Report: Emotion-Infused Experience Design

1606_EmotionInfusedExperienceDesign_COVERWe 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.

Download report for $195
BuyDownload3

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:

  1. 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.
  2. What is our organizational personality? Research shows that people relate to companies as if they are fellow human beings rather than inanimate corporate entities.
  3. 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:

1606_TwoPartsofEmotion1605_CokeStarbucksEmotions

Download report for $195
BuyDownload3

Three Ideas to Re-Humanize Patient Experience

I was recently interviewed for an article that discusses a post where Fox News journalist John Stossel describes his experience as a lung cancer patient at the New York-Presbyterian Hospital.

First of all, I hope that Stossel’s treatment is successful. And although I don’t fully agree with his analysis of the industry, I do agree with his observation “…I have to say, the hospital’s customer service stinks.” Yes, there is a problem with patient experience.

I’m reminded of this picture from a post that I wrote in 2009, which comes from Cleveland Clinic’s 2008 Annual Report.

ClevelandClinicAnnualReport

With all of the focus on costs and liabilities, the medical system has forgotten about the soul of the patient. It’s become dehumanized.

The wellbeing of a patient often takes a back seat to rigid processes and procedures, and there’s little understanding of how to help patients make increasingly important financial/medical trade-offs. It’s not that doctors, nurses, and hospital staffs don’t care. It’s just that the entire system has conspired to de-emphasize humanity.

This problem is not unique to healthcare. In research that we did in 2013, we found that only 30% of employees have what Aristotle called “practical wisdom,” the combination of moral will and moral skill. This is the capability that Barry Schwartz explains is critical for infusing humanity within organizations.

While there are many structural issues in U.S. healthcare (which I won’t go into here), there are still many things that can be done to re-humanize the patient experience. Here are some ideas:

  • Apply better experience design. Health care leaders should learn and apply the the principles of People-Centric Experience Design: align with purpose, guide with empathy, and design for memories.
  • Develop a value mindset. As patients take on more of the direct financial burden for healthcare, doctors must do more than recommend treatments and procedures. They must help patients understand the value of those activities, so that they can make smart financial/medical trade-offs.
  • Build decision-support technology. Patients should be able to understand the efficacy and full costs of the treatments and procedures that they are being asked to “purchase.” Health plans need to take the lead in providing tools for making this information transparent, and empowering patients to make better decisions.

The bottom line: It’s time to re-humanize healthcare

 

Epidemic of Emotionless Experience Design

As I’ve discussed many times on this blog, customers experience interactions across three dimensions, Success, Effort, and Emotion. So how effective are companies at proactively designing for those elements? Not very.

In our latest CX management study, we surveyed 252 companies with at least $100 million in annual revenues and asked them about their experience design effectiveness. As you can see in the graphic below:

  • Only about one in 10 companies is very good at proactively designing for any aspect of customer experience.
  • More companies are good at designing for success (completion on interactions) than effort or emotion, but less than half of companies consider themselves good in this area.
  • Emotion is the weakest link, as only about one-third of companies think they are good at proactive emotional design.

1604_ExperienceDesignEffectiveness_v2

If companies don’t improve their experience design skills, then their customer experience will never be better than inconsistent. And the biggest problem is emotion, which happens to drive the most loyalty.

If you want to fix this problem, we’ve got some help. Keep an eye on this blog for a new Temkin Group report on emotional experience design, which we’ll be publishing in a couple of weeks.

The bottom line: Join the Intensity Emotion Movement!

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

Analytics Obstacle to Avoid: Forgetting to Be Relevant

Every day, analysts find a myriad of insights that could provide significant value for their organizations. Unfortunately, many (very possibly most) of them are ignored. What’s getting in the way?

In a recent webinar for Clarabridge, I discussed five customer analytics mistakes to avoid. One of the mistakes is “Forgetting to be relevant.” Rather than trying to replicate my entertaining banter, I put together this figure showing an example of the obstacle… and the opportunity to overcome it.

1604_AnalyticsObstacleRelevancyThe key lesson is described in the graphic:

Analytical findings must be translated into meaningful terms for the people who need to take action on the insights.

And remember…

  • Analytics are meaningless unless they lead to action.
  • You need to translate insights into a language that stakeholders understand.
  • People want to know what’s in it for them.

The bottom line: You may need to focus less on the analytics, and more on the business.

CX Metrics: Immature, But Improving (Infographic)

Here are some of insights from the report, State of CX Metrics, 2015.

2016TemkinGroupINFOGRAPHIC_CXMetrics

You can download (and print) this infographic in different forms:

Report: What Happens After a Good or Bad Experience, 2016

1603_WhatHappensAfterGoodBadExperiences_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2016. 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:

We asked 10,000 U.S. consumers about their recent interactions with 315 companies across 20 industries, and compared results with similar studies over the previous five years. More than 20% of the customers of Internet service providers and TV service providers reported a bad experience, considerably above the rates for any other industry. Air Tran Airways, Time Warner Cable (TV service and Internet service), Comcast (TV service), and HSBC delivered bad experience to at least one-quarter of their customers. At the same time, less than 3% of Michael’s, Advance Auto Parts, Whole Foods, Publix, Subway, Vanguard, Trader Joe’s, and GameStop customers report having bad experiences. We examined the combination of the volume of bad experiences and the resulting revenue impact and created a Revenues at Risk Index for all 20 industries. At the top of the list, TV service providers and rental car agencies stand to lose at least 6.5% of their revenue from bad experiences. Conversely, less than 2% of the revenues for retailers and supermarket chains are at risk. The companies that recovered very poorly after a bad experience lost sales from 63% of their customers, more than 2.5 times as many as companies that recovered very well. Companies that do a very good job at recovering after a bad experience have more customers who increase spending than those who decrease spending. After a very bad or very good experience, consumers are more likely to give feedback directly to the company than they are to post on Facebook, Twitter, or third party rating sites. Regardless of the channel, consumers are more likely to discuss a very bad experience than a very good one. While the way that consumers give feedback has not changed much since last year, the volume of Twitter usage grew for both positive and negative experiences. Piggly Wiggly, US Cellular, Fifth Third, The Hartford, TriCare, and PSE&G face the potential for the most negatively biased feedback from customers.

Download report for $195
BuyDownload3

Here are excerpted versions of 4 (out of 15) graphics in the report: Read more of this post

Applauding Mobile eGift Card Receiving Experiences

In a recent report, we evaluated mobile eGift card buying experiences using Temkin Group’s SLICE-B experience review methodology. As part of the process, we also received a number of eGift cards. So we took a look at the experience through the eyes of the eGift card recipients. Rather than do an entire experience review, we decided to just give kudos for some of the better practices that we found:

  • Petco includes the sender’s email address with a helpful tip about saying thank you, making it convenient for the recipient to thank the sender.
  • Amazon clearly defines the next steps in the process, telling the receiver how to redeem her Amazon.com gift card in their original email, easing any potential anxiety about how to continue with the process.
  • Macy’s anticipates the receiver’s needs by including a section on featured help topics specific to the receiver, such as; Can I use my Gift Card at Macy’s stores and online, Can I reload my Macy’s gift card, and Macy’s store locations and hours.
  • Jo-Ann demonstrates consistency across the experience through the inclusion of its brand colors and logo on every email, reassuring the recipient that the company is fully connected to the brand.
  • Michael’s appeals to the excitement the recipient feels when she discovers she has a new gift card. The email features phrases such as “special delivery” and “congratulations” at the top of the note, eliciting an immediate, positive emotional response.

Read more of this post

Data Snapshot: Media Use Benchmark, 2016

1603_DS_MediaBenchmark2016_COVERWe just published a Temkin Group data snapshot, Media Use Benchmark, 2016. This is our annual analysis of how much time consumers spend using different media channels (see last year’s data snapshot).

Here’s the data snapshot description:

In January 2016, we surveyed 10,000 U.S. consumers about their media usage patterns and compared the results to similar data we collected in January 2015, January 2014, January 2013, and January 2012. Our analysis examines the amount of time consumers spend every day watching television, browsing the Internet (for both work and leisure), reading books (both print and electronic), reading newspapers (both print and electronic), listening to the radio, reading a print magazine, and using a mobile phone. This data snapshot breaks down the results by income level, education level, and, most expansively, by age.

Download report for $195
BuyDownload3

Here’s a portion of the first figure from the data snapshot that contains 12 data-rich charts. As you can see, over the past five years:

  • Time spent with mobile web/apps has increased the most, followed by using the Internet at work and at home.
  • Time spent with TV, radios, books, and newspapers have declined.

1603_MediaChanges

Download report for $195
BuyDownload3

Report: 2016 Temkin Experience Ratings

1603_2016TemkinExperienceRatings_FINALTemkin Ratings websiteWe published the 2016 Temkin Experience Ratings, the most comprehensive benchmark of customer experience. In the sixth year of the Ratings, we analyze feedback from 10,000 U.S. consumers to rate 294 organizations across 20 industries. Here’s the executive summary:

2016 marks the sixth straight year that we’ve published the Temkin Experience Ratings, a cross-industry, open standard benchmark of customer experience. This year, Publix and H-E-B earned the top two spots, and supermarket chains overall took six of the top 11 spots. At the other end of the spectrum, Fujitsu received the lowest score of any company, closely followed by Health Net. Five other health plans joined them in the bottom 11. To generate these ratings, we asked 10,000 U.S. consumers to rate their recent interactions with 294 companies across 20 industries and then evaluated their experiences across three dimensions: success, effort, and emotion. Publix and H-E-B earned the highest ratings for success, while Publix, O’Reilly Auto Parts, True Value, and Save-a Lot earned the highest for effort, and Publix, Chick-fil-A, and Residence Inn earned the highest for emotion. And when we looked at who had the best and the worst ratings for each industry, we found that USAA actually earned the highest ratings in two industries, while Comcast received the lowest ratings in two industries. Amazon.com, USAA, Holiday Inn Express, and Residence Inn outperformed their industry averages by the most points, while Fujitsu, Motel 6, and HSBC fell behind by the most points. Although all industries declined between 2015 and 2016, rental car agencies and health plans experienced the most dramatic drops. Meanwhile, Coventry Health Care, Con Edison of New York, and True Value improved the most over the last year, and Volkswagen dealers, Fairfield Inn, and Fujitsu dropped the most. To improve customer experience, companies need to master four competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.

Download report for FreeFreeDownloadButton You can also download the dataset in Excel for $395

See our FAQs about the Temkin Experience Ratings.

The Temkin Experience Ratings are based on evaluating three elements of experience:

  1. Success: How well do experiences meet customers’ needs?
  2. Effort: How easy is it for customers to do what they want to do?
  3. Emotion: How do customers feel about the experiences?

Here are the top and bottom companies in the ratings:

1603_2016TxR_TopBottomOrgs

***See how your company can reference these results or
display a badge for top 10% and industry leaders***

Read more of this post

The Emotional Decline From New Purchase To Customer Service

How do consumers feel about their purchases and subsequent customer service interactions? To find the answer, we asked 10,000 U.S. consumers about those experiences across 11 different industries. We used their responses to calculate the Temkin Emotion Ratings. As you can see below:

  • Across all industries, purchasing provides a more positive emotional response than customer service. The gap in Temkin Emotion Ratings goes from 11 points (health plans) to 49 points (TV/Internet service).
  • New car purchases earn the highest Temkin Emotion Ratings.
  • Customer service interactions with TV/Internet service providers earn (by far) the worst emotion ratings (6%). The next worst emotional experience–health plan customer service (18%)–is three times better than the TV/Internet service providers.
  • Purchasing a new health plan provide the lowest emotional rating of any purchase, but it is also has the smallest gap when compared to the emotional ratings for health plan customer service.

1602_EmotionRatingsPurchaseAndCustomerService

The bottom line: Customer service is an emotional trough.

Report: Mobile Experience Review: Purchasing an eGift Card

1603SLICE-B_COVERWe just published a Temkin Group report, Mobile Experience Review: Purchasing an eGift Card. The report uses our SLICE-B experience review methodology to evaluate mobile experiences. We attempt to achieve a specific customer goals and then grade the experience on 12 criteria across six areas: Start, Locate, Interact, Complete, End, and Brand Coherence.

Here’s the executive summary:

As more customers use smartphones, companies need to adjust their websites and processes for the smaller screens. To evaluate the customer experience of mobile websites, we used Temkin Group’s SLICE-B experience review methodology to assess the experience of purchasing an eGift Card from ten large retailers: Macy’s, Kohl’s, Amazon, Barnes & Noble, Petco, Petsmart, Kroger, Safeway, Michaels, and Jo-Ann. Macy’s earned the highest score for its simple yet engaging process, while the user was unable to complete the full purchasing goal at Barnes & Noble, Petco, Petsmart, Kroger, Safeway, and Kohl’s.

Download report for $195
BuyDownload3

Here’s an overview of the results:

1603_MobileSLICEBevals

Download report for $195
BuyDownload3

Modernize Leadership: Shifting 8 Outdated Management Practices

wordle3b

Over the previous decade, I’ve had the opportunity to work with and study thousands of companies. One of the things that I’ve noticed is that the world has changed a lot, but organizational management has stayed substantially the same.

Technology has enabled entirely new practices and we’ve developed a much deeper understanding of what drives human behaviors and business success. But these new realities have not been translated into how leaders run their companies. Instead, management techniques continue to reflect outdated assumptions such as:

  • Mainstream economics works on the assumption of Homo Economicus, a model of people as rational self-interest maximizers. So “agency theory” informs management that employees can’t be trusted to act on behalf of the firm and, therefore, controls must be put in place to align their efforts.
  • Strategic planning cycles (annually, quarterly) have been established based on a constraint of limited data availability. When these processes and cycles were initially created, it was impractical to more frequently pull together meaningful insights about the business.
  • Management focus has been driven by economists like Milton Friedman who argued that corporate officials have one core responsibility: making as much money as possible for their shareholders. But the value that a company creates comes from a combination of resources contributed by different constituencies (not just investors) who’s returns should also be maximized, especially employees who contribute their knowledge and skills.

While these underlying assumptions aren’t necessarily discussed explicitly, they frame the basic structure of today’s approach to management. Well, it’s time to Modernize Leadership. We need to redefine how we run organizations based on the realities of today, which will require more inspiring leaders in the future.

To help make the shift, I plan to write individual posts that describe eight key shifts required to modernize leadership. In those posts I’ll describe the move from:

  1. Command and Control to Engage and Empower
  2. Strategize and Plan to Learn and Adjust
  3. Amass and Review to Detect and Disseminate
  4. Measure and Track to Observe and Improve
  5. Goals and Objectives to Purpose and Values
  6. Problems and Solutions to Strengths and Appreciation
  7. Process and Projects to Culture and Behaviors
  8. Price and Features to Experience and Emotions

ModernizedLeadershipOutdatedAssumptions

The bottom line: Let’s Modernize Leadership together!

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.

Download report for $195
BuyDownload3

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.

Download report for $495
(includes Excel spreadsheet with data)
BuyDownload3

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).

Download report for $495
(includes Excel spreadsheet with data)
BuyDownload3

%d bloggers like this: