Assess Your Four Customer Experience Competencies

In the recent research report The State of CX Management, 2012, we examined how large companies are progressing along their journeys towards becoming customer-centric organizations. We found that only 7% of companies have reached that level of CX maturity.

What does it take to become a customer-centric organization? Our research shows that leading companies master four customer experience core competencies:

  • Purposeful Leadership: Do your leaders operate consistently with a clear, well-articulated set of values?
  • Compelling Brand Values: Are your brand attributes driving decisions about how you treat customers?
  • Employee Engagement: Are employees fully committed to the goals of your organization?
  • Customer Connectedness: Is customer feedback and insight integrated throughout your organization?

To gauge how effective companies are in mastering these competencies, Temkin Group created a 20 question assessment. As part of the research in The State of CX Management, 2012, we asked 255 large companies to complete the assessment. As you can see from the overall results, nearly 60% of companies are in two lowest stages of CX maturity.

And when it comes to the Four Competencies, companies struggle with all four areas but have a particularly hard time with compelling brand values and employee engagement.

In case you’re interested, here’s how I describe the four competencies…

The bottom line: Are you building your customer experience competencies?

Michael’s Stores Links CX And Marketing

Last month I met Paula Puleo, CMO of Michael’s Stores, at a SAS event in Orlando. She gave a presentation that I really enjoyed, describing activities at the arts and crafts retailer that blends marketing with customer experience.

The importance of customer experience comes out loud and clear in what Puleo presented as the three elements of Michael’s corporate mission:

  • Inspires and enables consumers to experience creativity
  • Leads industry growth and innovation
  • Creates a fun and rewarding place to work that fosters meaningful connections with our communities

I was really impressed with Puleo’s presentation, so I caught up with her after the event. In her presentation, Puleo listed her six marketing priorities. Here are some of the additional details that she provided for each of them:

  • Live The Brand: Puleo talked about trying to foster connections with customers and associates. The company runs events like craft cruises and craft days at baseball stadiums (they’ve had them at Arizona Diamondbacks and Texas Rangers games and expect to expand to other sporting venues). Puleo also pointed to Michael’s participation in the Festival of the Masters at the Walt Disney World. The goal is to bring crafts to venues that are more family oriented. She said that these activities bring a level of inspiration to all of their messages.
  • Real Time/Face Time = The New Prime Time. Puleo talked about having a dialogue with customers. Michael’s uses a dedicated Social media team to keep Twitter and Facebook alive. Each store has dedicated customer experience managers that aren’t focused on other store operations. Puleo says that these employees make the environment happy, friendly, and fresh and she called them “our people-people.”
  • Make the private brand not so private. Michael’s has a large private brand business, which provides strong financial benefits. Rather than positioning these store brands as boring alternatives, Michael’s wants to celebrate them and make them a strong value proposition. So the company introduced its product designers to customers. Influential bloggers, for instance, are periodically invited to spend the day with product designers. Connecting customers and influential crafts bloggers with product designers make the private brands come to life and creates what Puleo called a “playground for customer co-creation.”
  • Compete in the trenches. Puleo said that they need to compete at a local level. So corporate marketing helps the stores understand who their customers are and any local competitive threats.The company is investing in deeper data insights to better understand customers and provide the stores with even more insights. The corporate marketing team also creates experiential events and demos that can be used in the stores.
  • Remove the angst. Puleo talked about finding what’s in the belly of your customers. if you remove that angst then you will eventually sell them something. She understands that shoppers are anxious about spending, so they lead with value. She also recognizes that Michaels customers have angst about having quality family time. That’s why Michael’s came up with the idea for The Knack, which is a site with simple ideas for family crafts projects.
  • What works. Puleo discusses the importance of measurement and having good KPIs in place. She works closely with her finance partners to understand what’s working and what’s not, to measure the ROI of the marketing spend.

Puleo also discussed Michael’s loyalty program.They’ve just started offering experiential benefits for Gold customers (that spend $250+ per year). In about 275 of its stores, Michael’s invites its top customers to events with stores designers and celebrities in the crafts world. In St. Louis they had an event with The Crochet Dude and in Dallas they had a contest where customers pitched their projects to Puleo, Michael’s chief designer Joe Pearson, and “rock stars” like the Double Stitch Twins. Puleo says that “access” is the currency that they try to give to good clients; it’s all about surprise and delight.

I asked Puleo about what’s next. She recognizes that many of their customers come to a Michael’s store because they have to come – to get materials for a kids project or to buy a widget. She wants to inspire customers into coming into the stores because they want to. Her goal is to get everyone, even non-customers, to realize that they have some talent and creativity and have them think about coming to Michael’s to express it.

The bottom line: Michael’s sells products, but it markets the love of arts & crafts

CX Insights From Marriott And JetBlue

I recently spoke at the Customer Experience Strategies Summit in Toronto. While I was there, I was able to catch a few of the other speakers. I really enjoyed hearing from the Marriott and JetBlue speakers. Both companies did very well in the 2011 Temkin Experience Ratings; Marriott was the top rated hotel chain and JetBlue was the second rated airline (behind Southwest). Here are some of the interesting details that they shared:

Scott Allison, VP of Canadian Operations, Marriott:

  • Allison shared this great comment: “culture trumps brand.” Marriott links its strategy as a company with its strategy as en employer. Bill Marriott still visits a lot of hotels and when he does, he first goes to employee areas like employee entrances and break rooms. Employees are also trained on what makes their brand special.
  • Hotel general managers need to hit targets for both customer experience and employee satisfaction to get their bonuses.
  • Something goes wrong, even if it’s a small thing, during about one-quarter of stays — so hotels need to be good at recovery. That’s why the Ritz Carlton empowers associates to spend up to $1,000 per day per guest to improve someone’s stay. The staff reviews guest situations at the beginning of every day, they call it “Stand Up” at Marriott and “Line Up” at the Ritz.

Vicky Stennes, VP of Inflight Experience, JetBlue:

  • Net Promoter Score (NPS) is one of the key measures that the company uses. It also uses J. D. Power which breaks measurements into “people-related” and “non people-related” categories.
  • A couple of years ago, the company noticed a slip in its “people-related” scores so it started a program called “Culture is Service” (CIS). [Note: CIS was discussed in the CEO's letter to shareholders in JetBlue's 2010 Annual Report]. As part of CIS, more than 1,000 “crew members” (across the organization) went through training focused on three areas: Inform: Educate everyone on JetBlue’s current state of service, the measurements that it tracks, and share insights on how crew member behaviors affect customer experience; Engage: Elicit an open dialogue with real-time cross-functional problem solving; and Inspire: Give them a sense of the concept of unexpected moments and recognize the great work of crew members over the company’s first 10 years of operations.
  • JetBlue sees success of the CIS program because of an improvement in employee NPS scores of training attendees.
  • Moving ahead, they are looking to add a few things to the CIS training: cross-functional design sessions and education on linking NPS to specific behaviors and to revenue.
  • Stennes shared data that showed correlation between pilot in-flight communications and NPS. They use this data to show pilots that the way they communicate with passengers plays an important role in passenger loyalty.
  • The company also tracks a “Net Helpfulness Score” along with NPS for each flight. They will start using these scores to define scores for crews across their different flights.
  • Stennes also shared some great data: Every 5 promoters leads to 2 new customers and every 16 detractors leads to the loss of 1 customer. A promoter is worth $33 extra dollars ($27 from referrals and $6 from loyalty) to JetBlue while a detractor is worth $104 less than average. One point change in JetBlue’s NPS is worth $5 to $8 million.

The bottom line: Great brands spend a lot of time focusing on their people

Can Cigna Deliver On Promise To Get Personal?

Cigna recently started an advertising push around its new brand promise:

Cigna supports and nurtures the unique strengths of each customer to help them achieve their full potential.

I caught up with Ingrid Lindberg, Cigna’s customer experience officer, to find out if this was just a “marketing pitch” or if the company is really prepared to deliver on this promise. Here’s some of what she told me:

  • This campaign is part of  a journey that started in 2008 when the company started a major push to improve its customer experience. According to Lindberg “We started to walk before we started to talk.”
  • The campaign is part of Cigna’s goal to make experiences more personal for customers. Lindberg talks about her customer experience mantra: Make it easy, make it helpful, make it personal. Here’s how she describes the connection: “You have to be easy and helpful every time, earn the trust and relationship with customers in order to earn the right to help people live a better life. Without relationship and trust, you don’t have the right to interact at that level.”
  • Lindberg discussed the level of engagement of employees, saying “If you don’t have your employees engaged, then you don’t have the right to do anything.”
  • The company has pushed to eliminate jargon from all of its communications – internally and externally — in a program called “The Words We Use.” She shared data from a recent survey: 86% of employees were aware of that program and 75% were using the “correct words” almost all the time. The company has a great site describing its simplification efforts.
  • Lindberg feels that Cigna really delivers on the promise when customers get on the phone with someone from Cigna’s clinical team. She told me: “Satisfaction and health of the customer goes way up when they connect with a nurse.”

My take: Health plans like Cigna have a long way to go before many consumers will trust them enough to establish a strong relationship; no matter what promises the companies make. As I’ve said in the past, companies don’t own their brands. True brands are an asset that are jointly owned by organizations and their customers… and it’s a fragile relationship. Great brands are made in three steps:

  1. Making promises. Companies need to be explicit about the purpose of their organization which translates into promises that they make to customers.
  2. Embracing promises. It’s nearly impossible to keep a promise that you don’t know about, so everyone in an organization needs to understand the customer promises.
  3. Keeping promises. Companies need to make sure that they live up to their promises during every interaction in every channel.

If Cigna can’t deliver on some of the basic needs of customers, then this campaign will turn out to be nothing more than an “empty promise.” Lindberg has a great view on this, saying that they try and build trust one person at a time. In this industry, that’s probably the best mindset.

The bottom line: It’s very hard to build a relationship without trust

Your Company Does Not Own Its Brand

I’ve been discussing brands a lot with my clients lately. Without a strong brand to guide them, customer experience efforts can wander aimlessly. That’s why “compelling brand values” is one of the four customer experience core competencies.

As I’ve said before, a true brand is:

The fabric that aligns all employees with customers in the pursuit of a common cause

There’s a very important implication of my definition: Companies don’t own their brands. Let me say that in another way: You don’t own your own brand.

True brands are an asset that are jointly owned by organizations and their customers… and it’s a fragile relationship. Even if your brand represents something today, there’s no guarantee that it will continue to be perceived in the same way or have the same impact in the future.

So how do you build true brands? With promises. Brand building is based on three ingredients…

  1. Making promises. Companies need to be explicit about the purpose of their organization which translates into promises that they make to customers.
  2. Embracing promises. It’s nearly impossible to keep a promise that you don’t know about, so everyone in an organization needs to understand the customer promises.
  3. Keeping promises. Companies need to make sure that they live up to their promises during every interaction in every channel.

The bottom line: Make, embrace, and keep your promises

Even Walmart Needs To Reassert Its Brand

Walmart recently decided that it couldn’t allow dollar stores like Dollar General and Family Dollar to erode the giant retailer’s low-price positioning. While Walmart was focussing on competing with Target, these dollar stores were building up share with low income consumers. So Walmart is reasserting its “Everyday Low Price” mantra and pushing suppliers for even lower price points in every product category.

My take: This is a great example of “Compelling Brand Values” which is one of the four customer experience core competencies. As an introduction to this competency, I like to share this “edited” quote from Howard Shultz:

Great companies not only stand for something, but they operate in a manner in which their employees consistently deliver on their brand promises. At a high level, this requires three things:

  1. A clear definition of your brand and its promises
  2. A shared understanding of your brand across your employees
  3. An operating model that supports and reinforces the fulfilling of your brand promises

As this Walmart case demonstrates, it’s very easy to lose sight of your brand. While Walmart would never be mistaken as a high-priced retailer, its focus on competing with Target allowed it to stray away from its goal of being the low-price leader.

A small drift in your brand can cause myriads of inconsistent decisions within your company and create opportunities for competitors to takeover your previously controlled market position.

That’s why every company should reassess its brand every 18-24 months. This effort should assess the following questions:

  • What does the executive team think the brand currently stands for?
  • What does the executive team think the brand should stand for?
  • What do employees think the brand stands for?
  • To what degree have employees embraced the brand?
  • What do customers think the brand stands for?
  • To what degree does the brand resonate with customers?

The bottom line: Never take your brand for granted

Customer Experience Highlights From Monte Carlo

As I mentioned in the previous post, I enjoyed the Customer Experience Exchange 2010 in Monte Carlo earlier this week. I couldn’t go to all of the sessions, but here are highlights from some of the speakers that I saw:

  • Andrew Gerrie, Co-Founder and CEO at Lush. Andrew followed me on stage and dropped a bath bomb into a clear tub of water and we watched it fizz. I still remember the first Lush store that I went into. The salesperson came over with a bucket of water and dropped some of those bombs into it and water splashed on to the floor. She didn’t seem to mind. That was an experience! Andrew explained how those in-store demonstrations force employees to have conversations with customers. It also helps them attract employees who really like Lush products. Lush invests a lot in training its employees so that they can answer a wide range of questions about skin care; even beyond what their products can do. He also shared pictures from the company’s “Naked Products Campaign” where employees wear nothing but an apron to highlight the fact that Lush products are “naked” of preservatives and complex packaging. Click here to see some images on Google of that campaign.
  • Ingrid Lindberg, Chief Experience Officer at CIGNA. It’s always great to see my friend Ingrid. Although I keep close tabs on what she’s been up to at CIGNA, it was great to hear her talk about CIGNA’s customer experience story. They’ve done so many good things to make CIGNA more customer centric; including eliminating words that are confusing to customers (there’s a lot of them in the US healthcare system), making the call center accessible 24×7, and improving the usability of the website. These efforts haven’t just increased loyalty, they’ve also improved medical outcomes for their customers. Proof positive that good customer experience saves lives :-) I’ll be doing a case study on CIGNA — look for it in a few weeks.
  • Moira Dorsey, VP & Research Director at Forrester. I really enjoyed catching up with Moira, another friend who I sat next to for several years at Forrester. Her speech discussed how the future of online customer experience can be described with the acronym CARS: Customized, Aggregated, Relevant, and Social. To showcase what the future will be like, she highlighted some existing practices, noting this quote from the science fiction writer, William Gibson: “The future is already here – it’s just not very evenly distributed.”
  • Simon Glynn, Senior Partner at Lippincott. Simon’s presentation introduced a model of brands based on two dimensions: Authentic Stories (story power) and Inspiring Experiences (experience power). He showed how using these  in a 2×2 diagram leads to 4 quadrants of brands: Unattached (low on stories and experiences), Myths (high on stories, low on experiences), Tribal (low on stories, high on experiences), and Legends (high on stories and experiences). It turns out that Legends (like Amazon.com and O2) have an average 5-year growth rate of 8% compared to -4% for Unattached brands (like BT and Aldi).
  • Rob Siefker, Senior Manager Customer Loyalty at Zappos. After having interviewed CEO Tony Hsieh a few years ago, I’ve always been a fan of the Zappos story. The culture at Zappos is almost cult-like. And they can keep it that way, because as Rob described: It’s harder to get a job at Zappos than to get into Harvard; they only hire 1% of applicants. The interview process is tuned to find people who will buy-in to the culture; a couple of the questions they ask are “what would your theme song be, and why?” and “On a scale from 1 to 10, how weird are you?” The company replaced its standard reviews with cultural reviews, making it clear that it measures its managers in 4 key areas: driving the culture, inspiring new ideas and creative thinking, helping employees find their calling and reach their peak, and providing recognition.
  • Graham Webster, Director of Customer Experience at Telefonica O2 Europe. Graham discussed how the company’s vision helps engage employees in “something bigger than themselves” and how Telefonica is trying to go beyond satisfaction to turn customers into FANS. I loved when he said “If we look after our customers, they will take care of our brand. Customers complain, but FANS forgive.” The company researched the value of enthusiastic customers compared to detractors and found that they: have half the churn rate, deliver 9% more in average revenue per user, and generate less than one-fifth of the claims. Graham described a three-step evolutionary path: Random Experience to Predictable Experience to Branded Experience. What are the elements of a Branded Experience? Consistent, Intentional, Differentiated, Valuable, and Emotional Relationship.
  • Roger Sant, VP Research Solutions at Maritz. Roger talked about “making your customers fall in love with you.” He showcased results from a survey of 1,200 consumers that looked at emotional and functional attributes for banks, supermarkets, and mobile phones. The research pointed to three levels of relationship between a customer and the brand: Unfulfilled, Functionally Satisfied, and Emotionally Connected. Here’s the comparison of top box scores between Unfulfilled customers and Emotionally Connected customers: retention (9% to 58%), recommend (3% to 49%), and cross-sell (7% to 41%).
  • Frederico Cesconi, Director Of Business Intelligence at Cablecom. Frederico shared the companies model which looks at customer experience as a series of layers (going from inside to the outside): Systems, Processes, Touchpoints, Interactions, Customer, and Experience. The company focuses on 4 core processes: sales to activation, service assurance, incident handling, and billing to cash. He showed a wonderful report that they call a “Survival Analysis.” It charted churn rate against the number of negative incidents that a customer had run into — highlighting the cost of a bad experience. He also highlighted the need for customer feedback. Their internal metrics showed 83% first call resolution, but when they measured it with customers it turned out to be only 58%.

The bottom line: Monaco hosted the customer experience grand prix this week.

Improve “Compelling Brand Values” In 2011

As I mentioned in the post Build Customer Experience Competencies In 2011, I’m highlighting each of the four customer experience competencies as part of my effort to help companies put together their 2011 plans. Today’s post looks at…

Compelling Brand Values: Are your brand attributes driving decisions about how you treat customers?

As firms optimize left-brain management techniques for squeezing out additional profits, they’ve lost something very important — their raison d’être; many have even lost their soul. True brands are more than just marketing slogans; they are:

The fabric that aligns all employees with customers in the pursuit of a common cause.

The importance of a clear brand is captured in this (somewhat altered) quote by Howard Shultz:

Your brand is a set of promises that you make to customers that are kept (or unkept) by your employees. So this core competence is about understanding those promises and making sure that you live up to them during every interaction. As you can see from the results below of 140 companies who took Temkin Group’s Customer Experience Competency Assessment, most companies aren’t setup to keep those promises.

Companies need to make their brands more concrete and get the organization to interpret it into specific requirements. JetBlue, for instance, translated its “Jetitude” brand into five specific behaviors for its front line employees:

  • Be in Blue always
  • Be personal
  • Be the answer
  • Be engaging
  • Be thankful to every customer

Here are some other posts that you may want to check out:

The bottom line: Your brand is too important to leave to chance.

Top 10 Customer Experience Incompetencies

First of all, for all of the literary purist, I have to admit that “incompetencies” does not seem to be an actual word in the dictionary — but it fit so well that I decided to use it anyway.

I was combing through the results from the Temkin Group Customer Experience Competency Assessment that we administered to 140 companies in May and realized that it would be interesting to share the areas where companies most often fail, or as I like to call them, The Top 10 Customer Experience Incompetencies:

It’s no surprise that the top incompetency is around brands. All too often, companies “offload” their brand to marketing and advertising organizations. But “true brands” should capture the minds and souls of ALL employees. It’s an organization’s raison d’être. As I’ve said in the past:

True brands are more than just marketing slogans, they’re the fabric that aligns all employees with customers in the pursuit of a common cause.

You can get more details about this data in a couple of Temkin Group reports:

The bottom line: Do you know your customer experience strengths and weaknesses?

Sizzler Embraces Customer Experience Competencies

I just read a great article called Kerry Kramp Keeps Sizzler Relevant that discusses how Kerry Kramp, CEO of Sizzler, did a complete makeover of the company. What makes it so interesting is that Kramp embraced all four core customer experience competencies. Here are a few excerpts from the article that showcase each competency:

Purposeful Leadership:

“Leaders have to be directly engaged in the business to the point where they can really understand that the decisions they make are affecting the business — the employees, the profitability as well as the guests. You can’t lead from a corner office. You’ve got to lead from being out there where the business is actually done.”

The measuring stick was long-term success through customer satisfaction. Kramp didn’t want employees taking drastic measures to earn extra profit this quarter if it wouldn’t align with the company’s core in 50 years.

Compelling Brand Values:

“The value-to-what-you-got equation was a little bit off,” Kramp says. “So it began a course of discovery to try to understand what really made Sizzler tick — not so much where the direction had been in the past as much as where the guests wanted Sizzler to be.

“It was to try to understand the uniqueness of this 50-year-old company,” Kramp says. “Where it had been and, really more so, where everybody wanted it to be and how to make it relevant to the consumers that we would need to be attracting in this new world order with the economy changed the way it has.”

Employee Engagement:

Gauging what employees need to do their jobs should be ongoing and continually balanced with customer feedback. Kramp regularly tours stores to ask whether employees have tools to connect with customers, based on their own perceptions of what they think patrons want.

“All of a sudden, whether you’re the cashier, the dishwasher or the server, you knew the food,” he says. “You knew what ingredients were in it, you knew why we did what we did. If you know that the ladle’s supposed to be upright and it’s not, you stop and make sure that the ladle’s upright. The employees began to take real ownership of the way that things were done.”

Customer Connectedness:

“From the guest side, first it was to really understand what was important to them,” he says. “It was looking at: How do the guests want to use us?”

Start by observing as customers use your service and talk to others about it. Kramp watched customers as they examined their 50-plus menu options — often appearing overwhelmed.

“We kept our finger right on the pulse of the guests’ feedback,” Kramp says. “As they gave us indications of what they liked — either verbally or through the product mix, what were they ordering — we kept adapting our business to the direction that they wanted us to head in.”

The bottom line: Are you making customer experience sizzle in your organization?

A Branding (Not) Lesson From KFC

The Association of Kentucky Fried Chicken Franchisees is suing Yum! Brands, owner of the KFC (formerly known as Kentucky Fried Chicken) chain, for control of the advertising direction of the brand. The franchisees do not agree with the parent company’s advertising push towards healthier, grilled chicken.The big push from the franchisees came when Yum Brands! went forward with an advertising campaign called “Unthink KFC.”

My take: Let me start with some (of my) basic definitions:

  • Brands: The set of promises that the company explicitly and implicitly makes to its customers about the products, service, and behavior of the company and its employees. Brands represent the fabric that aligns all employees with customers in the pursuit of a common cause. Without a strong brand, companies can quickly go awry (see my post on Starbucks’ brand issues). Why? Because brands define a powerful roadmap for employees to meet a clear set of expectations for customers.
  • Branding: The marketing and advertising efforts that communicate and reinforce elements of brands.

With these defintions in mind, the “Unthink KFC” branding campaign seems clearly misguided. What elements of the brand was it reinforcing — that KFC has no brand?!? That leaves KFC with absolutely no purpose. So it’s no surprise that franchisees are upset.

If you want to shift your brand, then you need to use branding to communicate a clear picture of the new brand.

Here are three questions that you should ask (and make sure that you can answer “yes” to) before you launch any branding campaign:

  1. Do the branding messages support a brand promise?
  2. Do employees buy-in to (and believe in) the branding messages?
  3. Do the messages resonate with target customers?

The bottom line: Focus on your brand more than your branding.

Companies Lack Customer Experience Competencies

In a recent research report, we introduced the Four Core Customer Experience Competencies:

  • Compelling Brand Values
  • Purposeful Leadership
  • Employee Engagement
  • Customer Connectedness

To help companies identify their strengths and weaknesses across these components, we created a 20 question assessment for this competency model. In recent research report The Current State Of Customer Experience, we examined data from 144 large North American firms that completed the assessment. Here’s some of what we found:

Companies have a long way to go to master all four competencies. They performed the poorest in Compelling Brand Values, where 61% of firms ended up with “poor” or “very poor” ratings. Only 44% of companies ended up with “very good” or “okay” ratings in the highest performing area, Purposeful Leadership.

The results from that assessment also showed that only 3% of these companies are what we call “Customer-Centric Organizations.” That leaves a lot of room for improvement for a lot of companies.

Where is your company on its customer experience journey? Download our competency assessment and use the results to gauge your strengths and weaknesses and as a topic to discuss with your peers.

The bottom line: Companies need to build customer experience competencies.

XFINITY Is (Unfortunately) More Of The Same

After seeing multiple Comcast ads about it’s seemingly new super-duper offering, I was left with a nagging question: What exactly is XFINITY?

So on a recent trip to a Comcast office to replace a modem, I asked the Comcast employee behind the counter my question: What exactly is XFINITY? After about 30 seconds of her saying seemingly random things about platforms and content that I couldn’t understand, she finally said that it was just a new name for the products that we already use from Comcast.

I went to the website to verify that finding. After sorting my way through flashy graphics that disrupt the usability, I found a definition for XFINITY — and it sure sounds like just a new name for some additional features to the existing Comcast products.



My take: What a lost opportunity.

It would have been great if XFINITY was a new offering with a redesigned service model. Why? Because Comcast can definitely use a customer experience makeover. In Forrester’s 2010 Customer Experience Ranking of 133 companies, Comcast came in 126th for it’s Internet business and 125th for its TV service. It also came in 105th/109th out of 114 companies in the 2008 rankings and 95th/101st out of 112 firms in the 2007 rankings.

Repositioning a company or brand is a great opportunity for improving your entire operations. I’ve discussed how Alaska Airlines engaged its employees with its North of Expected campaign, Ford engaged its employees with its Drive One campaign, Staples redesigned customer interactions as part of its That Was Easy campaign, and JetBlue embedded its value across touchpoints in its Happy Jetting campaign.

But Comcast chose a different path with XFINITY; resembling marketing campaigns that I’ve chided in the past from JP Morgan ChaseCircuit City, and John Hancock for being empty promises:

Probability Of Success For Branding Efforts

Positioning And Scope Of Effort

The bottom line: Comcast needs more than just XFINITY ads

The Current State Of Customer Experience

We just published a new Temkin Group Insight Report, The Current State Of Customer Experience (.pdf).

This report, which is based on a survey of 140+ large North American companies, provides insights into the progress that companies are making on their customer experience journeys.

It looks at topics like the adoption of voice of the customer (VoC) programs and Net Promoter Scores, the use of social media activities, and the goals, obstacles, and ambitions for customer experience.

The report is on sale for $195.
Buy Now

Here’s the executive summary:

Using the Temkin Group customer experience competency model, we found that only 3% of firms were “Customer-Centric Organizations” while 33% of firms were “Customer-Oblivious Organizations.” While companies rated highest in the area of Purposeful Leadership, only 16% received “very good” ratings in that competency area. This data highlights that companies are still in very early stages of customer experience maturity. We expect the results to improve over time; as 65% of respondents want to be customer experience leaders within three years.

The report has 20 figures; with lots of data. Here are some interesting factoids:

  • Only 16% think they always or almost always delight customers getting customer service online.
  • 95% want to improve profitability, but only 43% want to improve the work environment for employees.
  • 37% have had a customer experience leader for at least 12 months
  • 71% identified “other competing priorities” as a significant obstacle to their customer experience efforts; the most commonly selected of the 11 obstacles we asked about.
  • 57% have a formalized voice of the customer (VoC) program
  • 45% that have a formalized VoC program tie compensation to customer feedback scores; one of the 15 VoC activities we asked about.
  • 32% have been using Net Promoter Score (NPS) for at least 12 months; 19% are not familiar with NPS
  • 31% analyze conversations in social media sites like Facebook and Twitter; the most commonly used of 11 social media activities we asked about.
  • The customer experience competency assessment showed a wide range of results across the 20 questions:
    • Highest scoring: Senior executives regularly communicate that customer experience is one of the company’s key strategies
    • Lowest scoring: Marketing does as much brand marketing inside the company as it does outside the company

In addition to the data insights, the report has a number of self-assessment tools that you can use to compare your efforts to the 140+ respondents:

  • In the Temkin Group Insight Report, The Four Customer Experience Core Competencies (free download), we introduced an assessment tool for our competency model. This report allows you to compare your results with 140+ other companies.
  • A tool for gauging your voice of the customer (VoC) activities
  • A tool for gauging your social media activities

The report is on sale for $195.
Buy Now

The bottom line: Customer experience management is still immature

The Four Customer Experience Core Competencies

Temkin Group is happy to release this new Insight Report, The Four Customer Experience Core Competencies, which you can download for free.

This report describes the four competencies that companies need to master in order to build and sustain customer experience success.

Here’s the executive summary of the report:

Organizations that want to become customer experience leaders need to master four customer experience competencies: Purposeful Leadership, Employee Engagement, Compelling Brand Values, and Customer Connectedness. Gauge how close your company is to being a Customer-Centric Organization using Temkin Group’s competency model to identify strengths and weaknesses.

I urge you to read this report, share it with others in your organization, and take the competency assessment which is shown in figure 3.

The bottom line: Start building your customer experience competencies

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