March 10, 2014
2014 Temkin Experience Ratings evaluates the customer experience of 268 companies across 19 industries. Download free report.
Connecting Brands, Leaders, Employees, and Customers
March 9, 2014 1 Comment
In a recent Boston Globe article, Northeastern University’s athletics director Peter Roby reflected on the notion of the NCAA’s “values” given Louisville’s hiring of Bobby Petrino as its football coach. Petrino was fired by Arkansas because of a scandal involving a motorcycle accident and an improper relationship with a female employee.
Here’s an excerpt of Roby’s comments:
“If we’re going to have a conversation about values, then we should understand how those things are lived on a daily basis and what it looks like when you’ve got a set of values that underpin what your activities are… I just didn’t feel like the hiring of someone like Bobby Petrino was consistent with what we say our values are. I wanted people to understand that if we’re going to put values on paper, we better be prepared to defend them and to be held accountable for them.”
My take: Roby is absolutely right, and his comments are applicable to any organization. True values aren’t the things you write down or proclaim in a speech in front of customers, employees, and shareholders, they’re the principles that shape how you make decisions. What you do and don’t do are the only accurate measures of true values. That’s why one of our Six Laws of Customer Experience is “You Can’t Fake it.“
Without a clear set of true values, companies lack a “due North” that empowers everyone in the organization to make decisions because they understand what’s important. One of our principles of People-Centric Experience Design is Align with Purpose, an approach that would fail unless organizations have true values.
It’s okay to change your values or aspire to a new set of values, but it’s very hard to live up to them. You need to be very conscious of every decision you make and constantly look in the mirror and ask yourself, is that decision consistent with what I believe my values to be?
The bottom line: True values are defined by actions, not words
March 6, 2014 Leave a comment
We recently published the Temkin Well-Being Index (TWI), showing that U.S. consumer well-being has increased over the previous two years. TWI measures the degree to which consumers agree that they are happy, healthy, and financially secure.
In this post, I’m examining the 2014 TWI across genderations (genders by age group). As you can see in the chart below:
March 4, 2014 Leave a comment
We just published the 2014 Temkin Experience Ratings. The report analyzes feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to H.E.B., Trader Joe’s, Chick-fil-A, and Publix, the top firms in this year’s ratings:
Download report for FREE
You can also download the data for $395.
The Temkin Experience Ratings are based on evaluating three elements of experience:
Here are the top and bottom companies in the ratings:
In this year’s ratings, 37% of companies earned “good” or “excellent” scores, while 25% are rated as “poor” or ”very poor.” Companies with at least a “good” rating stayed flat over 2013, but have grown by 21 percentage-points since 2011. Led by credit card issuers with an average increase of 4.1 points, 15 of the 19 industries earned a higher rating in 2014 than they did in 2013. Only four industries declined over the previous year: Parcel delivery services, retailers, rental car agencies, and hotel chains.
Of the 243 companies that are included in both the 2013 and 2014 Temkin Experience Ratings, 48% of the firms increased by one point or more while 32% declined by at least one point. EarthLink, Regions, Humana, Morgan Stanley Smith Barney, and Capital One improved the most. Coventry Health Care, US Cellular, Marriott, Fifth Third, and Chrysler declined the most.
Do you want to see all of the data from the 2014 Temkin Experience Ratings? You can purchase an excel spreadsheet for $395…
To view all of our ratings (experience, trust, forgiveness, customer service, and web experience), visit the Temkin Ratings website…
The bottom line: Customer experience is improving, but there’s still a long way to go
March 3, 2014 Leave a comment
For the third year in a row, I spent two days at the MIT Sloan Sports Analytics Conference. It’s an awesome event, providing access to a who’s who list of sports icons and analytical studs (players, owners, general managers, coaches, sportscasters, authors, geeks, etc.). My only “complaint” is that two of my favorites from previous years—Mark Cuban and Bill Simmons—weren’t at the conference this year
As a Sloan School alumn, I enjoy seeing the school continue to pull off such a world-class event. I need to give a shout out to Daryl Morey (GM of the Houston Rockets) and Jessica Gelman (VP of Customer Marketing & Strategy, The Kraft Sports Group) who have been spearheading the event from its inception. Great job!
The bottom line: I’m already looking forward to next year’s conference.
P.S. Here are some pictures from the event. Click them to see larger images.
February 27, 2014 1 Comment
At the Qualtrics Insight Summit in Salt Lake CIty last week, I was able to see Dan Ariely’s keynote speech. I’m a huge fan. Ariely is one of the leading researchers in behavioral economics, which is a field that influences a lot of the thinking that shows up in my blog.
Ariely shared a version of this graphic (that I borrowed from Ariely’s blog) that shows the percentage of people who sign up to be organ donors across different companies and asked the audience this question: Why do some of these countries have such high participation rates while others are so low?
The audience guessed that the differences were due to political, religious, or cultural norms. Everyone was wrong. It turns out that the differences can be traced to a simple thing: the design of the forms for becoming an organ donor. In the countries with high participation rates, the form provides a check mark for opting-out while the low participation rate countries use an opt-in form.
In other words,people demonstrated the same behavior across all countries—they did nothing. It just turns out that this common behavior had radically different results based on how the forms were developed.
Here are three key lessons from this example:
The bottom line: Design experiences based on how people actually behave
February 25, 2014 Leave a comment
We 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).
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:
Here are some other insights from the research:
The bottom line: Make sure to recover quickly after a bad experience