Empathy and AI Shape Today's Leading Customer Experiences, KPMG Finds

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

This year's survey of more than 10,000 U.S. customers shows that top-performing companies like USAA, H-E-B, and Patagonia not only meet customer needs but demonstrate a deep commitment to the well-being and values of their customers and the 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, U.S. customer experience and engagement leader at KPMG, in a statement. "Empathy has emerged as a crucial distinguishing factor, indicating that a business not only focuses on transactions but also prioritizes meaningful, human-centered experiences."

"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," added Scott Lieberman, U.S. customer advisory leader at KPMG.

The U.S. customer experience landscape has been transformed by automation and AI, shifting consumer expectations and evolving business strategies, making empathy and values-driven experiences not just desirable but essential today, according to KPMG. It also found that companies that have recognized the power of emotional intelligence and deep customer understanding in fostering loyalty and that have 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," Mango said. "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 an inability to interact with a human (57 percent), security of personal data (51 percent), and responses being incorrect (44 percent).

"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," Mango said. "By doing so, they've fortified their brands' integrity and ethical standards."

The report also noted that 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, while 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, KPMG recommends.

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

This year's 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, according to KPMG.

The top 10 companies in this year's index are as follows:

1. USAA.
2. H-E-B.
3. Patagonia. 
4. Publix. 
5. Fidelity.
6. Costco Wholesale.
7. Hallmark.
8. L.L Bean.
9. Navy Federal Credit Union.
10. Sherwin-Williams.

Of these, only USAA has consistently been in the top 10 for the past 10 years. 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, defined as organizations that have made the most progress in 2024, are as follows:

• 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).

The report shows that grocery retail remained in the top industry position for another year with an average score of 7.82 out of 10, a 2 percent increase from 2023. Financial services remained in second place with a score of 7.68, a 2 percent increase from 2023, and non-grocery retail remained in third place with a score of 7.58, up 2 percent from 2023. Restaurant and fast food remained in fourth place with a score of 7.52, while travel and hotels rose to fifth place with a score of 7.44. The average score for all industries was 7.43.

The following are the 2024 industry rankings:

1. Grocery retail.
2. Financial services.
3. Non-grocery retail.
4. Restaurant and fast food.
5. Travel and hotels.
6. Healthcare.
7. Entertainment and leisure.
8. Logistics.
9. Telecommunications.
10. Utilities.
11. Public Sector.