The Ultimate Customer Experience Infographic, 2015

Once again, Temkin Group is publishing a new infographic for CX Day.


You can see the full infographic below. Here are links to:

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Customer Experience Matters (The Video)

CX Day is less than one week away!

As part of Temkin Group’s CX Day celebration, we created a new video, Customer Experience Matters® . It shows the value and power of customer experience. Share it, share it, share it!

The bottom line: Customer experience really matters

Customer Experience Matters is a registered trademark of Temkin Group

Report: Economics of Net Promoter, 2015

1506_Economics of Net Promoter_COVERWe just published a Temkin Group report, Economics of Net Promoter, 2015. 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 293 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 a company, more than five times as likely to forgive a company if it makes a mistake, more than seven times as likely to try a new offering shortly after its introduction, and that they recommend the company to about four times as many people. This analysis examines the loyalty behaviors of promoters, passives, and detractors across 20 industries: airlines, appliance makers, auto dealers, banks, rental car agencies, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, supermarkets, TV service providers, utilities, and wireless carriers. The percentage of promoters who are likely to repurchase ranges from 96% for retailers, fast food chains, and supermarkets down to 77% for airlines, while the percentage of those who are likely to forgive ranges from 72% for computers & tablets, utilities, and supermarkets down to 51% for airlines. Meanwhile, the percentage of those who are likely to try new offerings ranges from 70% for major appliances and software firms down to 52% for banks. 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.

Download report for $295

Here’s an excerpt from one of the 12 graphics, which shows the loyalty differences for promoters, passives, and detractors across all industries:


The report provides loyalty data for 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, supermarket chains, TV service providers, utilities, and wireless carriers.

Download report for $295

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 283 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.

The Ultimate Customer Experience Infographic, 2014

In honor of Customer Experience Day, Temkin Group created its second annual “The State of Customer Experience” infographic.


You can see a vertical  infographic below or:

Here are links to the research referenced in this infographic:

Here’s a link to last year’s infographic.

The bottom line: Happy Customer Experience Day!

This blog post is part of the 2014 CX Day Customer Experience Blog Carnival hosted here:

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Report: ROI of Customer Experience, 2014

1409_RoIofCX_COVERWe just published a Temkin Group report, ROI of Customer Experience, 2014. The research shows the connection between customer experience, loyalty, and revenue growth for 19 industries. Here’s the executive summary:

To understand how customer experience corresponds to loyalty, we examined feedback from 10,000 U.S. consumers describing their experiences with and their loyalty to 268 companies. Our analysis shows a strong correlation between customer experience and loyalty factors such as repurchasing, trying new offerings, forgiving mistakes, and recommending the company to friends and colleagues. We compared the consumers who gave companies a very good customer experience rating to those who gave companies a very bad customer experience rating, and we found that the percentage of customers who plan on repurchasing products is 18 percentage-points higher at organizations with excellent CX ratings. Additionally, the Net Promoter Scores of companies with very good CX ratings average 22 points higher than the scores of companies with poor CX. We built a model to evaluate how customer experience impacts a $1 billion business’s revenue over three years in each of the 19 industries, and this model shows that CX has the largest impact on hotels ($461 million), fast food chains ($437 million), and retailers ($428 million). This report also includes a five-step approach for building a model that estimates the value of CX for your organization.

Download report for $395

The report has 29 charts, which includes specific details on the connection between customer experience, loyalty, and increased revenues for each of the 19 industries in the study: airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, TV service providers, and wireless carriers.

Here’s the first figure in the report:


Download report for $395

The bottom line: Customer experience is highly correlated with loyalty.

My Manifesto: Great Customer Experience Is Free

Here’s a replay of a post from July 2012 that was a replay of a post from September 2007 with a few updates. I thought it was still relevant and worthy of a re-replay…

Here’s my new quest: To dramatically increase the focus on customer experience within companies by getting everyone to understand that great customer experience is really good business. Great customer experience is not only free, it is an honest-to-everything profit maker. In these days of “who knows what is going to happen to our business tomorrow” there aren’t many ways left to make a profit improvement. If you concentrate on improving customer experience, you can very likely increase your profits. Good customer experience is an achievable, measureable, profitable entity that can be installed once you have commitment and understanding, and are prepared for hard work. But I’ve had a great many talks with sincere people who were clear that there was no way to attain great customer experience: “The engineers won’t cooperate.” “The salesman are untrainable as well as too shifty.” “Top management cannot be reached with such concepts.” So how do I plan on igniting the great customer experience is free movement? First, it is necessary to get top management, and therefore lower management, to consider customer experience a leading part of the operation, a part equal in importance to every other part. Second, I have to find a way to explain what customer experience is all about so that anyone can understand it and enthusiastically support it. And third, I have to get myself in a position where I have a platform to take on the world in behalf of customer experience. That’s really what I believe, but I must confess that those aren’t all my words. Just about everything written after the first paragraph came directly from the book Quality Is Free: The Art of Making Quality Certain by Philip B. Crosby. I’ve made minor edits and changed references from “quality” to “customer experience,” but those are Crosby’s words from his book that was initially published in 1979. Why did I “borrow” Crosby’s words? Because I see a lot of similarities between today’s need for customer experience improvements and the 1980’s quest for quality in the US. I was actually involved in the quality movement in the late 80’s and early 90’s — running quality circles, developing process maps, running workout sessions at GE, using fishbone diagrams, etc. Here are 7 critical areas in which the great customer experience is free movement can learn from the quality is free movement:

  1. Nobody owns it (or the corollary, everybody owns it). In the early stages of the quality movement, companies put in place quality officers. Many of these execs failed because they were held accountable for quality metrics and, therefore, tried to push quality improvements across the company. The successful execs saw their role more as change facilitators — engaging the entire company in the quality movement. Today’s chief customer officers need to see transformation as their primary objective — and not take personal ownership for improvement in metrics like satisfaction and NetPromoter.  
  2. It requires cultural change. Many US companies in the 1980’s put quality circles in place to replicate what they saw happening in Japan. But the culture in many firms was dramatically different than within Japanese firms. So companies did not get much from these efforts, because they didn’t have the ingrained mechanisms for taking action based on recommendations from the quality circles. Discrete efforts need to be part of a larger, longer-term process for engraining the principles of good customer experience in the DNA of the company.
  3. It requires process change. Quality efforts of the 1980’s grew into the process reengineering fad of the 1990’s. As business guru and author Michael Hammer showcased in his 1994 book Reengineering the Corporation: A Manifesto for Business Revolution, large-scale improvements within a company requires a change to its processes. That perspective remains as valid today as it was back then. Customer experience efforts, therefore, need to incorporate process reengineering techniques. That’s why these efforts must be directly connected to any Six Sigma or process change initiatives within the company.
  4. It requires discipline. Ad-hoc approaches can solve isolated problems, but systemic change requires a much more disciplined approach. That’s why the quality movement created tools and techniques — many of which are still used in corporate Six Sigma efforts. These new approaches were necessary to establish effective, repeatable, and scalable methods. A key portion of the effort was around training employees on how to use these new techniques. Customer experience efforts will also require training around new techniques. Here are a few posts that describe this type of discipline: Four Customer Experience Core Competencies, Customer Journey Mapping, and The Six Ds of a closed-loop VoC Program.
  5. Upstream issues cause downstream problems. This is a key understanding. The place where a problem is identified (a defective product, or a bad experience) is often not the place where systemic solutions need to occur. For instance, a problem with a computer may be caused by a faulty battery supplier and not the PC manufacturer. A bad experience at an airline ticket counter may be caused by ticketing business rules and not by the agent. So improvements need to encompass more than just front-line employees and customer-facing processes. Attacking upstream issues is part of moving from fluff to tough in your CX efforts.
  6. Employees are a key asset in the battle. The quality movement recognized that people involved with a process had a unique perspective for spotting problems and identifying potential solutions. So the many of the tools and techniques created during the quality movement tap into this important asset: Employees. Customer experience efforts need to systematically incorporate what front-line employees know about customer behavior, preferences, and problems as well as what other people in the organization know about processes that they are involved with. That’s why we’ve assembled a page of employee engagement resources.
  7. Executive involvement is essential. For all of the items listed above, improvements (in quality then and in customer experience now) require a concerted effort by the senior executive team. It can not be a secondary item on the list of priorities. Change is not easy. To ensure the corporate resolve and commitment to make the required changes, customer experience efforts need to be one of the company’s top efforts. Senior executives can’t just be “supportive,” they need to be truly committed to and involved with the effort. It may help to share our Executive’s Guide to Customer Experience with your leaders.

Corporations removed major quality defects in the 80’s, re-engineered business processes in the 90’s, and now it’s time to take on the next big challenge for corporate America:  Customer experience. It’s critically important, it’s broken, and fixing it can be very profitable. So don’t settle for the status quo! It’s up to you. As Crosby said in his book:

You can do it too. All you have to do is take the time to understand the concepts, teach them to others, and keep the pressure on.

The bottom line: The great customer experience is free movement is underway. Join me!

Temkin Experience Ratings Correlate to Loyalty

I’ll start with the takeaway: Better customer experience leads to more forgiving customers, more trusting customers, and higher Net Promoter Scores (and a myriad of other good things that we did not include in this post).

The 2013 Temkin Experience Ratings benchmarked the customer experience of 246 companies across 19 industries based on a survey of 10,000 U.S. consumers. But how does a good score relate to other measures of loyalty? I took a look at that question by examining how companies fared compared with their peers in other Temkin Ratings.

I separated the companies into five groups based on how far above or below they scored on the Temkin Experience Ratings compared with their industry averages. Using these clusters of companies, I examined their Net Promoter Scores, Temkin Forgiveness Ratings, and Temkin Trust Ratings compared to their industry averages. As you can see in the graphic below, companies with the highest performing Temkin Experience Ratings outperformed those in the bottom group by:

  • 25.7 points in NPS
  • 16.1 points in Temkin Forgiveness Ratings
  • 20.9 points in Temkin Trust Ratings

1311_TERvsLoyaltyThe bottom line: If you want more loyal customers, improve your customer experience

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