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.

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

Report: State of Employee Engagement Activities, 2014

Purchase reportWe just published a Temkin Group report, State of Employee Engagement Activities, 2014. This is the second year that we’ve benchmarked the employee engagement efforts within large organizations. Here’s the executive summary:

Although engaged employees are a vital component of any successful organization, we have found that only 50% of employees at large organizations feel engaged. To understand how companies are working to improve these engagement levels, we surveyed executives from more than 200 large organizations. We found that frontline employees are the most engaged, and that while most firms do measure employee engagement, less than half prioritize taking actions based on the results. The lack of a clear employee engagement strategy contributes to the fact that only 19% of companies earned a strong or very strong score on the Temkin Group Employee Engagement Competency Assessment. Employee engagement leaders enjoy stronger financial results and deliver better customer experience than employee engagement laggards, and they also have more coordinated engagement activities, more empowered CX teams, and more committed executives. Compared to 2013, this year more companies have significant employee engagement activities, but overall these activities are performed less frequently. Use our assessment and data to benchmark your employee engagement competencies and maturity.

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Here are results from companies that completed Temkin Group’s Employee Engagement Competency and Maturity Assessment::

1407_EECompetencies

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The bottom line: Companies need to pay more attention to employee engagement

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.

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You may also want to see the report Case Studies in Text Analytics.

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

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The bottom line: Text analytics will reshape leading VoC programs

Report: Lessons in CX Excellence, 2014

1401_LessonsCX Excellence_COVERWe just published a Temkin Group report, Lessons in CX Excellence, 2014. The report provides insights from 11 finalists in the Temkin Group’s 2013 CX Excellence Awards. The report, which is 144 pages long, includes an appendix with the finalists’ nomination forms. This report has rich insights about both B2B and B2C customer experience.

Here’s the executive summary:

The following 11 organizations are finalists in Temkin Group’s 2013 Customer Experience Excellence Awards: Adobe, AIG Asia Pacific, Cisco, Cox Communications, EMC, Findel Education Resources, Fiserv, Intuit ProTax Group, Oracle, Rackspace, and UMB Bank. This report highlights their customer experience efforts and describes their best practices across the four customer experience competencies: purposeful leadership, compelling brand values, employee engagement, and customer connectedness. Additionally, this report includes an appendix with the finalists’ detailed nomination forms to help you gather ideas and examples to improve your own CX efforts.

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Here are some highlights from the finalists:

  • When Adobe began its transition from a products-based company to a services company, it recognized the increased importance of providing excellent customer experience and established a central Customer Advocacy team in January 2013. One of this team’s main objectives is to make measurable improvements to top customer issues. Adobe identifies these top issues using numerous VoC listening channels and then, with full transparency, communicates these issues across the entire company. Every leader and employee can access root cause analysis, direct customer comments and feedback, action plans, and more.
  • AIG Asia Pacific uses its FEEL GOOD message to engage customers, employees, and leaders in the company’s service culture transformation efforts. AIG uses a comprehensive Voice of the Customer program—which includes a closed-loop NPS process—to keep the company focused on its customers and agents and implement meaningful changes based on their feedback. In each country, cross-functional teams concentrate on improving responsiveness to customer feedback. Teams create plans for their alert management processes and use a real-time online dashboard to quickly resolve customer issues.
  • Cisco has made Ease of Doing Business (EoDB) a corporate priority; it drives relevant and meaningful solutions that simplify complex issues for its customers. To support its EoDB focus, Cisco analyzes customer feedback and identifies trends in experience pain points, and then delivers tailored reports and suggestions to the appropriate business teams. Cisco reinforces the importance of EoDB by equipping leaders with regular program updates, factoring the success of EoDB targets into the bonus calculations of every employee, and prominently displaying an EoDB dashboard that provides real-time data feed from customer surveys.
  • In an industry notorious for poor customer service, Cox Communications stands out for its dedication to improving its customer experience. Its closed-loop feedback program has been particularly successful at repairing damaged relationships and reducing customer churn. Cox Communications established a centralized Closed-Loop Feedback (CLF) team, which is made up of agents from different functional areas who are tasked with taking ownership of customers’ issues from beginning to end.
  • The dedicated Total Customer Experience (TCE) team at EMC recently enhanced its TCE program by fine-tuning their data-driven approach to improving the company’s customer and partner experience. EMC obtains a complete view of its customers’ perceptions and behaviors by collecting data using customer journey maps and an extensive Voice of Experience (VoX) program. To augment these insights, EMC also evaluates the quality of its products and the TCE team assesses customer and partner infrastructures to ensure that EMC products suit their clients’ needs.
  • Findel Education Resources recently revamped its entire outlook on customer experience and placed the customer at the center of its business. The company started its journey towards customer-centricity by outlining the objectives it sought to achieve and the questions it wanted to ask to ensure that leaders and employees remained customer-focused. Findel instituted Employee Voice and Customer Voice programs to diagnose customer issues and benchmark the company’s progress.
  • Two years ago Fiserv established a new Customer Experience Department tasked with improving customer service and associate engagement. This department began by changing the company’s vision and mission to incorporate its new focus on customers, creating a multi-faceted customer experience roadmap, and outlining a hierarchy of needs. Since the department’s inception, CX has become the highest weighted metric on the balanced scorecards for leaders and employees, and the company has invested a great deal in internal assessment and coaching.
  • Intuit’s ProTax Group (PTG) uses customer feedback to drive changes in the business. Intuit PTG gathers customer feedback through a robust customer listening program, an extensive closed-loop program, and engaged social media communities. After collecting customer insights, the Customer Experience and Customer Market Insights team within Intuit PTG sends weekly, quarterly, and annual reports to the entire company, which broadens awareness of customer issues.
  • At Oracle, customer experience initiatives begin with a 360-degree view of customers. Oracle maintains a Customer Experience Database (CxD), which details the interactions and experiences of every customer based on their behavior on oracle.com and their interactions on social media. Oracle also utilizes its business intelligence product to add survey results to this customer profile, further expanding the company’s attitudinal and behavioral data on each customer.
  • At Rackspace, Fanatical Support forms the backbone of their customer experience efforts. Rackspace combines its customer data into a single listening and analysis hub, and undesirable scores and trends act as a catalyst for the company’s business decisions. For example, after examining this data, the company decided to merge the sales and support teams together to provide a constant customer experience.
  • UMB Bank recently established a Voice of the Customer Steering Team to support their customer-centric focus. This Steering Team uses VoC feedback to assign priority to CX issues and oversees improvements to the customer experience. The team is made up of leaders from all different business areas, such as product and sales, which ensures that all departments are fully engaged in the company’s efforts to improve customer experience.

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If you enjoyed this report, check out last year’s report, Lessons in CX Excellence.

The bottom line: There’s a lot to learn from these CX Excellence Finalists.

Report: Net Promoter Score Benchmark Study, 2013

1311_NPSBenchmarkStudy_COVERWe just published a Temkin Group report Net Promoter Score Benchmark Study, 2013. This study of 10,000 U.S. consumers benchmarks Net Promoter® Score (NPS®) for 269 companies across 19 industries. Click to download list of companies (.pdf).

Here’s the executive summary: We measured the Net Promoter Score for 269 companies across 19 industries. USAA took the top three spots with NPS of 60 or more for its credit card, banking, and insurance businesses. At the other end of the list, HSBC earned the two lowest scores, with NPS below -20 for its banking and credit card units. Auto dealers (38) and groceries (30) have the highest average NPS, while TV service providers, Internet service providers, and health plans are below 10. In 18 of the 19 industries, consumers who are under 25 represent the lowest (or tied for lowest) NPS scores. Compared with detractors, promoters are more likely to want lower prices and less likely to want customer service improvements. To help you implement a successful NPS program, we’ve included eight tips, such as don’t believe in an “ultimate question” and use control charts, not pinpointed goals. The industries included in this report are airlines, auto dealers, banks, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, TV service providers, and wireless carriers.

This is our second annual NPS benchmark. Check out last year’s results.

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Here are the overall results for the 19 industries:

2013NPSResults_TemkinGroup

Here are some other highlights:

  • USAA earned the highest NPS scores on the list for three of its business—66 for insurance and credit cards and 65 for banking. Other companies with NPS above 50 are Amazon.com, H.E.B., Chick-fil-A, Apple, Audi, credit unions, and Nordstrom.
  • HSBC earned the lowest two NPS scores across all companies with a -42 for banking and -24 for credit cards. Other companies with NPS of -10 or below are Time Warner Cable, Citibank, Super 8, Charter Communications, and Motel 6.
  • Auto dealers earned the highest average NPS (38) followed by grocery chains (30), hotel chains (29), and software firms (29).
  • TV service providers (2), Internet service providers (5), and health plans (9) are the only industries with averages below 10.
  • USAA’s three businesses earned NPS levels that are 40 or more points above their industry averages. Three other firms are 30 or more points above their peers: A credit union (banking), Amazon.com (retail), and H.E.B. (groceries).
  • HSBC’s NPS is 55 points below the industry average for banks and Super 8 is 42 points below the hotel industry. Four other firms are 30 or more points below their industry averages: Motel 6 (hotels), HSBC (credit cards), US Airways (airlines), and 7-Eleven (retail).

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The bottom line: Find out why customers do and don’t recommend you.

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

Report: State of VoC Programs, 2013

1310_StateOfVoC2013_CoverWe just published a Temkin Group report, State of Voice of the Customer (VoC) Programs, 2013. The research shows how large organizations are using VoC programs. Here’s the executive summary:

For the third year, Temkin Group benchmarked the voice of customer (VoC) programs within large organizations. These efforts continue to deliver successful results as companies have increased staffing and plan to spend more in areas such as customer insight and action platforms and text mining. We also found that executives are taking a more active role in VoC programs. When it comes to sources of insight, the use of mobile feedback has more than doubled since last year. Looking ahead, companies plan to focus less on multiple-choice surveys and more on interaction history and predictive analytics. 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. While only twenty percent of companies have reached the two highest levels of VoC maturity, this level represents a significant increase from last year. When we compared high scoring VoC programs with others, we found that they spend more on analytics, use more data sources, and employ more full time employees.

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Once again, we found that an overwhelming number of companies report that VoC programs deliver positive business results, fueling an increase in focus on VoC. The most spending momentum is in software for managing VoC programs—which Temkin Group calls Customer Insight & Action Platforms—and text analytics. In both of these areas, more than 40% of firms plan to increase spending, while less that 6% are planning a decrease.

Companies are also expanding the staff on their VoC teams. Thirty-six percent of companies have more than five full-time employees dedicated to their VoC efforts, up from 31% last year. Sixty percent have three or more employees, an increase from 52% in 2012. The number of companies soliciting feedback via mobile phones has more than doubled from nine percent last year to 20% this year and is poised to continue rising. When asked to estimate the importance of different sources of customer insights three years down the road, more than 70% of respondents said that social media, customer interaction history, and predictive analytics will become more important. Multiple-choice surveys, the historical mainstay of VoC programs, received the least positive outlook.

We split the companies into two groups based on their overall scores in our VoC Competency and Maturity Assessment (see below) and compared the top half of the companies (with more mature VoC programs) to the bottom half of the companies (with less mature VoC programs). Ninety-two percent of companies with more mature VoC programs report that their VoC efforts are successful; as opposed to only 58% of less mature programs. These better VoC efforts also spend more on analytics, use more data sources, have more full-time staff, and enjoy more executive support.

The report has tools and data for benchmarking your VoC program. Here’s how companies performed in our VoC Competency and Maturity Assessment that assesses the 6 D’s of VoC programs:

1310_VoCMaturity

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The bottom line: Companies should increase their VoC maturity levels.

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