Report: Tech Vendor NPS Benchmark, 2015 (B2B)

1509_IT_NPSBenchmark_COVERWe just published a Temkin Group report, Tech Vendor NPS Benchmark, 2015, The research examines Net Promoter Scores and the link to loyalty for 62 tech vendors based on feedback from IT decision makers in large North American organizations. We also compared overall results to our benchmarks from the previous three years. Here’s the executive summary:

To examine the link between Net Promoter Scores® (NPS®) and loyalty, we surveyed 800 IT decision-makers from large North American firms to learn about their relationships with their technology providers. Of the 62 tech vendors we evaluated, SAS Institute, HP outsourcing, and Intel earned the highest NPS, while Accenture, CA Technologies, and Hitachi received the lowest. Overall, the tech vendor industry’s average NPS jumped to 31.8 in 2015—an increase of more than eight points—after two straight years of declining scores. Our analysis shows that promoters are much more likely than detractors to spend more money with tech vendors, try new products and services when they are announced, and forgive their tech vendors after a bad experience. Our results also revealed that SAS Institute and Cognizant outsourcing were the top companies for purchase momentum, IBM SPSS and Intel have the highest Temkin Innovation Equity Quotient, and HP outsourcing and Intel scored the highest in the Temkin Forgiveness Ratings.

The report includes graphics with data for NPS, purchase intentions, likelihood to forgive, and likelihood to try a new offering. The excel spreadsheet includes this data (in more detail) for the 62 companies as well as for 25 other tech vendors with less than 40 pieces of feedback. It also includes the summary NPS scores from 2014.

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As you can see in the chart below, the NPS ranges from a high of 57 for SAS Institute down to  a low of 1 for Accenture consulting.

1509_TechNPS_Listing

After declining for the past two years, the industry average NPS increased to 31.8 this year, almost reaching the level from our initial study in 2012. The research also includes data for Purchase Momentum (how much customers are planning to buy), Temkin Forgiveness Ratings (likelihood of customers to forgive after a bad experience), and Temkin Innovation Equity Quotient (likelihood of customer to try a new offering). We not only list the results for each company, but we also show that NPS is highly correlated to each of these items (as you can see below for Purchase Momentum).

1509_TechNPS_TrendPurchase

Report details: When you purchase this research, you will receive a written report and an excel spreadsheet with more data. The report includes graphics with data for NPS, purchase momentum, Temkin Forgiveness Ratings, and Temkin Innovation Equity Quotient for the 62 tech vendors that had at least 40 pieces of feedback. The excel spreadsheet includes this data (in more detail) for the 62 companies as well as for 25 other tech vendors with less than 40 pieces of feedback. It also includes the summary NPS scores from 2014. If you want to know more about the data file, download this SAMPLE SPREADSHEET without the data (.xls).

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Note: See our 2014 NPS benchmark2013 NPS benchmark and 2012 NPS benchmark for tech vendors as well as our page full of NPS resources.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Report: Tech Vendor NPS Benchmark, 2014

1407_IT_NPSBenchmark_COVERWe just published a Temkin Group report, Tech Vendor NPS Benchmark, 2014, The research examines Net Promoter Scores and the link to loyalty for 63 tech vendors based on feedback from IT decision makers. We also compared overall results to our 2013 NPS benchmark and our 2012 NPS benchmark. Here’s the executive summary:

We surveyed IT decision-makers from more than 800 large North American firms to learn about their relationships with their tech vendors. We asked them a series of questions regarding their experiences as the clients of different tech vendors, and one of the questions we posed generated Net Promoter Scores® (NPS®) for the companies. Of the 63 companies we looked at, EDS and VMware earned the highest NPS, while Autodesk and Cognizant received the lowest. The overall industry average NPS dropped for the second year in a row. Our analysis also delved into the correlation between NPS and loyalty, revealing that, compared to severe detractors, promoters are much more likely to spend more money with their tech vendors in 2014, try new products and services when they are announced, and forgive the vendor for a mistake. We compared the loyalty levels for each vendor, and we found that SunGard and IBM software have the most customers planning on increasing their purchases in 2014, while Satyam and EDS customers are the most willing to try new offerings, and Satyam has the most forgiving customers. Our research also shows that promoters are more concerned than detractors about getting lower prices.

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This is the third year that Temkin Group has completed the NPS study. Over that time, the average NPS in the tech industry has been dropping. NPS in for tech vendors was 33.6 in 2012 and 24.7 in 2013, falling to 23.1 in 2014.

With an NPS of 48, EDS came out with the top score followed closely by VMware with 45. Six other tech vendors received NPS of 35 or more: EMC, Microsoft servers, Oracle outsourcing, Pitney Bowes, Microsoft business applications, and Cisco.

At the other end of the spectrum, three tech vendors have negative NPS: Autodesk, Cognizant, and Wipro. Six other vendors fell below 10: Capgemini, Intuit, ADP outsourcing, CA, Infosys, and HP outsourcing.

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The report also examines the link between NPS and loyalty. Our analysis shows that promoters are more than six times likely to forgive a tech vendor if they deliver a bad experience, about seven times as likely to try a new offering from the company, and almost three times as likely to purchase more from them in 2014 than they did in 2013.

In addition to benchmarking NPS, the research measures the loyalty that large companies have for their tech vendors. Respondents have the most plans to increase spending with SunGard, IBM software, Alcatel-Lucent, and ACS. They are most likely to try new offerings from Satyam, EDS, and EMC. And if the tech vendors make a mistake, IT decision makers are most likely to forgive Satyam, EDS, Ericsson, and Alcatel-Lucent. NPS characterizes respondents as Promoters when they are very likely to recommend and Detractors when they are very unlikely to recommend.

Report details: The report includes graphics with data for NPS, 2014 purchase intentions, likelihood to forgive, likelihood to try a new offering, and areas of improvement for the 63 tech vendors that had at least 40 pieces of feedback. The excel spreadsheet includes this data (in more detail) for the 63 companies as well as for 22 other tech vendors with less than 40 pieces of feedback. It also includes the summary NPS scores from 2013. If you want to know more about the data file, download this excel spreadsheet without the data.

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The bottom line: When it comes to NPS, large tech vendors are heading in the wrong direction

Note: See our 2013 NPS benchmark and 2012 NPS benchmark for tech vendors as well as our page full of NPS resources.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Voice of Customer (and NPS) Program Resources

Temkin Group has researched VoC programs within hundreds of companies and helps many large organizations apply leading-edge practices and get the most out of their customer insight efforts. Our focus includes many varieties of VoC efforts, including those that use Net Promoter® Score (NPS®) as a key metric.

Here’s a video on building a strong VoC program:

Here’s an infographic with great data on VoC programs:

1411_VoCInfographicTornVoC Program Assessment:

Download our free VoC program assessment tool and you can identify the maturity level of your VoC program and identify strengths and weaknesses of the program across our Six Ds of a closed-loop VoC program.

If you want to compare your results against the VoC programs at large companies, then download the Temkin Group report State of VoC Programs, 2015, which includes detailed benchmarking data from large firms.

VoC Research and Posts:

View all of our VoC content

Temkin Group works with many companies on their NPS programs and has researched 100s of other organizations. Take a look at our services on the Temkin Group website. I’ve assembled some research and blog posts to help you make the most out of these efforts:

NPS Research Reports:

NPS Blog Posts:

View all of our NPS content

Additional content that you may find valuable:

Sign up for our monthly CX Matters Journal

Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Report: Tech Vendor NPS Benchmark, 2013

1306_IT_NPSBenchmark_COVERWe just published a Temkin Group report, Tech Vendor NPS Benchmark, 2013, The research examines Net Promoter Scores and the link to loyalty for 54 tech vendors based on feedback from IT decision makers. We also compared results to the NPS data we published last year. Here’s the executive summary:

We surveyed IT decision makers from more than 800 large North American firms to understand how they view their tech vendors. One of the questions we asked provides Net Promoter Scores® (NPS®) for 54 of those companies. VMWare and SAP analytics earned the highest NPS while CSC IT services and Infosys IT services earned the lowest. The overall industry average NPS dropped nine points from last year. Our analysis also examined the link between NPS and loyalty, finding that compared with detractors, promoters are more than six times as likely to forgive a tech vendor if they deliver a bad experience, almost six times as likely to try a new offering from the vendor, and more than three times as likely to purchase more from them this year. When examining the loyalty levels for each vendor, we found that Oracle consulting and VMWare clients have the strongest purchase intentions, SAP analytics and Sybase have earned the most forgiveness, and VMWare and SAP analytics have the most innovation equity.

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Here are some of the findings from the research:

  • With an NPS of 47, VMware came out on top followed closely by SAP analytics with 45. At the other end of the spectrum, four tech vendors have negative NPS: CSC IT services, Infosys IT services, Alcatel-Lucent, and Deloitte consulting.
  • The average NPS in the tech industry went from 33.6 in 2012 to 24.7 in 2013. The percentage of promoters dropped seven points.
  • Compared with detractors, we found that promoters are more than six times likely to forgive a tech vendor if they deliver a bad experience, almost six times as likely to try a new offering from the company, and more than three times as likely to purchase more from them in 2013.
  • Forgiveness and willingness to try increase steadily starting at 3 while increased purchases begins steady growth at 5.
  • Promoters most frequently wanted lower prices and better support, while passives and detractors were looking for better support.
  • Oracle outsourcing has the strongest purchase intentions while Trend Micro has the weakest.
  • SAP analytics and Sybase have earned the most forgiveness while Trend Micro has earned the least.
  • VMware has the most innovation equity while Accenture consulting and Intuit have the least.

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The bottom line: When it comes to NPS, large tech vendors are heading in the wrong directions

Note: See our 2012 NPS ratings for tech vendors and the post 9 Recommendations For Net Promoter Score along with all of my other posts about NPS.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

What Drives Net Promoter Scores (NPS) in IT?

A previous post examined Net Promoter Scores (NPS) for tech vendors and the relationship between NPS and market share based on feedback from IT decision makers within large firms. Since I’ve had questions about that post, I decided to examine a common question: What’s driving those NPS scores? It turns out that the answer (no surprise) is customer experience.

We examined a number of metrics and their relationship with NPS in two areas:

  • Correlation (R). This looks at how connected one metric is to another, ranging from -1.0 to 1.0. A correlation above 0.5 is strongly positive and above 0.7 is very strongly positive.
  • Slope. This looks at the change in NPS that relates to a one-point change in the metric. A higher slope means a change in the metric has a higher change in NPS.

Our first analysis examined NPS scores versus the Temkin Experience Ratings for Tech Vendors. It turns out that there was a very strong correlation (R= 0.77) and the slope is 1.13.

We then examined the correlation and slope between NPS and components of the Temkin Experience Ratings as well as with product and relationship satisfaction scores.

Here are some observations from the analysis:

  • Customer experience is critical. Temkin Experience Ratings has the highest impact on NPS, with the highest overall correlation and slope.
  • You have to be easy to do business with. The highest individual correlation (.75) and slope (1.11) is with the accessible element of the Temkin Experience Ratings, which looks at how easy the company is to work with.
  • Relationship trumps product. It turns out that the correlations are about the same for relationship satisfaction and product satisfaction, but the slope is much higher for relationship satisfaction.
  • Cost of ownership stands out. When it comes to the slopes, cost of ownership (.99) stands out amongst the satisfaction items. Support of account team (.86) is also relatively high.

The bottom line: To improve NPS, improve customer experience.

You can purchase this data for $295. The Excel spreadsheet contains NPS, Temkin Experience Ratings, relationship satisfaction, and product satisfaction data for 60 tech vendors in the analysis as well as for 28 others with sample sizes of less than 60 respondents.

9 Recommendations For Net Promoter Score (NPS)

This week is the Net Promoter Conference in London. Since these events often spur a ton of questions about Net Promoter Score (NPS), I put together one of my periodic posts about NPS. If you’re not familiar with NPS, it’s based on asking customers a question like this:

How likely are you to recommend <COMPANY> to a friend or colleague?

Respondents are categorized as “Promoters,” “Detractors,” or “Passives” based on their answers. The Net Promoter Score (NPS) is calculated by subtracting the percentage of Detractors from the percentage of Promoters (Passives are ignored).

My take: Let me start looking at NPS with some data points from the report, The State Of Customer Experience Management, 2011:

  • 48% of large companies (more than $500M in revenues) are using NPS
  • 67% of those using NPS report positive results (15% say it’s too early to tell)
  • 84% of large firms with voice of the customer programs (including those that use NPS), report success from those efforts

NPS can be a valuable metric, but only when incorporated within a strong voice of the customer (VoC) program. Here are a handful of overall recommendations about NPS:

  1. Stop dreaming about an “ultimate question.” Having worked with dozens of organizations on their NPS efforts, I can tell you that the NPS question is not nirvana. Even the most successful users of NPS ask customers a series of questions and get feedback through a portfolio of mechanisms.
  2. Look for magic in the “why.” To some degree, it’s useless to know if someone is likely or unlikely to recommend you if you don’t also understand why they feel that way. So you need to make sure customer feedback helps you understand why customers feel the way that they do. Which leads to my next recommendation…
  3. Focus on improvements, not questions. Feedback is cheap, but customer-insightful actions are precious. The goal for any feedback mechanism (like NPS) is to drive improvements in your business. Successful NPS programs have strong closed-loop VoC programs that go from detection of customer perceptions to deployment of improvements (see my post about the 6 Ds of a voice of the customer program).
  4. Don’t lose sight of segments. An overall NPS score across your customers may be a good metric for aligning focus across the company, but it’s not very diagnostic. A good VoC program needs to track this type of data across key customer segments and understand which interactions (“moments of truth”) are driving those scores.
  5. Understand the elements of experience. When it comes to making improvements, you need to understand the three core elements of any experience: Functional, Accessible, and Emotional. A good program needs to provides insights into how customers perceive each of these elements.
  6. De-emphasize the “N” in NPS. NPS improves by eliminating Detractors or by increasing Promoters. but those changes can also offset each other. So the “netting” of the scores removes important clarity. Companies need to look at the rise and fall of Promoters and Detractors independently, since the changes needed to affect these areas are often quite different.
  7. Tap into the power of the language. There’s a lot of data to suggest that other measures such as the ACSI’s satisfaction index are as good as NPS (many people argue that it’s better, but I don’t want to enter that debate). What sets NPS apart is the wonderfully clear language around “Promoters” and “Detractors.” Make sure that the education across the company focuses heavily on those terms.
  8. Build a strong VoC program, with or without NPS. The overall program is more important than the choice of a metric like NPS. So make sure you focus on building a strong VoC program whether or not you use NPS (check out our VoC resource page).
  9. Remember, this is a long-term journey. Companies can make short-term improvements with superficial changes, but long-term success requires institutional capabilities. Start by understanding the 6 laws of customer experience and create a roadmap for building four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.

The bottom line: Successful NPS implementations require strong VoC programs

Intensify Emotion Provider Showcase

IntenisfyEmotion2Our 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

Report: Economics of Net Promoter Score, 2016

1606_EconomicsofNetPromoter_COVERWe 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.

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Here’s one of the 12 graphics in the report, which shows the average loyalty differences for promoters, passives, and detractors across all industries:NPSEconomicsOverview

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.

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See our VoC/NPS resource page, which includes great resources for creating a successful NPS program. You mat also want to see our latest NPS Benchmark Report with NPS data on 291 companies.

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.

Our CX Data Doesn’t Match Industry Benchmarks, Now What?

I am often asked some version of this question:

We just saw the <Temkin Experience Ratings, Temkin Group’s NPS benchmarkForrester’s CXi, JD Powers, The ASCI> and it is completely different from what our internal data is telling us. How should we reconcile the two data points?

Given that I created several of those industry measurements, it’s fair for people to ask me that question. Here’s my answer…

Different Measurement Systems Deliver Different Results

There is no perfect or “ultimate” customer measurement system, since we can never know what every customer is thinking at every moment in time. So all measurement systems are, by definition, somewhat flawed. This is an important point, because we need to let go of the desire to identify which one has the “right” information.

Every customer measurement system can differ along a number of dimensions. In particular, these are often key differences between your internal system and industry benchmark studies:

  1. Who’s being surveyed? Temkin Experience Ratings, for instance, asks questions to randomly selected consumers who have interacted with companies. Internal measurements are often less random, since they may neglect people who haven’t provided contact information or people who are no longer customers.
  2. When are they being surveyed? Temkin Experience Ratings, for instance, asks questions during January. Internal measurements may ask questions throughout the year, after specific interactions, or during specific periods of time.
  3. What’s being asked? Temkin Experience Ratings, for instance, asks three questions, covering Success, Effort and Emotion), on a seven point scale. Internal measurements can be almost anything, including Net Promoter Score that is standardized on an 11-point scale, but we’ve seen companies use 7- and 10-point scales as well.
  4. How is the metric calculated? Temkin Experience Ratings, for instance, is an average of net scores for Success, Effort, and Emotion, which are calculated by taking the percentage of 6s and 7s, and then subtracting the percentage of 1s, 2s, and 3s. Internal measurements may be average scores, they may be segmented by different customer groups, they may be top box or top 2 box, or just about anything.

Given that internal measurement systems are typically different than industry measurements across those four items, it shouldn’t be a surprise that they often deliver different results.

My Take: Rely on Your Internal Data

Instead of trying to find which one of the metrics is correct, I recommend that you:

  • Understand the difference between the internal and external measurement systems (starting with the four items above).
  • Learn what you can from each of them. Maybe the Temkin Experience Ratings shows that you are lower with the general population, but your data shows that you are really doing well with high value customers.
  • Improve your internal measurement system. Most companies we’ve seen have significant opportunities for improving their internal customer measurement systems. Make sure the focus is on building a system that drives improvement, not one that just keeps score.
  • Whenever you can, rely on your internal data. Why? Because you can do more segmentation of the results, track changes to specific customers over time, and go deeper into questions about what’s driving the data. These are all things you may need to drive improvements.

The bottom line: Focus on improving, not on reconciling metrics

Customer Experience Matters Monthly Journal

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Every month, Temkin Group sends out an overview of it’s research, publications, and other activities. You can subscribe by hitting the button below.

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Here are recent CX Matters Journals:

 

2016 Customer Experience Vendor Excellence Awards

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Congratulations to winners of the 2016 Temkin Group CX Vendor Excellence (CxVE) Awards:

MaritzCX
Medallia
Potentiate
Rant & Rave
Walker Information

The CxVE Awards recognizes any type of vendor (software company, research firm, consultant, etc.) that helps its clients deliver great customer experience.

The awards are based on the following criteria:

  • Capabilities. What products and/or services do you offer that are uniquely able to help companies improve their customer experience?
  • Results. How have you helped companies improve their customer experience and overall business results?
  • References. What do three to five clients say about your work?

2016 Judges: The nominations will be evaluated by the following expert panel of judges who understand how a good vendor can help organizations become more customer-centric:

  • Mike Beaser is Vice President, Digital Customer Engagement at Fidelity Investments, where he is focused on helping customers become aware of service opportunities.
  • Mila D’Antonio is Editor-in-Chief for 1to1 Media where she leads the editorial direction and operations of the award-winning 1to1® Media.com, the 1to1 Weekly Digest, Think Customers: the 1to1® Blog, and online videos and podcasts.
  • Desirree Madison-Biggs is Customer Experience/NPS Programs Director at Airbnb.
  • Jen Rodstrom is CX Transformist forTemkin Group. She has over a decade of experience in customer insights and market research.
  • Bruce Temkin is CX Transformist & Managing Partner of Temkin Group. He is widely recognized as a customer experience thought leader and co-founder and past chairman of the Customer Experience Professionals Association (CXPA.org).

Last year’s winners were: Confirmit, Clarabridge, NICE Systems, Qualtrics, Rant & Rave, ResponseTek, and Walker.

Frequently Asked Questions (FAQs)

We’ll add to this list as questions come up:

  • How much does it cost to apply? Nothing. We do not charge any fees to submit a nomination and we do not collect anything from finalists and winners. In other words, this process is totally free.
  • Is this award only for software vendors? No. Any consultant, software provider, or service provider of any sort that helps companies improve their customer experience is eligible.
  • Is this award only for vendors who support consumer-based businesses? No. This award is not only for work with business-to-consumer businesses, we also expect many applicants from vendors who support business-to-business clients.
  • Is this a technology award? No, but… If a vendor uses a technology that really helps its clients deliver better customer experience, then it will be factored into the judging. But companies do not need to offer any technology to qualify for an award and we will not be doing any technology assessments.
  • We have a new offering that’s going to be fantastic, can we apply? Maybe. If your new offering augments great work that you’ve already been doing, then it makes sense to apply. If this is a brand new offering and your firm has not yet helped clients improve their customer experience, then it’s not worth applying. Take a look at the nomination form.
  • If we are one of the winners, will we be able to put out a press release? Yes. All of the finalists and award winners will be able to refer to this award in any communications.
  • Will there be more than one winner? Probably. We expect that there will be multiple winners, but we will determine the number based on the nominations.
  • Will you share our nomination forms publicly? We will share the answers to the first two questions from the finalists on the Customer Experience Matters blog.
  • Can we enter if we are not in the U.S.? Yes. This award is open for entrants from around the world. The only requirement is that the nomination form be completed in English.
  • Can we send in more than one nomination for a company? No. You should focus on one strong nomination.
  • Can we wait until we find out about getting to the next round before we send client references? No. Any nomination that is submitted without client references will not be considered.
  • Will you announce the applicants who did not win? We will only announce the applicants that are finalists and winners.
  • Will we be able to get feedback on our nomination from the judges? No. The comments and grades from individual judges will not be made public, so we will not be able to provide any feedback on your application.
  • Is this just for large vendors? No. Any company of any size can apply. But you still need to provide at least three customer references.
  • How much effort is there for our customer references? They will be asked to answer a short survey that they should be able to complete in 5 to 10 minutes.
  • What happens if we can not get the minimum three clients to complete your survey on time? It is your responsibility to prepare your reference clients to fill out our short survey during the award’s time window. Nominees will be penalized if we do not receive at least three completed reference surveys.
  • Will the clients in the Clients References section of the nomination form be contacted for verification purposes only? No, they will be asked a few questions about the vendor and its capabilities.
  • Can we (or our clients) see an advance copy of the survey questions? No. We do not provide the questions in advance. It’s a very short survey and we do not ask for any confidential information. Also, the results are only used by Temkin Group to develop an aggregate score. Their individual responses aren’t even shared with the other judges.
  • If clients are named in the case studies section, would that give nominees an edge? Anything that the nominees can do to make the value they deliver to clients more tangible will help. There is no explicit element of the scoring for having specific clients names in that section, but it may influence the judges.
  • Will the future direction/roadmap items (i.e. clients in case studies’ names) be shared publicly? No. Nothing below the “Company Information” and “Make the Case” sections of the form will be shared publicly. And we will only share those sections for finalists.
  • Will you sign an NDA form? No. We will not be signing confidentiality agreements, since we would not be in a position to enforce it with our judges. We will only publicly share the elements of the form as described on the form. All of the judges understand the sensitive nature of some information, but we can not guarantee confidentiality.

Report: Lessons in CX Excellence, 2016

1601_LessonsInCXExcellence_COVERWe just published a Temkin Group report, Lessons in CX Excellence, 2016. The report provides insights from eight finalists in the Temkin Group’s 2015 CX Excellence Awards. The report, which is 100 pages long, includes an appendix with the finalists’ nomination forms. This report has rich insights about both B2B and B2C customer experience.

Here’s the executive summary:

This year, we chose eight organizations as finalists for Temkin Group’s 2015 Customer Experience Excellence Award. The finalists for 2015 are EMC Global Services, Hagerty, InMoment, Safelite AutoGlass, SunPower, The Results Companies, Verint, and Wheaton | Bekins. This report provides specific examples describing how these companies’ CX efforts have created value for both their customers and for their businesses. We also highlight best practices across the four customer experience competencies—purposeful leadership, compelling brand values, employee engagement, and customer connectedness. We have included all of the finalists’ detailed nomination forms at the end of this report to help you compile examples and ideas to apply to your own CX efforts.

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Here are some highlights from the finalists: Read more of this post

Report: Tech Vendors: Product and Relationship Satisfaction, 2016

1601_DS_TechProductsAndRelationships_COVERWe just published a Temkin Group data snapshot, Tech Vendors: Product and Relationship Satisfaction of IT Clients, 2016.

During Q3, 2015, 800 IT professionals from companies with at least $250 million in annual revenues rated both the products of and their relationships with 62 tech vendors. The research examines satisfaction with eight areas: product/service features, product/service quality, product/service flexibility, product/service ease of use, technical support, support of the account team, cost of ownership, and innovation of company. Some of the findings include that Intel, Google, and HP outsourcing earned the highest overall satisfaction ratings, while Unisys, Sage, and Cognizant IT services earned the lowest. When it comes to product satisfaction, Intel leads in product features, Apple and IBM IT services lead in product quality, Google leads in product flexibility, and NetApp leads in product ease of use. When it comes to relationship satisfaction, HP outsourcing leads in tech support and in cost of ownership, Intel leads in account team support, and Google leads in innovation.

This product has a report (.pdf) and a dataset (excel). The dataset has the details of Product/Service and Relationship satisfaction for the 62 tech vendors as well as for several tech vendors with sample sizes too small to be included in the published report.

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As you can see in the chart below, the overall product/service & relationship satisfaction ranges from a high of 74% for Intel down to a low of 46% for Unisys.

1601_ProductRelationshipSatisfaction_Ratings

The chart below shows the average scores across all satisfaction criteria. Tech vendors scored the highest in innovation (64%) and the lowest in cost of ownership (56%).1601_ProductRelationshipSatisfaction_Elements

Report details: When you purchase this research, you will receive a written data snapshot and an excel spreadsheet with more data.The dataset has the details of Product/Service and Relationship satisfaction for the 62 tech vendors as well as for several tech vendors with sample sizes too small to be included in the published report. If you want to know more about the data file, download this SAMPLE SPREADSHEET without the data (.xls).

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15 Top CX Posts From 2015

As the year comes to an end, I want to thank everyone who has been reading and sharing this blog. It’s a pleasure and an honor to be a part of your customer experience efforts, and I look forward to helping you drive even more success next year.

Before we move on to 2016, here are the 15 most-read posts from 2015:

  1. Seven Steps for Developing Customer Journey Maps
  2. Report: 2015 Temkin Experience Ratings
  3. Report: Net Promoter Score Benchmark Study, 2015
  4. 8 CX Trends for 2015 (The Year of the Employee)
  5. The Ultimate Customer Experience Infographic, 2015
  6. Don’t Confuse Customer Service With Customer Experience
  7. Free eBook: The 6 Laws Of Customer Experience
  8. 9 Recommendations For Net Promoter Score (NPS)
  9. Five Questions That Drive Customer Journey Thinking
  10. Report: Tech Vendor NPS Benchmark, 2015 (B2B)
  11. What is Customer Experience? (Video)
  12. Report: The Four Customer Experience Core Competencies
  13. Report: ROI of Customer Experience, 2014 (see updated 2015 version)
  14. 10 Customer Experience Factoids from 2014 (Infographic)
  15. Customer Experience Matters (The Video)

The bottom line: Good luck with your 2016 CX efforts!

Report: The State of CX Metrics, 2015

1512_StateOfCXMetrics2015_COVERWe published a Temkin Group report, The State of CX Metrics, 2015. This is the fifth year of this study that examines the CX metrics efforts within large companies. Here’s the executive summary:

Temkin Group surveyed nearly 200 large companies to learn about how they use customer experience (CX) metrics, and we then compared their answers with similar studies we’ve conducted every year since 2011. The most commonly used metrics continue to be likelihood-to-recommend and satisfaction, while the most successful metric is interaction satisfaction. And although the percentage of companies where senior leaders regularly refer to CX metrics has increased significantly from last year, fewer companies are making explicit trade-offs between CX metrics and financial metrics. Companies are best at measuring customer service and phone-based experiences and are worst at measuring the experiences of prospects and customers who defect. In addition to answering survey questions, we also had companies complete Temkin Group’s CX Metrics Competency and Maturity Assessment, which examines four areas of a metrics program: consistent (does the company use common CX metrics across the organization?), impactful (do the CX metrics inform important decisions?), integrated (are trade-offs made between CX and financial metrics?), and continuous (do leaders regularly examine the CX metrics?). Only 14% of respondents received at least a “good” overall rating, and companies earned the lowest rating in integrated. Ultimately, companies with stronger CX metrics programs deliver better customer experience, have stronger business results, more frequently measure ease of doing business, and compensate more employees based on CX metrics.

See the State of CX Metrics studies from 2011, 20122013, and 2014.

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Here are the results form our CX Metrics Competency & Maturity Assessment:

1512_CXMetricsAssessmentResults

Here are some other highlights of the research:

  • Forty-nine percent of companies with stronger CX metrics programs have well above average customer experience compared to 17% of those with weaker CX metrics programs. The stronger CX metrics programs are also 50% more likely to have significantly better business performance then their competitors.
  • While 64% of respondents rate their company as good or very good at collecting and sharing CX metrics, only 22% gave themselves those high marks when it came to making trade-offs between CX metrics and financial metrics.
  • Likelihood to recommend and satisfaction remain the most popular CX metrics, while companies are most successful in using satisfaction as a measure of specific customer interactions.
  • Seven out of 10 companies have compensation tied to CX metrics for some of their employees. Net Promoter® Score is the most common metric used and customer service is the most common group to have its compensation tied to CX metrics.
  • Companies are most effective at measuring customer service and phone interactions and least effective at measuring the experiences of prospects and customers who have defected.

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P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

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