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      At a glance

      Following the success of the Customer Experience Excellence Report in 2021, KPMG Luxembourg embarked on a new, unique study to understand how organizations are internally managing customer experience (CX).

      Our respondents in numbers

      We focused on interviewing key players across various sectors for our assessment.

      • Location: Luxembourg
      • Number of organizations: 30

        66% are large enterprises, 34% are small enterprises

      • Number of different industries: 6

        Banking*, Insurance*, Financial services*, Mobility and tourism, Consumer goods and services, Public Sector

        * Banking, Insurance and Financial services industries represent 41% of interviewees

      Major trends

      • Intention–Action gap

        For most of the topics related to customer experience management (CXM), organizations are often highlighting their intentions, while those are most of the time not turned into real actions.

      • Structural needs

        There is a need to bring efforts together, to consolidate data and initiatives, and infuse customer-centricity among all the collaborators (from all departments).

      • Increase in CX investments

        While the CX strategy is still being structured in the market, there is a willingness to continue investing in CX initiatives.

      The study evaluates the five domains of customer experience management (CXM)

      How are organizations ensuring they meet their customers' expectations?

      We assessed the ability to implement, communicate and involve collaborators in the CX strategy to achieve the organization's CX goals:

      • 76% of interviewees expressed a commitment to CX goals. Among those with such goals, our analysis assessed the prioritization of their CX strategy.
      • Remarkably, 92% confirmed that their CX strategy shares the same and/or higher level of priority as other strategic objectives (such as profitability, engagement, local growth, or contribution margin).

      Interviewed organizations use various channels to communicate their CX strategy to collaborators, with email emerging as the most frequently used resource.

      Although interviewees indicated efforts in communicating their CX strategy, they perceive varying degrees of adoption and ownership.

      • 54% perceive better adoption and ownership within certain departments (such as marketing over finance), while 46% perceive widespread adoption and ownership across the entire organization.
      • 80% of interviewees do not have a dedicated budget allocated for CX initiatives. In fact, three-quarters report that budgets are allocated and accessed based on demand.

      While CX strategy is still being structured in the market, there is a willingness to continue investing in CX initiatives:

      • 38% of organizations will keep their investments stable.
      • 62% plan to increase their investments in CX initiatives over the next 24–36 months.

      How are organizations collecting data and leveraging customer feedback?

      The KPMG team evaluated the ability of organizations to collect and leverage customer data and insights to drive actionable outcomes:

      • 69% of interviewees are tapping into unsolicited customer feedback data.
      • Furthermore, 79% of interviewees are conducting proactive research efforts to collect data.

      Despite organizations actively gathering information from their customers, whether through unsolicited feedback or research, only 31% of these organizations report having a structured Voice of the Customer (VOC) program in place.

      Organizations are not getting the most out of customer data. One contributing factor is the widespread use of multiple tools for data structuring.

      Below you will find the various tools reported by interviewees to structure data:

      Customer data management

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      So how can organizations better leverage the data that they are collecting?
      1. Centralizing and structuring data would benefit organizations by streamlining access and providing a holistic view of the customer.
      2. Customer Journey Mapping (CJM) enables organizations to document the entirety of customer experiences when interacting with their products or services.
      3. AS-IS or near real-time journey maps serve to consolidate, visualize, and communicate insights from the current customer experience. On the contrary, TO-BE journey maps help imagine and define target experiences, guiding the development of new and improved products and services.

      Customer journey mapping holds significant importance for businesses, as it offers valuable insights into the entire experience of their customers. By leveraging CJMs, companies can identify pain points, optimize interactions, and, ultimately, enhance customer satisfaction and loyalty.

      Our CJM tools and services

      You don’t have to navigate customer journey mapping alone. Contact our experts today and discover our innovative CJM tools and services. Let’s transform CX into success, together.

      How are organizations using KPIs to measure and improve customer experience?

      We assessed the ability to define, measure and track CX metrics to better inform strategic business decisions:

      • 97% of all interviewees believe they meet or go beyond their customers' expectations.
      • Meanwhile, only 59% of them report following CX metrics to demonstrate it is actually the case.

      The most common metrics that interviewees follow include, but are not limited to, NPS (52%), CSAT (34%) & CES (17%).

      All interviewees consistently reported sharing and discussing figures, yet only three-quarters indicated defining and executing action items to close the loop effectively.

      There is a clear intention to develop metric-driven effort: 48% expressed a desire to concentrate on driving performance via metrics.

      How are organizations improving their offerings and processes to better serve their customers?

      Our team evaluated the ability to improve and develop CX initiatives and solutions to engage customers and drive business efficiency:

      • 41% of interviewees believe that they are agile and constantly modernize and proactively future proof their IT and operations.
      • However, 21% acknowledge a lack of structure and governance to implement these measures.

      All organizations recognize digitalization as a way to make life easier for both their customers and employees:

      • 31% of interviewees already use some form of AI to interact with customers.
      • Notably, 55% express an interest in incorporating AI into their operations in the future.
      How are organizations fostering and building a customer-centric culture?
      • 21%

        Interviewing

      • 38%

        Onboarding

      • 41%

        Learning and development

      • 14%

        Performance review

      We assessed the ability to build a customer-centric organization and culture that inspires people to deliver on the customer promise and drive-up business performance:

      • 59% of the interviewees report using the same techniques they use to manage customer experience (CX) to manage their employee experience (EX) as well.

      In addition to fostering customer-centricity among their workforce through daily activities and cross-functional work, interviewees indicated bringing a customer-centric focus to various degrees throughout the employee lifecycle.

      Additionally, a centralized and structured change management approach is key to fostering a customer-centric mindset and culture.

      Exploring our detailed services that meet your CX needs

      Understanding

      Uncover valuable insights and gain a comprehensive understanding of your customers to support strategy and decision-making for improvement and innovation.

       

      VOC tools and programs

      Leverage our alliance tools to gather valuable insights and effectively structure data.

       

      CRM advisory

      Envision, implement, challenge, and maximize the ROI of CRM systems.

      Maturity assessment

      Assess your CXM approach and benchmark against best practices and the local market.

       

      Strategy

      Create a cohesive plan aligning your business goals with customer expectations for a purposeful, consistent journey.

       

      Orchestratiom

      Carefully coordinating different parts of CX to make sure interactions are seamless, creating an enjoyable journey across various channels.

      Governance

      Establish guidelines to ensure that the CX is consistent, compliant, and in line with the organization's overall strategy.

       

      Measurement

      Employ metrics and KPIs for quantitative assessment to drive continuous improvement.

      Design and innovation

      Create intentional, user-centered solutions to ensure fluid interactions across different channels. Deliver enhanced experiences, products, and services. for both your customers and employees.

      Culture

      Build a customer-focused culture within the organization by integrating CX principles into hiring, onboarding, and fostering a mindset that values customer satisfaction.

       

      Change management

      Facilitate the organization’s seamless adoption of new processes or technologies by ensuring alignment with the overall CX strategy, embraced by all stakeholders involved.

      Management Consulting

      Bringing together expertise and technology to tackle your biggest challenges and get you to great outcomes faster.

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      Methodology

      Our approach involved a qualitative assessment to evaluate the state of internal customer experience management within organizations in Luxembourg. We began by administering a survey consisting of 40 open-ended questions in customer experience management designed to capture the view of each organization’s approach to CX. Our team then conducted 2-hour focused interviews with each interviewee, allowing us to deeply explore their survey responses, ensure consistency in their answers for comparison, and fill in the gaps.

      Finally, the KPMG team analyzed the collected data to distill a comprehensive understanding of the overall maturity of the local market concerning customer experience.

      Our expert

      Julien Hugo
      Julien Hugo

      Director, Management Consulting

      KPMG in Luxembourg