2014 Temkin Experience Ratings (Free Report)

Temkin Ratings website2014 Temkin Experience Ratings evaluates the customer experience of 268 companies across 19 industries. Download free report.

Report: The State of Customer Experience Management, 2014

1404_TheStateOfCX2014_COVERWe just published a Temkin Group report, The State of CX Management, 2014. It examines the CX efforts within more than 200 large companies. Here’s the executive summary:

We surveyed more than 200 large companies and found an abundance of Customer Experience (CX) ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Using Temkin Group’s CX competency assessment, we found that only 10% of companies have reached the highest two levels of customer experience, although this does represent a slight increase from last year. Most firms struggle most to master Employee Engagement and Compelling Brand Values. When compared with CX laggards, CX leaders have stronger financial results, enjoy better CX leadership, and implement more successful employee engagement efforts. Executives in companies with stronger CX competencies also tend to focus more on delighting customers and less on cutting costs.

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The percentage of large organizations that have reached the two highest levels of customer experience maturity has grown from 6% in 2013 to 10% this year. During the same period, the percentage of companies in the lowest level of maturity has dropped from 40% to 31%.

1404_CXMaturity

Here are some additional findings from the research:

  • Companies with good or very good ratings in Purposeful Leadership rose from 39% to 45%, the largest improvement for any customer experience competency.
  • The research also revealed a significant focus on improvement. While only 6% of companies believe that their organization currently delivers industry-leading customer experience, 58% have a goal to be an industry-leader within three years.
  • Sixty-five percent of companies have a senior executive in charge of customer experience.
  • More than half of companies have at least six full-time customer experience professionals.
  • Almost two-thirds of respondents rate customer experience with phone agent as good or very good, the highest rated interaction. Less than 30% rate mobile phone and cross-channel experiences at that level.
  • The top obstacle to customer experience is the same as it has been for four years, “other competing priorities.”
  • We compared companies that have strong customer experience maturity with those that are weaker and found that customer experience leaders have better financial results, have more senior executive commitment, and focus more on their organization’s culture.

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The bottom line: Most companies are in early stages of CX maturity, but are getting better

Happy People Are More Productive Employees

I recently read an interesting article in Fast Company called Happy Workers Are More Productive: Science Proves It which discusses a UK study of 713 people. The findings make sense and match what we’ve seen, so I decided to do an analysis with our datasets.

Happiness is an element of our Temkin Well-Being Index, so we have a lot of data on it. I dug into our Q3 2013 Temkin Group Consumer Benchmark Study to examine the connection between happiness and productivity for more than 5,000 U.S. consumers. To identify “happy people” we selected the full-time employees who said that they are “always” or “almost” always happy. Our analysis compares those people to other full-time employees who report that they are less frequently happy. As you can see in the chart below:

  • Happy people go out of their way more for their employers
  • Happy employees try harder
  • Happy people take less sick time

1404_HappinessVsProductivityThe bottom line: Hire happy people and keep them happy!

 

 

Data Snapshot: Channel Preferences and Cross-Channel Activity Benchmark, 2014

1404_DS_ConsumerChannelPreferenceBenchmark2014_COVERWe just published a Temkin Group data snapshot, Channel Preferences and Cross-Channel Activity Benchmark, 2014. The research examines consumer preferences for using different channels for completing common tasks as well as the frequency of several cross-channel interactions.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about their channel preferences for performing 11 different activities—such as opening an investment account or applying for a new credit card—and the frequency with which they perform common cross-channel activities. This data snapshot breaks down the results by age, examining how channel preferences and cross-channel activity levels vary across age groups. It also analyzes how cross-channel activity levels differ by mobile phone types.

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A key component of the research examines how consumers would like to complete 11 different interactions with companies. For seven of the activities, using a computer was the most popular or tied for the most popular channel. At the high end, 71% of consumers want to go online to check the delivery status of a purchase they’ve made. Two-thirds of consumers would prefer to go online to update their address on an account, purchase a new book, and check the balance on a saving or checking account.

But consumers do not want to do everything online. Less than one-third of consumers want to go online to open a new investment account or investigate a mistake in their monthly wireless bill. When it comes to resolving a technical problem on their computers or investigating a mistake on their cell phone bills, consumers most prefer talking to someone over the phone. And they want to meet in-person for activities such as purchasing a new auto insurance policy, selecting a life-insurance policy, and opening a new investment account.

Here are some additional findings from the research:

  • Across every age group, consumers most preferred to go online to update their address, check the balance on their savings or checking accounts, check the delivery status of a purchase, and purchase a book.
  • The phone is the preferred channel for more than half of consumers 55 and older who are investigating a mistake on their wireless bill and consumers 65 and older who are trying to resolve a technical issue with their computer.
  • Meeting with someone in person is the preferred channel for more than half of consumers 45 and older who want to open a new investment account, consumers 75 and older who want to purchase a new auto insurance policy, and consumers 55 and older who want to select a life insurance policy.
  • Forty-three percent of consumers check competitors’ prices on their mobile phone when they are in a store.
  • iPhone users are the most likely to do all of the cross-channel activities examined in the research while Windows Mobile users are the least likely (out of the four major mobile phone platforms).

The report has 19 data-filled charts. Here’s an excerpt from the first chart in the report that shows the channel preferences of consumers for 11 different activities (the report also includes details by age breakdowns for all of these activities):

1404_ChannelPreferences

The report also examines the frequency that consumers do five different cross-channel activities (the report also includes details by age breakdowns for all of these activities):

1404_CrossChannelActivities

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Top 10 Reasons I’m Proud To Be A CCXP

ccxp_logoYesterday I passed the exam to become a Certified Customer Experience Professional (CCXP).  Hip hip hooray!

Since I’m very excited about this for many different reasons across a variety of dimensions, I decided to share the top 10 reasons I’m proud to be a CCXP:

  1. We finally have a vendor-agnostic, independently-governed professional certification to recognize the many great people who work in the field of customer experience.
  2. I like the way my name looks with “CCXP” at the end of it.
  3. The CCXP establishes a common framework around six competencies required to succeed in the CX profession: Customer-Centric Culture, Voice of the Customer, Customer Insight, and Understanding, Organizational Adoption and Accountability, Customer Experience Strategy, Experience Design, Improvement, and Innovation, Metrics, Measurement, and ROI.
  4. I get giddy whenever I pass any test.
  5. The CCXP will bring additional credibility to the entire profession, making it more common for leaders in organizations to recognize that they “need to hire some CX professionals.”
  6. It would have been totally embarrassing if I had failed, because Parrish and I edited all of the questions.
  7. The CCXP will help sustain organizations’ focus and spending on CX, because executives will recognize that CX is an important discipline and not a fad.
  8. I can now match credentials with my friends who are doctors, lawyers, and accountants.
  9. The CCXP will encourage professionals to build and maintain their expertise at a high level, which will raise the overall quality of output from CX professionals.
  10. I’m proud of the Customer Experience Professionals Association (CXPA.org) for driving this forward and making it come to fruition. I remember the moment that the board of directors decided that certification was a key priority, it was at the CXPA Insight Exchange in San Diego two years ago. Since that moment, a lot of people have volunteered their time and energy to make the CCXP a reality. It’s a wonderful accomplishment for the entire CXPA community.

The bottom line: I’m proud to be Bruce Temkin, CCXP

Like Digital Cameras? Thank Sony’s Organizational Empathy

I read an interesting article by Sony’s former VP of Brand and Strategy in Fast Company called How Sony Learned That Product Features Don’t Matter. The article discuses how Sony adjusted its digital camera design based on a rich understanding of how consumers were interacting with them. Here are some excerpts from the article:

People would snap informal pictures in the middle of the action and share them with people right on the spot using the instant display on the back of the camera. Picture-taking and picture-sharing added to the fun and action of the occasion in the moment. They wouldn’t be the best quality pictures–oftentimes people would take several pictures of the same shot–but now that they were “free” and disposable, getting the perfect picture was no longer as important. Sometimes images would then be saved, printed, and displayed, but many would remain in the camera forgotten after the moment passed.

This kind of behavior had not been anticipated by our product designers. They had assumed, as most of us had, that digital cameras represented a new, more convenient method of gratifying old, reliable emotional needs–to preserve memories of special occasions by putting images in photo albums and hanging them on walls. Many of our efforts had been focused on helping people take high-quality pictures and on transferring image files from camera to computer for printing and storage.

All the improvements you saw in Sony’s digital cameras during the decade of the 2000s–larger, brighter instant displays, easy gallery-style browsing, wireless instant sharing options, and ever smaller camera sizes–were spurred by these kinds of empathic insights into how people felt about cameras and about photographs.

My take: Sony was able to evolve its digital cameras based on the company’s ability to master the three characteristics of organizational empathy: Perceive-Reflect-Adjust.

  • Perceive: Customers used their new digital phones in a different way than Sony originally anticipated.
  • Reflect: Sony sent employees to go watch customers as they used their phones to discover what they actually wanted from the device. They discovered that users actually wanted to look at the pictures immediately and often took many, lower-quality pictures of the same picture.
  • Adjust: Sony made larger, brighter instant displays, easy gallery-style browsing, wireless instant sharing option, and smaller camera sizes to fit this customer need.

The bottom line: Find ways to Amplify Empathy in your organization!

USAA Tops 2014 Temkin Trust Ratings

We just published the 2014 Temkin Trust Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to USAA, which earned the top three ratings for its banking, insurance, and credit card businesses. The bottom of the ratings are dominated by TV service providers and Internet service providers. Overall, most companies and industries improved since last year.

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This is the fourth year that USAA has earned the highest trust ratings. The next 10 companies on the top of the 2014 ratings are Lexus dealers, credit unions, H.E.B., Trader Joe’s, Chick-fil-A, Publix, Costco, Amazon.com. BMW dealers, and PetSmart.

At the bottom of the 2014 Temkin Trust Ratings are three TV service providers: Charter Communications, Comcast, and Time Warner Cable. These three companies also showed up in the bottom 10 for their Internet services businesses, along with HSBC (for both credit cards and banking), Qwest, and US Airways.

1404TTR_TopBottom

Here’s how the industries compare with each other:

1404TTR_Industries

Here are some additional analysis from the 2014 Temkin Trust Ratings:

  • Led by credit cards and banking, 17 of the 19 industries improved their Temkin Trust Ratings between 2013 and 2014. Hotel chains were the only industry to experience a decline.
  • The five highest rated industries are grocery chains, investment firms, insurance carriers, retailers, and auto dealers.
  • The five lowest rated industries are TV service providers, Internet service providers, wireless carriers, health plans, and airlines.
  • 180 companies earned higher Temkin Trust Ratings in 2014 than they did in 2013, while only 50 had lower ratings.
  • The five companies with the largest improvement in Temkin Trust Ratings between 2013 and 2014 are CareFirst, T.J. Maxx, Best Buy, Cox Communications, and Apple Store.
  • The six companies with the largest decline in Temkin Trust Ratings between 2013 and 2014 are Holiday Inn Express, Hyatt, Coventry Health Care, Blackboard, Travelers, and Marriott.

Methodology:

The data was collected from an online survey of 10,000 U.S. consumers during January 2014. Quotas were set to mirror the U.S. census data for age, income, gender, ethnicity, and geographic regions of the U.S. population.

The Temkin Trust Ratings are based on asking consumers the following question about companies with whom they’ve interacted during the previous 60 days: “To what degree do you TRUST that these companies will take care of your needs?” Potential responses range from 1= “do not trust at all” to 7= “completely trust.” Temkin Trust Rating for a company is calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who responded with 1, 2, or 3.

Download dataset for $295

Temkin Ratings website
You can view a sortable list of results from the Temkin Trust Ratings as well as other ratings on the Temkin Ratings website.

The bottom line: Good news: Trust is on the rise

2014 Temkin Group CX Vendor Excellence Award Winners

CEVendorAward_logoToday we announced the results of the 2014 Temkin Group CX Vendor Excellence Awards. Once again we had a great group of nominees, making the scoring difficult for the judges. Congratulations to this year’s winners:

Allegiance

Clarabridge

Verint

Also, congratulations to the finalists: Confirmit, Enghouse Interactive, Mindshare Technologies, Qualtrics, and Walker.

In its second year, these awards recognize companies that provide products and services that help companies improve the customer experience they deliver. Nominees are rated based on their capabilities, results, and client feedback.

The CxVE Awards were judged by five noted customer experience experts: Mila D’Antonio (Editor-in-Chief at 1to1 Media), Denise Bahil (CX Transformist at Temkin Group), Desirree Madison-Biggs (Director of Customer Experience Insights & Advocacy at Symantec), Rick Meyreles (VP – Global Voice of Customer, World Service at American Express), and Bruce Temkin (Managing Partner & CX Transformist at Temkin Group).

I’ve included the first two section of the nomination forms submitted by the eight winners and finalists. Read more of this post

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