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.

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.

12 Ways To Engage With The Customer Experience Professionals Association

I recently posted about the Past and Exciting Future of the Customer Experience Professionals Association. After reviewing our progress over the last few years, I am even more excited about the future of the organization and what it means for CX professionals worldwide.

In that post I unveiled an updated version of the CXPA.org’s mission statement:

The Customer Experience Professionals Association is the premier global non-profit organization dedicated to the advancement and cultivation of the Customer Experience profession. We increase the impact and visibility of Customer Experience professionals, facilitate effective member-to-member sharing, and establish respected standards.

I also mentioned that we were working on developing the strategic pillars that will guide the CXPA over the next several years. Here they are:

  • Establish the role of CX professionals as essential for business success. For our profession to be successful, we need to make sure that people (especially business leaders) understand the importance of our work and that we highlight how our community is helping to drive the success of their organizations.
  • Grow the community of engaged CX professionals. The CXPA is a non-profit organization that is built on the collective energy and support of our members. Growing the number of members is not enough, we need to encourage members to become active and to raise the number of highly-active members within our community.
  • Increase members’ CX knowledge, capabilities, and effectiveness through member to member programming. We want to help our members be the best that they can be, but don’t want to replicate the content and resources that already exist in other areas. We believe that the most effective way to add value in this area is to create mechanisms for our members to share with each other and to foster a culture of sharing across our community.
  • Create tailored strategies based on key member segments. As our community grows, we will want to cater some of our offerings to meet the needs of different subgroups (e.g., new CX professionals).
  • Ensure that the CXPA has the right talent. From the board of directors to the volunteers across the community, we need to make sure that the CXPA has great people in all of the key roles and a plan for evolving that leadership over time.

To help drive these efforts, we are aligning the CXPA’s board of directors around each of these pillars.

If you’re a CX professional, then I hope you see the value that the CXPA provides to you. It’s YOUR organization. Together, we can collectively raise the visibility and effectiveness of customer experience professionals.

I urge you to join and become active in the CXPA. The strength of our association, and the ability for us to achieve our mission, is based on the participation of CX professionals around the world.

Here are 12 ways that you can get involved…

  1. Go to the online CXPA community and introduce yourself.
  2. Participate in a YourMembership call to learn about all the resources available to you.
  3. Learn or share your successes on a webinar or educational call.
  4. Become a mentor or mentee in our new CX mentorship program
  5. Meet and interact with other CX professionals at one of our many Local Networking Events.
  6. Attend our flagship Insight Exchange in San Diego in May, a “must-attend” event!
  7. Pose a question or suggest an answer in our online community.
  8. Submit a question to our panel of CX Experts.
  9. Post a job or find a new amazing opportunity on our CX career list.
  10. Celebrate CX Day on October 6th and help plan the events when we call out for volunteers.
  11. If you’re qualified, work towards a Certified Customer Experience Professional and proudly display your CCXP credentials.
  12. Showcase your support of the CX profession by becoming a CXPA sponsor.

The bottom line: Get involved in the CXPA!

Webinar: CX Trends for 2015 (Year of the Employee)

Earlier this month, I published Temkin Group’s CX Trends for 2015, which labeled 2015 as “The Year of the Employee.” Here’s a recording of a recent webinar going over those trends:

See listing of Temkin Group’s recorded webinars.

The bottom line: Focus on your employees this year!

 

Webinar: Lessons in CX Excellence, 2015

Earlier this month, we published Lessons in CX Excellence, 2015, which provides insights from 8 finalists in the Temkin Group’s 2014 CX Excellence Awards. Here’s a recording of a recent webinar going over highlights from the report:

See listing of Temkin Group’s recorded webinars.

The bottom line: Learn from award-winning CX programs.

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