Data Snapshot: Channel Preferences and Cross-Channel Activity Benchmark, 2014

1404_DS_ConsumerChannelPreferenceBenchmark2014_COVERWe just published a Temkin Group data snapshot, Channel Preferences and Cross-Channel Activity Benchmark, 2014. The research examines consumer preferences for using different channels for completing common tasks as well as the frequency of several cross-channel interactions.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about their channel preferences for performing 11 different activities—such as opening an investment account or applying for a new credit card—and the frequency with which they perform common cross-channel activities. This data snapshot breaks down the results by age, examining how channel preferences and cross-channel activity levels vary across age groups. It also analyzes how cross-channel activity levels differ by mobile phone types.

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A key component of the research examines how consumers would like to complete 11 different interactions with companies. For seven of the activities, using a computer was the most popular or tied for the most popular channel. At the high end, 71% of consumers want to go online to check the delivery status of a purchase they’ve made. Two-thirds of consumers would prefer to go online to update their address on an account, purchase a new book, and check the balance on a saving or checking account.

But consumers do not want to do everything online. Less than one-third of consumers want to go online to open a new investment account or investigate a mistake in their monthly wireless bill. When it comes to resolving a technical problem on their computers or investigating a mistake on their cell phone bills, consumers most prefer talking to someone over the phone. And they want to meet in-person for activities such as purchasing a new auto insurance policy, selecting a life-insurance policy, and opening a new investment account.

Here are some additional findings from the research:

  • Across every age group, consumers most preferred to go online to update their address, check the balance on their savings or checking accounts, check the delivery status of a purchase, and purchase a book.
  • The phone is the preferred channel for more than half of consumers 55 and older who are investigating a mistake on their wireless bill and consumers 65 and older who are trying to resolve a technical issue with their computer.
  • Meeting with someone in person is the preferred channel for more than half of consumers 45 and older who want to open a new investment account, consumers 75 and older who want to purchase a new auto insurance policy, and consumers 55 and older who want to select a life insurance policy.
  • Forty-three percent of consumers check competitors’ prices on their mobile phone when they are in a store.
  • iPhone users are the most likely to do all of the cross-channel activities examined in the research while Windows Mobile users are the least likely (out of the four major mobile phone platforms).

The report has 19 data-filled charts. Here’s an excerpt from the first chart in the report that shows the channel preferences of consumers for 11 different activities (the report also includes details by age breakdowns for all of these activities):

1404_ChannelPreferences

The report also examines the frequency that consumers do five different cross-channel activities (the report also includes details by age breakdowns for all of these activities):

1404_CrossChannelActivities

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USAA Tops 2014 Temkin Trust Ratings

We just published the 2014 Temkin Trust Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to USAA, which earned the top three ratings for its banking, insurance, and credit card businesses. The bottom of the ratings are dominated by TV service providers and Internet service providers. Overall, most companies and industries improved since last year.

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This is the fourth year that USAA has earned the highest trust ratings. The next 10 companies on the top of the 2014 ratings are Lexus dealers, credit unions, H.E.B., Trader Joe’s, Chick-fil-A, Publix, Costco, Amazon.com. BMW dealers, and PetSmart.

At the bottom of the 2014 Temkin Trust Ratings are three TV service providers: Charter Communications, Comcast, and Time Warner Cable. These three companies also showed up in the bottom 10 for their Internet services businesses, along with HSBC (for both credit cards and banking), Qwest, and US Airways.

1404TTR_TopBottom

Here’s how the industries compare with each other:

1404TTR_Industries

Here are some additional analysis from the 2014 Temkin Trust Ratings:

  • Led by credit cards and banking, 17 of the 19 industries improved their Temkin Trust Ratings between 2013 and 2014. Hotel chains were the only industry to experience a decline.
  • The five highest rated industries are grocery chains, investment firms, insurance carriers, retailers, and auto dealers.
  • The five lowest rated industries are TV service providers, Internet service providers, wireless carriers, health plans, and airlines.
  • 180 companies earned higher Temkin Trust Ratings in 2014 than they did in 2013, while only 50 had lower ratings.
  • The five companies with the largest improvement in Temkin Trust Ratings between 2013 and 2014 are CareFirst, T.J. Maxx, Best Buy, Cox Communications, and Apple Store.
  • The six companies with the largest decline in Temkin Trust Ratings between 2013 and 2014 are Holiday Inn Express, Hyatt, Coventry Health Care, Blackboard, Travelers, and Marriott.

Methodology:

The data was collected from an online survey of 10,000 U.S. consumers during January 2014. Quotas were set to mirror the U.S. census data for age, income, gender, ethnicity, and geographic regions of the U.S. population.

The Temkin Trust Ratings are based on asking consumers the following question about companies with whom they’ve interacted during the previous 60 days: “To what degree do you TRUST that these companies will take care of your needs?” Potential responses range from 1= “do not trust at all” to 7= “completely trust.” Temkin Trust Rating for a company is calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who responded with 1, 2, or 3.

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Temkin Ratings website
You can view a sortable list of results from the Temkin Trust Ratings as well as other ratings on the Temkin Ratings website.

The bottom line: Good news: Trust is on the rise

Data Snapshot: Media Use Benchmark, 2014

1403_MediaUse_CoverWe just published a Temkin Group data snapshot, Media Use Benchmark, 2014This is the third year that we’ve published the benchmark that examines how much time U.S. consumers spend using different types of media.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about their media usage patters and compared the results to similar data we collected in 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, and using a mobile phone. This data snapshot breaks down the results by income level, education level, and age, paying particular attention to how media usage varies across age groups.

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Here’s an excerpt from the first chart (out of 12) that shows the hours/day that U.S. consumers use different media.

1403_MediaUsageYears

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Report: Employee Engagement Benchmark Study, 2014

1403_EEBenchmarkStudy14_COVERWe just published a Temkin Group report, Employee Engagement Benchmark Study, 2014. This is the third year that we’ve published the benchmark of U.S. employees. (Take a look at our Employee Engagement Resource Page).

Here’s the executive summary:

We used the Temkin Employee Engagement Index to analyze the engagement levels of more than 5,000 U.S. employees, and we found that employee engagement has decreased over last year. As highly engaged employees try harder, recommend the company, help others, and take less sick time, this trend should be troubling for companies. However, employee engagement levels vary across different organizations, industries, and individuals. Companies that outperform their peers in financial performance and customer experience enjoy a considerably more engaged work force. Our research also shows that the real estate sector has the most engaged employees of any industry, while public administration has the fewest.  Additionally, we found that highly engaged employees tend to be frontline employees, high-income earners, and male. Given the significant value of engaged employees, we recommend that companies improve this area by using our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.

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Here’s what we found when we examined year-over-year results for the Temkin Employee Engagement Index:

1403_TEEI14

Here are some other findings from the research:

  • When compared with disengaged employees, highly engaged employees are more than three times as likely to do something good for their employer even if it’s not expected of them, almost three times as likely to make a recommendation about an improvement at work, more than 2.5 times as likely to stay late at work if something needs to be done, and more than two times as likely to help someone else at work.
  • Companies that have significantly better customer experience than their peers have almost 2.5 times the percentage of highly or moderately engaged compared with companies with customer experience that lags their competitors.
  • Companies that have significantly better financial performance than their peers have more than 1.5 times the percentage of highly or moderately engaged compared with companies with financial performance that lags their competitors.
  • Temkin Group found the largest decline in engagement with the youngest group of employees in the study, those between 18 and 24 years old.
  • About 60% of employees in companies with 100 employees or less are moderately or highly engaged compared with only 49% of employees at companies with more than 10,000 employees.
  • We examined employee engagement across 14 industries. At the high-end, 72% of employees in the real estate, rental and leasing industry are moderately or highly engaged. At the bottom of the list, 44% of employees in public administration are moderately or highly engaged.
  • Fifty-nine percent of employees that always interact with customers are at least moderately engaged while only 42% of employees that never interact with customers are equally engaged.
  • Nearly 80% of executives are at least moderately engaged, compared with only 46% of individual contributors.
  • Across all age groups except for those older than 64, males are equally or more engaged than females. The largest gender gap is with 25- to 34-year-olds.

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The bottom line: Improving employee engagement remains a key opportunity for organizations

2014 Temkin Experience Ratings

1403_TemkinExperienceRatings_v2a_Page_01

We just published the 2014 Temkin Experience Ratings. The report analyzes feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to H-E-B, Trader Joe’s, Chick-fil-A, and Publix, the top firms in this year’s ratings:

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You can also download the data for $395.

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

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

Here are the top and bottom companies in the ratings:

2014TER_TopBottomOrgsHere’s how the industries compare with each other:

2014TER_Industries2

In this year’s ratings, 37% of companies earned “good” or “excellent” scores, while 25% are rated as “poor” or ”very poor.” Companies with at least a “good” rating stayed flat over 2013, but have grown by 21 percentage-points since 2011. Led by credit card issuers with an average increase of 4.1 points, 15 of the 19 industries earned a higher rating in 2014 than they did in 2013. Only four industries declined over the previous year: Parcel delivery services, retailers, rental car agencies, and hotel chains.

Of the 243 companies that are included in both the 2013 and 2014 Temkin Experience Ratings, 48% of the firms increased by one point or more while 32% declined by at least one point. EarthLink, Regions, Humana, Morgan Stanley Smith Barney, and Capital One improved the most. Coventry Health Care, US Cellular, Marriott, Fifth Third, and Chrysler declined the most.

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Get the Data

Screen Shot 2013-02-24 at 5.42.22 PMDo you want to see all of the data from the 2014 Temkin Experience Ratings? You can purchase an excel spreadsheet for $395…

To view all of our ratings (experience, trust, forgiveness, customer service, and web experience), visit the Temkin Ratings website

Temkin Ratings website

The bottom line: Customer experience is improving, but there’s still a long way to go

Report: What Happens After a Good or Bad Experience, 2014

1402_WhatHappensAfterGoodBadExperiences_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2014. The report, which includes 19 data charts, examines which companies and industries provide the most bad experiences, what impact those experiences have on spending, and how the negative impacts of bad experiences can be mitigated by good service recovery. The report also examines how consumers share their good and bad experiences with companies as well as with other people. Here’s the executive summary:

To understand the effect of good and bad experiences, we asked 10,000 U.S. consumers about their recent interactions with 268 companies across 19 industries. Results show that Internet services and TV services are the industries most likely to deliver a bad experience to their customers, while grocery chains are the least likely to. At the company level, Scottrade had the smallest percentage of customers reporting a recent bad experience with the company and Time Warner Cable had the highest. More than half of the customers who encountered a bad experience at a fast food chain, credit card issuer, grocery store, or hotel either decreased their spending with the company or stopped altogether. However, our data shows that a good service recovery effort can help mitigate a bad experience. Unfortunately, many firms—especially in the banking, Internet services, and TV services sectors—aren’t very good at service recovery. In addition to the consequences of bad interactions, we also examined which channels customers use to share their good and bad experiences and how these changed across age groups. We then compared these results to survey responses from the past two years. We also uncovered a negative bias inherent in how customers provide feedback. ING Direct, Residence Inn, and Fairfield Inn have the most negative bias in the feedback they receive directly from customers, while Hy-Vee and Hyundai have the most negative bias on Facebook. 

Click link to see full list of industries and companies covered in this report (.pdf).

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One of the most interesting analyses in the report is the look at how service recovery after a bad experience affects the spending pattern of consumers. Here’s a summary of one of the charts showing just how important it is for a company to recover well after making a mistake:

1402_EconomicsOfServiceRecovery

Here are some other insights from the research:

  • Sixteen percent of consumers who have interacted with TV service and Internet service providers report having a bad experience over the previous six months. Next on the list are wireless carriers, with 12% of their customers reporting a bad experience. At the other end of the spectrum, only 3% of consumers report a bad experience with grocery chains and 4% report having a bad experience with fast food chains.
  • The five companies with the most customers reporting bad experiences are Time Warner Cable (25%), Motel 6 (22%), Coventry Health Care (21%), and Comcast (21%). There were 10 companies with only 1% or less of their customers reporting bad experiences: Scottrade, Chick-fil-A, H.E.B., Whole Foods, ShopRite, ING Direct, Starbucks, Trader Joe’s, Vanguard, and True Value.
  • More than one-quarter of consumers who have a bad experience stop spending with computer makers, car rental agencies, credit card issuers, hotel chains, and software companies. The impact of bad experiences is less costly for parcel delivery services, wireless carriers, health plans, TV service providers, Internet service providers, and grocery chains, as less than 15% of their customers with bad experience stopped spending.
  • The industries that are the best at responding to a bad experience are investment firms, major appliances, retailers, and car rental agencies. The industries that are the worst at responding to a bad experience are TV service providers, wireless carriers, Internet service providers, parcel delivery services, and health plans.
  • Thirty-two percent of consumers give feedback directly to companies after a very bad experience and 23% give feedback after a very good experience.
  • Overall, 25- to 34-year-olds are the most likely to share feedback about their experiences. After a good experience 57% tell a friend directly, 28% share on Facebook, and 18% put a comment or rating on a review site. After a bad experience, 60% tell a friend directly, 31% share on Facebook, and 20% write a review.

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The bottom line: Make sure to recover quickly after a bad experience

Report: State of the CX Profession, 2014

1402_StateOfCX Profession2014_COVER200We just published a Temkin Group report, State of the CX Profession, 2014. This is the fourth year that we’ve examined the roles of CX professionals. In addition, this is the first year that we’ve done a compensation study. Here’s the executive summary:

To better understand the mindset and roles of CX professionals, we surveyed 293 of them and then compared their responses to similar studies we conducted in 2010, 2011, and 2012. Customer experience flourished in 2013, as this year respondents reported an uptick in positive results from their CX efforts, and an overwhelming number of them (98%) believe that customer experience is a great profession to work in. Nearly nine out of ten respondents are actively working on voice of the customer programs, which is a significant increase from last year. In seven out of the 10 CX activities we examined, levels of active involvement by CX professionals have reached an all-time high. Meanwhile, customer service remains the highest focus for interactions. Respondents expect spending and hiring for CX activities to reach an record high in the coming year. On this year’s survey we included our first compensation study. We examined 131 CX professionals from large organizations and found that their medium compensation (salary plus bonus) ranged from $90,000 for mid-level individual contributors to $260,000 for CX executives.

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Here’s the range of  compensation that we found for five groups of CX professionals within large organizations:

2014CXCompensationRanges4

Here are some additional findings from the CX professionals:

  • 98% agree with the statement “customer experience is a great profession to be in.”
  • 38% are likely to look for a new job inside their organization, while 46% are likely to look for a job outside.
  • VoC and customer insight analysis are the areas that most CX professionals work on and both areas have seen double-digit increases over the past year.
  • Two-thirds report that they are involved with customer service interactions, which has occupied the top spot for all four years.
  • 82% agree that their executive team is committed to their company’s customer experience goals, up from 77% last year.
  • The percentage who think that CX will be more important next year then it was this past year grew from 74% in 2012 to 86% this year—its highest level in all four years.
  • 81% plan to put more effort into their CX measurement and metrics, followed by 78% for customer insights and analytics and 73% for voice of the customer programs.
  • The average professional experience across the five groups ranges from 13.0 years for a mid-level individual contributor to 20.5 years for an executive, while their average CX experience ranges from 4.5 years to 11.5 years.
  • 29% of CX professionals who make $150,000 or more per year are likely to look for a new job inside of their company this year, compared with 45% of CX professionals with lower pay.

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The bottom line: The CX profession is thriving.

Report: Introducing Employee-Engaging Transformation

1402_EET_COVERWe just published a Temkin Group report, Introducing Employee-Engaging Transformation. This is a must-read for anyone who is trying to drive sustainable change across their organization. Here’s the executive summary:

Organizations have ambitious goals for improving their customer experience (CX). But CX change isn’t easy; it requires significant transformation across almost every aspect of operations. Therefore, given the effort required, it’s no surprise that Temkin Group research shows that less than half of large organizations rate their CX improvement efforts as effective. Our research into how large organizations successfully change uncovered a core insight: CX change must be focused on changing the way employees do their every-day jobs. We have developed an approach to CX change that we call Employee-Engaging Transformation (EET), which we define as, “Aligning employee attitudes and behaviors with the organization’s desire to change.” There are five practices required to succeed at EET: Vision Translation, Persistent Leadership, Activated Middle Management, Grassroots Mobilization, and Captivating Communications. This research shares examples of these practices in action from over a dozen large organizations, including Adobe, MetLife, Oklahoma City Thunder, Oracle, Prime Therapeutics, and Rackspace. To assess your own organization’s effectiveness in these five practices, use Temkin Group’s Employee-Engaging Transformation Assessment.

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Based on our research, we developed an approach to CX change that we call Employee-Engaging Transformation (EET). We define EET as:

Aligning employee attitudes and behaviors with the organization’s desire to change.

EET2

EET represents a significant shift from how most organizations currently approach their change initiatives. To succeed with EET, organizations must master five practices:

  • Vision Translation: Connect Employees with the Vision. The organization clearly defines and conveys not only what the future state is, but why moving away from the current state is imperative for the organization, its employees, and its customers.
  • Persistent Leadership: Attack Ongoing Obstacles. Leaders realize that change is a long-term journey and commit to working together until the organization has fully embedded the transformation into its systems and processes.
  • Activated Middle Management: Enlist Key Influencers. Middle managers are invested in the transformation and understand their unique role in supporting their employees’ change journeys.
  • Grassroots Mobilization: Empower Employees to Change. Frontline employees operate in an environment where they help to shape and are enabled to deliver the change.
  • Captivating Communications: Share Impactful, Informative Messages. The organization shares information about the change through a variety of means that balance both the practical and the inspirational elements for each target audience.

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The bottom line: Transformation requires employees to change what they do day-to-day

Data Snapshot: CX Expectations and Plans for 2014

1401_DS_PlansForCX2014_COVERTemkin Group just published a data snapshot, Customer Experience Expectations and Plans for 2014. This annual research effort shows a strong surge of CX activity n 2014, which will outpace the effort, spending, and hiring in 2013. Areas gaining momentum in 2014 include text analytics, web and mobile experiences, and CX consultants. Here’s a description of the data snapshot:

 In the fourth quarter of 2013, Temkin Group surveyed 152 respondents from companies with $500 million or more in annual revenues about their customer experience results in the past year and their plans for 2014 and beyond. The results from that survey are compared with results of a similar survey we completed in the same timeframe in 2010, 2011, and 2012. The results highlight a resurgent dedication to customer experience and an increase in customer experience management activities and efforts in 2014.

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The data snapshot has 14 graphics with data about CX plans and expectations for 2014. Here’s a portion of one of the graphics showing that companies expect even more business impact from CX in 2013 than they saw in 2013.

BusinessImactofCX2014_3

Here are a some additional findings from the research:

  • Sixty-three percent of companies expect to spend significantly more or somewhat more on customer experience in 2014 than they did in 2013, which is up from 54% in 2012 and 46% in 2011.
  • 51% of companies plan to increase the staffing of their centralized customer experience team in 2014, while only 3% expect a decrease.
  • When it comes to areas of CX spending, text analytics has the most spending momentum while market research firms have the least.
  • Executive commitment has reached an all-time high as 84% of the respondents agree that their executives are fully committed to their company’s customer experience goals.
  • 78% of companies plan on dedicating significantly more or somewhat more effort to improving their web experience in 2014
  • There is a surge in focus on phone agent experience.
  • Eighty-four percent of companies expect to increase their focus on customer experience measurements and metrics.
  • CX executive dashboards and customer journey mapping are the two CX activities that had the largest increase in focus since last year.
  • While 73% of companies with the most positive CX impact understand the link between customer experience and business results, only 35% of companies with the least positive CX impact claim the same.

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The bottom line: 2014 will be a very active year for CX management.

Report: Benchmarking Your CX Organization

1401_BenchmarkCXOrg_COVERWe just published a Temkin Group report, Benchmarking Your CX Organization. The research shows benchmark data from 115 large firms that completed an assessment of their CX organizations that we introduced in a previous report, Blueprint for a Successful CX Organization. Here’s the executive summary:

In a recent report, we introduced an assessment for CX organizations that examines three characteristics: Make-up of CX Core Team, Executive Commitment to CX, and Organizational Readiness for Change. To understand how companies stack up, we had 115 large companies complete the assessment. The results show that 41% of CX organizations are strong or very strong. Companies are weakest in Organizational Readiness for Change, which includes the lowest scoring individual criteria: Key stakeholders are actively involved in CX efforts. This report includes data charts to help you identify your percentile scores for the overall results as well as for each of the three characteristics.

This report is bundled together with Blueprint for a Successful CX Organization (two reports for the price of one!).

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Here are the overall results from the evaluations:

CXOrgResultsThis report is bundled together with Blueprint for a Successful CX Organization (two reports for the price of one!).

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The bottom line: Is your CX organization positioned for success?

Report: Lessons in CX Excellence, 2014

1401_LessonsCX Excellence_COVERWe just published a Temkin Group report, Lessons in CX Excellence, 2014. The report provides insights from 11 finalists in the Temkin Group’s 2013 CX Excellence Awards. The report, which is 144 pages long, includes an appendix with the finalists’ nomination forms. Here’s the executive summary:

The following 11 organizations are finalists in Temkin Group’s 2013 Customer Experience Excellence Awards: Adobe, AIG Asia Pacific, Cisco, Cox Communications, EMC, Findel Education Resources, Fiserv, Intuit ProTax Group, Oracle, Rackspace, and UMB Bank. This report highlights their customer experience efforts and describes their best practices across the four customer experience competencies: purposeful leadership, compelling brand values, employee engagement, and customer connectedness. Additionally, this report includes an appendix with the finalists’ detailed nomination forms to help you gather ideas and examples to improve your own CX efforts.

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Here are some highlights from the finalists:

  • When Adobe began its transition from a products-based company to a services company, it recognized the increased importance of providing excellent customer experience and established a central Customer Advocacy team in January 2013. One of this team’s main objectives is to make measurable improvements to top customer issues. Adobe identifies these top issues using numerous VoC listening channels and then, with full transparency, communicates these issues across the entire company. Every leader and employee can access root cause analysis, direct customer comments and feedback, action plans, and more.
  • AIG Asia Pacific uses its FEEL GOOD message to engage customers, employees, and leaders in the company’s service culture transformation efforts. AIG uses a comprehensive Voice of the Customer program—which includes a closed-loop NPS process—to keep the company focused on its customers and agents and implement meaningful changes based on their feedback. In each country, cross-functional teams concentrate on improving responsiveness to customer feedback. Teams create plans for their alert management processes and use a real-time online dashboard to quickly resolve customer issues.
  • Cisco has made Ease of Doing Business (EoDB) a corporate priority; it drives relevant and meaningful solutions that simplify complex issues for its customers. To support its EoDB focus, Cisco analyzes customer feedback and identifies trends in experience pain points, and then delivers tailored reports and suggestions to the appropriate business teams. Cisco reinforces the importance of EoDB by equipping leaders with regular program updates, factoring the success of EoDB targets into the bonus calculations of every employee, and prominently displaying an EoDB dashboard that provides real-time data feed from customer surveys.
  • In an industry notorious for poor customer service, Cox Communications stands out for its dedication to improving its customer experience. Its closed-loop feedback program has been particularly successful at repairing damaged relationships and reducing customer churn. Cox Communications established a centralized Closed-Loop Feedback (CLF) team, which is made up of agents from different functional areas who are tasked with taking ownership of customers’ issues from beginning to end.
  • The dedicated Total Customer Experience (TCE) team at EMC recently enhanced its TCE program by fine-tuning their data-driven approach to improving the company’s customer and partner experience. EMC obtains a complete view of its customers’ perceptions and behaviors by collecting data using customer journey maps and an extensive Voice of Experience (VoX) program. To augment these insights, EMC also evaluates the quality of its products and the TCE team assesses customer and partner infrastructures to ensure that EMC products suit their clients’ needs.
  • Findel Education Resources recently revamped its entire outlook on customer experience and placed the customer at the center of its business. The company started its journey towards customer-centricity by outlining the objectives it sought to achieve and the questions it wanted to ask to ensure that leaders and employees remained customer-focused. Findel instituted Employee Voice and Customer Voice programs to diagnose customer issues and benchmark the company’s progress.
  • Two years ago Fiserv established a new Customer Experience Department tasked with improving customer service and associate engagement. This department began by changing the company’s vision and mission to incorporate its new focus on customers, creating a multi-faceted customer experience roadmap, and outlining a hierarchy of needs. Since the department’s inception, CX has become the highest weighted metric on the balanced scorecards for leaders and employees, and the company has invested a great deal in internal assessment and coaching.
  • Intuit’s ProTax Group (PTG) uses customer feedback to drive changes in the business. Intuit PTG gathers customer feedback through a robust customer listening program, an extensive closed-loop program, and engaged social media communities. After collecting customer insights, the Customer Experience and Customer Market Insights team within Intuit PTG sends weekly, quarterly, and annual reports to the entire company, which broadens awareness of customer issues.
  • At Oracle, customer experience initiatives begin with a 360-degree view of customers. Oracle maintains a Customer Experience Database (CxD), which details the interactions and experiences of every customer based on their behavior on oracle.com and their interactions on social media. Oracle also utilizes its business intelligence product to add survey results to this customer profile, further expanding the company’s attitudinal and behavioral data on each customer.
  • At Rackspace, Fanatical Support forms the backbone of their customer experience efforts. Rackspace combines its customer data into a single listening and analysis hub, and undesirable scores and trends act as a catalyst for the company’s business decisions. For example, after examining this data, the company decided to merge the sales and support teams together to provide a constant customer experience.
  • UMB Bank recently established a Voice of the Customer Steering Team to support their customer-centric focus. This Steering Team uses VoC feedback to assign priority to CX issues and oversees improvements to the customer experience. The team is made up of leaders from all different business areas, such as product and sales, which ensures that all departments are fully engaged in the company’s efforts to improve customer experience.

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If you enjoyed this report, check out last year’s report, Lessons in CX Excellence.

The bottom line: There’s a lot to learn from these CX Excellence Finalists.

Report: The State of CX Metrics, 2013

1312_StateOfCXMetrics2013_COVER_Page_01We just published a Temkin Group report, The State of CX Metrics, 2013. The research shows how large organizations are using CX metrics. Here’s the executive summary:

Companies with stronger CX metrics programs are more likely to be customer experience leaders. We asked over 170 large companies about their use of customer experience (CX) metrics and compared their answers with similar studies from 2011 and 2012. We found that although companies view CX metrics as important, only 12% of respondents received at least “good” ratings in Temkin Group’s assessment. Our self-test examines four areas: consistency (does the company use common CX metrics across the organization?), impact (do the CX metrics inform important decisions?), integration (are trade-offs made between CX and financial metrics?), and continuity (do leaders regularly examine the CX metrics?). The analysis shows that while interaction-satisfaction and likelihood-to-recommend metrics are on the rise, companies do a particularly poor job of measuring non-customers (non-buyers and defectors), the emotional response of customers, and mobile and cross-channel interactions. Customer service remains the best-measured portion of the lifecycle, and it has consistently improved over all three years. Companies rate themselves the lowest in making trade-offs between CX and financial metrics, but this area has still improved since last year. Our research also uncovered that more than eight out of ten NPS users report positive results. Ultimately, to fully measure customer experience, companies need to develop measurements that link behaviors, attitudes, perceptions, and interactions.

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We’ve done similar studies in 2011 and 2012. Here are the results from our CX Metrics Assessment over the previous three years:

figure14

Here are some additional findings from the research:

  • Seventy-three percent of CX metrics leaders have above average customer experience compared with only 45% of CX metrics laggards.
  • The two most widely used CX metrics are interaction satisfaction and likelihood to recommend. More than 80% of respondents use each of these metrics.
  • Customer service is the highest rated area of measurement across the customer lifecycle, an area that companies have steadily improved on since 2011.
  • More than 60% of companies think they do a good job collecting CX metrics on phone calls, but less than 30% feel that way about wireless devices and cross-channel interactions.
  • Only 30% of respondents think they do a good job measuring customer’s emotional response after an interaction, but that’s an increase from 25% in 2011.
  • Less than 30% of respondents think they are good at tying compensation to CX metrics and making trade-offs between financial and CX metrics.
  • Forty percent of companies review CX metrics more frequently than quarterly.

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The bottom line: CX metrics are being used, but not very effectively

Report: Blueprint for a Successful CX Organization

1311_BlueprintForCXOrgStructure_COVER

We just published a Temkin Group report, Blueprint for a Successful CX Organization. The research includes five case studies and a self-test for assessing CX organizations. Here’s the executive summary:

Organizations need both formal and informal structures to drive change and improve customer experience (CX). In this report, we begin by identifying the five elements of a customer experience management group operating inside an organization: a CX core team, a reporting executive, a steering committee, a working group, and CX ambassadors. We describe how five organizations—Arizona Public Service, British Columbia Lottery Corporation, Cornerstone OnDemand, Hagerty, and Safeco Insurance—combine these essential elements to create effective CX management groups. Our research also found that CX groups come in all shapes and sizes, and that the needs of these structures vary according to the maturity level of a company’s CX efforts. Across all different structures, the success of a CX organization is based on three characteristics: make-up of the CX core team, executive commitment to CX, and organizational readiness for CX. To evaluate your CX organization against these characteristics, use Temkin Group’s CX Organization Assessment.

Purchase this report and you will also receive the report Benchmarking Your CX Organization.

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Our research found that CX organizations are typically made up of these five elements.

ElementsOfCXOrgs

While we examined the structures of many CX organizations, it turns out that structure is not the key determination of success. Instead, the three key characteristics below are critical. The report includes a self-test for assessing these dimensions.

ThreeOrgSuccessFactors2

Purchase this report and you will also receive the report Benchmarking Your CX Organization.

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The bottom line: Build a successful CX organization

Report: Net Promoter Score Benchmark Study, 2013

1311_NPSBenchmarkStudy_COVERWe just published a Temkin Group report Net Promoter Score Benchmark Study, 2013. This study of 10,000 U.S. consumers benchmarks Net Promoter® Score (NPS®) for 269 companies across 19 industries. Click to download list of companies (.pdf).

Here’s the executive summary: We measured the Net Promoter Score for 269 companies across 19 industries. USAA took the top three spots with NPS of 60 or more for its credit card, banking, and insurance businesses. At the other end of the list, HSBC earned the two lowest scores, with NPS below -20 for its banking and credit card units. Auto dealers (38) and groceries (30) have the highest average NPS, while TV service providers, Internet service providers, and health plans are below 10. In 18 of the 19 industries, consumers who are under 25 represent the lowest (or tied for lowest) NPS scores. Compared with detractors, promoters are more likely to want lower prices and less likely to want customer service improvements. To help you implement a successful NPS program, we’ve included eight tips, such as don’t believe in an “ultimate question” and use control charts, not pinpointed goals. The industries included in this report are airlines, auto dealers, banks, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, TV service providers, and wireless carriers.

This is our second annual NPS benchmark. Check out last year’s results.

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Here are the overall results for the 19 industries:

2013NPSResults_TemkinGroup

Here are some other highlights:

  • USAA earned the highest NPS scores on the list for three of its business—66 for insurance and credit cards and 65 for banking. Other companies with NPS above 50 are Amazon.com, H.E.B., Chick-fil-A, Apple, Audi, credit unions, and Nordstrom.
  • HSBC earned the lowest two NPS scores across all companies with a -42 for banking and -24 for credit cards. Other companies with NPS of -10 or below are Time Warner Cable, Citibank, Super 8, Charter Communications, and Motel 6.
  • Auto dealers earned the highest average NPS (38) followed by grocery chains (30), hotel chains (29), and software firms (29).
  • TV service providers (2), Internet service providers (5), and health plans (9) are the only industries with averages below 10.
  • USAA’s three businesses earned NPS levels that are 40 or more points above their industry averages. Three other firms are 30 or more points above their peers: A credit union (banking), Amazon.com (retail), and H.E.B. (groceries).
  • HSBC’s NPS is 55 points below the industry average for banks and Super 8 is 42 points below the hotel industry. Four other firms are 30 or more points below their industry averages: Motel 6 (hotels), HSBC (credit cards), US Airways (airlines), and 7-Eleven (retail).

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The bottom line: Find out why customers do and don’t recommend you.

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

Report: Best and Worst of Online Gift Card Purchasing Experiences

1311_OnlineGiftCardExperience_COVERWe just published a Temkin Group report, Best and Worst of Online Gift Card Purchasing Experiences. The research uses Temkin Group’s SLICE-B Experience Review methodology to evaluate eight retailers. Here’s the executive summary:

Gift cards are an important component of a retailer’s offering, but how effectively do their websites support the sale of these items? To evaluate the user-friendliness of the online gift card purchasing process, we used Temkin Group’s SLICE-B experience review methodology to asses the user experience at eight large retailers: CVS, Walgreens, Target, Walmart, Barnes & Noble, Amazon, Starbucks, and Dunkin’ Donuts. Walmart earned the top score for its exceptional functionality, while the user could not complete the purchasing goal at either Target or Walgreens. The positive and negative elements of the experience varied across companies, but many failed to provide a printable order summary, a recognizable starting point, or a confirmation that the gift card had been received.

Download report for $195
BuyDownload3Here are the overall results of our SLICE-B experience review that examines six elements of the experience: Start, Locate, Interact, Complete, End, and Brand coherence.

1311_OnlineGiftCardResults

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The bottom line: Make it easier to purchase gift cards

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