Report: Case Studies in Text Analytics

1405_TextAnalyticsCaseStudies_COVERWe just published a Temkin Group report, Case Studies in Text Analytics. The research provides rich details about how five leading companies—American Express, ADP, Firstsource, Safelite AutoGlass, and Verizon—are using text analytics. Here’s the executive summary:

To help organizations understand how to use text analytics to transform their VoC programs, we have compiled five case studies from companies that have successfully utilized this capability. This report offers insights into their efforts, describing how Safelite drives value with a small team, how Firstsource ventures beyond service quality and training, how American Express built a custom solution in-house, how ADP scaled with a distributed model, and how Verizon scaled with a centralized model. Each of these case studies follows a company’s journey as it built out its text analytics capabilities and also shows how each one organized its efforts. In addition to the case studies, we also outline five key decisions that every text analytics program must make.

Download report for $195
BuyDownload3

You may also want to see the report Text Analytics Reshapes VoC Programs.

The report provides rich details on how the companies have deployed text analytics. They have each used it in quite different ways. Here’s a summary of how they’ve successfully used text analytics across what we call the 6 D’s of of a Voice of the Customer Program:

TextAnalyticsBPs

Download report for $195
BuyDownload3

The bottom line: Learn how leaders are using text analytics

Seven Stages to a Data-Centric Mindset

Analysts who work with customer data are often frustrated by the slow uptake in its usage. They see a ton of valuable insights in their work that go to waste. They’re frustrated that business partners aren’t lining up for as much of this insight as they can possibly consume. What’s going on?

Are analysts unjustifiably bullish about their content? Are business people just anti-data?

No! (at least most of the time)

People are creatures of habit, so most changes are not instantaneous. Adopting something new is a process, not an event. To understand how to encourage business people to use more data insights, it’s helpful look at their path to adoption. That’s why I created what I’m calling the “Seven Stages to a Data-Centric Mindset.”

7StagesOfDataCantricMindset

Here are some tactics that analysts can use with their business partners at different stages of building a data-centric mindset:

  • Stage 1: Resist: Try and understand the personal and professional goals of the individual business partners. Use that knowledge to discuss the value of the insights in terms of how it will help him/her achieve those SPECIFIC goals. As much as possible, use his/her language for metrics, measurement and objectives.
  • Stage 2: Consider: Show the business partner the data in different ways, trying to see how he/she may be able to use it. Do not assume that any existing reports or formats are the right ones. Look for what resonates with him/her and customize the data in those areas. Your effort in this stage is like helping someone find the right shoes in a shoe store. You’ll need to cater your pitch to tastes and desires that you may not have anticipated.
  • Stage 3: Request: Once the business partner is in this stage, you’re on the hook. You will need to quickly respond to their needs. They have interest in using the data, but can easily slip back if they feel as though you are unable to support their needs.
  • Stage 4: Incorporate: Keep in touch with your business partners and look at how they are using the information. They may have some modifications that they need, but more importantly they will help you identify new ways that you can add value across the organization with your analysis.
  • Stage 5: Envision: This is an exciting stage as business partners are really using the data insights. But they may create demands that are beyond your current capabilities or resources. Make sure to be a part of this process, but also manage the expectations about what your group is able to provide. This is also a place where you might want the business partner to fund new development.
  • Stage 6: Demand: In this stage, business partners will likely need dedicated support as data insights are becoming a fundamental component of their operations. Make the case that they might need more headcount intheir organization to support this “great” increasing use of the insights.
  • Stage 7: Embrace. Yay! Your business partners have achieved the final stage of developing a data-centric mindset. Use them to help “sell” the value of using your insights across other parts of the business.

The bottom line: Help your business partners develop a customer-centric mindset

Report: Tech Vendor NPS Benchmark, 2014

1407_IT_NPSBenchmark_COVERWe just published a Temkin Group report, Tech Vendor NPS Benchmark, 2014, The research examines Net Promoter Scores and the link to loyalty for 63 tech vendors based on feedback from IT decision makers. We also compared overall results to our 2013 NPS benchmark and our 2012 NPS benchmark. Here’s the executive summary:

We surveyed IT decision-makers from more than 800 large North American firms to learn about their relationships with their tech vendors. We asked them a series of questions regarding their experiences as the clients of different tech vendors, and one of the questions we posed generated Net Promoter Scores® (NPS®) for the companies. Of the 63 companies we looked at, EDS and VMware earned the highest NPS, while Autodesk and Cognizant received the lowest. The overall industry average NPS dropped for the second year in a row. Our analysis also delved into the correlation between NPS and loyalty, revealing that, compared to severe detractors, promoters are much more likely to spend more money with their tech vendors in 2014, try new products and services when they are announced, and forgive the vendor for a mistake. We compared the loyalty levels for each vendor, and we found that SunGard and IBM software have the most customers planning on increasing their purchases in 2014, while Satyam and EDS customers are the most willing to try new offerings, and Satyam has the most forgiving customers. Our research also shows that promoters are more concerned than detractors about getting lower prices.

Download report for $695 (includes Excel spreadsheet with data)
BuyDownload3

This is the third year that Temkin Group has completed the NPS study. Over that time, the average NPS in the tech industry has been dropping. NPS in for tech vendors was 33.6 in 2012 and 24.7 in 2013, falling to 23.1 in 2014.

With an NPS of 48, EDS came out with the top score followed closely by VMware with 45. Six other tech vendors received NPS of 35 or more: EMC, Microsoft servers, Oracle outsourcing, Pitney Bowes, Microsoft business applications, and Cisco.

At the other end of the spectrum, three tech vendors have negative NPS: Autodesk, Cognizant, and Wipro. Six other vendors fell below 10: Capgemini, Intuit, ADP outsourcing, CA, Infosys, and HP outsourcing.

1407_ITNPS_Companies

The report also examines the link between NPS and loyalty. Our analysis shows that promoters are more than six times likely to forgive a tech vendor if they deliver a bad experience, about seven times as likely to try a new offering from the company, and almost three times as likely to purchase more from them in 2014 than they did in 2013.

In addition to benchmarking NPS, the research measures the loyalty that large companies have for their tech vendors. Respondents have the most plans to increase spending with SunGard, IBM software, Alcatel-Lucent, and ACS. They are most likely to try new offerings from Satyam, EDS, and EMC. And if the tech vendors make a mistake, IT decision makers are most likely to forgive Satyam, EDS, Ericsson, and Alcatel-Lucent. NPS characterizes respondents as Promoters when they are very likely to recommend and Detractors when they are very unlikely to recommend.

Report details: The report includes graphics with data for NPS, 2014 purchase intentions, likelihood to forgive, likelihood to try a new offering, and areas of improvement for the 63 tech vendors that had at least 40 pieces of feedback. The excel spreadsheet includes this data (in more detail) for the 63 companies as well as for 22 other tech vendors with less than 40 pieces of feedback. It also includes the summary NPS scores from 2013. If you want to know more about the data file, download this excel spreadsheet without the data.

Download report for $695 (includes Excel spreadsheet with data)
BuyDownload3

The bottom line: When it comes to NPS, large tech vendors are heading in the wrong direction

Note: See our 2013 NPS benchmark and 2012 NPS benchmark for tech vendors as well as our page full of NPS resources.

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

5 Rules To Stop Employees From Gaming Your Feedback System

When an employee asks a customer to “give me a 10 on a survey or I’ll get fired,” can you really count on the accuracy of that customer’s rating? This may be an extreme example of “gaming feedback,” but many versions of this behavior occur all the time.

To keep gaming feedback in check, it’s important to be explicit with employees about what the company considers to be unacceptable behaviors. Here are five rules that you should strictly enforce with employees:

  1. Don’t mention or refer to a score. You can not ask a customer to give you a score or mention any possible option on the survey.
    • Example of bad behavior: “Let me know if you can’t give me an excellent on any of the questions.”
  2. Don’t mention specific survey questions. You can not tell a customer about a specific question that they will be asked as part of the survey.
    • Example of bad behavior: “You will be asked to rate me on my knowledge.”
  3. Don’t mention any consequences. You can’t tell a customer about the positive or negative consequences that you or the organization will have based on the feedback that the customer gives.
    • Example of bad behavior: “If you give us a low score, then we will not make our bonus.”
  4. Don’t say or imply that you will see their responses. You can’t let the customer know that you will see the specific information that they put in their feedback.
    • Example of bad behavior: “I look forward to reading your responses.”
  5. Don’t intimidate customers in any way. Any attempt to affect how customers will respond in their feedback, or keep them from completing the survey, whether implicitly or explicitly, is not allowed.
    • Example of bad behavior: “Let’s grab a Cubs game after you fill out the survey.”
    • Example of bad behavior: “Don’t bother filling out the survey, the company doesn’t look at them.”

Of course, keeping this bad behavior in check also requires the company to behave appropriately. The biggest mistake I see is tying too much compensation to a score. When you heavily incent a specific metric, employees will do whatever it takes to improve that metric,  including “gaming” the system. Think about it, the heavier the compensation, the more you are implicitly asking the employee to improve the score at any cost (see why Staples employees stopped selling computers).

So make sure that your incentives are focused on driving the behaviors that you want from employees, not specific outcomes like scores.

The bottom line: Use feedback primarily to improve, not to keep score.

Report: Text Analytics Reshapes VoC Programs

1405_TextAnalyticsReshapesVoC_COVERWe just published a Temkin Group report, Text Analytics Reshapes VoC Programs. The research shows how analysis of unstructured data will disrupt how companies collect and use customer insights. Here’s the executive summary:

Although companies today are investing more resources in their voice of the customer (VoC) programs, a majority of these efforts continue to linger in the early stages of maturity. Unlike many of the less mature VoC programs, which primarily concentrate on reporting metrics from multiple-choice surveys, the more advanced VoC programs focus instead on finding valuable insights to drive business improvements. To get these valuable insights, our research shows that mature VoC programs are actively using text analytics to efficiently process their massive volumes of customer feedback. As its use becomes more widespread, we expect to see companies infuse text analytics across what we call the 6 Ds of VoC Programs: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. This report identifies 33 best practices enabled by text analytics tools. And as companies can’t revamp their VoC programs with text analytics overnight, we outline the four stages of text analytics evolution: Deploy, Explore, Explain, and Predict.

Download report for $195
BuyDownload3

The report identifies best practices for using text analytics across the 6 Ds of a VoC Program:

  • Detect: Companies will shift from primarily focusing on “the score” to concentrating more on unstructured feedback.
  • Disseminate: Companies will distribute more informative data to both front-line and top-level managers in real time, which in turn will drive more meaningful actions.
  • Diagnose: Companies will shift from analyzing only one or two top activities to focusing on a continuous web of experience improvements and training.
  • Discuss: VoC insights discussions will evolve from VoC teams only communicating reports one-way to an active discussion of insights and action planning.
  • Design: Customer insights will become more accessible, more reliable, and more comprehensive, which means that designers will rely more heavily upon customer insights during the design phases.
  • Deploy: Deployment of new offerings will involve a rapid refinement process driven by customer insights.

1405_TAVoCPractices

Download report for $195
BuyDownload3

The bottom line: Text analytics will reshape leading VoC programs

Five Questions That Drive Customer Journey Thinking

Customer journey maps (CJM) are one of the most popular CX tools and a frequent topic that people ask me about. Temkin Group even offers CJM workshops.

CJMs are a representation of the steps and emotional states that a customer goes through during a period of time that includes (but is not limited to) interactions with an organization. CJMs are valuable because they help identify how a customer views an organization by putting company interactions in the context of the customer’s broader activities, goals, and objectives. Keep in mind that the ultimate goal is not a map, but the understanding that is developed through the process that allows organizations to design better experiences and measurements.

While customer journey maps can be incredibly valuable, it’s not practical (or even possible) for large organizations to undergo full-scale CJM efforts for all of their customers’ journeys. That’s why we developed the Customer Journey Mapping Pyramid, which identifies three levels of effort through which organizations can capture the benefit of CJMs:

  • Level 3: Customer Journey Mapping Projects. Build journey maps for a few critical customer journeys using significant customer research. These projects require governance, structure, expertise, and dedicated resources committed to this effort which will span over a period of time. The goal: Develop deep customer journey maps that drive critical design and measurement decisions.
  • Level 2: Customer Journey Mapping Sessions. Build journey maps for customer journeys using facilitated sessions with subject matter experts (SMEs) and existing customer insights. These sessions can happen during a single meeting as long as the attendees have sufficient knowledge of target customers. The goal: Enable impromptu meetings that examine customer journeys.
  • Level 1: Customer Journey Thinking. Embed thinking about customer journeys into day-to-day decisions across the organization. Teach employees to actively consider why customers are interacting with the organization and think about how those interactions fit within the customers’ broader set of objectives and activities. The goal: Encourage every employee to think about customers’ journeys.

1405_CJMPyramid

The Essence of Customer Journey Thinking

The power of CJMs is their ability to help companies design interactions and measurements based on an understanding of the customer’s perspective. This insight, however, does not always require the creation of a map or any extensive research. Organizations can get a great deal of the value of CJMs if employees actively consider customers’ journeys in everything they do.

To propel Customer Journey Thinking, we recommend that organizations teach employees to consistently think about these five questions:

  1. Who is the customer? Start by recognizing that different customers have different needs. So it’s important to understand who the person is before we think about their specific journey. This is a great place to use personas as a mechanism for describing the customer.
  2. What is the customer’s real goal? Customers aren’t usually contacting your company because they want to, they’re doing it because of a deeper need. To understand how customers will view an interaction and what’s shaping their expectations, you need to think about what they are really trying to accomplish.
  3. What did the customer do right before? (repeat three times) When customers interact with your company, it’s almost always part of a longer journey. So you need to think about where they’ve been prior to the interaction in order to understand how they will respond to an interaction with your company. In many cases, these previous interactions will include people and organizations outside of your company. After you’ve answered this question, ask and answer it at least two more times.
  4. What will the customer do right afterwards? (repeat three times) When customers interact with your company, it’s almost never the last step on their journey. So you need to think about what they will do next to understand how you can best help them. In many cases, these subsequent interactions will include people and organizations outside of your company. After you’ve answered this question, ask and answer it at least two more times.
  5. What will make the customer happy? Rather than just aiming to satisfy customers’ basic needs, think about what it will take to provide each customer with the most positive experience–given what employees know about customers’ real goals and their entire journeys. The focus on customers’ emotional state will help employees stay mindful of customers’ holistic needs and raise overall organizational empathy.

The bottom line: Help your employees embrace customer journey thinking.

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.

Download report for $195
BuyDownload3

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.

Download report for $195
BuyDownload3

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

%d bloggers like this: