June 2, 2015
Join Temkin Group’s Engage Employee Movement and help raise the bar on employee engagement. We’re giving out $1,000 for innovative ideas, because great CX requires engaged employees.
Connecting Brands, Leaders, Employees, and Customers
July 1, 2015 2 Comments
Last week, the Temkin Group leadership team attended the World Congress on Positive Psychology in Orlando. Kudos to the International Positive Psychology Association for putting on such a great event. It was inspirational for us, as it confirmed what we fundamentally believed; positive psychology can be an incredibly valuable tool within the world of customer experience.
Before we go any further, I want to make sure everyone understands what positive psychology is all about. Here’s the definition from the Positive Psychology Center:
Positive Psychology is the scientific study of the strengths that enable individuals and communities to thrive. The field is founded on the belief that people want to lead meaningful and fulfilling lives, to cultivate what is best within themselves, and to enhance their experiences of love, work, and play.
It’s a new branch of psychology where the emphasis is not on fixing psychological ailments, but on helping people “flourish.” You may want to read the book Flourish: A Visionary New Understanding of Happiness and Well-being by Martin Seligman, who many consider the godfather of the positive psychology movement.
Seligman was one of the keynote speakers at the event, which included the who’s-who list for positive psychology. Here’s a small dose of highlights from the keynote speakers:
Hopefully this brief introduction to positive psychology has made it clear why there is so much potential value for customer experience.
To make the connection explicit, here are three of the many themes from positive psychology that we will be infusing into our work:
We believe that these themes can affect every aspect of customer experience. Here are some of the many ways that they connect with our four customer experience core competencies:
We plan to increase our focus on positive psychology within Temkin Group’s research and advisory services, but positive psychology is not a new theme for us. You can see elements of it across many of the things that we’ve already published, including:
The bottom line: Positive psychology and customer experience are a natural fit.
June 19, 2015 Leave a comment
In a recent visit to a hospital, a member of my family spotted this patient status screen. It’s a great concept, keeping family members up to speed on the status of their beloved patient as he or she is in surgery. While it’s a wonderful idea, the design falls flat. Take a look at the confusing status items:
This is an example of what I call the Design of Little Things (DoLT). So many organizations invest in good ideas, but fail to do the little things that will create a really positive experience for customers. It’s like running a marathon and then giving up right before the finish line.
In this case, the idea of a real-time status screen is great, but the hospital needs to provide status items that are meaningful for family members in the waiting room. All it would take is one more tweak and this would be a wonderful tool.
The bottom line: Don’t neglect the DoLT
June 16, 2015 Leave a comment
We just published a Temkin Group report, Economics of Net Promoter, 2015. 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 293 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 a company, more than five times as likely to forgive a company if it makes a mistake, more than seven times as likely to try a new offering shortly after its introduction, and that they recommend the company to about four times as many people. This analysis examines the loyalty behaviors of promoters, passives, and detractors across 20 industries: airlines, appliance makers, auto dealers, banks, rental car agencies, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, supermarkets, TV service providers, utilities, and wireless carriers. The percentage of promoters who are likely to repurchase ranges from 96% for retailers, fast food chains, and supermarkets down to 77% for airlines, while the percentage of those who are likely to forgive ranges from 72% for computers & tablets, utilities, and supermarkets down to 51% for airlines. Meanwhile, the percentage of those who are likely to try new offerings ranges from 70% for major appliances and software firms down to 52% for banks. 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 an excerpt from one of the 12 graphics, which shows the loyalty differences for promoters, passives, and detractors across all industries:
The report provides loyalty data for 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, 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.
June 11, 2015 Leave a comment
Walmart recently announced that it plans to raise wages for more than 100,000 of its managers and employees in specialized departments. Why would the “everyday low prices” retailer add a ton of new costs to its ongoing operations?
I want to explore a hypothesis that this move will actually lower Walmart’s long-term costs. I know it sounds counter-intuitive; how do you lower costs by spending more? The answer comes from understanding the Employee Engagement Virtuous Cycle.
As you can see, a more engaged workforce can drive even better financial results. One of the reasons is that engaged employees are much more productive, they’re willing to work harder. While compensation is not the key motivator for engaging employees, it’s hard to engage employees who don’t believe that they are being fairly compensated.
As you can see below, 59% of employees who believe they are appropriately compensated are highly likely to do something good for the company even if it’s not expected of them, compared with 45% of employees who do not believe they are appropriately compensated.
This move by Walmart will certainly get a lot more employees to believe that they are appropriately compensated. Think about how much value (and cost savings) those employees can create by doing good things for Walmart. I’d bet that it will more than cover the costs of the pay raises.
The bottom line: Sometimes you can save money by paying your employees more.
June 8, 2015 2 Comments
In the recent report, The State of CX Management, 2015, we examined how survey respondents from firms with $500 million or more in revenues classified their corporate culture. As you can see below, almost half selected either profit- or sales-centric.
We also examined the difference in responses based on the companies’ results in Temkin Group’s CX Maturity and Competency Assessment. The chart below shows a significant difference between companies with above average CX maturity and those with below average CX maturity. Companies with higher CX maturity levels are much, much more likely to be customer- or mission-centric.