50 CX Tips: eBook and Infographic

1310_50CXTips_COVERI recently completed a series of 50 customer experience (CX) tips. To make it easier for people to read and download all of the tips, I assembled them into a free eBook: 50 CX Tips: Simple Ideas, Powerful Results.

Each of the 50 CX Tips is aligned with one or more of Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.

The CX Tips include examples from a wide variety of companies including Adobe, Amazon.com, Apple, BCBS of Michigan, Becker and Poliakoff, Big Lots, BMO Financial Group, Bombardier Aerospace, CDW, Charles Schwab, Citrix, Disney, EMC, Fidelity Investments, Hampton Inn, Hilton, IBM, Intersil, Intuit, JetBlue, Microsoft, Oklahoma City Thunder, Oracle, Safelite AutoGlass, Salesforce.com, SanDIsk, SimplexGrinnell, Southwest Airlines, Sovereign Assurance of NZ, Sprint, Starbucks, Stream Global Services, Sam’s Club, USAA, VMware, and ZocDoc.
DownloadButton200wWhile you may have a hard time applying all 50 CX TIps, you should be able to identify several that will work for your organization. I challenge you to select three or more of the CX Tips to implement. Here’s an idea: Have each of your team members pick the five CX Tips that they think would be the most powerful for your organization. Use a team meeting to discuss everyone’s selections and pick the ones you want to implement.

We also created an infographic with the 50 CX tips. Here’s a version with the top 10 CX tips (click on the graphic to get a .pdf of the full infographic).

Top10CXTips_TemkinGroupThe bottom line: A handful of CX Tips can propel your customer experience.

Tech Vendors: Benchmarking Product and Relationship Satisfaction of IT Clients, 2013

1309_ITProuctsAndRelationships_COVERWe just published a new Temkin Group data snapshot: Tech Vendors: Benchmarking Product and Relationship Satisfaction of IT Clients. This new research highlights how IT professionals rate tech vendors in two key areas of experience: Products and relationships.

During Q1, 802 IT professionals from companies with at least $500 million in annual revenues rated both the products of and their relationships with 54 tech vendors. Some of the findings include: VMware leads in six of the eight satisfaction categories—product quality, product flexibility, technical support, account team support, cost of ownership, and innovation—while Microsoft servers and IBM SPSS score highest in product features, and Apple and Microsoft desktop software lead in ease of use. Deloitte Consulting on the other hand scores last in every satisfaction category except ease of use, which Computer Sciences Corporation IT services received bottom marks in.

Download report for $495
(includes spreadsheet with data)

As you can see below, we found a wide range of ratings across the 54 tech vendors for each of the eight criteria we examined:

ProductsRelationshipsAverages

Note: IT decision makers were asked to evaluate each of the criteria on a scale from very poor (1) to excellent (7). Net satisfaction equals the percentage of 6s and 7s minus the percentage of 1s, 2s, and 3s.

The data snapshot includes eight graphics that show the scores for each of the 54 tech vendors for each of these criteria. Here are the average net scores across all of the criteria:

ProductsRelationshipsCompanies

Download report for $495
(includes spreadsheet with data)

The bottom line: Tech vendors need to improve their products and relationships

Report: Tech Vendor NPS Benchmark, 2013

1306_IT_NPSBenchmark_COVERWe just published a Temkin Group report, Tech Vendor NPS Benchmark, 2013, The research examines Net Promoter Scores and the link to loyalty for 54 tech vendors based on feedback from IT decision makers. We also compared results to the NPS data we published last year. Here’s the executive summary:

We surveyed IT decision makers from more than 800 large North American firms to understand how they view their tech vendors. One of the questions we asked provides Net Promoter Scores® (NPS®) for 54 of those companies. VMWare and SAP analytics earned the highest NPS while CSC IT services and Infosys IT services earned the lowest. The overall industry average NPS dropped nine points from last year. Our analysis also examined the link between NPS and loyalty, finding that compared with detractors, promoters are more than six times as likely to forgive a tech vendor if they deliver a bad experience, almost six times as likely to try a new offering from the vendor, and more than three times as likely to purchase more from them this year. When examining the loyalty levels for each vendor, we found that Oracle consulting and VMWare clients have the strongest purchase intentions, SAP analytics and Sybase have earned the most forgiveness, and VMWare and SAP analytics have the most innovation equity.

Download report for $495 (includes Excel spreadsheet with data)
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Here are some of the findings from the research:

  • With an NPS of 47, VMware came out on top followed closely by SAP analytics with 45. At the other end of the spectrum, four tech vendors have negative NPS: CSC IT services, Infosys IT services, Alcatel-Lucent, and Deloitte consulting.
  • The average NPS in the tech industry went from 33.6 in 2012 to 24.7 in 2013. The percentage of promoters dropped seven points.
  • Compared with detractors, we found that promoters are more than six times likely to forgive a tech vendor if they deliver a bad experience, almost six times as likely to try a new offering from the company, and more than three times as likely to purchase more from them in 2013.
  • Forgiveness and willingness to try increase steadily starting at 3 while increased purchases begins steady growth at 5.
  • Promoters most frequently wanted lower prices and better support, while passives and detractors were looking for better support.
  • Oracle outsourcing has the strongest purchase intentions while Trend Micro has the weakest.
  • SAP analytics and Sybase have earned the most forgiveness while Trend Micro has earned the least.
  • VMware has the most innovation equity while Accenture consulting and Intuit have the least.

1306_ITNPS2

1305_ITNPS_Economics

Download report for $495 (includes Excel spreadsheet with data)
BuyDownload3

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

Note: See our 2012 NPS ratings for tech vendors and the post 9 Recommendations For Net Promoter Score along with all of my other posts about NPS.

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

Cloud Computing Leaders: Google, Microsoft, and ACS

The “cloud” is a popular topic in IT circles. So we decided to examine how much it will affect companies and how prepared technology vendors are to satisfy those changing customer demands. During January 2012, we asked 800 IT professionals from companies with at least $500 million in annual revenues two questions about cloud computing:

  • Cloud importance: To what degree will the shift to cloud computing influence your company’s IT strategy over the next three years? (Note: 79% of IT professionals say it will have a significant influence)
  • Cloud capabilities: Given your company’s plans for cloud computing, how would you rate the cloud computing capabilities of the IT vendors that you interact with compared with where they need to be?

To fully understand how prepared tech vendors are to meet their client’s changing IT needs for cloud computing, Temkin Group created the Cloud Readiness Index (CRI), a measure of where vendors are in their cloud capabilities compared with the needs of their customers. The CRI takes the cloud importance results and divides it by the cloud capability results as follows:

Here is the Cloud Readiness Index data for 60 tech vendors. Google, Microsoft’s business applications, and ACS are on top of 15 tech vendors in the “leading” category. At the other end of the spectrum, Autodesk, Check Point, and CGI are on the bottom of 25 tech vendors in the “lagging” category.
You can download the data from this post in an Excel spreadsheet for $195. The file includes detailed data for the Cloud Readiness Index as well as details for Cloud Importance and Cloud Capabilities. The spreadsheet includes the data for the 60 tech vendors listed in this post as well as for 28 other tech vendors with smaller sample sizes.

 The bottom line: Tech vendors need to meet their client’s cloud needs

Net Promoter Score and Market Share For 60 Tech Vendors

Temkin Group recently surveyed 800 IT professionals from large companies and asked them a series of questions about tech vendors. This research has fueled some of our previous posts: Temkin Experience Ratings for Tech Vendors, How IT Professionals Share Feedback About Vendors, and Tech Vendors: Benchmarking Product and Relationship Satisfaction of IT Clients.

We also asked the IT professionals to rate each tech vendor on the Net Promoter Score (NPS) scale.* NPS is based on one question: How likely are you to recommend the tech vendor to a friend or colleague? IT professionals choose an answer on a scale from 0 (not at all likely) to 10 (extremely likely). Responses are put into one of three categories:

  • Promoters (score 9 or 10)
  • Passives (score 7 or 8)
  • Detractors (score 0 to 6)

NPS is calculated as the percentage of promoters minus the percentage of detractors. (If you’re interested in best practices for using NPS, read my post 9 Recommendations for NPS which is also part of our VoC resource page).

Here is the NPS for 60 tech vendors, ranging from Intel, Microsoft and Cisco in the 50s down to Compuware, Unisys, Cognizant, and Capgemini below 10.

We also asked the IT professionals how much their company was planning to spend in 2012 compared with 2011 and mapped this data with NPS. It turns out that we found four bands of performance in this market based on NPS scores:

  • More than 40: These companies have much higher purchase momentum and are poised to grab a lot of market share
  • Between 28 and 40: These companies have above average purchase momentum and are poised to gain market share
  • Between 23 and 28: These companies have below average purchase momentum and are poised to lose market share
  • Less than 23: These companies have much lower purchase momentum and are poised to give up a lot of market share

You can purchase the data in an excel spreadsheet for $195. The file includes details on the 60 tech vendors shown in this blog post as well as 28 other tech vendors with sample sizes too small to be included in our published research. The data includes sample sizes for the companies, percentages for promoters, detractors, and NPS score, as well as the percentage of companies with increasing spending plans and those with decreasing spending plans.

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

Tech Vendors: Benchmarking Product and Relationship Satisfaction of IT Clients

We just published a new Temkin Group data snapshot: Tech Vendors: Benchmarking Product and Relationship Satisfaction of IT Clients. This new research highlights how IT professionals rate tech vendors in two key areas of experience: Products and relationships.

During January 2012, 800 IT professionals from companies with at least $500 million in annual revenues rated the products of and their relationships with 60 tech vendors. Some of the findings include: Intel dominates in product flexibility, Cisco leads in product features, Compuware’s product features are severely lacking, Google has a big lead in cost of ownership, Intel dominates in product flexibility, Apple leads in innovation, and Wipro is far behind in technical support.

Download report for $295

As you can see below, we found a wide range of ratings across the 60 tech vendors for each of the eight criteria we examined:

The data snapshot includes eight graphics that show the scores for each of the 60 tech vendors for each of these criteria. Here’s a summary of the firms with the highest and lowest average ratings:

Download report for $295
(includes spreadsheet with data)

The bottom line: Tech vendors need to improve their product and relationship experiences

Report: 2012 Temkin Experience Ratings of Tech Vendors

We are excited to be publishing this first report from our large-scale research on customer experience in the IT sector.

We just published a new Temkin Group report, 2012 Temkin Experience Ratings of Tech Vendors. The report analyzes feedback from 800 IT professionals to rate 60 tech suppliers. Congratulations to the top firms:

1) Microsoft (business applications)
1) Cisco
3) IBM SPSS
3) Microsoft (servers)
5) Microsoft (desktop software)
5) IBM software (other than SPSS)
5) Intel

Here is the executive summary from the report:

To understand the customer experience delivered by IT vendors, we surveyed 800 IT professionals from large companies. Using their feedback on the functional, accessible, and emotional components of experiences with vendors, we created the 2012 Temkin Experience Ratings for Tech Vendors which rates 60 large IT suppliers by their customers. Microsoft business applications, Cisco, IBM SPSS, and Microsoft servers were at the top of the list with “excellent” ratings. At the other end of the spectrum, Compuware, Capgemini, and Fujitsu were at the bottom of nine companies with “very poor” ratings. Our research also looked at the 2012 purchase plans for these IT buyers. When we chart the Temkin Experience Ratings for Tech Vendors with the purchase momentum for these 60 firms, it shows the clear connection between customer experience and revenues.

Download report for $295

The Temkin Experience Ratings for Tech Vendors are based on evaluating three elements of experience:

  1. Functional: How well do experiences meet customers’ needs?
  2. Accessible: How easy is it for customers to do what they want to do?
  3. Emotional: How do customers feel about the experiences?

Here are the ratings for all 60 tech vendors that had feedback from at least 60 IT professionals:

The report also examined IT purchasing plans. We created a purchasing momentum index, equal to the percentage of companies planning to increase spending in 2012 minus the percentage that were planning to decrease spending. The report contains the purchasing momentum for all 60 tech vendors in the study. It turns out that the Temkin Experience Ratings are highly connected with purchase momentum:

Download report for $295

The bottom line: Customer experience and loyalty go hand in hand in the tech sector.

Enterprise Feedback Management (EFM) Is Dead

Yes, the title is a bit extreme — but I wanted to get everyone’s attention.

I’ve been hearing a lot of people talk about Enterprise Feedback Management (EFM) lately; from analysts to conference speakers. Please stop; EFM is a description of the past.

As I discussed in the post Customer Insight and Action (CIA) Platforms Emerge, EFM is an outdated moniker for applications that support voice of the customer (VoC) programs. It’s like talking about music coming on cassettes. Let’s look at the words:

  • Enterprise. The focus of these efforts need to be on the customer, not the enterprise.
  • Feedback. The analysis needs to examine insight across a variety of inputs, not just feedback.
  • Management. The value of these efforts come from taking action, not from managing surveys.

In the Temkin Group report The Evolution Of Voice Of The Customer Programs we label the emerging class of applications as “Customer Insight and Action (CIA) Platforms” which we define as:

A technology for automating multi-channel customer feedback, analysis, and response and the related workflow associated with closed-loop voice of the customer (VoC) programs

If you’re wondering where VoC programs are heading, then check out the posts Voice Of The Customer Programs Grow Up or 6 Ds For Voice Of The Customer Programs.

How Is CIA Different Than EFM?

  • CIA pulls together a full picture of the customer. These applications examine a variety of inputs like who the customer is (often from CRM applications), what the customer has done and is doing (often from analytics and ERP applications), and everything that customer has told us (including call center interactions and sales notes).
  • CIA does not overly rely on surveys. EFM grew up as a platform for managing multiple surveys, but these structured data inputs are becoming a less dominant form of insight. As text analytics becomes a more mainstream capability, companies will tap into unstructured data sources at an increasing rate.
  • CIA focuses on operationalizing the insights. VoC programs provide value when companies take customer-insightful actions based on the insight. These applications need to focus on getting the right information into the hands of the right people at the right time for them to incorporate into their day-to-day activities.
  • CIA makes market research practices obsolete. In the post Market Research Needs An Overhaul, I discuss how new VoC programs challenge historical operating practices for market research organizations; putting pressure on these groups (inside of and outside of the enterprise) to deliver value, not just reports.
  • CIA cuts across technology categories. While EFM applications represented a technology niche serving market research groups, I expect that CIA will become mainstream business platforms. The ability to disseminate and act on customer insights offers a compelling value proposition that will likely evolve into a key infrastructure for many companies. Since it cuts across areas like CRM, BI (business intelligence), BPM (business process management), and customer analytics, look for the big boys (IBM, Oracle, SAP, Salesforce.com, etc.) to get active in this space very soon.

The bottom line: EFM was an evolutionary step on the way to CIA platforms.

Kana Buys Overtone; Sign Of Bigger Trends

Kana announced that it has acquired Overtone, a key social media and text analytics firm. While this acquisition seems like a good move for Kana (I’ll have more thoughts when I get a full briefing next week), it’s more significant as a sign of bigger trends.

My take: This acquisition is best understood in conjunction with a couple of other acquisitions by software companies that support customer-facing processes and channels:

Last year I published a report called the Eight Customer Experience Megatrends which provided my forecast about how these eight megatrends will play out in 2011:

The HiveLive/Radian6/Overtone moves are clear signs of two of these megatrends:

  • Unstructured data appreciation. All of the acquired vendors provide some amount of text analytics capabilities. The acquisitions link these capabilities with a lot of enterprise data — helping to push the envelope on where and how companies will extract insights from unstructured data such as sales notes, emails, and call recordings.
  • Social media assimilation. In the long run, it makes no sense for social media to be treated as its own channel (see my post: How Much Does Social Media Matter?). The acquiring vendors will help their clients link social media with other customer-facing processes and channels.

What’s next? I expect to see acquisitions by big vendors like Oracle, SAP, IBM, and Microsoft. A few interesting targets: Clarabridge, Attensity, and Nexidia.

The bottom line: Customer experience management remains an evolving field

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