delhi: Improving customer experience can help brands across categories including financial services, healthcare, retail, auto, media, telecom, and travel unlock $200 billion, according to an India-specific report released by KPMG along with brand advisory firm Equitor.
KPMG in India, in collaboration with Equitor, undertook a study with over 3,011 respondents across 12 cities, 10 sectors and 23 categories. It also interviewed 30 CEOs representing core sectors such as airports, automotive, consumer and retail, financial services, healthcare, media and entertainment, technology, telecom, travel and hospitality and utilities.
Improving customer experience can help businesses enhance their valuation by 125–400%, according to the findings of the survey. The firm surveyed customers in India on their experiences while dealing with companies across sectors.
It defined customer experience as a culmination of consumer perceptions and feelings towards a company, following an interaction with its products and services.
“The mass availability of digital modes of interaction and commerce, easy access to several quick and smart procurement venues, and a pandemic-inflicted market have led to a distinguished shift in customer expectations. This shift has made customer experience more critical for sustained business growth, forcing businesses to revisit their CX (customer experience) strategy and adopt smart means of engaging with their customers,” according to the report.
KPMG in India and EQUiTOR identified four spheres of influence ie governance, stability, franchise and leadership and 16 attributes of customer experience, as well as the impact of those attributes on companies.
The 16 CX attributes have a direct impact on a company’s financial metrics, including revenue and profitability. The attributes also influence market sentiment, that is, the attitude of customers and investors towards a company, it said.
For instance, in the e-commerce sector a 100% increase in investment in CX can help double growth rates; In the 2 and 4 wheelers category, 100% increase in investment in CX can lead to 1.7 times faster growth in business, the survey has found.
Of those surveyed, 52% said their purchase decision experience is dependent on the experience the customer expectations from the brand as opposed to the reputation of the brand.
However, the study revealed that all leading brands fall short of meeting this expectation by a delta of over 30%
Meanwhile, the study also noted that customers are willing to pay a premium for a superior experience.
“63% per cent respondents are willing to pay some premium for enhanced customer experience. Our consumer survey revealed that approximately 45% of respondents were extremely satisfied with the experience while using the brand and are highly likely to continue using the same brand. This was more applicable to sectors such as personal care, e-commerce, online delivery and grocery,” it said.
Brands adept at fulfilling CX requirements also score high on advocacy scores with over 90% users likely to recommend the company to others.
Over 90% of the CEOs interviewed, across focus sectors, believe that CX is a high priority agenda going forward and will require dedicated attention. Meanwhile—75% of organizations consider a seamless customer experience a top or high priority.
“Today, creating a delightful customer experience is key to shoring up long-term customer relationships and creating sustained value, and the faith that the C-suite have in this notion is only getting stronger. Companies must overcome multiple hurdles like continuously evolving customer needs, preference and expectations, rapidly evolving technology, and organizational fragmentation, to deliver an improved CX,” said Harsha Razdan, Partner and Head, Consumer Markets and Internet Business, KPMG in India.
“The new world of customer experience has made new demands on customers. If not managed skillfully, these demands can drive away large segments of your customer base, said Ramesh Jude Thomas, Managing Director, EQUiTOR Value Advisory