India can unlock $200B with customer experience strategies: KPMG report

Indian companies have the potential to unlock an additional $200 billion in value by implementing effective customer experience (CX) strategies, says a report by KPMG.

KPMG India, in its Mastering Intentional Experiences – India CX Report, has highlighted how leading brands have fostered intentional customer experiences across the five sectors of retail, financial services, travel, telecom, and utility.   

The report captures insights from a primary survey of over 5,000 Indian consumers and aims to recognise organisations that excel in providing superior customer experiences.

It examines how Indian businesses are adapting to the changing landscape of consumer expectations, shaped significantly by global events. It also outlines the potential to unlock an additional $200 billion by Indian companies by implementing effective CX strategies.

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A global survey was conducted across 25 markets, benchmarking leading brands based on their CX performance.

The report shares highlights from the Indian region demonstrating superior customer experience by leveraging well-defined tools and approaches.

India surpasses the global average on the customer experience excellence (CEE) score, emphasising personalised experiences and the effective fulfillment of customer expectations.

Many of the brands in the survey have set the bar higher by improving their CEE score (avg +5%), mainly driven by improvement in the expectations pillar (avg +7%).

Among the various sectors, retail takes the centre stage. The sector has scored a CEE metric of 8.33, demonstrating a strong loyalty score, low customer churn, and willingness to pay more due to perceived value.

Consumers from this sector have the highest loyalty score (8.45), while the logistics sector scores (8.09) the lowest. The report highlights key brands in the sector such as Nike, Puma, Kalyan Jewellers, Crossword, and Sketchers. 

“It is imperative for businesses to recognise and appreciate that customer experience is much beyond transactional. In the Indian market, leading companies and brands have recognised customer experience as imperative to sustained value creation. Personalisation has emerged as a key pillar to drive customer loyalty," says Manuj Ohri, Partner, Business Consulting, KPMG India.

"Focusing on customer needs and experience will be necessary for brands to stay relevant in the current scenario and to make consumers as their biggest advocates,” he added. 

The report also highlights a few brands that have made significant leaps in their CEE ranking, as movers and shakers, including ICICI Prudential Life Insurance, Airtel, Hotstar, Crossword, and HDFC Standard Life Insurance.