German companies are becoming more efficient, faster, and more digital, but not necessarily more empathetic. A recent KPMG study of 7,141 consumers shows that while processes are being optimized and turnaround times shortened, one crucial success factor is falling by the wayside. For years, empathy has been scoring the lowest of all customer experience drivers. And the larger a company becomes, the weaker this factor becomes. Yet this is precisely where the greatest opportunity for differentiation lies.
The average customer experience score in Germany rose from 7.43 to 7.51, a sign of progress. However, this improvement is one-sided: companies score particularly well in terms of “time and effort” (7.94), the highest-rated driver. Fast workflows, uncomplicated processes, efficient digitalization: all of this works. But when it comes to the driver “empathy,” the score stagnates at 6.96, the lowest of all six drivers. The customer experience is becoming better in rational terms, but not necessarily more human.
The scaling dilemma
The study results reveal a structural problem: the larger a company is, the lower its empathy rating. Established processes and structured procedures enable efficient time management. Larger companies achieve top ratings in “time and effort” with a score of 8 or higher. However, interaction often appears less empathetic. Customers feel like a number, not an individual.
This is not a law of nature, but rather a consequence of misplaced priorities. While corporations invest millions in automation and efficiency improvements, emotional customer loyalty is neglected. The study clearly shows that empathy is not a nice-to-have, but rather a measurable growth driver. An empathetic approach conveys to customers that their values and concerns are understood. This strengthens trust, increases willingness to pay for ESG initiatives, and improves the overall rating of the customer experience.
So the crucial question is not: efficiency or empathy? But rather: how can we achieve both?
Personalization as a bridge
The good news is that there is a solution to the scaling dilemma. With a 20.8 percent influence on customer loyalty, personalization is the strongest lever, ahead of “time and effort” (18 percent) and “integrity” (17.9 percent). Personalization means more than just a name in an email. It’s about understanding the individual customer situation, recognizing expectations, and serving them in a targeted manner.
Impact of the six drivers on customer loyalty
Source: KMPG in Germany, 2025; rounding differences possible
This is where technology comes into play, not as a substitute for human interaction, but as an amplifier. Companies that systematically analyze data on behavior, interactions, and preferences and link it in meaningful ways can derive truly relevant offers from it. They create personalized experiences on a large scale: empathy that scales.
An example: American Express ranks first in financial services for the first time in the study, primarily due to improvements in empathy (+0.40) and expectations (+0.24). Customers emphasize that the company shows a great deal of understanding for their concerns through bonus programs, competent service, and high security standards. This works because the company responds individually, not according to a standard formula.
Where companies can take concrete action
The study identifies three crucial phases of the customer journey in which empathetic behavior makes all the difference:
Win customers through problem-solving expertise
Non-customers are primarily won over by technical expertise and a genuine focus on solutions. Proactive support, clear guidance, and simple digital processes strengthen trust. But expertise alone is not enough. It must be combined with an understanding of the customer’s situation. Those who demonstrate that they not only know the solution but also understand why the problem is important to the customer accelerate the purchase decision.
Retain customers through personalized experiences
Personalization has the greatest influence on customer loyalty, at almost 21 percent. Customers have already had several points of contact with the company, and targeted, personal experiences reinforce their decision to stay. Companies that really know their customers give them the feeling of being perceived as individuals. This is scalable empathy: it is based on data, but feels human.
Engage customers through authenticity
Personalization (19.5 percent) and integrity (19 percent) have the greatest influence on willingness to recommend. Customers primarily recommend brands that make them feel understood and valued. Authentic, transparent actions create trust, and trust is the basis for word-of-mouth, the most cost-effective growth driver.
What is at stake
The gap between top performers and the rest is widening. The number of companies with a score above 8 has doubled, from 6.5 to 13.7 percent. At the same time, the proportion of mediocre providers is declining. Competition is intensifying, and those who remain in the middle of the pack are coming under increasing pressure.
Interesting: This development is independent of the economic situation. 96 percent of respondents say that price increases influence their purchasing decisions. But at the same time, they say that rising living costs have no significant impact on the customer experience. A good customer experience remains relevant even in difficult economic times. Positive experiences can stabilize purchasing decisions in the long term.
This means that companies should not cut corners on customer experience when budgets are tight. It is precisely then that customer experience determines who will emerge from the crisis stronger than before.
AI as an empathy booster when transparency is right
Artificial intelligence could be the solution to the scaling problem: it analyzes customer data in real time, recognizes patterns, and enables individualized communication on a large scale. However, the study data also shows that insufficient data security is the most frequently cited concern regarding the use of AI, at 20 percent. Only 12 percent of respondents have no concerns at all.
If you want to use AI successfully, you have to openly explain how it benefits customers and how personal data is protected. This is the only way to build trust and increase acceptance. Companies that engage in this dialogue have an advantage over those that simply “roll out” AI without explanation.
The message: Technology is not the opposite of empathy. It is the tool that can be used to scale empathy. But only if people shape the process and values such as transparency and data protection are at the center.
Price isn’t everything
Income does not play a significant role in the perception of value for money. Even people with high incomes expect reasonable performance for their money. According to the study, personalization and integrity are the key factors in determining good value for money: if the offer is tailored to individual needs and the brand is perceived as credible, customers are more likely to consider the price reasonable.
The study also shows that poor performance in terms of “time and effort” has a negative impact on the perception of value for money. Conversely, this means that less effort on the part of the customer makes the price appear fairer. Good performance therefore includes fast and simple processes, but also the feeling of being understood.
ESG as a differentiating factor
Sustainability and responsible behavior are becoming increasingly important. The study data shows that the stronger a company’s ESG commitment is perceived to be, the more positively the customer experience is rated, the more likely consumers are to recommend the company to others, and the higher the willingness to repurchase. At the same time, the price-performance ratio is rated more highly. ESG therefore creates significant added value.
Empathy proves to be a decisive factor influencing willingness to pay for ESG initiatives. An empathetic approach conveys to customers that their values and concerns are understood and taken seriously. This strengthens trust in the credibility of ESG commitments.
The situation is different with the “time and effort” driver: customers who prefer fast processing and low effort are less willing to pay for ESG and thus more often prioritize convenience over value-oriented consumption.
What the best do differently
Some companies are already managing to combine efficiency and empathy. Fielmann tops the overall ranking for the sixth time in a row. The optician scores highly not only for its fast processes (quick appointment scheduling, short waiting times), but also for its personal advice. The result: an outstanding overall customer rating of 8.47.
Mercedes-Benz has maintained its leading position in the automotive industry for three years, primarily due to its high scores in “integrity.” The brand is perceived as reliable and trustworthy, especially in terms of vehicle and service quality. Trust is not built on speed, but on reliability and a genuine understanding of customer needs.
In financial services, American Express shows how empathy can be systematically improved: +0.40 points for the empathy driver within one year. Customers emphasize that their expectations are met through bonus programs, competent service, and high security standards, and that they feel understood.
Growth with or without heart?
The study makes it clear that the customer experience in Germany is improving overall, but only in one area. Companies are optimizing processes, shortening turnaround times, and digitizing services. This is important and right. But if you want to be successful in the long term, you cannot neglect the emotional dimension.
Empathy is the lowest-rated driver and therefore offers the greatest opportunity for differentiation. Precisely because companies perform poorly in this area, those that manage to treat customers with genuine understanding can clearly set themselves apart from the competition.
The key growth opportunity lies in combining functional strength with emotional connection. Companies that achieve this don’t just offer quick solutions. They create experiences that linger in the memory. Empathy that scales is not a utopian ideal. It is a strategic decision.
About the study: The KPMG Customer Experience Excellence Study 2025 is based on a representative survey of 7,141 people in Germany regarding their experiences with over 200 companies in eleven industries. The database comprises over 75,000 individual evaluations and was compiled in the second quarter of 2025.
Coverimage: © Mehdi
Sources: KMPG Customer Experience Excellence Study: #CX as a growth driver: https://kpmg.com/de/de/home/themen/2025/12/customer-experience-excellence-2025.html [as of Dec 2025].