In the last few years, the world has witnessed seismic events, from the global COVID-19 pandemic to geopolitical tensions like the Ukraine-Russia war. These events, along with unanticipated weather patterns and rapid technological advancements, have not only reshaped the world but have also significantly altered the behavior and expectations of Indian consumers.
In this report, KPMG delves into the evolving landscape of customer experience (CX) in India and how companies are adapting to meet these changing expectations. One striking finding is that Indian companies have the potential to realize an additional USD 200 billion in value by unlocking the potential of CX through the right CX strategies. Here are the key findings from the KPMG report:
The Power of CX Value Creation
The concept of realizing additional value through CX strategies is a game-changer. According to the KPMG India-EQUiTOR report, companies in India can unlock an additional USD 200 billion of value by aligning their strategies with enhanced customer experiences. This staggering number emphasizes the untapped potential that lies within the realm of CX.
The Six Pillars of Customer Experience
To understand how this value can be unlocked, we must first comprehend the pillars of CX: personalization, integrity, expectations, resolution, time and effort, and empathy. These pillars form the foundation for creating exceptional customer experiences that drive loyalty and advocacy.
Adapting to New Markets
Expanding into new markets presents both opportunities and challenges. To succeed, organizations must grasp the unique needs and preferences of consumers in these markets. Customizing offerings to align with local demands is essential for tapping into the value potential of CX.
Data-Driven Decision Making
Data is the lifeblood of Customer Experience success. Collecting customer data at every touchpoint – from sales and marketing to service – is vital. Holistically analyzing this data to extract customer insights empowers organizations to make better decisions regarding campaigns, product launches, customer service, and overall strategy.
A Customer-Centric Approach
The shift towards a customer-centric approach is not just a trend; it's a necessity. Organizations must adopt a top-down strategy that places the customer at the center. As consumers grow increasingly demanding, winners are those who respond promptly, leaving a clear call to action for those who lag behind.
Enhancing Customer Journeys
Customer journeys provide valuable insights. By analyzing these journeys, organizations can identify opportunities to showcase their purpose and values. This, in turn, enhances customer experiences across different channels.
Prioritizing Customer Trends
Key customer trends, including individual well-being, environmental sustainability, and digital transformation, are shaping the business landscape. Prioritizing these trends is crucial for fostering customer loyalty and, consequently, unlocking value.
Strategies for Financial Services
For financial services organizations, identifying pivotal factors within their industry is essential. Leveraging strategic initiatives that set them apart, such as integrity in their operations, can drive customer loyalty and contribute to value creation.
Leveraging behavioral motivations to segment customers enables organizations to tailor messaging, create new product categories, and establish pricing strategies effectively. This approach maximizes the impact of CX strategies.
Personalization and Loyalty
In India, personalization stands as the leading driver for loyalty and advocacy. Brands that excel in CX are raising the bar, with many improving their CX scores, driven by enhanced expectations of customers.
Different sectors exhibit varying levels of customer loyalty. Retail organizations, for instance, score the highest in loyalty, while the logistics sector scores the lowest. Financial services, driven by integrity in their operations, have a high level of promoters.
Over 50 percent of customers are willing to pay more for products or services backed by environmentally or socially ethical brands. This highlights the importance of social and environmental responsibility in CX and value creation.
The potential to unlock USD 200 billion through CX strategies is a compelling proposition for Indian companies. Adapting to changing consumer expectations, prioritizing ethical considerations, and focusing on personalization are just some of the key strategies to realize this value. As Indian organizations continue to evolve in response to global events, embracing these strategies will not only lead to customer loyalty but also drive substantial financial gains.
In this fast-paced, ever-changing world, the ability to harness the potential of CX strategies is the defining factor that separates industry leaders from the rest. Indian companies have a unique opportunity to excel in CX, unlock the promised USD 200 billion, and, in the process, reshape the future of business in the subcontinent.