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.

Download dataset for $295

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.

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Here’s how the industries compare with each other:

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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.

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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.

 

Regions and Credit Unions Lead Banking Industry in 2014 Temkin Experience Ratings

We recently released the 2014 Temkin Experience Ratings that ranks the customer experience of 268 companies across 19 industries based on a survey of 10,000 U.S. consumers.

Regions and credit unions earned an 81% rating—only narrowly overtaking USAA and TD Bank—and tied for 8th place overall out of 268 companies across 19 industries. Credit unions scored the highest rating in both 2012 and 2013, while Regions earned the top spot in 2011. At the other end of the spectrum, HSBC received the lowest rating for any of the 16 banks for the second year in a row, landing in 226th place overall with a 56% rating. Fifth Third also tumbled down the rankings from its “good” rating in 2013 to have the second lowest score in the banking industry.

Download entire dataset for $395

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Here are some additional findings from the banking industry: Read more of this post

Charles Schwab and Fidelity Investments Lead Investment Industry in 2014 Temkin Experience Ratings

We recently released the 2014 Temkin Experience Ratings that ranks the customer experience of 268 companies across 19 industries based on a survey of 10,000 U.S. consumers.

Charles Schwab and Fidelity Investments earned a 75% rating—only narrowly surpassing TD Ameritrade—and tied for 49th place overall out of 268 companies across 19 industries. These two firms are no strangers to the top of the rankings; Charles Schwab has been the highest-rated investment firm for three years in a row now, and Fidelity Investments maintained a second-place ranking from 2011 to 2013 before taking the top spot this year. At the other end of the spectrum, Scottrade and Wells Fargo Advisors tied for the lowest-rated investment firm, both landing in 208th place overall with a rating of 58% each. While this is Scottrade’s first stint on the bottom, Wells Fargo Advisors was also ranked as the lowest firm in 2011 and 2012.

Download entire dataset for $395

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Here are some additional findings from the investment industry: Read more of this post

Report: What Happens After a Good or Bad Experience, 2014

1402_WhatHappensAfterGoodBadExperiences_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2014. The report, which includes 19 data charts, examines which companies and industries provide the most bad experiences, what impact those experiences have on spending, and how the negative impacts of bad experiences can be mitigated by good service recovery. The report also examines how consumers share their good and bad experiences with companies as well as with other people. Here’s the executive summary:

To understand the effect of good and bad experiences, we asked 10,000 U.S. consumers about their recent interactions with 268 companies across 19 industries. Results show that Internet services and TV services are the industries most likely to deliver a bad experience to their customers, while grocery chains are the least likely to. At the company level, Scottrade had the smallest percentage of customers reporting a recent bad experience with the company and Time Warner Cable had the highest. More than half of the customers who encountered a bad experience at a fast food chain, credit card issuer, grocery store, or hotel either decreased their spending with the company or stopped altogether. However, our data shows that a good service recovery effort can help mitigate a bad experience. Unfortunately, many firms—especially in the banking, Internet services, and TV services sectors—aren’t very good at service recovery. In addition to the consequences of bad interactions, we also examined which channels customers use to share their good and bad experiences and how these changed across age groups. We then compared these results to survey responses from the past two years. We also uncovered a negative bias inherent in how customers provide feedback. ING Direct, Residence Inn, and Fairfield Inn have the most negative bias in the feedback they receive directly from customers, while Hy-Vee and Hyundai have the most negative bias on Facebook. 

Click link to see full list of industries and companies covered in this report (.pdf).

Download report for $195
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One of the most interesting analyses in the report is the look at how service recovery after a bad experience affects the spending pattern of consumers. Here’s a summary of one of the charts showing just how important it is for a company to recover well after making a mistake:

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Here are some other insights from the research:

  • Sixteen percent of consumers who have interacted with TV service and Internet service providers report having a bad experience over the previous six months. Next on the list are wireless carriers, with 12% of their customers reporting a bad experience. At the other end of the spectrum, only 3% of consumers report a bad experience with grocery chains and 4% report having a bad experience with fast food chains.
  • The five companies with the most customers reporting bad experiences are Time Warner Cable (25%), Motel 6 (22%), Coventry Health Care (21%), and Comcast (21%). There were 10 companies with only 1% or less of their customers reporting bad experiences: Scottrade, Chick-fil-A, H.E.B., Whole Foods, ShopRite, ING Direct, Starbucks, Trader Joe’s, Vanguard, and True Value.
  • More than one-quarter of consumers who have a bad experience stop spending with computer makers, car rental agencies, credit card issuers, hotel chains, and software companies. The impact of bad experiences is less costly for parcel delivery services, wireless carriers, health plans, TV service providers, Internet service providers, and grocery chains, as less than 15% of their customers with bad experience stopped spending.
  • The industries that are the best at responding to a bad experience are investment firms, major appliances, retailers, and car rental agencies. The industries that are the worst at responding to a bad experience are TV service providers, wireless carriers, Internet service providers, parcel delivery services, and health plans.
  • Thirty-two percent of consumers give feedback directly to companies after a very bad experience and 23% give feedback after a very good experience.
  • Overall, 25- to 34-year-olds are the most likely to share feedback about their experiences. After a good experience 57% tell a friend directly, 28% share on Facebook, and 18% put a comment or rating on a review site. After a bad experience, 60% tell a friend directly, 31% share on Facebook, and 20% write a review.

Download report for $195
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The bottom line: Make sure to recover quickly after a bad experience

Credit Unions and USAA Lead Banks in 2013 Temkin Experience Ratings

We recently released the 2013 Temkin Experience Ratings that ranks the customer experience of 246 companies across 19 industries based on a survey of 10,000 U.S. consumers. Here are highlights from the banking industry:

  • The banking industry has been steadily improving over the last three years, from an average Temkin Experience Rating of 62.0% in 2011 to 68.6% this year. Banks also made the largest improvement of any industry between 2012 and 2013, gaining 3.4 percentage points.
  • Credit unions take first place in the industry for the second straight year with a rating of 79%. USAA earned the second spot with a rating of 78% followed by ING Direct and TD Bank that tied for third place with ratings of 74%.
  • The lowest-ranked bank is HSBC, earning a score of 57%. It also earned the lowest functional, accessible, and emotional ratings. The two next lowest banks are Capital One (62%) and Bank of America (63%).
  • Credit unions lead in the functional and accessible components while USAA leads in the emotional component.
  • Citibank improved by 15 percentage points between 2012 and 2013. This gain represents the largest improvement by any company across all industries.
  • Regions also had a significant improvement of 10 percentage points over the last year.
  • PNC had the worst decline from 2012 to 2013, experiencing a loss of six percentage points. HSBC was the only other bank with a ratings drop since last year.
  • Here’s a link to industry results from the 2012 ratings.
Download entire dataset for $395
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Temkin Ratings website

Customer Experience Isn’t Enough in Banking

I read an interesting article in the New York Times: Bank Analyst Sees No Payoff in a Customer-Friendly Focus. It discusses how bank industry analyst Richard X. Bove believes that focussing on customers may be harmful for banks because it distracts them from making money. Here’s a bit of what he said:

Spending time solving problems with people is not selling products. It’s wasting time.

My take: First of all, I think that Bove is partially right. If you don’t have good products or if you don’t have solid sales processes, then you probably won’t have good business results; customer experience is not good enough on its own. As I’ve said for many years, customer experience is not a standalone activity, it needs to support your brand and business strategy.

Having said that, our research shows that companies with better customer experience have a better opportunity to improve their business results. That relationship holds up in our research across many industries.

I decided to take a look at one dimension of the Temkin Experience Ratings (easiness of doing business) and one dimension from the Temkin Loyalty Ratings (willingness to consider for another purchase) in banking. Here’s how those CX and loyalty items line up for 16 banks.

As you can see, there’s a high correlation between CX and potential loyalty. Just because 74% of USAA’s members are likely to consider the financial institution for another purchase, they aren’t going to do it unless USAA offers them an appropriate and competitive product.

The bottom line: CX is valuable, but not enough on its own

2012 Temkin Customer Service Ratings

Temkin Group has just released the 2012…The 2012 Customer Service Ratings covers 174 companies from 18 industries and is based on a survey of 10,000 U.S. consumers in January 2012.

Congratulations to the 2012 customer service leaders:

1) Publix
1) Hy-Vee
1) Credit unions
4) Chick-fil-A
5) H.E.B
5) Sam’s Club
7) Winn-Dixie
8) ShopRite
8) Aldi
8) Starbucks
8) Giant Eagle
8) JCPenney

At the other end of the spectrum, consumers gave the lowest ratings to Charter Communications, Time Warner Cable, Comcast, Citibank, Qwest, Road RunnerCigna, and Bank of America.

The ratings covers the following industries: Airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, TV service providers, and wireless carriers.

Temkin Group examined industry averages and found that grocery chains were the only industry to earn a “strong” rating. Retailers, fast food chains, appliance makers, and investment firms round out the top five. But consumers gave very low ratings to TV service providers and Internet service providers.

The research also examines how individual companies are rated relative to their industry peers. Led by credit unions (banks), Kaiser Permanente (health plans), Bright House Networks (TV service), and American Express (credit cards), 15 companies outperformed their industry average Temkin Customer Service Ratings by 10 percentage points or more.

Sixteen firms fell below their industry average by 10 or more percentage points, with Charter Communications (TV service & Internet service), Citibank (banks), Hyundai (auto dealers), Bank of America (banks), and Super 8 (hotels) falling the farthest behind.

Temkin Group also analyzed changes from the 2011 Temkin Customer Service Ratings. Led by computer makers and health plans, 10 of the 12 industries that were in both the 2011 and 2012 ratings improved since last year.

Seventy-five percent of companies that were in the 2011 and 2012 Temkin Customer Service Ratings showed improvement. Fifteen organizations improved by at least 10 percentage points, with these five firms leading the way with improvements of at least 20 percentage points: PNC, Gateway, Toshiba, Farmers, and HSBC. Only two companies had double-digit declines: Edward Jones and Old Navy.

Do you want to see the data? Go to the Temkin Ratings website where you can sort through all of the results for free. You can even purchase the underlying data if you want to get more access. The bottom line: Web experience is not good enough for how important it is

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