Use Customer Insights To Close Four Loops

Companies that have voice of the customer (VoC) programs (including NPS) often put in place a closed-loop process. Those efforts often focus on closing a single loop, immediately responding to a customer after they respond to a survey. But this represents only one of four loops that companies need to close.

In the report, Make Your VoC Action-Oriented, we introduced the concept of four closed loops.

1608_FourActionLoopsHere’s an example of the four loops for a restaurant chain:

  • Immediate Response. Reach out to a restaurant customer who responded on a survey that the bathroom was dirty and help take care of her ongoing concerns.
  • Corrective Action. Get the manager or employee to clean the bathroom in that restaurant.
  • Continuous Improvement. Create new process for restaurants to check and clean bathrooms on a regular basis.
  • Strategic Change. As part of new restaurant formats, design bathrooms so that they don’t require as much time from employees to keep them clean.

The bottom line: Make sure to build out four closed loops.

Report: Five C’s of Mobile VoC Disruption

1607_MobileVOCDisruption_COVERWe just published a Temkin Group report, Five C’s of Mobile VoC DisruptionBest Practices for Embracing the Power of Mobile in Your Voice of the Customer Program.

As mobile continues to grow in importance, companies will need to renovate their voice of the customer (VoC) programs. Why? Because mobile is more than just another communications channel – it is transforming the way that companies and customers interact. To help companies modernize their VoC programs to account for this increase in mobile usage, we’ve identified the key areas in which mobile is different from other channels, what we call the “Five C’s of Mobile VoC Disruption: “Condensed, Comprehensive, Current, Conversational, and Contextual. These disruptive characteristics will force companies to redefine how they capture, share, and act on customer insights. We’ve identified more than 20 best practices that span all areas of a VoC program, including soliciting in-the-moment feedback for key interactions and accelerating the sharing of useful insights. In order to use mobile successfully, companies need to evolve through three stages of change: 1) Mobile-Enabled, 2) Mobile-Adjusted, and 3) Mobile-First.

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Here’s an overview of the Five C’s:

5CsOfMobileVoC

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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.

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Here are excerpted versions of 4 (out of 15) graphics in the report: 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.

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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

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Report: Lessons in CX Excellence, 2016

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

Here’s the executive summary:

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

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

Report: Make Your VoC Action-Oriented

1512_MakeYourVOCActionOriented_COVERWe published a Temkin Group report, Make Your VoC Action-Oriented. Here’s the executive summary:

Companies recognize that customer feedback and insights are critical for understanding customers, so they often create Voice of the Customer (VoC) programs as one of their first customer experience priorities. While most respondents within large organizations believe that these efforts have been successful, Temkin Group has found that an overwhelming number of VoC programs are still in very early stages of maturity. These immature programs overly focus on collecting feedback and don’t focus enough on driving action based on insights from the feedback. Our research shows that simplification is a key path to VoC maturity. This report identifies five strategies for simplifying VoC programs: Stakeholder Empathy, Tailored Insights, Feedback Rationalization, Loop-Closing, and Customer Journey Alignment. As companies adopt these five strategies, VoC teams must learn new skills and become research generalists, business consultants, compelling communicators, portfolio managers, and value creators.

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Here are the best practices we discuss in the report:

1512_ActionOrientedVoCBestPractices

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Report: The State of CX Metrics, 2015

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

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

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

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

1512_CXMetricsAssessmentResults

Here are some other highlights of the research:

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

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

Report: B2B Customer Experience Best Practices

1510_B2B CX Best Practices_COVERWe published a Temkin Group report, Business-to-Business (B2B) Customer Experience Best Practices. This report provides data on the state of customer experience (CX) in B2B as well as 20 CX best practices across five critical B2B processes. Here’s the executive summary:

Temkin Group research shows that although business-to-business (B2B) organizations are raising their customer experience (CX) ambitions, they still have a way to go before achieving their goals. Despite the fact that most large B2Bs have a low level of CX maturity, our research shows that 57% of them aspire to deliver industry-leading customer experience within three years. However, to improve their CX, B2Bs must master Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Our research uncovered 20 practices that B2Bs can emulate when applying those competencies across these five key business processes: sales and account management, implementation/project execution, support and issue resolution, partner alignment, and product management and innovation. To assess your organization’s CX maturity, use Temkin Group’s Customer Experience Competency Assessment and compare the results to data from other large B2B firms to chart your path to improvement.

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The report examines the state of B2B CX, including the results from large companies that completed Temkin Group’s CX Competency & Maturity Assessment:

1511_B2BCXMaturity

To help B2B organizations raise their CX maturity, we identify 20 best practices for mastering Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. These practices are aligned with five key B2B activities: sales and account management, implementation/project execution, support and issue resolution, partner alignment, and product management and innovation:

1511_B2B5Processes

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Report: 2015 Temkin Loyalty Index

1511_TemkinLoyaltyIndex_COVERWe published a Temkin Group report, 2015 Temkin Loyalty Index. This report ranks the loyalty of consumers to 293 companies across 20 industries. Here’s the executive summary:

The 2015 Temkin Loyalty Index evaluates the loyalty of 10,000 U.S. consumers to 293 companies across 20 industries. The Index is based on evaluating consumers’ likelihood to do five things: repurchase from the company, recommend the company to others, forgive the company if it makes a mistake, trust the company, and try the company’s new offerings. Our research shows that USAA, H-E-B, Publix, and Trader Joe’s are at the top of the list when it comes to consumer loyalty, while Con Edison of NY, Coventry Health Care, Comcast, and Time Warner Cable are at the bottom. At an industry level, supermarkets, fast food chains, and retailers inspire the highest loyalty levels. At the other end of the spectrum, TV service providers and Internet service providers have the lowest levels of loyalty. USAA, JetBlue Airways, TriCare, credit unions, ACE Rent A Car, Apple, and Georgia Power have loyalty levels that most outperform their industry averages. Conversely, Con Edison of NY, RadioShack, Blackboard, Coventry Health Care, Citibank, Jeep, Bi-Lo, and McDonalds fall farthest behind their peers.

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Here are the leaders and laggards as well as the industry scores:

1511_TLi_TopBottom

1511_TLi_IndustryRanges

Here are some other highlights of the research:

  • The Temkin Loyalty Index is an average rating across consumers’ likelihood to do five things:
    • Repurchase from the company
    • Recommend the company to others
    • Forgive the company if it makes a mistake
    • Trust the company
    • Try the company’s new offerings
  • At an industry level, supermarkets, fast food chains, and retailers have the highest loyalty levels. At the other end of the spectrum, TV service providers and Internet service providers have the lowest.
  • USAA (for credit cards, banking, and insurance), JetBlue Airways, TriCare, credit unions, ACE Rent A Car, Apple, and Georgia Power have loyalty levels that most outperform their industry averages.
  • Con Edison of NY, RadioShack, Blackboard, Coventry Health Care, Citibank, Jeep, Bi-Lo, and McDonalds fall farthest behind their peers.
  • The average likelihood to purchase across all industries is the highest (67%) while the average likelihood to try new offerings is the lowest (42%).
  • H-E-B and USAA lead, and Con Edison of NY lags in repurchase.
  • Aldi and Hy-Vee lead, and Coventry Health Care lags in recommendations.
  • USAA and ACE Rent A Car lead, and Con Edison of NY lags in forgiveness.
  • ACE Rent A Car leads, and Citibank and Citizens lag in new product loyalty.
  • Credit unions and H-E-B lead, and Comcast lags in trust.

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If you want to know what data is included in this report and dataset, download this sample Excel dataset file.

Report: State of Voice of the Customer Programs, 2015

1510_StateOfVoCPrograms2015_CoverWe published a Temkin Group report, State of Voice of the Customer Programs, 2015. This is the fifth year that we’ve benchmarked the competency & maturity of voice of the customer programs within large organization. Here’s the executive summary:

For the fifth year, Temkin Group has benchmarked the voice of the customer (VoC) programs within large organizations. We found that while most organizations consider their VoC efforts to be successful, less than one-third of organizations actually believe they are good at making changes to the business based on these insights. Respondents think that the most important source of insights in the future will be customer interaction history, and they think that going forward, multiple-choice questions will be the least important. Respondents believe that technology will play an increasingly important role in their efforts, but the largest obstacle to VoC success remains integration across systems. In addition to asking questions about their VoC program, we also had respondents complete Temkin Group’s VoC Competency and Maturity Assessment, which examines capabilities across what we call the “Six Ds”: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. Although only 16% of companies have reached the two highest levels of VoC maturity, this is still an improvement from the 11% last year. When we compared high-scoring VoC programs with lower-scoring programs, we found that companies with mature programs are more successful, focus more on analytics, have more full-time staff, have more strongly coordinated efforts, and have more involved senior executives.

See the State of VoC reports from 201020112013, and 2014.

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Here are the results from Temkin Group’s VoC Competency & Maturity Assessment:

1510_VoCCompetencyMaturity

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Report: Net Promoter Score Benchmark Study, 2015

1510_NPSBenchmarkStudy_COVERWe published a Temkin Group report, Net Promoter Score Benchmark Study, 2015. This is the fourth year of this study that includes Net Promoter® Scores (NPS®) on 291 companies across 20 industries based on a study of 10,000 U.S. consumers. Here’s the executive summary:

Many companies use Net Promoter® Score (NPS) to evaluate their customer loyalty, so we measured the NPS of 291 companies across 20 industries. The three companies with the highest scores are USAA, with an NPS of 70, and Lexus and Mercedes-Benz, each with an NPS of 62. Additionally, USAA’s banking, credit card, and insurance businesses all outpaced their respective industries’ averages by more than any other company. Meanwhile, at the bottom of the list, Comcast, Time Warner Cable, and McDonalds received the three lowest scores, and RadioShack, McDonalds, and eMachines fell the farthest below their respective industries’ averages. On an industry level, auto dealers earned the highest average NPS, while Internet service providers and TV service providers earned the lowest. Thirteen of the 20 industries increased their average NPS from last year, with banks enjoying the biggest jump in scores. Out of all the companies, HSBC’s and AirTran Airways’ scores improved the most, whereas Fujitsu’s and Highmark’s scores declined the most. For most industries, older consumers gave companies a higher NPS, while younger consumers gave companies a lower NPS. Investment firms have the largest generation gap.

See the NPS Benchmark Studies from 2012, 2013, and 2014.

Here’s a list of companies included in this study (.pdf).

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Here are the NPS scores across 20 industries:
1510_NPS_IndustryRanges

Here are some other highlights of the research:

  • USAA’s insurance business earned the highest NPS (70), followed by Lexus (62) and Mercedes-Benz (62). Other firms to earn an NPS of 55 or more are H-E-B, USAA’s banking and credit card businesses, Apple’s computer business, Chick-fil-A, Wegmans, JetBlue Airways, and Amazon.
  • Comcast TV service (-17) earned the lowest NPS, followed by two firms that also had scores below -10: Time Warner Cable TV service and McDonalds. Other firms to earn NPS of -5 or below are Commonwealth Edison, Pacific Gas and Electric, Charter Communications (TV service and Internet service), Comcast Internet service, RadioShack, Time Warner Cable Internet service, Cablevision Optimum, and Coventry Health Care.
  • USAA’s insurance, banking, and credit card businesses earned NPS levels that are 38 or more points above their industry averages. Eight other firms more than 25 points above their peers: Chick-fil-A, TriCare, credit unions, JetBlue Airways, H-E-B, Wegmans, Amazon, and Apple.
  • Nine companies fell 30 or more points below their industry averages: RadioShack, McDonalds, eMachines, Travelers, Super 8, 7-Eleven, and Spirit Airlines.
  • HSBC’s NPS increased by 29 points between 2014 and 2015, the largest increase of any company. Nine other companies improved by more than 15 points: AirTran Airways, Baskin Robbins, Virgin America, Regions Bank, Citizens Bank, BMW, Southern California Gas, Morgan Stanley Smith Barney, and Food Lion.
  • Fujitsu, Highmark, Buick, and Humana had the largest decline in NPS between 2014 and 2015.

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If you want to know what data is included in this report and dataset, download this sample Excel dataset file.Screen Shot 2014-10-17 at 4.05.17 PM

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

Report: Unlocking Customer Insights From Contact Centers

1505_UnlockingInsightsFromContactCenters_COVERWe just published a Temkin Group report, Unlocking Customer Insights From Contact Centers: From Agent Productivity to Enterprise Intelligence. Here’s the executive summary:

Companies have traditionally viewed their contact centers as cost centers and have consequently focused most of their energy on making agents as efficient as possible. However, companies are now beginning to realize that contact centers actually contain a wealth of deep, untapped information about customers. Temkin Group recommends that companies tap into this rich vein of information by shifting their focus away from agent productivity and towards enterprise intelligence. To construct a more holistic picture of their customers’ experiences, companies should take the unsolicited, unstructured voice of the customer (VoC) feedback they capture in the contact center and combine it with data they collect from other sources, such as CRM and digital analytics. In this report, we outline how companies’ efforts should shift across each of the Six D’s of a VOC program: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. To start the transformation away from agent productivity and towards enterprise intelligence, companies need to focus on data integration, analyzing the entire customer journey, forming a cohesive governance structure, and developing new roles and skills for employees.

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In the report, we describe these best practices for shifting the focus of customer insights in the contact center from agent effectiveness to enterprise insights:

1507_ContactCenter6Ds3

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Data Snapshot: Media Use Benchmark, 2015

1504_DS_MediaBenchmark2015_COVERWe just published a Temkin Group data snapshot, Media Use Benchmark, 2015. 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 2015, we surveyed 10,000 U.S. consumers about their media usage patterns and compared the results to similar data we collected in 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.

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Use of mobile phones for internet or app-related consumption increased an average of 0.4 hours per day over the past year. This is the largest jump in average usage time over all 11 areas we examined in both 2014 and 2015. Respondents under the age of 35 dedicate the most amount of time to all of these activities, with the exception of TV watching, which is most heavily consumed by 65- to 74-year-olds.

Here’s a portion of the first figure from the data snapshot that contains 12 data-rich charts:

1504_MediaUseHours

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The bottom line: Mobile use continues to rise

Data Snapshot: Customer Experience Expectations and Plans for 2015

1503_DS_CXPlansFor2015_COVERWe just published a Temkin Group data snapshot, Customer Experience Expectations and Plans for 2015. This is our annual analysis of CX priorities and spending within large organizations (see last year’s data snapshot).

Here’s the data snapshot description:

In the first quarter of 2015, Temkin Group surveyed 207 respondents, each from a company with $500 million or more in annual revenues, about their customer experience efforts over the past year and their plans for 2015 and beyond. We compared the results of this survey to the results of similar surveys that we completed in Q4 of 2010, Q4 of 2011, Q4 of 2012, and Q4 of 2013. This year’s results show that companies are planning on dedicating more money and effort to improving a variety of customer experience activities in 2015.

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Here are some highlights from the data snapshot that contains 13 data-rich charts:

  • 42% of respondents think their CX efforts had a moderately or significantly positive impact on the business in 2014 and 78% expect to have a positive impact in 2015.
  • 82% of respondents think that CX will be more important to their organization this year than it was last year.
  • 66% of respondents expect that their company will spend more on CX this year than it did last year.
  • 40% of respondents have more than five people in their centralized CX team and 42% expect those numbers to rise (none are expecting a decline).
  • 31% of respondents expect to spend more on voice of the customer software vendors in 2015 than they did in 2014 and only 2% expect to spend less.
  • 88% of respondents expect to put more focus on Web experiences in 2015, a jump from 79% that expected to do the same last year. Social media and phone self-service interactions were the only areas that did not gain momentum.
  • 81% of respondents expect to put more focus on customer insights and analytics. The largest jump from last year is employee communications and engagement.
  • Building a customer-centric culture and predictive analytics are the areas that jumped the most this year when respondents identified the things that would have a significant impact on their organization’s CX in three years.

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The bottom line: Companies will be spending more time and money on CX this year

Report: What Happens After a Good or Bad Experience, 2015

1502_WhatHappensAfterGoodBadExper_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2015. 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:

To understand the effect of good and bad experiences, we asked 10,000 U.S. consumers about their recent interactions with 283 companies across 20 industries. Internet service providers and TV service providers deliver bad experiences more frequently than any other industries, as exemplified by Comcast and Charter Communications, each of which delivers a bad experience to about one in four customers, the most of any companies. Retailers, on the other hand, are least likely to deliver a negative experience. Out of all the industries, customers are most likely to stop spending completely after a bad experience with a computer and tablet maker, and they are most likely to reduce spending after a bad experience with a fast food chain. The economics of service recovery are compelling. Compared with companies that deliver a very poor response after a bad experience, companies that deliver a very good response have 41% fewer consumers cutting back on their spending and 31% more increasing their spending. Led by investment firms and major appliance makers, all industries improved or maintained their service recovery performance from last year. After a very bad or very good experience, consumers are more likely to give feedback back directly to the company than they are to post on Facebook, Twitter, or third party rating sites. These social sites, however, are still an important channel for consumers under the age of 45. When it comes to sharing bad experiences on social media, customers of Advantage Rent A Car and Alabama Power Company are the most likely to post about it on Facebook, while customers of Ameren Missouri Company and Fujitsu are the most likely to post about it on Twitter. The companies most likely to receive negatively biased feedback from their customers are Consolidated Edison of NY and Southern California Edison.

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Here’s the first figure in the report:

1502_BadExperiences

Here are some highlights from the report:

  • Nineteen percent of consumers who have interacted with TV service providers and Internet service providers report having a bad experience during the previous six months, the highest levels of any industry. Comcast (25%) and Charter Communications (24%) have the highest levels of consumers reporting bad experiences. The next three companies on the list are Motel 6, Time Warner Cable, and 21st Century insurance (all at 23%).
  • At the other end of the spectrum, only 4% of consumers report having a bad experience with a retailer, and six retailers are at 1%: True Value, Costco, Bed Bath & Beyond, Ace Hardware, Gap, and Staples.
  • The research examines the impact of bad experiences on consumer spending. Fifty-seven percent of consumers who had a bad experience with a fast food chain have decreased their spending with those stores and 32% of consumers who have had a bad experience with a computer company have completely stopped spending with the company. When it comes to health plans and utilities, two industries where consumers have a hard time switching, only 22% of consumers lower their spending after a bad experience.
  • The research shows that companies can increase their revenues when they respond very effectively after a bad experience. The difference in spending between a consumer who experiences a very poor response by a company and one who experiences a very good response is dramatic; the better response leads to 41% fewer consumers decreasing their spending with the company and 31% more increasing their spending.
  • The highest percent of consumers say that investment firms (48%) and major appliance makers (45%) have delivered a good response after a bad experience, while less than 20% of consumers feel that way about TV service providers and Internet service providers.
  • While 32% of consumers told the company about a very bad experience, only 25% shared their very good experiences. The percentage of consumers who communicated after a good experience increased for every channel except telling friends via traditional channels, which stayed even this year.
  • Across all age groups, consumers are most likely to give feedback about bad experiences directly to companies. With good experiences, the same is true with consumers who are at least 45 years old.
  • We examined how many customers of each company had shared negative feedback (to any company) on Facebook over the previous six months. At the top of the list are Advantage Rent A Car, Alabama Power Company, Ameren Illinois Company, AirTram Airways, Audi dealers, Fujitsu, Ameren Missouri Company, and CellularOne.

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The bottom line: Bad experiences are a real problem, especially if you don’t recover well.

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