The Six Laws of Customer Experience (Video)

This video explains The Six Laws of Customer Experience. By understanding these fundamental truths about how people and organizations behave, companies can make smarter decisions about what they do, and how they do it.

I published the 6 Laws of CX several years ago, yet it remains equally relevant today and is one of the most popular documents about customer experience, with over 100K downloads.

For more information, take a look at the 6 Laws of CX Infographic or download the free eBook.

The bottom line: Make sure to understand and conform with the 6 Laws of CX.

Report: Net Promoter Score Benchmark Study, 2014

1410_NPSBenchmarkStudy_COVERWe published a Temkin Group report, Net Promoter Score Benchmark Study, 2014. This is the third year of this study that includes Net Promoter® Scores (NPS®) on 283 companies across 20 industries based on a study of 10,000 U.S. consumers. Here’s the executive summary:

We measured the Net Promoter Score of 283 companies across 20 industries. USAA and JetBlue took the top two spots, each with an NPS of more than 60. USAA’s banking, credit card, and insurance businesses outpaced their industries’ averages by more than any other company. At the bottom of the list, HSBC and Citibank received the two lowest scores, and Super 8 and Motel 6 fell the farthest below their industry averages. On an industry level, auto dealers earned the highest average NPS, while TV service providers earned the lowest. Eleven of the 19 industries increased their average NPS from last year, with car rentals and credit cards enjoying the biggest score boosts. Out of all the companies, US Airways and Highmark BCBS improved the most, while Quality Inn and Baskin-Robbins declined the most. For most industries, the average NPS is highest with older consumers and is lowest with younger consumers. Investment firms have the largest generation gap.

Here’s a list of companies included in this study (.pdf).

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Here are the NPS scores across 20 industries:

1410_industryNPS

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If you want to know what data is included in this report and dataset, download this sample Excel dataset file.Screen Shot 2014-10-17 at 4.05.17 PM

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Customer Experience = Success + Effort + Emotion

My definition of customer experience remains the same as when I introduced it in 2008:

The perception that customers have of their interactions with an organization.

Our model for customer experience has always been built on three components — functional, accessible, and emotional – which are the underlying elements in the Temkin Experience Ratings. While this model continues to hold up, we’ve decided to change the naming of the components to the following:

  • Success (formerly functional): Degree to which customers can accomplish their goals
  • Effort (formerly accessible): The difficulty or ease in accomplishing their goals
  • Emotion (formerly emotional): How the interaction makes customers feel

The names have changed, but the definitions of the components remain the same. Our Temkin Experience Ratings will also remian the same, so we will continue to be able to compare the results with previous years.

1410_3componentsofCXWhy did we do this?

We felt as though the new language would simplify our discussions about customer experience. In addition, people are starting to discuss the notion of customer effort, which is an area that we’ve been measuring in our Temkin Experience Ratings since 2011.

The bottom line: Some names have changed, but the CX fundamentals remain the same

 

Report: State of VoC Programs, 2014

1410_StateOfVoC2014_COVERWe just published a Temkin Group report, State of Voice of the Customer Programs, 2014. Based on data from 218 large organizations with at least $500 million in annual revenues, we examined VoC efforts within large organizations. The report includes a self-assessment and data to benchmark your VoC program. Here’s the executive summary:

For the fourth straight year, Temkin Group has benchmarked the maturity of voice of the customer (VoC) programs within large organizations. Despite a slight drop in staffing numbers and executive involvement, companies’ VoC efforts continue to deliver successful results. While companies today are investing more money into most VoC solutions, spending on text analytics and predictive analytics has increased the most dramatically over the past year. Looking ahead, companies plan on focusing less on multiple-choice surveys and more on interaction history and predictive analytics. In terms of metrics, our analysis shows that satisfaction and Net Promoter Score work most successfully at the relationship level, whereas Customer Effort Score works most successfully at the transactional level. Respondents also completed Temkin Group’s VoC Competency and Maturity Assessment, which examines capabilities across what we call the “6 Ds”: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. Only 11% of companies have reached the two highest levels of VoC maturity, a drop-off from last year. When we compared high scoring VoC programs with lower scoring programs, we found that companies with more mature programs have better overall business performance, spend more on analytics, are more active on mobile, employ more full-time employees, take more action with the insights, and enjoy more executive support.

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Here are results from companies that completed Temkin Group’s VoC Competency and Maturity Assessment (one of the 25 figures in the report):

1410_StateOfVoCMaturity

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The bottom line: VoC programs have a lot of maturing to do

CX in the C-Suite: Webinar With Mercedes-Benz CEO

1410_CXfromCSuiteMBUSAAs part of Customer Experience Day, I interviewed Mercedes-Benz USA (MBUSA) CEO Steve Cannon on a CXPA.org webinar called Customer Experience from the C-Suite. Cannon was energetic and informative in describing how MBUSA has infused a strong sense of CX across its organization as well as across the company’s network of 375 dealership franchisees.

One of the highlights of the webinar was when Cannon said that “customer experience is the new marketing” and is critical for fulfilling MBUSA’s brand promise, The Best or Nothing.

Here are some other highlights and lessons from the webinar:

  • The CEO plays a critical role in CX. Cannon was clear on the role of the CEO in driving CX across the organization. “If the CEO doesn’t take CX personally, he’s not going to be able to convince people that it isn’t just the flavor of the month.” He called himself the “Chief conversation starter” and “Chief Evangelist.” Cannon mentioned that CX is a topic in every single town hall and when he visits a facility, he says, “Don’t give me a facility tour, give me a customer experience tour.” (Related: CX Mistake #1: Faking Executive Commitment).
  • Change takes focused leadership. Cannon pointed out that historically; CX resided in too many siloes (sales, marketing, presales, etc) across MBUSA. One of the first thing Steve did was reorganize around CX, carve CX out of different business units and put them together in one unit with a General Manager who reports directly to him. (Related: State of CX Management, 2014).
  • Alignment is well worth the investment of time. When CX became the MBUSA’s main objective, the executive team went offsite and spent two days debating and critically examining the organization’s CX—where they were coming from and where they were going. This meeting incorporated the voices of General Managers into MBUSA’s CX plans, making them what Cannon called “co-architects.” Afterwards, Cannon held similar meeting with the next two levels of leaders across the company. (Related: WL Gore Succeeds Without Employees).
  • It all starts with employee engagement. Cannon said that Employee Engagement is a precursor to CX. Cannon stated that “MBUSA is committed to investing in people because they are the only ones who can create great CX.” And Cannon is investing in this area. He discussed the company’s Immersion Program. Over the next few years, 26,000 employees will visit the MBUSA plant in Alabama and go through a learning journey that includes driving cars and visiting the company’s brand center. (Related: The Untapped Value of Employee Engagement (Infographic)).
  • CX is about culture, not a veneer. Cannon mentioned that great leaders create culture that creates great customer experience. That’s why Cannon is so proud of MBUSA leadership academy. He said that CX is in the DNA of the MBUSA, and is its higher calling. (Related: Driving Customer Experience Transformation, Made Simple).
  • Satisfaction isn’t enough.” Cannon stated that any company can satisfy customers just by operational excellence and performing a transaction right. Instead of satisfaction, MBUSA wants to delight To measure this objective, MBUSA is changing its metrics to include Net Promoter Score within a basket of other metrics. (Related: Customer Effort, Net Promoter, And Thoughts About CX Metrics).
  • Engage your channel partners. Cannon was clear that dealers have the ability to amplify, accentuate, or marginalize everything MBUSA does. He explained that 2.5 points out of the 5.5 points of performance bonus that dealers can earn are related to delivering great customer experience, which results in a $40 million customer experience payout across dealers. Cannon was proud of the “Drive a Start Home” program that provides dealer employees with a Mercedes-Benz to drive for two days. (Related: Our B2B content plus an upcoming report on B2B2C CX).

Check out last year’s webinar with Dan Hesse, CEO of Sprint.

The bottom line: CX leaderships requires executive leaders like Steve Cannon.

Congrats To Industry Leaders in Customer Service

Since today is the last day of Customer Service Week, I’m give a shout out to industry leaders in the 2014 Temkin Customer Service Ratings. The chart below shows the leaders across 19 industries, along with where they ranked compared with the 233 companies in the ratings.

1410_TCSR_IndustryLeaders

The bottom line: Happy Customer Service Week!

 

Lesson From Dana-Farber: Treat The Whole Person

As part of yesterday’s Customer Experience Day celebration, I attended a CXPA local networking event at the Dana-Farber Cancer Institute (DFCI) in Boston. The session kicked off with a panel from the DFCI discussing patient experience.

I’m a big fan of DFCI and have enormous respect for the great work that it does in battling cancer. The panel, which included a cancer survivor turned volunteer, was fantastic. I was inspired by the commitment and compassion they displayed.

One of the points that came up was DFCI’s commitment to treat the whole person. This explains why it provides things such as hand massages during chemotherapy treatment. DFCI doesn’t just treat the disease, it treats the whole person.

I love the concept of the whole person. It’s not just applicable to DFCI or other health care providers, but to every organization. It’s a powerful concept for anyone who cares about customer experience.

Here’s how I think about the whole person:

  • Emotion, not just success. DFCI doesn’t have data showing that hand massages will result in better clinical outcomes. It knows that a patient’s positive medical outcome is important, but it’s not enough. Your customers are the same. You need to understand, care about, and actively design for your customers’ emotional states.
  • Goals, not just interactions. A chemotherapy patient is battling cancer, not just getting treatment. When customers interact with you, it’s often part of a broader goal. A customer who calls to change her address, for instance, probably has a life change going on that dwarfs the need to update your administrative systems. The better you can understand and cater to these larger goals, the more opportunity you will have to build loyalty.
  • Community, not just individuals. One of DFCI’s key elements for helping patients is supporting their caregivers. These people are a critical element of the patient’s medical journey. Your organization needs to understand the role that community plays in your customers’ lives. How can you help your customers achieve their goals by supporting key members in their personal ecosystems?
  • Caring, not just doing. DFCI doesn’t just mandate a set of explicit activities that define how people should focus on the whole person, it consistently reinforces the importance of this focus in achieving DFCI’s mission. It gets employees and volunteers to care about these elements, not just follow a bunch of directions. You need to help employees understand why the whole person is important, and spark their natural capabilities for caring.

I hope that you are inspired to drive your organization towards focusing on the whole person. Here are a few tools that should help:

The bottom line: Start focusing on the whole person!

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