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.

USAA and Publix Top 2016 Temkin Customer Service Ratings

USAA earned the highest score in the 2016 Temkin Customer Service Ratings for the fourth year in a row. These Ratings evaluate the customer service of 277 companies across 20 industries based on a study of 10,000 U.S. consumers (see .pdf with full list of companies). You can see all of the company data on the Temkin Ratings website.

Download dataset for $295 (download sample file)

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

USAA earned the top spot this year for its banking business with a 74% rating, and Publix came in a close second with a rating of 73% In addition to its banking business, USAA also placed in the top ten for both its insurance business and its credit card business. USAA and Publix were joined in the top 10 by True Value, credit unions, QVC, H-E-B, Wawa Food Markets, and Save-a-lot.

Comcast, meanwhile, earned the lowest score in the Temkin Customer Service Ratings for the third straight year. Once again, the company received the two lowest scores in the Ratings, one for its TV service business and one for its Internet service, business both of which received a score of 31%.. Comcast was joined in the bottom by GM, Charter Communications (for both Internet service and TV service), Health Net, Time Warner Cable (for both Internet service and TV service), AT&T, Motel 6, and Spirit Airlines.

1606_TCSR_HighestLowest1606_TCSR_IndustryRanges

Here are some additional highlights from the 2016 Temkin Customer Service Ratings: Read more of this post

Report: The State of the CX Management, 2016

1605_StateOfCXMgt16_COVERWe just published a Temkin Group report, The State of the CX Management, 2016. This is the seventh annual benchmark of CX activities, competencies, and maturity levels.  Here’s the executive summary:

For the seventh straight year, Temkin Group surveyed large companies to evaluate the state of their Customer Experience (CX) management. This year we found an abundance of CX ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Temkin Group has identified four CX core competencies that companies must master if they want to become customer-centric: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Using Temkin Group’s CX competency and maturity assessment, we found that only 10% of companies have reached the highest two levels of customer experience, and companies are weakest in the Compelling Brand Values competency. We additionally compared CX laggards with CX leaders and discovered that the leaders have stronger financial results, have more senior executives leading the company-wide CX efforts, have more full-time CX employees, use more analytics, and have more support from senior leaders. This report also includes an assessment that companies can use to benchmark their CX efforts and capabilities.

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Temkin Group’s Customer Experience Maturity Model uses six stages of CX maturity based on the four customer experience core competencies. Here’s what we found when 210 companies completed the assessment:

1606_CXMaturity

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2016 Temkin Experience Ratings: 20 Industry Snapshots

Temkin Experience Ratings

We released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers. Here’s a link to FAQ’s about the Ratings.

As a follow-up, we published blog posts that examine the results for each of the 20 industries. You can see links to all of those industry snapshots below:

1606_TxRIndustries> Airlines
> Auto Dealers
> Banks
> Computers & Tablets
> Credit Card Issuers
> Fast Food Chains
> Health Plans
> Hotels
> Insurance Carriers
> Internet Service Providers
> Investment Firms
> Major Appliances
> Parcel Delivery Services
Rental Car Agencies
> Retailers
> Software Firms
> Supermarkets
> TV Service Providers
> Utilities
> Wireless Carriers

Temkin Ratings websiteYou can see the ratings of all companies on the Temkin Ratings website

Temkin Group is Coming to Australia… Join Us!

TGAustralia

For years, I’ve been getting emails asking “when will Temkin Group come to Australia?” We’ve wanted to go for a while (for both personal and professional reasons), but it just hasn’t worked with our schedules.

Well, it’s finally happening. Aimee, Karen, and I will be heading to Australia in August!

Do you want to see us while we’re there? Here are some opportunities:

  • Sydney, 3 August: Workshop: CX Leadership Bootcamp (AU$1495)
    Register for this unique learning opportunity. During this one-day intensive Temkin Group workshop, attendees will learn leading edge approaches to building a customer-centric culture and designing experiences that create lasting memories with customers. This hands-on bootcamp includes lectures, self-assessments, and small group exercises. You will be able to take many of the exercises and tools that we use in the session and use them within your organization.
  • Melbourne, 8-9 August: Conference: Customer Experience Tech Fest 
    Join me at this exciting conference where I will deliver a keynote address on how to infuse emotion back into customer experience. Come see my first speech in Australia! I’m looking forward to the entire event and hearing the other great speakers, as the agenda looks fantastic.
  • Melbourne, 11-12 AugustWorkshop: Mapping & Improving Your Customers’ Journey (AU$2595)
    Register for this unique learning opportunity. During this two-day Temkin Group workshop (which regularly sells out in the U.S.) attendees will learn how to master a very important customer experience tool, customer journey mapping. During this hands-on experience, attendees will go through the process of creating portions of a customer journey map. You will be able to use Temkin Group templates within your organization after the workshop.

We have some limited availability to work with companies beyond these times, so send us a note (info@temkingroup.com) if you’re interested in us helping your CX efforts. Some good ways to leverage our visit is to have an interactive discussion with your leadership team, deliver an educational speech, or review your CX plans. We can even deliver an in-house workshop.

We’re looking forward to seeing our Australian friends in August!

UPS Earns Top Customer Experience Ratings for Parcel Delivery Services

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Of the 4 parcel delivery service companies we looked at, UPS earned the highest score for the third year in a row with a rating of 70%, putting it in 51st place overall out of 294 companies across 20 industries. FedEx came in second for the third year in a row with a rating of 68% and a rank of 69th overall. U.S. Postal Service came in third place and DHL received the lowest score in the industry by a significant margin. DHL has been the lowest scoring parcel delivery company for the past five years.

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Whirlpool and Samsung Earn Top Customer Experience Ratings for Major Appliances

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Of the 10 major appliance companies we looked at, Whirlpool earned the highest score with a rating of 60%, putting it in 153rd place overall out of 294 companies across 20 industries. This is Whirlpool’s third win in the five years since appliances were first included in the Ratings, and this year, it is the only major appliance maker to earn a score above a “poor” rating (above 60%).

Samsung, meanwhile, came in second place in the industry with a rating of 59% and a rank of 166th overall. At the other end of the spectrum, Fujitsu not only received the lowest score of any major appliance maker for the second year in a row, it also received the lowest score of any company in the entire Ratings. Its rating of 29% put it in 294th place overall out of the 294 companies we looked at.

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Toyota and Mercedes-Benz Earn Top Customer Experience Ratings for Auto Dealers

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Toyota and Mercedes-Benz deliver the best customer experience amongst auto dealers, according to the 2016 Temkin Experience Ratings, an annual ranking of companies based on a survey of 10,000 U.S. consumers.

Out of the 20 auto dealers included in this study, Toyota earned the highest customer experience score with a rating of 66%, which put it in 89th place overall out of 294 companies across 20 industries. Mercedes-Benz came in a close second with a 65% rating and an overall rank of 100th.

Toyota is no stranger to the top; it has been the highest-scoring auto dealer for three out of the past five years and come in second place the other two years. Mercedes-Benz, on the other hand, has historically stayed in the middle of the pack, ascending to the top this year by virtue of being one of only three companies whose scores improved over the past year. The other two companies whose ratings went up since 2015 are Kia and Audi.

At the other end of the spectrum, Volkswagen received the lowest score in the industry with a rating of 44%, which put it in 278th place overall. Volkswagen’s score tumbled a dramatic 17 percentage points over the last year—the biggest decline of any company in any industry.

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National, Enterprise, and Alamo Earn Top Customer Experience Ratings for Rental Car Agencies

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

National Rent A Car, Enterprise Rent-A-Car, and Alamo Rent A Car deliver the best customer experience in the rental car industry, according to the 2016 Temkin Experience Ratings, an annual ranking of companies based on a survey of 10,000 U.S. consumers.

National and Enterprise tied for the top spot out of 11 rental car agencies in this year’s ratings, coming in 142nd overall out of 294 companies across 20 industries. Alamo came in second with an overall rank of 166th. These three agencies also earned the highest scores in 2015; although, Alamo fell from first place to second place after its score dropped a dramatic nine percentage points. In fact, of the 11 rental car agencies included in this study, Fox Rent A Car was the only one to improve its score in the past year.

At the other end of the spectrum, Dollar received the lowest score in the industry with a rating of 36%, which put it in 292nd place overall. Dollar is no stranger to the bottom of the list as it has spent four of the past five years there. In addition, three other rental car agencies received “very poor” scores (below 50%) this year: Thrifty, Advantage Rent-A-Car, and Fox Rent a Car.

1605_RentalCars_Rank

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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.

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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

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Southwest Airlines, Alaska Airlines, and JetBlue Earn Top Customer Experience Ratings for Airlines

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Southwest Airlines, Alaska Airlines, and JetBlue Airlines deliver the best customer experience in the airline industry, according to the 2016 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers.

Southwest Airlines took the top spot out of nine airlines in this year’s ratings, earning a score of 75% and coming in 52nd place overall out of 294 companies across 20 industries. Alaska Airlines and JetBlue Airlines tied for second place, each with a rating of 62% and an overall rank of 135th.

Southwest has earned the highest score every year since the Ratings began in 2011, with the exception of 2015 when JetBlue shot up 15 percentage points to take first. This year, however, JetBlue’s score decreased the most of any of the nine airlines evaluated, dropping 13 percentage points from 2015.

At the other end of the spectrum, Spirit Airlines received the lowest score in the industry with a rating of 40%, which put it in 284th place overall. US Airways was the only other airline to get a “very poor” rating (below 50%).

1605_Airlines_Rank

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Residence Inn, Holiday Inn Express, and Hilton Earn Top Customer Experience Ratings for Hotels

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Residence Inn, Holiday Inn Express, and Hilton deliver the best customer experience in the hotel industry, according to the 2016 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers.

Residence Inn and Holiday Inn Express tied for the top spot out of 21 hotels in this year’s ratings. Each earned a score of 71% and came in 42nd place overall out of 294 companies across 20 industries. Residence Inn and Holiday Inn Express were the only two hotels to improve their scores this year which, coupled with the significant decline in the other hotels’ scores, gave them the boost they needed to reach the top. Hilton, meanwhile, came in second place with a rating of 69% and an overall rank of 60th.

At the other end of the spectrum, Motel 6 received the lowest score of any hotel, earning a rating of 41% and an overall rank of 283rd. Fairfield Inn and Days Inn also received “very poor” ratings (below 50%).

1605_Hotels_Rank

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Credit Unions, USAA, and Regions Earn Top Customer Experience Ratings for Banks

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Credit unions, USAA, and Regions deliver the best customer experience in the banking industry, according to the 2016 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers.

Credit unions took the top spot in the banking industry for the fifth year in a row, earning a rating of 77% and placing 7th overall out of 294 companies across 20 industries. USAA and Regions tied for second place, each receiving a rating of 75% and an overall rank of 12th. Three other banks earned “good” ratings (above 70%): Capital One 360, TD Bank, and PNC.

Meanwhile at the bottom of the list, Citibank has the lowest score of out of 15 banks in the ratings (56%), and it placed 190th overall. Citizens was not far ahead as it received a 60% rating and came in 153rd place overall.

1605_Banks_Rank

Of the 15 banks we looked at, not a single one improved its rating over the past year. Citizens dropped the most, falling 12 points between 2015 and 2016.

Overall, the banking industry averaged a 67% rating in the 2016 Temkin Experience Ratings and tied for 4th place out of 20 industries. The average rating of the industry decreased by four percentage points between 2015 and 2016, dropping from 71% to 67%.

Here are some additional findings from the banking industry: Read more of this post

USAA and Discover Earn Top Customer Experience Ratings in Credit Cards

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

USAA and Discover deliver the best customer experience in the credit card industry, according to the 2016 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers.

Out of the 11 credit card issuers evaluated, USAA was the highest rated for the sixth year in a row, earning a 69% rating and placing 60th overall out of 294 companies across 20 industries. However, despite receiving the highest score in the industry, USAA also declined by the most percentage points over the past year, dropping by 11 points between 2015 and 2016. This dramatic fall enabled Discover to come in a close second, with a rating of 68% and placing 69th overall.

At the other end of the spectrum, HSBC was the lowest-rated credit card issuer for the fourth straight year, receiving a 45% rating and an overall ranking of 274th.

1605_CreditCards_Rank

Overall, the credit card industry averaged a 63% rating in the 2016 Temkin Experience Ratings and placed 6th out of 20 industries. The average rating of the industry decreased by four percentage points between 2015 and 2016.

Here are some additional findings from the credit card industry: Read more of this post

Edward Jones and Fidelity Investments Earn Top Customer Experience Ratings for Investment Firms

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Edward Jones and Fidelity Investments deliver the best customer experience in the investment industry, according to the 2016 Temkin Experience Ratings, an annual customer experience ranking of companies based on a survey of 10,000 U.S. consumers.

Edward Jones and Fidelity tied for the top spot out of 13 investment firms in this year’s ratings, each earning a score of 64%. While this is Fidelity’s third straight year at the top, this is the first year Edward Jones has ascended from the middle of the pack.

Likewise, this year Morgan Stanley Smith Barney climbed from its historically low position in the industry—it received the lowest score in 2013—to coming in a close to the leaders with a 63%. Edward Jones and Morgan Stanley Smith Barney were the only investment firms to improve their ratings over the past year.

At the other end of the spectrum, Capital One 360 was the lowest-rated investment firm for the second year in a row, receiving a 48% rating, and placing 253rd overall.

1605_Investment_Rank

The investment industry averaged a 58% rating in the 2016 Temkin Experience Ratings and placed 6th out of 20 industries. The average rating of the industry decreased by six percentage points between 2015 and 2016.

Here are some additional findings from the investment firm industry: Read more of this post

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