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Logistics brands top customer experience rankings

Hong Kong-based consumers have named logistics brands as top performers for customer experience excellence (CEE), according to an online KPMG survey of 1999 consumers in the city.

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.

Strong performance of luxury and luxury jewellery segments boosted the scores for the retail sector. 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 uses experiential marketing to engage and interact with their customers through unique and exclusive experiences aligned with their customers’ interests.

“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,” said KPMG China’s head of consumer and industrial markets Hong Kong Alice Yip. “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.”

For the grocery sector, the survey shows that in-store shopping is the most used channel in Hong Kong despite the availability of digital channels. Nonetheless, the sector scores 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.

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.

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