Empathy and AI Shape Today’s Leading Customer Experiences [REPORT]

Top performing US companies in customer experience leverage values-based empathy, personalization, AI, and other innovative technologies to gain a competitive edge, according to the new KPMG US Customer Experience Excellence (CEE) report.

In its tenth year, the survey of over 10,000 US customers across 316 brands shows that top performing companies, including those in the top three – USAA, HEB, and Patagonia – not only meet customer needs but demonstrate a deep commitment to the well-being and values of their customers and communities they serve.

“In a world where interactions are predominantly mediated digitally, customers are now looking for emotional bonds and concrete indications that the companies they interact with genuinely value them as individuals,” said Jeff Mango, US Customer Experience & Engagement Leader, KPMG LLP. “Empathy has emerged as a crucial distinguishing factor, indicating that a business not only focuses on transactions but also prioritizes meaningful, human-centered experiences.”

Scott Lieberman, US Customer Advisory Leader, KPMG LLP, added, “Over the past decade, the Customer Experience Excellence report has revealed a significant trend: consumers are drawn to brands that reflect their values. In response, companies are prioritizing purpose-driven missions in CX that resonate emotionally with customers.”

Customer experience in the age of AI

The landscape of customer experience in the U.S. has undergone a profound transformation, driven by automation and AI, shifting consumer expectations, and evolving business strategies. These changes have made empathy and values-driven experiences not just desirable, but essential for success in today’s market.

Brands that have recognized the power of emotional intelligence and deep customer understanding in fostering loyalty, as well as seamlessly blended AI with genuine human connection, have flourished.

“Current AI systems are becoming more adept at mimicking human emotions and behaviors, which is crucial for applications like customer service,” said Mango. “As AI continues to advance, its ability to simulate emotions will improve, rapidly transforming and advancing human-machine interactions.”

In this year’s survey, consumers also outlined their concerns interacting with a company through AI, with the top three being: unable to interact with a human (57%), security of personal data (51%), and responses being incorrect (44%).

“This year’s most successful brands have worked tirelessly to cultivate customer trust in their technology and AI, ensuring that every innovation aligns seamlessly with their company values and brand promise,” added Mango. “By doing so, they’ve fortified their brand’s integrity and ethical standards.”

Millennials and Gen Z demand smooth digital experiences, social responsibility, and authenticity

Companies are adapting to the preferences of younger generations by prioritizing mobile experiences, transparency, and aligning with their values. The 18-24 age group is more willing to pay extra for products and services from companies they perceive as ethical or socially responsible. However, older generations still value human interaction and trust. To cater to the diverse preferences of all age groups, companies need to find a balance between technological advancements and maintaining a human touch in their customer experience strategies.

“As companies gather more data to improve personalization, there is also an increasing need to address concerns about privacy and data security,” added Mango. “Building customer trust through transparent data practices and strong security measures is essential for providing a positive customer experience.”

The Top 10 US Brands

The leading companies in the Customer Experience Excellence index have not only excelled in meeting customer needs but have also demonstrated a deep commitment to the well-being and values of the individuals and communities they serve.

Only USAA has consistently been in the top 10 for the past 10 years, whereas companies such as H-E-B and Navy Federal Credit Union have been in the top 10 since 2018.

Appearing for the first time in the top 10 this year are Patagonia, Fidelity and Hallmark. Hallmark’s rise is particularly notable, up 26 positions from last year.

Movers and Shakers

Movers and Shakers are organizations that have made the most progress in 2024, two of which are in “Financial Services” and one in “Travel & Hotels.” These are:

• Barclays (advanced 71 places to 72 from 143)
• Morgan Stanley E*TRADE (advanced 63 places to 41 from 104)
• Sheraton (advanced 16 places to 71 from 87)

Top 10 Industry Performers

The report shows that Grocery Retail remains in the top industry position for another year with an average score of 7.82 out of 10, a 2% increase from 2023. Financial Services remains in second place with a score of 7.68, showing a 2% increase from 2023, and Non-Grocery Retail remaining in third place with a score of 7.58, up 2% from 2023. Restaurant & Fast Food also remains in fourth place with a score of 7.52, while Travel & Hotels rises to fifth place with a score of 7.44. The average score for all industries is at 7.43.

To access report, CLICK HERE.