Report: Raising Customer-Centricity Across the B2B Enterprise

1404_B2B CX Case Studies_COVERWe just published a Temkin Group report, Raising Customer-Centricity Across the B2B Enterprise. The research provides in-depth case studies of five B2B firms. Here’s the executive summary:

Temkin Group research shows that good customer experience (CX) drives loyalty with business customers. These same business customers, influenced by their personal experiences as consumers, have raised their expectations in their business-to-business (B2B) relationships. While most large B2B organizations have a low level of CX maturity, our research shows that 56% of them have the goal of delivering industry-leading customer experience within three years. To understand how B2B organizations are improving their customer-centricity, we compiled case studies of five organizations that are raising the bar in CX: Ciena, Crowe Horwath, Fiserv, Genworth Financial, and Oracle. To assess your organization’s CX maturity, use Temkin Group’s Customer Experience Competency Assessment, and compare the results to data from other large B2B firms.

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The report provides 40 pages, including rich details on B2B CX and benchmark data to evaluate your B2B CX against other large organizations. Some of the data points in the report include:

  • 12% of large B2B organizations are in the highest two levels of CX maturity (out of six levels).
  • 8% of large B2B organizations have very good ratings in Compelling Brand Values, the lowest rated CX competency.
  • 79% of large B2B organizations identify “other competing priorities” as a key obstacle to CX success, compared with 65% of non-B2B firms.
  • 56% of large B2B organizations have a goal to be CX leaders in their industries within three years.

The five case studies go deep into how some great practices for infusing good CX across B2B organizations:

  • Ciena: When Ciena began its customer experience journey 18 months ago, it set out to “engage, inform, and transform” the organization. It started its journey by using deep customer insights to hone in on what matters most to customers and now focuses on strengthening its culture and continuously improving.
  • Crowe Horwath: As a professional services firm, Crowe’s employees are its customer experience. Therefore, Crowe focuses its efforts on capturing and sharing all client feedback with its employees, and it uses a variety of tactics to involve them in shaping its CX efforts.
  • Fiserv: While technology underpins the customer experience tools, analyses, and reporting that drive Fiserv’s CX efforts, the company also integrates a human element into its efforts by using employee coaching, performance management, and rewards and recognition programs to engage employees in their work.
  • Genworth Financial: The CX team at Genworth uses a combination of approaches—from customer journey mapping to service dashboards to innovation ideation—to involve employees across the organization in its customer experience efforts.
  • Oracle: Oracle continues to raise customer-centricity across its global footprint by listening, responding, and collaborating with customers to identify and take action on customer experience improvement opportunities.

The case studies highlight practices affecting all four customer experience core competencies:

1406_B2B4CXCompetencies

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The bottom line: B2B firms need to improve customer experience.

2014 Temkin Ratings: Benchmarking Consumer Relationships

Temkin Ratings website

We’ve been publishing the Temkin Ratings for four years. These ratings provide insights into how consumers evaluate their relationships with 100s of companies across multiple industries. In 2014, we examined 200+ companies across 19 industries based on a survey of 10,000 U.S. consumers. You can view a sortable list of results on the Temkin Ratings website.

Here are my posts that summarize the results for all of the 2014 Temkin Ratings:

Check out Temkin Group’s Industry-Specific CX Research Page with links to many reports with benchmark data across industries.

The bottom line: How do your customers rate their relationship with you?

Data Snapshot: Social Media Benchmark, 2014

1406_DS_SocialMediaBenchmark2014_COVERWe just published a Temkin Group data snapshot, Social Media Benchmark, 2014This is the third year that we’ve published the benchmark that examines how much time U.S. consumers spend using different types of social media on computers and on mobile phones.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about how frequently they use social media on their computers and mobile phones, and we then compared these usage rates to analogous data we collected in January 2012 and January 2013. This analysis looks at the frequency with which consumers in different age groups use computers and mobile phones to access Facebook, LinkedIn, Twitter, Google+, Pinterest, Tumblr, and third-party rating sites. We also examine how usage rates vary by mobile phone type.

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Here’s an excerpt from one of the 14 charts in the data snapshot.

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Here are some additional findings from the research:

  • After a drop in daily Facebook usage on computers last year, U.S. consumers increased their daily use of Facebook, from 42.5% of the population in 2013 to 46.5% in 2014. The largest increase was with consumers between 55 and 64 years old. This group expanded its daily Facebook usage by nearly eight percentage points.
  • During the same time, daily usage of Facebook on mobile phones surged from 24.7% of U.S. consumers in 2013 to 29.3% this year. The largest growth, 10 percentage points, came from consumers who are between 18 and 34.
  • Daily usage on computers is as follows: 17.7% visit a company’s Facebook site, 13.4% read or update LinkedIn, 10.9% read or update Twitter, 9.8% read or update Google+, 8.3% read or update Pinterest, 7.7% read or update Tumblr, 6.5% read a review on a rating site like Yelp or TripAdvisor, and 5.7% write a review on a rating site like Yelp or TripAdvisor.
  • Daily activity on mobile devices is nearly as high as it is on computers for Facebook users under 24 years old, LinkedIn users under 45 years old, Twitter users under 35 years old, and users of review sites under 45 years old.
  • We examined the usage of social media on different mobile devices. iPhone users are the most frequent daily readers and updaters of Facebook, LinkedIn, Twitter, Pinterest, and Tumblr. Blackberry users are the most frequent daily visitors of company Facebook pages, users of Google+, Tumblr (tied with iPhone), and ratings and review sites.

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The bottom line: Mobile social media is on the rise

Off Topic: Another Fun Trip to NYC

We’re just about to leave New York after an enjoyable long weekend. As always, the Big Apple was a fun spot to hang out for a few days. Here are some of my observations (and evaluations) from the trip:

  • A Gentleman’s Guide to Love and Murder: Overrated. We were very excited to see this year’s Tony Award winner for best musical, A Gentleman’s Guide to Love and Murder. It was a good show, with some good acting and clever staging. But it was not a great show, more of a slapstick comedy than a pure musical. It did not match up to previous Tony winners such as Book of Mormon, In the Heights, Once, Memphis, and Spring Awakenings. There weren’t any memorable musical numbers. Making matters worse, the Walter Kerr Theater was too warm and lacked sufficient air flow (at least in the front of the Mezzanine).
  • Violet: Bravo! We went to a matinee of the revival of the musical Violet. It was fabulous. Big, robust musical numbers with truly outstanding performances by Sutton Foster and Joshua Henry.
  • Pizza-Like Chicken Parmigiana: Awesome. We had several great meals during the visit. It turns out that two restaurants offered chicken parmigiana pounded out in a circle and served like a pizza (see pictures below). They were both excellent as were the restaurants. One was Trattoria Dell’Arte that also had great antipastos and extremely friendly service. The other restaurant was Quality Italian Steakhouse. It was an upscale restaurant which wasn’t as pricey as a typical NYC steakhouse. Everything was really good.
  • Breakfast at Norma’s: Pricey and Special. We spent our last morning having breakfast at Norma’s, at the Le Parker Meridien. We probably end up there every other year. It has a wide variety of unusual breakfasts that are all quite special. I ate my usual Egg White Frittata of Shrimp, which was fantastic. Of course, you can get indigestion if you spend too much time looking at the prices.
  • Meals with Cousins: Priceless. We had two really nice meals with cousins at very fun locations. Saturday brunch was at Maysville, a very cool restaurant and whiskey bar. My cousin is a whiskey expert who works at a sister restaurant, so it was fun to learn about the restaurant and the spirits. Make sure to get the truffles! Our second cousin get-together was at a Japanese BBQ, Gyu-Kaku. It was fun to order the meats and cook our collective dinner on the fire in the middle of the table. We ended the meal cooking s’mores.
  • The City That Never Sleeps: Overstated. Yes, NYC is vibrant almost all the time. It’s hard to walk along the sidewalks with so many people mulling around. But, when we were walking to breakfast at around 9:00 over the weekend, the streets were mostly empty. The Big Apple may not sleep at night, but it certainly catches some shuteye on weekend mornings.
  • Uber: Simplifying. It’s such a pleasure getting an UberX wherever you are in the city within minutes, without having to scream, whistle, and wave your hands like a maniac to hail a taxi. And I like not having to pay when you jump out of the car. There are Uber cars everywhere. If I was a NYC cabbie I’d hate Uber. But I’m not.

1406_TrattoriaDellArte1406_QualityItalianSteakhouse

USAA and Capital One 360 Top 2014 Temkin Web Experience Ratings

We just published the 2014 Temkin Web Experience Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 222 organizations across 19 industries.

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USAA’s banking business took the top spot and Capital One 360 (formerly ING Direct) earned the second highest rating in the 2014 Temkin Web Experience Ratings, which rates 222 companies across 19 industries. USAA’s insurance and credit card businesses tied for third place.Rounding out the top 13 companies in the ratings are Charles Schwab, Amazon.com, credit unions, TD Bank, U.S. Bank, Sheraton, Ace Hardware, eBay, and Nordstrom.

The award for delivering the worst web experience goes to Coventry Health Care, followed closely by Medicaid. Four of the bottom 14 organizations are health plans and three are TV service providers. The remaining companies in the bottom 14 of the Temkin Web Experience Ratings are Charter Communications, Comcast (TV service and Internet service), Dunkin’ Donuts, Time Warner Cable (TV service and Internet service), Jack in the Box, CareFirst, MetroPCS, Highmark, Adobe, and Wendy’s.

1406_TWER_BestWorst

Here’s how the industries compare with each other:

1406_TWER_Industries

The 2014 Temkin Web Experience Ratings shows that companies have made improvements in web experience between 2013 and 2014. Led by airlines, which increased by nearly 15 percentage points since last year, 17 of 19 industries improved. The two industries that earned lower ratings in 2014 are parcel delivery services and rental cars.

Nearly two-thirds of the 195 organizations that were in both the 2013 and 2014 Temkin Web Experience Ratings improved this year. On average, firms earned an increase of 3.2 percentage points. Eleven companies improved by more than 15 percentage points: Southwest Airlines, Health Net, United Airlines, PetSmart, AOL, Sony, Bright House Networks, Morgan Stanley Smith Barney, Edward Jones, Cablevision, and AAA.

Six companies saw their Temkin Web Experience Ratings fall by 10 points or more between 2013 and 2014: Dunkin’ Donuts, Avis, Hertz, Jack in the Box, Dollar, and Blackboard.

1406_TWER_IncreaseDecrease

Methodology:

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

Temkin Web Experience Ratings are based on asking consumers the following question about companies with whom they’ve had a customer service interaction during the previous 60 days: “Thinking back to your most recent interaction with the websites of these companies, how satisfied were you with the experience?” Potential responses range from 1= “very dissatisfied” to 7= “very satisfied.” Temkin Web Experience Ratings are calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who respond with 1, 2, or 3.

Download dataset for $295

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

 

Off Topic: Happy 100th To MIT Sloan School

Over the weekend, I went to Cambridge for my MIT Sloan School reunion and to celebrate 100 years of management education at MIT (which is called Course XV “15″ at MIT). After 100 years of educating students, Sloan’s mission remains as compelling as ever:

To develop principled, innovative leaders who improve the world

I’d like to believe that I fit that description :-)

It was great seeing the magnificent upgrades to the campus. When I went to Sloan, our class of about 200 students spent most of our time hanging out in a couple of old buildings. Now the Sloan School has great new facilities and more than twice as many students. I hope the school continues to create the same sense of intimacy with students that we experienced.

It was also wonderful to see my SM ’89 classmates and to catch up on what’s changed over the previous five years. Overall, most people are doing quite well and seem pretty happy. Some are company leaders, others are entrepreneurs, many have kids around college age, and a few have even retired (thanks to the tech sector). Lots of different life stories.

As part of the 100th anniversary celebration, a few professors gave lectures. While Saturday morning classes aren’t really my thing, I went to see Erik Brynjolfsson discuss his book The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. Despite the early hour, I really enjoyed Erik’s speech. His main thesis is that the industrial age was built on physical power while the Second Machine Age (that we’re in right now) is built on mental power, which will use a lot of technology.

Erik showed how technology is quickly evolving to do things that only humans could do a few years ago. He had some interesting anecdotes about a number of cool new technologies such as Google’s driverless carBaxter robots, Lionbridge Translation, and IBM Watson. This was an interesting chart that shows how Watson learned how to play Jeopardy better than the best humans in only a few years (the dots represent performance of Jeopardy winners (humans) and the lines represent Watson’s performance at different points in time).

140607_WatsonJeopardyThis type of technology improvement represents a key driver in the Second Machine Age, where Erik expects to see capital continuing to replace labor.

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My Manifesto: Great Customer Experience Is Free

Here’s a replay of a post from July 2012 that was a replay of a post from September 2007 with a few updates. I thought it was still relevant and worthy of a re-replay…

Here’s my new quest: To dramatically increase the focus on customer experience within companies by getting everyone to understand that great customer experience is really good business.

Great customer experience is not only free, it is an honest-to-everything profit maker. In these days of “who knows what is going to happen to our business tomorrow” there aren’t many ways left to make a profit improvement. If you concentrate on improving customer experience, you can very likely increase your profits.

Good customer experience is an achievable, measureable, profitable entity that can be installed once you have commitment and understanding, and are prepared for hard work. But I’ve had a great many talks with sincere people who were clear that there was no way to attain great customer experience: “The engineers won’t cooperate.” “The salesman are untrainable as well as too shifty.” “Top management cannot be reached with such concepts.”

So how do I plan on igniting the great customer experience is free movement?

First, it is necessary to get top management, and therefore lower management, to consider customer experience a leading part of the operation, a part equal in importance to every other part. Second, I have to find a way to explain what customer experience is all about so that anyone can understand it and enthusiastically support it. And third, I have to get myself in a position where I have a platform to take on the world in behalf of customer experience.

That’s really what I believe, but I must confess that those aren’t all my words. Just about everything written after the first paragraph came directly from the book Quality Is Free: The Art of Making Quality Certain by Philip B. Crosby. I’ve made minor edits and changed references from “quality” to “customer experience,” but those are Crosby’s words from his book that was initially published in 1979.

Why did I “borrow” Crosby’s words? Because I see a lot of similarities between today’s need for customer experience improvements and the 1980′s quest for quality in the US. I was actually involved in the quality movement in the late 80′s and early 90′s — running quality circles, developing process maps, running workout sessions at GE, using fishbone diagrams, etc.

Here are 7 critical areas in which the great customer experience is free movement can learn from the quality is free movement:

  1. Nobody owns it (or the corollary, everybody owns it). In the early stages of the quality movement, companies put in place quality officers. Many of these execs failed because they were held accountable for quality metrics and, therefore, tried to push quality improvements across the company. The successful execs saw their role more as change facilitators – engaging the entire company in the quality movement. Today’s chief customer officers need to see transformation as their primary objective — and not take personal ownership for improvement in metrics like satisfaction and NetPromoter.  
  2. It requires cultural change. Many US companies in the 1980′s put quality circles in place to replicate what they saw happening in Japan. But the culture in many firms was dramatically different than within Japanese firms. So companies did not get much from these efforts, because they didn’t have the ingrained mechanisms for taking action based on recommendations from the quality circles. Discrete efforts need to be part of a larger, longer-term process for engraining the principles of good customer experience in the DNA of the company.
  3. It requires process change. Quality efforts of the 1980′s grew into the process reengineering fad of the 1990′s. As business guru and author Michael Hammer showcased in his 1994 book Reengineering the Corporation: A Manifesto for Business Revolution, large-scale improvements within a company requires a change to its processes. That perspective remains as valid today as it was back then. Customer experience efforts, therefore, need to incorporate process reengineering techniques. That’s why these efforts must be directly connected to any Six Sigma or process change initiatives within the company.
  4. It requires discipline. Ad-hoc approaches can solve isolated problems, but systemic change requires a much more disciplined approach. That’s why the quality movement created tools and techniques — many of which are still used in corporate Six Sigma efforts. These new approaches were necessary to establish effective, repeatable, and scalable methods. A key portion of the effort was around training employees on how to use these new techniques. Customer experience efforts will also require training around new techniques. Here are a few posts that describe this type of discipline: Four Customer Experience Core Competencies, Customer Journey Mapping, and The Six Ds of a closed-loop VoC Program.
  5. Upstream issues cause downstream problems. This is a key understanding. The place where a problem is identified (a defective product, or a bad experience) is often not the place where systemic solutions need to occur. For instance, a problem with a computer may be caused by a faulty battery supplier and not the PC manufacturer. A bad experience at an airline ticket counter may be caused by ticketing business rules and not by the agent. So improvements need to encompass more than just front-line employees and customer-facing processes. Attacking upstream issues is part of moving from fluff to tough in your CX efforts.
  6. Employees are a key asset in the battle. The quality movement recognized that people involved with a process had a unique perspective for spotting problems and identifying potential solutions. So the many of the tools and techniques created during the quality movement tap into this important asset: Employees. Customer experience efforts need to systematically incorporate what front-line employees know about customer behavior, preferences, and problems as well as what other people in the organization know about processes that they are involved with. That’s why we’ve assembled a page of employee engagement resources.
  7. Executive involvement is essential. For all of the items listed above, improvements (in quality then and in customer experience now) require a concerted effort by the senior executive team. It can not be a secondary item on the list of priorities. Change is not easy. To ensure the corporate resolve and commitment to make the required changes, customer experience efforts need to be one of the company’s top efforts. Senior executives can’t just be “supportive,” they need to be truly committed to and involved with the effort. It may help to share our CX Reading List For Execs with your leaders.

Corporations removed major quality defects in the 80′s, re-engineered business processes in the 90′s, and now it’s time to take on the next big challenge for corporate America:  Customer experience.

It’s critically important, it’s broken, and fixing it can be very profitable. So don’t settle for the status quo! It’s up to you.

As Crosby said in his book:

You can do it too. All you have to do is take the time to understand the concepts, teach them to others, and keep the pressure on.

The bottom line: The great customer experience is free movement is underway. Join me!

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