May 27, 2016
June 21, 2016 Leave a comment
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.
June 7, 2016 Leave a comment
We just published a Temkin Group report, The State of the CX Management, 2016. This is the seventh annual benchmark of CX activities, competencies, and maturity levels. Here’s the executive summary:
For the seventh straight year, Temkin Group surveyed large companies to evaluate the state of their Customer Experience (CX) management. This year we found an abundance of CX ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Temkin Group has identified four CX core competencies that companies must master if they want to become customer-centric: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Using Temkin Group’s CX competency and maturity assessment, we found that only 10% of companies have reached the highest two levels of customer experience, and companies are weakest in the Compelling Brand Values competency. We additionally compared CX laggards with CX leaders and discovered that the leaders have stronger financial results, have more senior executives leading the company-wide CX efforts, have more full-time CX employees, use more analytics, and have more support from senior leaders. This report also includes an assessment that companies can use to benchmark their CX efforts and capabilities.
Temkin Group’s Customer Experience Maturity Model uses six stages of CX maturity based on the four customer experience core competencies. Here’s what we found when 210 companies completed the assessment:
June 5, 2016 2 Comments
For years, I’ve been getting emails asking “when will Temkin Group come to Australia?” We’ve wanted to go for a while (for both personal and professional reasons), but it just hasn’t worked with our schedules.
Well, it’s finally happening. Aimee, Karen, and I will be heading to Australia in August!
Do you want to see us while we’re there? Here are some opportunities:
- Sydney, 3 August: Workshop: CX Leadership Bootcamp (AU$1495)
Register for this unique learning opportunity. During this one-day intensive Temkin Group workshop, attendees will learn leading edge approaches to building a customer-centric culture and designing experiences that create lasting memories with customers. This hands-on bootcamp includes lectures, self-assessments, and small group exercises. You will be able to take many of the exercises and tools that we use in the session and use them within your organization.
- Melbourne, 8-9 August: Conference: Customer Experience Tech Fest
Join me at this exciting conference where I will deliver a keynote address on how to infuse emotion back into customer experience. Come see my first speech in Australia! I’m looking forward to the entire event and hearing the other great speakers, as the agenda looks fantastic.
- Melbourne, 11-12 August: Workshop: Mapping & Improving Your Customers’ Journey (AU$2595)
Register for this unique learning opportunity. During this two-day Temkin Group workshop (which regularly sells out in the U.S.) attendees will learn how to master a very important customer experience tool, customer journey mapping. During this hands-on experience, attendees will go through the process of creating portions of a customer journey map. You will be able to use Temkin Group templates within your organization after the workshop.
We have some limited availability to work with companies beyond these times, so send us a note (email@example.com) if you’re interested in us helping your CX efforts. Some good ways to leverage our visit is to have an interactive discussion with your leadership team, deliver an educational speech, or review your CX plans. We can even deliver an in-house workshop.
We’re looking forward to seeing our Australian friends in August!
June 1, 2016 1 Comment
We just published a Temkin Group report, Emotion-Infused Experience Design.
Emotions play an essential role in how people make decisions. Consequently, how a customer feels about their experience with a company has the most significant impact on their loyalty to that company. And yet despite their importance, both customers and companies agree that organizations do a poor job of engaging customers’ emotions. To help companies create a stronger emotional connection with customers, we’ve developed an approach called Emotion-Infused Experience Design (EIxD). To master EIxD, organizations must continuously focus on three questions: “Who exactly are these people (who happen to be our customers)?” “What is our organizational personality?” and “How do we want customers to feel?” This report offers both advice and examples about how to apply these three questions across four facets that affect emotion: senses, feelings, social, and values. And to help infuse these practices across the organization, we have also identified some strategies for how to turn employees into agents of EIxD.
Our research shows that emotion is often a missing link in customer experience. While emotions may seem ephemeral and subjective, we developed a concrete methodology you can use to design for emotion. We call this methodology “Emotion-Infused Experience Design” (EIxD), and we define it as:
An approach for deliberately creating interactions that evoke specific customer emotions.
To master EIxD, you must ask (and answer) three questions throughout the entire design process:
- Who exactly are these people (who happen to be our customers)? You cannot design emotionally engaging experiences without a solid grasp on who your target customers are—what they want, what they need, what makes them tick.
- What is our organizational personality? Research shows that people relate to companies as if they are fellow human beings rather than inanimate corporate entities.
- How do we want our customers to feel? People are inherently emotional beings, and every interaction they have with you will make them feel a certain way—whether you intend it to or not.
To address the three questions of EIxD, this report shows how to design around four elements of emotion: senses, feelings, social, and values. Here are two of the 26 figures in the report: