2015 CX Vendor Excellence Awards

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Temkin Group is accepting nominations for its 2015 Customer Experience Vendor Excellence Awards. Submission are due by March 5th (extended until March 10th).

5 Years of Temkin Experience Ratings, First Drop in CX

As I mentioned when we released the 2015 Temkin Experience Ratings, this is the fifth year of our large-scale customer experience (CX) benchmark. If you downloaded the free report (and why wouldn’t you?), then you would have seen some data and graphics on how the industry ratings have changed over those five years. Here’s one of the key graphics…

1503_TxRIndustryChanges5YrsComputers is the only sector that has increased every year, while banks, credit cards, supermarkets have not had any declines. The results over the past year, however, showed a disappointing shift in direction; 10 of the 19 industries declined. It’s the first year that a majority of industries declined, with the largest previous number being four industries that dropped last year.

What’s going on here?

One explanation is that companies are getting worse at CX. Given the amount of effort that companies are putting into improving CX, this does not seem like a likely situation. I could buy an argument that they aren’t getting better, but there’s no reason to believe that they are getting worse.

A second explanation is that consumer expectations are rising at a pace that is faster than the speed at which companies are improving their CX. This makes sense to me. A few companies that are really, really good at CX establish a baseline of expectations for consumers across all of their interactions.

Keeping up with your mediocre peers may no longer be a viable strategy. As consumer discontent rises, there will be more opportunities for your competitors (or entirely new competition) to radically improve their CX and steal your customers.

The bottom line: CX isn’t keeping up with customer expectations.

Report: 2015 Temkin Experience Ratings

1503_TemkinExperienceRatings_COVERTemkin Ratings websiteWe published the 2015 Temkin Experience Ratings, the most comprehensive benchmark of customer experience. In the fifth year of the Ratings, we analyze feedback from 10,000 U.S. consumers to rate 293 organizations across 20 industries (we added utilities this year). Here’s the executive summary:

2015 marks the fifth year of the Temkin Experience Ratings, and this year, supermarkets dominated the ratings. Publix earned the top spot, closely followed by Aldi and H-E-B. In addition to earning the top three positions, supermarkets also took five of the top 12 spots. Retailers also performed well, with both PetSmart and Amazon.com making it into the top seven. At the other end of the spectrum, Coventry Health Care, Fox Rent A Car, Comcast, and Fujitsu earned the lowest ratings. To generate the Temkin Experience Ratings, we asked 10,000 U.S. consumers to rate their recent interactions with 293 companies across 20 industries and then evaluated their experiences across three dimensions: success, effort, and emotion. On an industry level, supermarket chains, fast food chains, retailers, parcel delivery services, and banks all earned “good” ratings on average, whereas Internet service providers, TV service providers, and health plans received “poor” ratings on average. We also compared individual companies to their industry averages and found that TriCare and Amazon outperformed their industry peers by the highest margin, while Fox Rent A Car and Ramada Inn fell the furthest below their industry average. Between 2014 and 2015, only five industries improved and 14 declined. Residence Inn, US Cellular, and JetBlue Airlines improved the most over the previous year, while Subaru dealers, TD Ameritrade, and Buick dealers declined the most.

Download report for FreeFreeDownloadButton You can also download the dataset in Excel for $395

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

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

Here are the top and bottom companies in the ratings:

***See how your company can reference these results or
display a badge for top 10% and industry leaders***

2015TxR_TopBottom
Here’s how the industries compare with each other:

2015TxR_Industries

1502_TxR_Companies

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You can also download the dataset in Excel for $395

Get the Data

Screen Shot 2013-02-24 at 5.42.22 PMDo you want to see all of the data from the 2015 Temkin Experience Ratings? You can purchase an excel spreadsheet for $395. Here’s a sample of the spreadsheet (.xls).

To view all of our ratings (experience, trust, forgiveness, customer service, and web experience), visit the Temkin Ratings website

Temkin Ratings website

The bottom line: Companies have a long way to go on their CX journeys.

11 Highlights From the 2015 Sloan Sports Analytics Conference

This week, I attended the annual MIT Sloan Sports Analytics Conference, Once again, I really enjoyed hearing players, owners, general managers, members of the press, and experts discuss two of my favorite topics: #sports and #analytics. Here are 11 highlights from the sessions that I attended:

1) The Van Gundy family is entertaining. My highlights from last year’s conference included several memorable quotes from Stan Van Gundy (Coach of the Detroit Pistons). While Stan didn’t speak at the conference this year, his brother Jeff Van Gundy (ESPN Analyst and Former NBA Coach) who said that his brother “Stan has steel balls” filled the void with his very outspoken approach. One of the funniest moments was Van Gundy’s rant about how to coach a 4th grade girls basketball team [in response to something that I heard Vivek Ranadivé (Majority Owner, Sacramento Kings) say last year]. He pretty much said that the trick is to get two of the lower performing girls not to show up so that you can have your two best girls play for most of the game.

2) Shane Battier was basketball analytics’ ground zero. Let me start by saying how impressed I was with Shane Battier (College Basketball Analyst, ESPN; Retired NBA Player). Not only was he styling some sharp green pants (see below), but he was incredibly smart and articulate. Daryl Morey (GM of the Houston Rockets), who traded for Battier, said the trade was the first one based on analytics and he got killed in the press for it. While Battier didn’t have great numbers, Morey could tell that his game was a strong complement to the Rockets’ key players, Yao Ming and Tracey McGrady. Michael Lewis, who wrote a great exposé on Battier in the New York Time called The No-Stats All-Star), described Battier as a “lab rat who understood the experiment.” Battier refined his game to focus on the places where the analytics said he added the most value to his team, defending opponents’ best player and shooting 3 point shots. Read more of this post

Report: What Happens After a Good or Bad Experience, 2015

1502_WhatHappensAfterGoodBadExper_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2015. This is our annual analysis of which companies deliver the most and least bad experiences, how consumers respond after those experience (in terms of sharing those experiences and changing their purchase behaviors), and the effect of service recovery (see last year’s report).

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 283 companies across 20 industries. Internet service providers and TV service providers deliver bad experiences more frequently than any other industries, as exemplified by Comcast and Charter Communications, each of which delivers a bad experience to about one in four customers, the most of any companies. Retailers, on the other hand, are least likely to deliver a negative experience. Out of all the industries, customers are most likely to stop spending completely after a bad experience with a computer and tablet maker, and they are most likely to reduce spending after a bad experience with a fast food chain. The economics of service recovery are compelling. Compared with companies that deliver a very poor response after a bad experience, companies that deliver a very good response have 41% fewer consumers cutting back on their spending and 31% more increasing their spending. Led by investment firms and major appliance makers, all industries improved or maintained their service recovery performance from last year. After a very bad or very good experience, consumers are more likely to give feedback back directly to the company than they are to post on Facebook, Twitter, or third party rating sites. These social sites, however, are still an important channel for consumers under the age of 45. When it comes to sharing bad experiences on social media, customers of Advantage Rent A Car and Alabama Power Company are the most likely to post about it on Facebook, while customers of Ameren Missouri Company and Fujitsu are the most likely to post about it on Twitter. The companies most likely to receive negatively biased feedback from their customers are Consolidated Edison of NY and Southern California Edison.

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Here’s the first figure in the report:

1502_BadExperiences

Here are some highlights from the report:

  • Nineteen percent of consumers who have interacted with TV service providers and Internet service providers report having a bad experience during the previous six months, the highest levels of any industry. Comcast (25%) and Charter Communications (24%) have the highest levels of consumers reporting bad experiences. The next three companies on the list are Motel 6, Time Warner Cable, and 21st Century insurance (all at 23%).
  • At the other end of the spectrum, only 4% of consumers report having a bad experience with a retailer, and six retailers are at 1%: True Value, Costco, Bed Bath & Beyond, Ace Hardware, Gap, and Staples.
  • The research examines the impact of bad experiences on consumer spending. Fifty-seven percent of consumers who had a bad experience with a fast food chain have decreased their spending with those stores and 32% of consumers who have had a bad experience with a computer company have completely stopped spending with the company. When it comes to health plans and utilities, two industries where consumers have a hard time switching, only 22% of consumers lower their spending after a bad experience.
  • The research shows that companies can increase their revenues when they respond very effectively after a bad experience. The difference in spending between a consumer who experiences a very poor response by a company and one who experiences a very good response is dramatic; the better response leads to 41% fewer consumers decreasing their spending with the company and 31% more increasing their spending.
  • The highest percent of consumers say that investment firms (48%) and major appliance makers (45%) have delivered a good response after a bad experience, while less than 20% of consumers feel that way about TV service providers and Internet service providers.
  • While 32% of consumers told the company about a very bad experience, only 25% shared their very good experiences. The percentage of consumers who communicated after a good experience increased for every channel except telling friends via traditional channels, which stayed even this year.
  • Across all age groups, consumers are most likely to give feedback about bad experiences directly to companies. With good experiences, the same is true with consumers who are at least 45 years old.
  • We examined how many customers of each company had shared negative feedback (to any company) on Facebook over the previous six months. At the top of the list are Advantage Rent A Car, Alabama Power Company, Ameren Illinois Company, AirTram Airways, Audi dealers, Fujitsu, Ameren Missouri Company, and CellularOne.

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The bottom line: Bad experiences are a real problem, especially if you don’t recover well.

CX for Smarties, A Beginner’s Guide to Customer Experience

We’re often asked to help people who have recently taken on new responsibilities in customer experience (which is commonly abbreviated as CX). Since it’s important for anyone in the field to understand the core principles of CX, I’ve put together this post and called it “CX for Smarties.” Anyone who cares enough about CX to read this post is not a dummy.

What is CX?

This video shows the definition of CX (the perception that customers have of their interactions with an organization) as well as three elements of an experience (success, effort, and emotion).

Why Should You Care About CX?

This graphic from the report “The ROI of Customer Experience, 2014” shows the connection between CX and loyalty.

CXLoyaltyCorrelation

This “Ultimate CX Infographic” also provides some of the compelling economics of CX:

1410_StateOfCX_POSTER_CutoffHow Do Organizations Affect CX?

To understand how companies create customer experience, you need to understand The Six Laws of CX, which are described below in the short video and infographic.

6-laws

How Do You Build A Customer-Centric Culture?

Temkin Group’s research has shown that customer experience leaders demonstrate four CX core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. This video is a great way to learn about what it takes to deliver great CX:

Most companies have not mastered these competencies and remain in lower levels of CX maturity. This chart is from a post that discusses the shift from early levels of CX maturity (fluff) versus upper levels (tought).

1404_CXFluffVsToughThe bottom line: Hopefully you’ve become a CX smarty!

 

Report: Employee Engagement Benchmark Study, 2015

1502_EEBenchmarkStudy15_COVERWe just published a Temkin Group report, Employee Engagement Benchmark Study, 2015, which is our annual analysis of U.S. employees. Here’s the executive summary:

We used the Temkin Employee Engagement Index to analyze the engagement levels of more than 5,000 U.S. employees. We found that although employee engagement overall has increased over the past year, engagement levels still vary by organization, industry, and individual. Companies with stronger financial performances and better customer experience have employees who are considerably more engaged than their peers. Our research also shows that out of all the industries, the construction sector has the highest percentage of engaged employees, while the transportation and warehousing sector has the lowest. We additionally found that large companies have a lower percentage of engaged employees than smaller companies do. On an individual level, our research shows that frontline employees, high-income earners, and males tend to be more highly engaged. Given the significant value of engaged employees, we recommend that companies improve engagement levels by mastering our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.

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This is the fourth year that we’ve released this study (see 2012 study, 2013 study, and 2014 study). Here are the results from the Temkin Employee Engagement Index over the previous four years:

EEBenchmarkOverview

Some of the other findings from the research include:

  • The number of highly and moderately engaged employees in the U.S. increased from 55% last year to 57% this year.
  • Compared with disengaged employees, highly engaged employees are 2.5 times as likely to stay at work late if something needs to be done after the normal workday ends, more than twice as likely to help someone at work even if they don’t ask for help, more than three times as likely to do something good for the company that is not expected of them, and more than five times as likely to recommend that a friend or relative apply for a job at their company.
  • Seventy-seven percent of employees in companies that have significantly better financial performance than their peers are highly or moderately engaged, compared with only 49% of employees in companies with lagging financial performance.
  • Companies that outpace their competitors in CX have 50% more engaged employees than those with CX that lags their peers.
  • Ninety-one percent of highly engaged employees always or almost always try their hardest at work, compared with 67% of disengaged employees.
  • 25- to 34-year-old employees are the most engaged group while 45- to 54-year-old employees are the least engaged.
  • Senior executives are 50% more likely than individual contributors to be highly or moderately engaged.
  • Of the 15 industries measured in the study, construction has the highest level of engaged employees while transportation and warehousing has the lowest.

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The bottom line: There are a lot of employees who can and should be more engaged.

People-Centric Experience Design (Video)

Last year, I published a free eBook called People-Centric Experience Design (PCxD). Experiences are all about people, the customers who interact with your organization and the employees who shape those interactions. Most approaches to customer experience, from voice of the customer programs to customer journey mapping, deal with the logical, left-brain elements of customer experience. But they often fall short on the right-brain, emotional side. That’s where PCxD comes into play. It’s built on three principles:

  • Align through PURPOSE
  • Guide with EMPATHY
  • Design for MEMORIES

To help people understand PCxD, we created this short video:

The bottom line: Tap into the power of purpose, empathy, and memories.

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