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.

Report: Employee Engagement Benchmark Study, 2015

1502_EEBenchmarkStudy15_COVERWe just published a Temkin Group report, Employee Engagement Benchmark Study, 2015, which is our annual analysis of U.S. employees. 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. We found that although employee engagement overall has increased over the past year, engagement levels still vary by organization, industry, and individual. Companies with stronger financial performances and better customer experience have employees who are considerably more engaged than their peers. Our research also shows that out of all the industries, the construction sector has the highest percentage of engaged employees, while the transportation and warehousing sector has the lowest. We additionally found that large companies have a lower percentage of engaged employees than smaller companies do. On an individual level, our research shows that frontline employees, high-income earners, and males tend to be more highly engaged. Given the significant value of engaged employees, we recommend that companies improve engagement levels by mastering our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.

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This is the fourth year that we’ve released this study (see 2012 study, 2013 study, and 2014 study). Here are the results from the Temkin Employee Engagement Index over the previous four years:

EEBenchmarkOverview

Some of the other findings from the research include:

  • The number of highly and moderately engaged employees in the U.S. increased from 55% last year to 57% this year.
  • Compared with disengaged employees, highly engaged employees are 2.5 times as likely to stay at work late if something needs to be done after the normal workday ends, more than twice as likely to help someone at work even if they don’t ask for help, more than three times as likely to do something good for the company that is not expected of them, and more than five times as likely to recommend that a friend or relative apply for a job at their company.
  • Seventy-seven percent of employees in companies that have significantly better financial performance than their peers are highly or moderately engaged, compared with only 49% of employees in companies with lagging financial performance.
  • Companies that outpace their competitors in CX have 50% more engaged employees than those with CX that lags their peers.
  • Ninety-one percent of highly engaged employees always or almost always try their hardest at work, compared with 67% of disengaged employees.
  • 25- to 34-year-old employees are the most engaged group while 45- to 54-year-old employees are the least engaged.
  • Senior executives are 50% more likely than individual contributors to be highly or moderately engaged.
  • Of the 15 industries measured in the study, construction has the highest level of engaged employees while transportation and warehousing has the lowest.

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The bottom line: There are a lot of employees who can and should be more engaged.

Building a Strong Voice of the Customer Program (Video)

Customer connectedness is one of Temkin Group’s four CX core competencies. A key capability in this area is a strong voice of the customer (VoC) program. This video highlights our model for creating a VoC program, called the 6D’s: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. Also, check out our VoC/NPS Program Resources.

The bottom line: Great companies learn from, and act upon, the voice of their customers.

Report: Lessons in CX Excellence, 2015

1501_LessonsInCXExcellence_COVERWe just published a Temkin Group report, Lessons in CX Excellence, 2015. The report provides insights from 8 finalists in the Temkin Group’s 2014 CX Excellence Awards. The report, which is 98 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 2014 Customer Experience Excellence Award. Finalists are Activision Customer Care, Aetna, Crowe Horwath LLP, Dell Inc., EMC Corporation, Texas NICUSA, The Results Companies, and TouchPoint Support Services. This report provides specific examples of how these companies’ CX efforts have created value for both their customers and for their businesses. We also highlight their best practices across the four customer experience competencies—purposeful leadership, compelling brand values, employee engagement, and customer connectedness. At the end of this report, we have included all of the finalists’ detailed nomination forms to help you collect examples and ideas to apply to your own CX efforts.

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Watch Temkin Group webinar about this research.

Here are some highlights from the finalists:

  • Activision Customer Care. Activision demonstrates its commitment to creating great game player experiences in a multitude of ways, such as emphasizing the use of player feedback to identify improvement opportunities. Activision combines this dedication to listening to its players with a willingness to redesign significant interactions. For example, it revamped its “Contact Us” page to include ambassador chat and callback scheduling, which resulted in higher satisfaction and lower effort for customers.
  • Aetna. Despite being in an industry undergoing tremendous change, Aetna is focusing on its 2020 vision to make the company 100% customer-centric. It has implemented many changes to help achieve this goal, including providing service over the phone and investing in text and speech analytics to better identify customer pain points and improve the behaviors and skillsets of its call representatives. The latter effort has already resulted in reduced repeat calls, improved accuracy, and a higher Net Promoter Score (NPS).
  • Crowe Horwath. With a client engagement score towering 33 points above the accounting industry average, Crowe Horwath is seeing the pay-off of its efforts to deliver an exceptional client experience. These efforts include establishing a firm-wide governance model and measurement scorecard, implementing a closed-loop voice of the customer program, incorporating customer journey mapping to uncover moments of truth, and engaging employees through training, client-driven CX recognition programs, and an employee ambassador program.
  • Dell. Dell’s CX efforts start with an emphasis on listening to and engaging with customers and employees. Dell enlists different groups from across the company—including engineering, marketing, sales, support, and digital—to make improvements to the entire customer journey. As a result of this work, Dell has opened 16 solution centers—which gives customers a place to experience solutions—and has provided proactive support over a wide variety of social channels, simplified Dell.com for consumer and business users, and implemented more than 540 customer innovation ideas.
  • EMC Corporation. The Total Customer Experience (TCE) program at EMC works across the enterprise to enhance the company’s customer experience by listening to customer feedback, analyzing data, and taking directed action based on that feedback and data. The program also raises awareness of how every person at the company impacts customer experience. As its CX efforts have matured, the TCE team has evolved to take on more challenging tasks; its projects now include predictive CX analytics, measuring its partner experience quality, and optimizing the experience across many different customer segments and solutions.
  • The Results Companies. To support its work as a business process outsourcing provider, The Results Companies uses its own unique operating model called CX360, which allows for continuous business process refinements that improve the customer experience. Built on three pillars—people, knowledge, empowerment—CX360 has helped the company ensure that its 8,500 employees around the globe remain focused on CX. The operating model has also contributed to Results’ strong growth in new clients and year-over-year revenue.
  • Texas NICUSA/Texas.gov. Texas NICUSA provides support for Texas.gov and implements technology solutions for Texas governmental agencies. It serves over 50,000 monthly site visitors and 300 state and local governments. Its three-tiered multi-channel customer service approach includes a general customer service Help Desk (phone and online), a Service Desk to support governmental agency needs, and a group of Technology Subject Matter Experts who can provide escalated assistance to either citizens or agency employees.
  • TouchPoint Support Services. TouchPoint Support Services streamlines support services within healthcare facilities. The company’s business goals, known as Top of Mind Objectives, guide the work of its 6,800 associates, helping them to find inefficiencies and improve patient satisfaction, associate engagement, safety, unity, and budget compliance. Touchpoint uses many methods for aligning employees with these objectives, including special training for managers and frontline employees, coaching from dedicated customer experience managers (who visit sites regularly), and associate recognition programs.

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If you enjoyed this report, check out Lessons in CX Excellence, 2014 and Lessons in CX Excellence, 2013.

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

Report: The Future of Customer Experience Insights

1412_FutureofCXInsights_COVERWe published a Temkin Group report, The Future of Customer Experience Insights. The report identifies five trends that will redefine the value and role of customer feedback and insights. Here’s the executive summary:

Although most organizations describe their voice of the customer program as a success, we’ve found that companies do not get nearly the value they should out of these efforts. VoC programs currently suffer from bloated surveys, isolated datasets, and outdated technology. Our research into leading practices uncovered five trends that will redefine how customer insights teams operate: 1) Deep empathy, not stacks of metrics, 2) Continuous insights, not periodic studies, 3) Customer journeys, not isolated interactions, 4) Useful prescriptions, not past descriptions, and 5) Enterprise intelligence, not customer feedback. As companies embrace these new capabilities, insights teams will need to build new skills. The report includes a readiness checklist for companies to assess their current customer insights efforts.

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Here’s an overview of the five customer insights trends:

5InsighteTrens

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The bottom line: It’s time to revamp your customer insights efforts.

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