Over 90% of respondents feel purchasing decisions influenced by rising cost of living, KPMG survey finds
- Written by Telegraph Magazine
In-person interactions will be heavily influenced by digital and AI, brands should prioritise investments for highest customer value
HONG KONG SAR - Media OutReach - 28 November 2023 - Despite a gradual improvement in consumption expenditure, affordability and value for money play a critical role in consumer purchasing decisions.Hong Kong consumers have felt the lingering effects of the pandemic, with 91% respondents indicating that their purchasing decisions have been significantly impacted by the increased cost of living, according to a KPMG survey.
In the 2023 edition of the Hong Kong Customer Experience Excellence (CEE) Report "Next Generation CX: AI & the orchestrated experience", nearly 1,000 customers were surveyed to rate their experiences with over 75 brands that operate across five sectors: financial services, non-grocery retail, grocery retail, travel & hotels, and entertainment & leisure. The study took into account the six pillars of Customer Experience Excellence, which define the DNA of great experiences.
KPMG's 2023 CEE survey results showed a notable surge in Hong Kong's overall CEE score, with a year-on-year increase of 3.2%. Hong Kong consumers have maintained their view that Personalisation and Integrity are strong drivers of Customer Experience Excellence. This trend has been consistent in the Hong Kong results of the survey over the last three years, demonstrating how critical it is for a brand to be perceived as being trustworthy, and deliver tailored experiences by treating their customers as individuals.
Retail (Non-Grocery)
Among all sectors, the non-grocery retail industry scored highest in Time & Effort (+7% yoy) this year. The sector demonstrated several use cases of how cohesive digital tools and offerings can support an in-person experience, minimising the effort for customers to switch seamlessly between channels. Non-grocery retail brands are becoming adept at leveraging customer data for insights that can be used to create highly-targeted and personalised experiences for specific segments. Leading brands are also using these insights to drive better product recommendations and product development.
Anson Bailey, Partner and Head of Consumer and Retail ASPAC, KPMG China, says: "Generative AI is a powerful tool that will help drive better, faster and smarter customer experiences, leading to increased sales and more rapid distribution in retail and ecommerce across all platforms."
Insurance
Integrity (+3% yoy) continues to be the best performing pillar in the insurance industry, while Time & Effort (+5% yoy) exhibited the highest percentage improvement compared with the previous year's survey, indicating that insurers have been delivering services that are simpler and more convenient. Leading brands are focusing on personalising the customer interaction and expanding their offerings through investments in digital and AI capabilities.
Abhishek Kumar, Head of Insurance, Hong Kong, KPMG China, says: "Hong Kong consumers will continue to expect more from the brands they interact with - they want things to be faster, simpler, and more intuitive towards their needs. Insurers need to invest in curating the relevant data from customer interactions, and capitalize on this data with technology such as GenAI to truly deliver value through personalised experiences efficiently."
Banking
Integrity (+3% yoy) continues to be a lead indicator for the banking industry, reflecting a strong consumer preference for banking brands that they are familiar with and trust. Payment services, such as payment apps or digital wallets, have come to the fore, capitalising on increased volumes driven by consumption vouchers.
While Hong Kong consumers continue to value face-to-face interactions, the advances in AI-powered personalised experiences will encourage continued adoption of online channels and omnichannel customer journeys. Customer excellence leaders should carefully prioritise investments that deliver the highest value and impact for customers and their business.
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