Welcome to the Fear and Greed Business Interview. I'm sure al mum. Every business knows that the customer experience matters, but some companies do it much better than others. Every year, KPMG explores this with their Australian Customer Experience Excellence Report, examining what a good customer experience looks like, sector bisector and identifying the stand up performers. Carmen Becker is Partner in charge of KPMG Customer Advisory and she joins me in the studio. Carmen, welcome to Fear and Greed.

Welcome to the Fear and Greed Business Interview. I'm sure al mum. Every business knows that the customer experience matters, but some companies do it much better than others. Every year, KPMG explores this with their Australian Customer Experience Excellence Report, examining what a good customer experience looks like, sector bisector and identifying the stand up performers. Carmen Becker is Partner in charge of KPMG Customer Advisory and she joins me in the studio. Carmen, welcome to Fear and Greed.

Thank you very much, Thank you for having me.

Thank you very much, Thank you for having me.

We talk about customer experience so much, and individually we can all give anecdotes. Broadly, though, why does customer experience matter so much to a company?

We talk about customer experience so much, and individually we can all give anecdotes. Broadly, though, why does customer experience matter so much to a company?

So a customer experience, A good customer experience can define how to attract and keep your customers. To put it really simply, why does a customer come to you and why do they stay with you can be determined through a great customer experience. We've also seen research in the US that in our Customer Experience Excellence Report, when you look at all the one hundred companies, the top fifty get double the revenue returns if they focus on customer you can see that sort of change. There's a real financial benefit.

So a customer experience, A good customer experience can define how to attract and keep your customers. To put it really simply, why does a customer come to you and why do they stay with you can be determined through a great customer experience. We've also seen research in the US that in our Customer Experience Excellence Report, when you look at all the one hundred companies, the top fifty get double the revenue returns if they focus on customer you can see that sort of change. There's a real financial benefit.

Yeah right. Who does it well in Australia at the moment.

Yeah right. Who does it well in Australia at the moment.

Well. In our Customer Experience Excellence Report, the number one brand this year was Mecha. Mecca is a online and physical beauty store and it drives fantastic results. And there's quite a few reasons, so, I.

Well. In our Customer Experience Excellence Report, the number one brand this year was Mecha. Mecca is a online and physical beauty store and it drives fantastic results. And there's quite a few reasons, so, I.

Mean it makes it's an interesting one. I have a couple of young women in my household and they love Mecha. Both of them love Mecha. Yeah, what is it that Mecha does?

Mean it makes it's an interesting one. I have a couple of young women in my household and they love Mecha. Both of them love Mecha. Yeah, what is it that Mecha does?

So Mecca have a few key pillars that they lean into which really drives this fantastic experience. One is loyalty. So you're probably you've probably heard about the beauty Loop the loyalty program. Mecha is a shining star of loyalty programs in Australia and it drives a beyond reasonable demand because women, tweens, girls all over Australia love the beauty Loop boxes and they aim for the higher levels. We see that driving fantastic repeat customers. So advocacy and loyalty. The other thing they do is they have a very good seamless customer interaction. I don't want to use too much jargon, but what that means is if I'm on the Mecca website, on the Mecha app, in the Meccha store, they recognize me so they know that I'm the same person, which means they're driving me to feel comfortable and confident in their space, and that is done through excellent technology within the company, within the back end.

So Mecca have a few key pillars that they lean into which really drives this fantastic experience. One is loyalty. So you're probably you've probably heard about the beauty Loop the loyalty program. Mecha is a shining star of loyalty programs in Australia and it drives a beyond reasonable demand because women, tweens, girls all over Australia love the beauty Loop boxes and they aim for the higher levels. We see that driving fantastic repeat customers. So advocacy and loyalty. The other thing they do is they have a very good seamless customer interaction. I don't want to use too much jargon, but what that means is if I'm on the Mecca website, on the Mecha app, in the Meccha store, they recognize me so they know that I'm the same person, which means they're driving me to feel comfortable and confident in their space, and that is done through excellent technology within the company, within the back end.

In a moment, I'll get to some of these pillars that you talk about, but I just want to go to Bunnings quickly because it is always there and they just seem to have this repeat process that no matter who's there, people like Bunnings. What is it about that company or that retailer.

In a moment, I'll get to some of these pillars that you talk about, but I just want to go to Bunnings quickly because it is always there and they just seem to have this repeat process that no matter who's there, people like Bunnings. What is it about that company or that retailer.

Yeah, everything Bunnings does is pushing it up and up in the Customer Experience Excellence Report. It really understands it's customers and the segments. And we've seen that through a few techniques that they've used. One is the in store help helpers and the people that really help you navigate not only the store, but navigate your DIY processes. They are excellent. I don't know if you've ever been in there and asked them. I don't know how to pat this or do that. They are knowledgeable and they're always there. They're on hand. They've enhanced that with a digital version of that as well, so online they've got DIY videos for everything, so people feel very confident that Bunnings can help them through the situations and issues and problems they may have with DIY. They've also used things like the ale helper, you know, to really help you navigate what is quite a complicated store if you don't understand DIY. And they also have a very good hiring policy, so we often see that the choice of employees that you hire and your front of house staff really drive customer experience results. So a great employee experience, employees that are happy you've chosen the right employees for the right job, they will drive higher customer experience. And we can see that in Bunnings. They hire people for their previous experience, so they might hire ex painters or x trade's to really help people understand how to do their DIY projects.

Yeah, everything Bunnings does is pushing it up and up in the Customer Experience Excellence Report. It really understands it's customers and the segments. And we've seen that through a few techniques that they've used. One is the in store help helpers and the people that really help you navigate not only the store, but navigate your DIY processes. They are excellent. I don't know if you've ever been in there and asked them. I don't know how to pat this or do that. They are knowledgeable and they're always there. They're on hand. They've enhanced that with a digital version of that as well, so online they've got DIY videos for everything, so people feel very confident that Bunnings can help them through the situations and issues and problems they may have with DIY. They've also used things like the ale helper, you know, to really help you navigate what is quite a complicated store if you don't understand DIY. And they also have a very good hiring policy, so we often see that the choice of employees that you hire and your front of house staff really drive customer experience results. So a great employee experience, employees that are happy you've chosen the right employees for the right job, they will drive higher customer experience. And we can see that in Bunnings. They hire people for their previous experience, so they might hire ex painters or x trade's to really help people understand how to do their DIY projects.

And then just quickly Telco's utilities in the last report, they're actually doing better. Now we've all hated our Telco and our gas company, et cetera.

And then just quickly Telco's utilities in the last report, they're actually doing better. Now we've all hated our Telco and our gas company, et cetera.

What do.

What do.

I mean, why are they what have they done to turn things around?

I mean, why are they what have they done to turn things around?

Interestingly, so utilities, let's start there. They were always about servicing the meter or the actual product itself that's in the ground, and there's been a real shift in the last say five years for these sorts of companies to really service the customer. So think about what is it that the customer might be expecting from their water supplier. For example, they're expecting it not to turn off, to understand their bills, they're expecting to know when there's work's going to happen. And so you'll see all the innovations that the water companies, for example, are using now to really reassure customers that they're on top of things. So they're using things like smart meters, they're using AI within systems to understand where there might be a future problem so they can go and fix it before it comes. So with these sorts of technology advancements, they're able to then provide a better customer experience and a better satisfaction for customers.

Interestingly, so utilities, let's start there. They were always about servicing the meter or the actual product itself that's in the ground, and there's been a real shift in the last say five years for these sorts of companies to really service the customer. So think about what is it that the customer might be expecting from their water supplier. For example, they're expecting it not to turn off, to understand their bills, they're expecting to know when there's work's going to happen. And so you'll see all the innovations that the water companies, for example, are using now to really reassure customers that they're on top of things. So they're using things like smart meters, they're using AI within systems to understand where there might be a future problem so they can go and fix it before it comes. So with these sorts of technology advancements, they're able to then provide a better customer experience and a better satisfaction for customers.

Thank you, Carmen. We'll be back in a minute. My guest this morning is Carmen Becker from KPMG. You talk about six pillars of good customer service. I think some are self evident, others are not.

Thank you, Carmen. We'll be back in a minute. My guest this morning is Carmen Becker from KPMG. You talk about six pillars of good customer service. I think some are self evident, others are not.

Integrity, yes, so integrity is really about trust. So do customers trust your brand, your business to do the things that they say they're going to do, but with integrity, so you know, within regulation, the ability to create an environment whether your data is protected and they're not on selling your data or doing something that makes the customer feel uneasy with dealing with that company. Resolution Resolution is really about complaints. So if you think about if I have a problem, how quickly can you solve it? And resolution is quite interesting now because of AI agents, we're actually able to resolve problems quite quickly. So in the past, you might have called a contact center with a complaint weighted in a queue, eventually got hold of someone and then had to resolve that maybe over email. Now what we're seeing is companies have you know, a little AI chatbot that you can access and you can talk to that chatbot about what your problem or complaint might be, and often it's resolved at that point of contact.

Integrity, yes, so integrity is really about trust. So do customers trust your brand, your business to do the things that they say they're going to do, but with integrity, so you know, within regulation, the ability to create an environment whether your data is protected and they're not on selling your data or doing something that makes the customer feel uneasy with dealing with that company. Resolution Resolution is really about complaints. So if you think about if I have a problem, how quickly can you solve it? And resolution is quite interesting now because of AI agents, we're actually able to resolve problems quite quickly. So in the past, you might have called a contact center with a complaint weighted in a queue, eventually got hold of someone and then had to resolve that maybe over email. Now what we're seeing is companies have you know, a little AI chatbot that you can access and you can talk to that chatbot about what your problem or complaint might be, and often it's resolved at that point of contact.

So AI has made a significant difference in.

So AI has made a significant difference in.

That significant difference because now customers are looking to a digital first solution when they have a complaint. So the majority of customers under fifty really want They don't want to talk to a contact center at all. They expect a company to have a digital solution, So by that I mean something through their app or an AI chatbot or through their website, some way of contact and connecting with the company to make sure that their query, question, complaint is answered quickly.

That significant difference because now customers are looking to a digital first solution when they have a complaint. So the majority of customers under fifty really want They don't want to talk to a contact center at all. They expect a company to have a digital solution, So by that I mean something through their app or an AI chatbot or through their website, some way of contact and connecting with the company to make sure that their query, question, complaint is answered quickly.

Okay. The third pillar expectations.

Okay. The third pillar expectations.

Expectations is about doing what you say you are going to do in the timeframe you promised to do it. So in COVID, what we saw was expectations as a pillar, and the scores on expectations went through the roof because companies introduce better systems then to home deliver for example, to get things to you quickly. They change things from being physical to digital. And we've seen expectations rise and rise and rise in Australia since COVID because people expect if you say you're going to deliver it tomorrow, it comes tomorrow.

Expectations is about doing what you say you are going to do in the timeframe you promised to do it. So in COVID, what we saw was expectations as a pillar, and the scores on expectations went through the roof because companies introduce better systems then to home deliver for example, to get things to you quickly. They change things from being physical to digital. And we've seen expectations rise and rise and rise in Australia since COVID because people expect if you say you're going to deliver it tomorrow, it comes tomorrow.

Personalization.

Personalization.

Personalization is about really deeply understanding the customer that you're talking to. And there's this buzzword called hyper personalization and what that simply means is that companies have a one to one relationship with their customer. So if I'm a brand or a business, I really know you. I know what you like doing, I know where you go, I know all the information and data that you've chosen to give me. But then what customers expect is a value exchange. Now, so you've given me something as a brand, your customer's given me your data. They want to know that you're going to give them something back that helps them. So personalization is really about also nudging the customer or helping the customer before they really know they need help. I'm really thinking about what that customer might need in that moment.

Personalization is about really deeply understanding the customer that you're talking to. And there's this buzzword called hyper personalization and what that simply means is that companies have a one to one relationship with their customer. So if I'm a brand or a business, I really know you. I know what you like doing, I know where you go, I know all the information and data that you've chosen to give me. But then what customers expect is a value exchange. Now, so you've given me something as a brand, your customer's given me your data. They want to know that you're going to give them something back that helps them. So personalization is really about also nudging the customer or helping the customer before they really know they need help. I'm really thinking about what that customer might need in that moment.

It's an interesting concept. I mean, maybe Mecha is an example of that. I know a particular retailer that I use a lot that really irritates me that I get loyalty points but I get nothing for it. The only benefit is if I have to exchange, I have it on record, but otherwise it just sort of irritates me that they've got my loyal without me getting anything from it.

It's an interesting concept. I mean, maybe Mecha is an example of that. I know a particular retailer that I use a lot that really irritates me that I get loyalty points but I get nothing for it. The only benefit is if I have to exchange, I have it on record, but otherwise it just sort of irritates me that they've got my loyal without me getting anything from it.

Yeah, it's proven that loyalty programs need to have a very strong return for the customer to really believe in it. And you know, you can see with quantus loyalty program, flybys, etc. You can see how they've developed over time and the sorts of different incentives they're using to make sure customers feel loyal and a sticky to those brands.

Yeah, it's proven that loyalty programs need to have a very strong return for the customer to really believe in it. And you know, you can see with quantus loyalty program, flybys, etc. You can see how they've developed over time and the sorts of different incentives they're using to make sure customers feel loyal and a sticky to those brands.

The fifth pillar is time and effort.

The fifth pillar is time and effort.

Yes, this is a favorite pillar of mine because this is really about how hard is it to interact with a company? So can I use the digital products easily? You know? Is the app available? Do you have an app?

Yes, this is a favorite pillar of mine because this is really about how hard is it to interact with a company? So can I use the digital products easily? You know? Is the app available? Do you have an app?

You know?

You know?

Is there a good website? Do I have to go in store or in branch to do things that I really should be able to do digitally and seamlessly? You know, when you're signing a document, does it have to be physical wet signature or could it be doc you signed? So this is really what companies are doing behind the scenes when they talk about digital transformation for customers. They're looking at making all of those interacts actions as seamless as possible.

Is there a good website? Do I have to go in store or in branch to do things that I really should be able to do digitally and seamlessly? You know, when you're signing a document, does it have to be physical wet signature or could it be doc you signed? So this is really what companies are doing behind the scenes when they talk about digital transformation for customers. They're looking at making all of those interacts actions as seamless as possible.

In the final pillar, one, I love empathy.

In the final pillar, one, I love empathy.

Empathy is really strong in the last report in financial services, increased by thirty percent. Empathy is really about not just so knowing who the customer is, which is personalization, but really deeply understanding what those customers issues might be and we see this come out very clearly in financial services companies when they think about financial hardship. So when they're contacting a customer, before the customer reaches out, they may have seen indicators in their everyday bank account that shows that they might be entering into financial hardship. They might be missing a mortgage payment. And so when a company reaches out with kindness and empathy in that moment, they drive unreasonable amounts of loyalty and so that really makes customers sticky.

Empathy is really strong in the last report in financial services, increased by thirty percent. Empathy is really about not just so knowing who the customer is, which is personalization, but really deeply understanding what those customers issues might be and we see this come out very clearly in financial services companies when they think about financial hardship. So when they're contacting a customer, before the customer reaches out, they may have seen indicators in their everyday bank account that shows that they might be entering into financial hardship. They might be missing a mortgage payment. And so when a company reaches out with kindness and empathy in that moment, they drive unreasonable amounts of loyalty and so that really makes customers sticky.

I mean, I think about half the top one hundred brands a retailer is not surprising because their names that we all know and love or not does it is there much of a difference between the customer experience in detail and the rest.

I mean, I think about half the top one hundred brands a retailer is not surprising because their names that we all know and love or not does it is there much of a difference between the customer experience in detail and the rest.

What retailers are really good at is driving innovation. So they are often first forward with an idea. So you'll see Amazon stores in America they were first with don't pay on the way out. We've already scanned everything. We see the different ways of scanning in Australia that have come into the supermarkets. We see new innovations in the digital commerce, like in the online aisle, through the retailers first and we've also seen the best sort of AI chatbots through them coming first. We also see really good interactive immersive experiences, and what that means is places you can go, you and I can go that are physical where we have a really good time with the brand, and then it drives loyalty. It makes us feel good, it makes us connect with that brand.

What retailers are really good at is driving innovation. So they are often first forward with an idea. So you'll see Amazon stores in America they were first with don't pay on the way out. We've already scanned everything. We see the different ways of scanning in Australia that have come into the supermarkets. We see new innovations in the digital commerce, like in the online aisle, through the retailers first and we've also seen the best sort of AI chatbots through them coming first. We also see really good interactive immersive experiences, and what that means is places you can go, you and I can go that are physical where we have a really good time with the brand, and then it drives loyalty. It makes us feel good, it makes us connect with that brand.

ABEFI makes me feel twenty years younger my income. Well, that's good. That is really good.

ABEFI makes me feel twenty years younger my income. Well, that's good. That is really good.

That's an excellent experience for you.

That's an excellent experience for you.

Okay, calm and let's wrap all that up. What does the future hold in terms of customer experience, particularly with reference to AI.

Okay, calm and let's wrap all that up. What does the future hold in terms of customer experience, particularly with reference to AI.

I'll give you a word for you to use in your next interviews. It's anthropomorphism, which is one that you'll love. It's where you put human attributes onto a machine. And that really is the future. We're seeing that happening using AI, using other tools, but really bringing to life the human through machines and communicating with customers and making them feel confident and comfortable talking to a machine.

I'll give you a word for you to use in your next interviews. It's anthropomorphism, which is one that you'll love. It's where you put human attributes onto a machine. And that really is the future. We're seeing that happening using AI, using other tools, but really bringing to life the human through machines and communicating with customers and making them feel confident and comfortable talking to a machine.

Fantastic, Carmen, thank you for talking to Fear and Greed.

Fantastic, Carmen, thank you for talking to Fear and Greed.

Thank you.

Thank you.

That was Carmen Beggar, partner in charge of KPMG Customer Advisory. This is the Fear and Greed Business Interview. Join us every morning for the full episode of Fear and Greed Daily business years with people who make their own decisions. I'm Sean Elmer. I enjoy your dad,

That was Carmen Beggar, partner in charge of KPMG Customer Advisory. This is the Fear and Greed Business Interview. Join us every morning for the full episode of Fear and Greed Daily business years with people who make their own decisions. I'm Sean Elmer. I enjoy your dad,