August 16, 2016
August 24, 2016 Leave a comment
Why do employees leave their companies for another job?
To examine this question, I tapped into our Q3 2015 consumer benchmark study which included more than 5,000 U.S. full-time employees. The analysis compared two groups of employees, those who were likely to look for a new job in the next six months and those who were not.
Compensation does not appear to be a significant driver, if one at all. As you can see below, employees who do not believe that they are fairly compensated are not much more likely to look for a new job than those who feel that they are appropriately paid.
The most significant drivers of an employee looking for a new job is how they feel about the work that they do and their pride in their company.
The bottom line: Employees want meaning in their work.
August 22, 2016 Leave a comment
In case you missed it, we labeled 2016 as The Year of Emotion in our annual listing of CX trends. To help organizations better understand customer emotions, we created the Intensify Emotion Movement. Why did we put so much of a focus on emotion? Because it drives loyalty.
We tapped into our recent consumer benchmark study to examine the connection between how consumers rate the emotional component of their interactions and their loyalty across 20 industries. [Note: The emotional data is from the emotion component of the Temkin Experience Ratings]
In the graphic below, we examined the average across all 20 industries. Compared with companies that get very weak emotion ratings, companies with very strong emotion are:
- 15.1 times more likely to recommend the company
- 8.4 times more likely to trust the company
- 7.8 times more likely to try new products and services
- 7.1 times more likely to purchase more from company
- 6.6 times more likely to forgive company after a mistake
The bottom line: Want loyal customers? Provide positive emotional experiences.
August 17, 2016 Leave a comment
We study 100’s of companies that use Net Promoter® Score (NPS®) and work with dozens of others that are in different stages of NPS deployment. We also publish one of the most comprehensive annual NPS benchmark studies. This gives us a unique view on how organizations use this popular customer experience metric.
Every year or so, after being asked a series of similar questions about NPS, I write a blog post with a collection of my thoughts. Before I get to my current thinking (which has remained relatively consistent over the years), here are some previous posts you might be interested in reading:
- Is Net Promoter Score a Savior or a Demon? (July 2015)
- Customer Effort, Net Promoter, And Thoughts About CX Metrics (August 2014)
- 9 Recommendations for Net Promoter Score (NPS) (June 2011)
- My Closing Thoughts on Net Promoter (January 2009)
As you probably know, there are people who love NPS and people who hate it. I am neither. I’ve seen NPS used as an effective metric to drive change, and I’ve seen it used in ways that are harming organizations. I could also say that about almost every metric that I’ve seen being used.
Having established all of that, here are nine of my current recommendations:
- The choice of metric is not as important as people think. We rarely see a company succeed or fail based on the specific metric that it choses. That doesn’t mean that you can chose a ridiculous metric, but most reasonable metrics provide the same potential for success (and failure). In general, NPS is a reasonable metric to chose, as our data shows that it often correlates to customer loyalty. As organizations mature, we try to get them to use metrics that are more closely aligned to their brand promises.
- Driving improvements is what’s critical. Instead of obsessing about the specific metric being used, companies need to obsess about the system they put in place to make changes based on what they learn from using the metric. Successful NPS programs systematically take action on insights they uncover. If the program is working well, then the company isn’t debating scores. Instead, they’re continuously making changes to create more promoters and eliminate detractors.
- Promoters & detractors need their individual attention. The most important thing you can do with NPS is to understanding what is driving NPS. It turns out that the things that create promoters are not just the opposite side of the issues that create detractors. So you need to separately identify changes to create promoters and decrease detractors. All too often, companies focus just on detractors. This helps to fix problems, but it does not identify opportunities to propel your organization. By focusing on what causes promoters, you will get the opportunity to engage the organization in uplifting discussions—instead of just beating the drum about what’s broken.
- Sampling patterns really, really matter. The approach for sampling often has a very significant impact on NPS results (and results from other metrics as well). If you have multiple segments of customers and they each have a different NPS profile (as many do), then your overall NPS can change wildly based on the mix of those customers that are included in the NPS calculation. In B2B, this may come from combining results from enterprise accounts with smaller clients, or mixing responses from executive decision makers and end users of your products. In B2C, the variance may come form mixing data between new customers and repeat customers.
- NPS is for relationships, not transactions. Asking people if they would recommend a company isn’t a good question to use after an interaction. If a customer is a detractor on an NPS survey deployed right after a call into the contact center, for instance, then it doesn’t necessarily mean that there was a problem with that interaction. The contact center might have done a great job on the call, but the customer may still dislike something else about the company. If the contact center interaction had been problematic, then the customer’s NPS score might be temporarily lowered and not reflective of the customer’s longer-term view of the company.
- NPS is for teams, not individuals. Since NPS asks about the likelihood to recommend a company, it actually reflects the actions of more than one person. So if you want to look for someone to hold responsible for NPS results, think about making it a shared metric across a large group, not an individual KPI. Many companies that fall in love with NPS, start applying it to every part of their business, trying to give everyone their own NPS. While it’s worthwhile to look for improvements across the business based on NPS, you run into problems when you try to create to many levels of NPS.
- Compensation can be a real problem. When an organization shares a common metric (like NPS) and its people collectively have some compensation tied to it, then it can help align everyone’s focus on customer experience. But if the compensation gets too significant, then people start focusing too much on the number—questioning its validity and strong-arming customers—instead of looking for ways to make improvements. Remember, the majority of your discussions should be about making improvements, not data.
- Target ranges make more sense than single numbers. NPS is an inherently jittery metric; there’s only a porous line keeping passives from becoming promoters or detractors. And the situation is magnified by the sampling issues described above. That’s why we see many customer insights group wasting a lot of time running around trying to explain small movements in their companies’ NPS, as executives overreact to small movements. Instead of setting NPS goals as a specific number, consider defining a range (similar to a process control chart). As a start, think about adopting a 3- to 5-point range. That way you only react to results outside of the range or multiple periods of increases or declines.
- There are four loops to close. When people talk about closed loop and NPS, they often mean contacting customers after they answer the NPS question. But that immediate response is just one what we call the four customer insight-driven action loops: Immediate response, corrective action, continuous improvement, and strategic change. Any NPS program should put in places processes to close all four loops.
The bottom line: NPS success comes from the process, not the metric.
Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.
August 15, 2016 3 Comments
Companies that have voice of the customer (VoC) programs (including NPS) often put in place a closed-loop process. Those efforts often focus on closing a single loop, immediately responding to a customer after they respond to a survey. But this represents only one of four loops that companies need to close.
In the report, Make Your VoC Action-Oriented, we introduced the concept of four closed loops.
Here’s an example of the four loops for a restaurant chain:
- Immediate Response. Reach out to a restaurant customer who responded on a survey that the bathroom was dirty and help take care of her ongoing concerns.
- Corrective Action. Get the manager or employee to clean the bathroom in that restaurant.
- Continuous Improvement. Create new process for restaurants to check and clean bathrooms on a regular basis.
- Strategic Change. As part of new restaurant formats, design bathrooms so that they don’t require as much time from employees to keep them clean.
The bottom line: Make sure to build out four closed loops.
August 9, 2016 Leave a comment
I’m having a great time in Australia, enjoying the country while (hopefully) sharing some strong CX skills and knowledge during events in Sydney and Melbourne. One of the things that I noticed in Sydney were the road signs. Here’s an example.
The signage answers the basic question (it’s Yurong Street), and additionally it answers other questions for people who may want to go to Woolloomoolloo, the airport or Bondi.
This is a great example of Customer Journey Thinking. Whoever put together these signs was thinking about what travelers are trying to accomplish, not just focusing on their immediate interaction of getting the name of a street.
Thanks to all of the wonderful people (and creatures) that we’ve had the opportunity to meet (and to introduce to the red iGuy from our logo)! Read more of this post
August 1, 2016 Leave a comment
Temkin Group just published a data snapshot, Social Media Benchmark, 2016. This annual research effort shows how consumer use of social media sites on both computers and mobile phones are changing. Here’s a description of the data snapshot:
In January 2016, 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, January 2013, January 2014, & January 2015. 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.
The data snapshot has 13 graphics with data. Here’s a portion of one of the graphics:.
Here are a some additional findings from the research:
- Daily use of Twitter, Facebook, and Pinterest on computers and mobile phones grew by 2 or more percentage points since last year. Tumblr grew 2 points on mobile phones.
- All age groups of consumers under 45-years-old less frequently visited company Facebook pages on computers.
- LinkedIn grew the most with 18- to 24-year-olds on computers, and 45- to 54-year-olds on mobile phones.
- In most cases, mobile usage is strongest with 18- to 24-year-olds.
- 18- to 24-year-olds had the largest drop in Facebook use, on both computers and mobile phones.
- 45- to 54-year-olds had the largest jump in daily Facebook use, on both computers and mobile phones.
- 25- to 34-year-olds are the largest daily users of almost all social media, on computers and mobile phone.
- 18- to 24-year-olds are the largest daily users of Tumblr.
July 28, 2016 1 Comment
In a previous post, I described how today’s management techniques reflect outdated assumptions of technology-enabled practices, human behavior, and the meaning of success. That’s why organizations must shift to what I’m calling Modernize Leadership.
I’m writing individual posts for each of the eight key changes required to modernize leadership. In this post, I’m examining the shift from:
Command and Control to Engage and Empower
Here’s some more information to better understand this shift:
Here are some ways in which leaders must change how they view the world:
- Leaders focus on assets such as products, customers, and cash, but don’t fully recognize the true value of employees. In many cases, employees are THE critical asset. As a matter of fact, engaged employees are the start to a virtuous cycle that leads to better financial results. It’s no surprise that companies that significantly outperform their peers financially have 1.6-times the number of engaged employees than do companies that underperform their peers.
- Leaders often act as though the success and failure of their business is based solely on the decisions being made by their most senior people, so they focus a large portion of their time and energy on developing and vetting strategies. But all too often, strategies fail because of a lack of support and follow-through by employees who are unaware of what needs to be done, unable to do what it takes, or unwilling to support the change.
- Leaders often respond to problems by putting in place new processes and stricter rules, while there is no ongoing mechanism for removing or simplifying those elements. Over time, the organization gets bloated with so many rules and regulations that employees feel little ownership for the success of the company. And the company loses its ability to adjust to new situations.
- Southwest Airline’s founder and former CEO Herb Kelleher captured thinking about Engage and Empower when he said:
“If you create an environment where the people truly participate, you don’t need control. They know what needs to be done and they do it. And the more that people will devote themselves to your cause on a voluntary basis, a willing basis, the fewer hierarchies and control mechanisms you need.”
Modernized Leadership Actions
Here are some ways in which leaders should act based on a modernized perspective:
- Influence better decisions. Leaders need to be less focused on the small number of decisions that they make, and more focused on the myriad of decisions that they influence across their organizations. How can you help employees make better decisions?
- Measure employee engagement. If you measure other assets, why not employee engagement? But only do it if you plan on taking action on what you find. Consider using the Temkin Employee Engagement Index.
- Master the Five I’s. How can you engage employees? Learn and master the five employee engagement competencies: Inform, Inspire, Instruct, Involve, and Incent.
- Assume positive intent. Instead of trying to keep employees from making mistakes by limiting their span of decision-making, find more ways to enable them to use more of their own judgement. Start by believing that your employees can (in almost all cases) be trusted—and train them.
- Activate middle managers. It’s hard to get any group of employees to change their behavior when their managers are still reinforcing old processes, measurements, and beliefs. When you’re rolling out changes, don’t consider these efforts as being successful until your middle managers are fully on board. This may take some extra work, but the initial investment in time and effort will pay dividends.
The bottom line: Engage and empower your employees.
July 26, 2016 Leave a comment
Our research shows that emotion has a significant impact on customer loyalty, yet is almost entirely ignored. To help companies recognize and tap into the power of customer emotion, we started the “Intensify Emotion” campaign.
As part of this campaign, we’ve created the Intensify Emotion Provider Showcase as an opportunity to highlight some of the vendors who are helping their clients discuss, measure, enhance, and design for emotion. Vendors submitted nomination forms to Temkin Group describing the ways in which they help clients emotionally connect with customers.
Given the complicated nature of human emotions, there is no single path companies must follow to engage customer emotions; rather there are any number of possible strategies and methods companies can adopt. To help companies learn about some of the concrete ways they can improve emotions, we wanted to highlight a sample of cutting-edge vendors who are using proven, scalable strategies to Intensify Emotion across organizations. For example, some vendors use facial or voice recognition technologies to identify customer emotions, some create feedback mechanisms that specifically measure emotions, some design for sensory cues that trigger emotions, and others focus on amplifying customer emotion throughout the company.
CONGRATULATIONS to the companies that were selected into the showcase based on the innovativeness of their use cases and the scalability of their products for a large organization (the remainder of this post was directly contributed by the vendors):
- audEERING GmbH (www.audeering.com): audEERING develops intelligent audio analysis algorithms and provides consulting services to help you integrate next-generation audio analysis technology into your products and your workflow. audEERING’s main area of expertise is automatic emotion recognition from speech signals. Its technology is based on decades of solid, published scientific evidence and uses audEERING’s popular open-source speech and emotion analysis framework openSMILE as core. Here’s the company’s use case:
- Callyser – Automatic Emotion Recognition from Speech
- BigEars Ltd (www.bigears.com): BigEars are award-winning world leaders in interactive voice feedback surveys. Founded in 2004, BigEars helps businesses become more profitable by connecting them to their customers in a way not previously possible. Our unique feedback application, Customer Radio, brings feedback to life by making the voice of the customer easy to capture, listen to and share. With BigEars every number has a human experience behind it, giving you answers to questions you never knew to ask.Here are the company’s use cases:
- Cabot Financial
- Wellington City Council
- Cogito (www.cogitocorp.com): Cogito Corporation develops and delivers behavioral analytics software that provides sales, service and care management professionals with the real-time emotional intelligence needed to improve sales results, deliver amazing customer experiences and enhance quality of care. By applying validated behavioral science through artificial intelligence and machine learning, Cogito helps the world’s most successful enterprises enhance employee productivity and better care for their customers. Backed by Romulus Capital and Salesforce.com, Cogito is headquartered in Boston, MA. Here are the company’s use cases:
- Building Emotional Connections On Every Member Phone Conversation
- Delivering Better Care Through Real-time Emotional Intelligence
- Artificial Intelligence Enhances Negotiation Skills
- Confirmit (www.confirmit.com): Confirmit enables organizations to develop and implement Voice of the Customer, Employee Engagement and Market Research programs that deliver insight and drive business change. Confirmit’s clients create multi-channel, multi-lingual feedback and research programs that engage customers, empower employees, and deliver a compelling respondent experience. Confirmit’s solutions are the most secure, reliable and scalable in the world, and provide technology and expertise that deliver high Return on Investment to leading companies across a range of industries. Here are the company’s use cases:
- Giving the Customer a Seat in the Boardroom
- Sony Mobile Corporation: Emotion in Social Media
- Uncovering Emotion in B2B Sales and Support
- CrowdEmotion (www.crowdemotion.co.uk): CrowdEmotion is a cloud-based emotion intelligence company that measures emotion in a way that is scalable, insightful and cost-effective. We are a dedicated team on a mission to collect and curate the world’s emotions to further human understanding. To do so, we provide a cloud-based platform where academics and industry can extract emotions from consumer devices to infuse them into the business in a relevant way. Here are the company’s use cases:
- The Science of Engagement
- BBC Worldwide: Tackling the Elephant
- Fiveworx (www.fiveworx.com): Fiveworx is a customer engagement software platform that was purpose-built for the energy sector. Our custom-built email marketing and marketing automation software uses persona-based messaging and journeys (derived from proprietary polling of 80,000 Americans on their opinions, behaviors and attitudes around energy and environment) to tap into energy customers’ deeper emotional drivers and engage and motivate them to act, increasing customer participation in utility programs, products and services; improving customer satisfaction, and delivering energy savings. Here’s the company’s use case:
- Alliant Energy in Wisconsin takes utility customer engagement to a new level
- Man Made Music (www.manmademusic.com): Man Made Music is a strategic music and sound studio. We score entertainment and brand experiences by creating unique sonic identity systems that can be woven through brand touchpoints – communications, devices, customer support and immersive environments. Because people have instinctive and visceral emotional reactions to music and sound, our work helps brands efficiently and effectively convey meaning and strengthen emotional connections with their audiences, by providing more familiar and desirable brand experiences. Here are the company’s use cases:
- Using Sonic Identity to Better Connect Across Touchpoints
- Using Sonic Identity to Galvanize People Around an Organization’s Mission
- Using Sonic Identity to Ignite Emotion in Immersive Environments: IMAX
- Mattersight (mattersight.com): Mattersight’s mission is to help brands have better conversations with their customers. Using a suite of innovative personality-based software applications, Mattersight can analyze and predict customer behavior based on the language exchanged during service and sales interactions. This insight can then facilitate real-time connections between customers and the agents best capable of handling their needs. Fortune 500 enterprises rely on Mattersight to drive customer retention, employee engagement and operating efficiency. Here are the company’s use cases:
- Predicting NPS outcomes for 100% of conversations through measuring emotions
- Fortune 20 healthcare leader slashes costs in call-center through better emotional connections
Details of Intensify Emotion Providers
Here are the detailed submissions from the vendors (we did not edit these): Read more of this post
July 21, 2016 Leave a comment
Unilever agreed to purchase Dollar Shave Club for $1 billion. The five year old company built a direct-to-consumer subscription razor blades service and expanded its offerings to include its own brand of shaving cream and after-shave lotion. Its 2015 revenues were $152 million.
My take: Wow, that’s a lot of money. Why would Unilever spend so aggressively on this young company? Because it’s a shining example of one of the key CX trends we’ve highlighted called Value-As-A-Service (VaaS). Here’s how I described this growing trend…
As consumers get comfortable with companies like Uber and AirBnB and use more iTunes apps and cloud-based applications, they are being trained to pay for things as they need them. The notion of buying something that you may or may not use in the future is becoming outdated. In 2016, we expect this consumer behavior to push more companies to break apart their offerings into bite-sized pieces. As this happens companies will need to earn loyalty more frequently and ensure that customers get value from the things that they purchase.
VaaS will require companies to build new skills, including:
- Developing simplified offerings
- Providing subscriptions
- Ensuring customer value, not closing deals
- Tapping into rich customer behavioral data
- Accelerating the pace of learning and adjusting
Is Dollar Shave Club worth $1 billion? I have no idea. But if this acquisition helps Unilever tap into the VaaS trend, then I think its investors will be happy.
The bottom line: All companies need to prepare for VaaS
July 19, 2016 Leave a comment
We just published a Temkin Group report, Five C’s of Mobile VoC Disruption: Best Practices for Embracing the Power of Mobile in Your Voice of the Customer Program.
As mobile continues to grow in importance, companies will need to renovate their voice of the customer (VoC) programs. Why? Because mobile is more than just another communications channel – it is transforming the way that companies and customers interact. To help companies modernize their VoC programs to account for this increase in mobile usage, we’ve identified the key areas in which mobile is different from other channels, what we call the “Five C’s of Mobile VoC Disruption: “Condensed, Comprehensive, Current, Conversational, and Contextual. These disruptive characteristics will force companies to redefine how they capture, share, and act on customer insights. We’ve identified more than 20 best practices that span all areas of a VoC program, including soliciting in-the-moment feedback for key interactions and accelerating the sharing of useful insights. In order to use mobile successfully, companies need to evolve through three stages of change: 1) Mobile-Enabled, 2) Mobile-Adjusted, and 3) Mobile-First.
Here’s an overview of the Five C’s:
July 8, 2016 Leave a comment
I’m extremely proud to be a Certified Customer Experience Professional (CCXP). One of the reasons is that this certification encourages CX professionals to build and maintain their expertise at a high level, which will raise the overall quality of CX across organizations. So my hope is that more qualified CX professionals will join the ranks of CCXPs.
If you’re thinking about going for your certification, check the requirements and resources on the CCXP site. If you’re qualified, then you’ll need to take a test that examines your knowledge across six areas. To help prepare for that examination, you can find posts on this blog that correspond to those elements:
- CCXP1: Customer-Centric Culture
- CCXP2: Voice of the Customer, Customer Insight, and Understanding
- CCXP3: Organizational Adoption and Accountability
- CCXP4: Customer Experience Strategy
- CCXP5: Experience Design, Improvement, and Innovation
- CCXP6: Metrics, Measurement, and ROI
How should you use this material? I suggest that you look through the CCXP exam blueprint and identify which of the six areas you are least comfortable with. Then spend time looking through our content in that area.
The bottom line: Good luck with your CCXP certification!
July 6, 2016 Leave a comment
We just published a Temkin Group report, State of Employee Engagement Maturity, 2016. Here’s the executive summary of this annual review of employee engagement activities, competencies, and maturity levels for large companies:
Engaged employees are critical assets for any customer experience effort. As engaged employees are critical assets, it’s not surprising our data shows that customer experience leaders have more engaged employees than their peers. To understand what companies are doing to engage their employees, we surveyed more than 150 large companies and compared their responses with similar studies we’ve conducted in previous years. We found that two-thirds of companies survey their employees at least once a year, but that less than half of executives consider it a high priority to act on the results of that survey. We used Temkin Group’s Employee Engagement Competency & Maturity (EECM) Assessment to gauge the maturity levels and efforts of these companies across our five competencies, called the “Five I’s of Employee Engagement:” Inform, Inspire, Instruct, Involve, and Incent. We found that only 12% of companies have reached the top two levels of maturity, Enhancing and Maximizing, which is a drop from 2015. The lack of a clear employee engagement strategy remains the number one obstacle that companies face. We also compared companies with above average employee engagement maturity to those with lower maturity and found that employee engagement leaders enjoy better financial results than their counterparts with less engaged workforces.
Here’s one of the 17 graphics:
Here’s a link to the 2015 study.
The bottom line: Companies should invest more in employee engagement.
June 21, 2016 2 Comments
We just published a Temkin Group report, Economics of Net Promoter, 2016. Here’s the executive summary:
Net Promoter® Score (NPS®) is a popular metric that companies use to analyze their customer experience efforts, but how does it actually relate to loyalty? We asked thousands of consumers to give an NPS to 294 companies across 20 industries, and then we examined the connection between NPS and four key areas of loyalty. We found that compared to detractors, promoters are more than five times as likely to repurchase from companies, more than seven times as likely to forgive companies if they make a mistake, and almost nine times as likely to try new offerings from companies. Our research also shows that promoters recommend a company to an average of 3.5 people. The following analysis provides detailed loyalty data of promoters, passives, and detractors across 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarkets, TV service providers, utilities, and wireless carriers. Ultimately, if a company wants to benefit from using NPS as a key metric, it must focus on improving customer experience, not obsessing over the metric itself.
Here’s one of the 12 graphics in the report, which shows the average loyalty differences for promoters, passives, and detractors across all industries:
The report provides this loyalty data for promoters, passives, and detractors for 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarket chains, TV service providers, utilities, and wireless carriers.
The bottom line: Promoters are much more valuable than detractors.
Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.