TriCare and Kaiser Permanente Lead Health Plans in Customer Experience

We recently released the 2015 Temkin Experience Ratings which ranks the customer experience of 293 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Overall, health plans averaged a 54% rating and placed 18th out of 20 industries.

TriCare took the top spot with a rating of 67%, placing it 128th overall out of 293 companies across 20 industries. Kaiser Permanente came in second with a rating of 66% and an overall ranking of 136th. TriCare and Kaiser Permanente have been jockeying for the highest score since the Ratings began in 2011, with TriCare earning the top spot in 2011, 2013, and 2015, while Kaiser Permanente came in first in 2012 and 2014.

At the other end of the spectrum, Coventry Health Care was both the lowest-scoring health plan, and the lowest scoring company we evaluated in the entire Ratings. Coventry Health Care scored 39%, making it the lowest-ranked company for the second year in a row.

Here are some other highlights:

  • The average rating for the health plan industry dropped from 56% in 2014 to 54% in 2015—the first time that this industry’s average declined.
  • Of the twelve health plans that we looked at in both 2014 and 2015, Medicaid and TriCare were the only two to increase their scores over the last year. Medicaid’s rating went up by six percentage-points, while TriCare’s increased by five percentage-points.
  • Although it scored below the industry averages for both effort and success, Health Net scored 1.7 points higher than the industry average for emotion, the overall lowest scoring component in the Ratings.
  • The average rating of each of the three components dropped over the past year, but while success and effort each only dropped by one percentage-point, emotion dropped by three percentage-points. This is the first year since the Ratings began that the average score of any of the three components decreased.

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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.

Kaiser Permanente and Humana Lead Health Plans in 2014 Temkin Experience Ratings

We recently released the 2014 Temkin Experience Ratings that ranks the customer experience of 268 companies across 19 industries based on a survey of 10,000 U.S. consumers.

Kaiser Permanente earned the top spot with a 68% rating, positioning the company in 109th place overall out of 268 organizations across 19 industries. Humana, meanwhile, earned a rating of 63% and placed 160th overall. While Kaiser Permanente consistently ranks near the top of the list—even taking first place in 2012—this year, Humana ascended from the middle of the pack to the top, improving its rating by an astonishing 12 percentage points.

At the other end of the spectrum, Coventry Health Care (BCBS) plummeted down the ranks after declining 18 percentage points from 2013, leaving it in last place across all 268 companies in the ratings with a score of 41%. Empire (BCBS), Highmark (BCBS), and Medicaid joined Coventry as the lowest-rated companies across any industry.

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HealthPlansA
Here are some additional findings from the health plan industry:

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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

USAA On Top of 2013 Temkin Customer Service Ratings

We just released the third annual Temkin Customer Service Ratings of 235 companies across 19 industries based on a study of 10,000 U.S. consumers (see full list of firms).

Download entire dataset for $295

Company Results

Here are some company highlights:

2103TCSR_TopBottomFirms2103TCSR_IndustryLeadersLaggards

  • USAA earned the top two spots for its insurance and banking businesses. Other companies at the top of the ratings are credit unionsAce HardwareCharles SchwabDollar TreeChick-fil-ASonic Drive-InHy-VeeCostcoTrader Joe’s, Advantage, Publix, and H.E.B.
  • TV service providers and Internet service providers earned nine out of bottom 10 spots in the ratings.
  • For the second straight year, Charter Communications took the bottom spot. The rest of the firms in the bottom five are Time Warner CableCox CommunicationsOptimum (i/o), and CareFirst.
  • The following companies earned ratings that were 15 or more points above their industry averages: USAA (insurance and banking), Alaska Airlines, credit unions, Advantage, Kaiser Permanente, TriCare, Charles Schwab, and Bright House Networks.
  • Five companies earned ratings that were 15 or more points below their industry averages: Apple Stores, US AirwaysRadioShack, HSBC, and 21st Century.
  • Twenty-three percent of companies earned “strong” or “very strong” ratings, while 37% earned “weak” or “very weak” ratings.

Temkin Group also examined year-over-year results for the 171 companies that were in both the 2012 and 2013 Temkin Customer Service Ratings and found that:

  • Forty-four percent of companies improved their ratings while 47% experienced a decline.
  • Twenty companies showed double-digit increases, led by: Citibank (banking and credit cards), U.S. Bank, Hyundai, Nissan, Old Navy, Charles Schwab, Continental Airlines, and Piggly-Wiggly.
  • Eleven companies showed double-digit decreases, led by: LG, Giant Eagle, Toshiba, Cox Communications, ING Direct, and Budget.

Industry Results

Here are some industry highlights:

2103TCSR_Industries

  • Grocery chains, retailers, and fast food chains earned the highest average Temkin Customer Service Ratings, while TV service providers, Internet service providers, wireless carriers, and health plans earned the lowest ratings.
  • On average, credit card issuers, banks and fast food restaurants improved the most while appliance makers, TV service providers and investment firms declined the most.

Calculating the Temkin Customer Service Ratings

During January 2013, Temkin Group asked 10,000 U.S. consumers to identify the companies that they had interacted with on their websites during the previous 60 days. These consumers were asked the following question:

Thinking back to your most recent customer service interaction with these companies,
how satisfied were you with the experience?

Responses from 1= “very dissatisfied” to 7= “very satisfied”

For all companies with 100 or more consumer responses, we calculated the “net satisfaction” score. The Temkin Customer Service  Ratings are calculated by taking the percentage of consumers that selected either “6” or “7” and subtracting the percentage of consumers that selected either “1,” “2,” or “3.”

Download entire dataset for $295

Temkin Ratings website

To see all of the companies in the Temkin Customer Service Ratings as ell as all of our other Temkin Ratings and sort through the results, visit the Temkin Ratings website

The bottom line: TV service providers deliver terrible customer service

Amazon and USAA On Top of 2013 Temkin Web Experience Ratings

We just released the third annual Temkin Web Experience Ratings of 211 companies across 19 industries based on a study of 10,000 U.S. consumers (see full list of firms).

Download entire dataset for $295

Company Results

Here are some company highlights:

2013TWERCompanyBestWorst

  • For the third straight year, Amazon.com topped the Temkin Web Experience Ratings while USAA took the next two spots for its bank and insurance businesses.
  • Other companies at the top of the ratings are RegionsU.S. BankeBayAdvantage Rent A Carcredit unions, and QVC.
  • At the other end of the spectrum, MSNHealth NetEarthLink, and Cablevision earned the lowest ratings.
  • Only 6% of companies earned “strong” or “very strong” ratings, while 63% earned “weak” or “very weak” ratings.
  • Amazon.com and USAA’s insurance business earned ratings that were 20 points above their industry averages and eight other companies were at least 10 points above their peers: Kaiser Permanente, Advantage Rent A Car, eBay, QVC, USAA (bank), Sonic Drive-In, Charles Schwab, and Fidelity Investments.
  • Health Net and RadioShack earned ratings that were 20 points or more less than their industry averages and six other companies were at least 15 points below their peers: 21st Century, American Family, Days Inn, Taco Bell, and Kmart.

Temkin Group examined year-over-year results for the 154 companies that were in the 2012 and 2013 ratings and found that:

  • Forty-one percent of companies improved, while 53% declined.
  • Over half of the companies that were in the 2012 and 2013 ratings earned lower scores this year.
  • Eight companies showed double-digit increases: Humana, Old Navy, U.S. Bank, Citibank, TriCare, Blue Shield of California, Toyota, and Safeway.
  • Twenty-one companies declined by at least 10 points and six companies dropped by more than 15 points: Southwest Airlines, MSN, United Airlines, ShopRite, Cablevision, and Bright House Networks.

Industry Results

Here are some industry highlights:

2013TWERIndustries

  • Banks earned the highest average Temkin Web Experience Ratings, followed by investment firms, retailers, credit card issuers, and hotel chains.
  • Five industries earned average ratings of “very weak” ratings: Internet service providers, TV service providers, airlines, health plans, and wireless carriers.
  • Seven industries improved between 2012 and 2013., while nine declined. Airlines suffered the most dramatic drop, losing 15 points.

Calculating the Temkin Web Experience Ratings

During January 2013, Temkin Group asked 10,000 U.S. consumers to identify the companies that they had interacted with on their websites during the previous 60 days. These consumers were asked the following question:

Thinking back to your most recent interaction with the websites of these companies,
how satisfied were you with the experience?

Responses from 1= “very dissatisfied” to 7= “very satisfied”

For all companies with 100 or more consumer responses, we calculated the “net satisfaction” score. The Temkin Web Experience Ratings are calculated by taking the percentage of consumers that selected either “6” or “7” and subtracting the percentage of consumers that selected either “1,” “2,” or “3.”

Download entire dataset for $295

Temkin Ratings website

To see all of the companies in the Temkin Trust Ratings as ell as all of our other Temkin Ratings and sort through the results, visit the Temkin Ratings website

The bottom line: Web experiences are heading in the wrong direction.

USAA On Top (Again) in 2013 Temkin Trust Ratings

We just released the third annual Temkin Trust Ratings of 246 companies across 19 industries (see full list).

Download entire dataset for $295

Company Results

For the third straight year, USAA‘s insurance business earned the top ranking in the Temkin Trust Ratings. Here are additional highlights:

1306_13TrustTopBottom

  • Two of USAA’s business areas —insurance and banking—topped the list of companies. USAA’s credit card business also ranked sixth.
  • The other companies in the top 10 of the ratings are credit unions, Publix, H.E.B., Amazon.com, Trader Joe’s, Charles Schwab, and Sam’s Club.
  • HSBC earned two of the bottom three spots for its credit card and banking businesses.
  • TV service providers and Internet service providers dominate the bottom of the ratings, collectively taking 10 of the bottom 15 spots. The other companies in the bottom 15 are US Airways, CareFirst, and T-Mobile.

We also examined year-over-year results for 204 companies that were also in the 2012 Temkin Trust Ratings. Here are some highlights of that analysis:

  • Citigroup in credit cards and Hyundai earned the largest jump (21 points) over their 2012 Temkin Trust Ratings. The other largest gainers are Alaska Airlines, Bank of America in credit cards and banking, Continental Airlines, Avis, and EarthLink.
  • Cox Communications in TV service and Fifth Third in banking lost the most ground (17 points) since last year. The other largest decliners are HSBC in banking, PNC in banking, JCPenneyBright House Networks, and eMachines in computers.

Industry Results

Here are the highlights of the 19 industries in the 2013 Temkin Trust Ratings:

1306_13TrustIndustries

  • Grocery chains earn the most trust while TV service providers earn the least trust from their customers.
  • Six companies earned Temkin Trust Ratings that are 20 percentage points or more above their industry average: USAA (banking, credit cards, insurance carriers), credit unions (banking), TriCare (health plans), and Kaiser Permanente (health plans).
  • Four companies earned Temkin Trust Ratings that are 20 percentage points or more below their industry average: HSBC (banking and credit cards), US Airways (airlines), 21st Century (insurance carriers).
  • Led by credit card issuers and rental car agencies, 14 of the 18 industries in the 2012 and 2013 Temkin Trust Ratings improved over last year’s scores. The only four industries with declining ratings are TV service providers, retailers, appliance makers, and insurance carriers.

Calculating the Temkin Trust Ratings

During January 2013, Temkin Group asked consumers to identify companies that they have interacted with during the previous 60 days.  For a random subset of those companies, consumers are asked to rate companies as follows:

To what degree do you TRUST that these companies will take care of your needs?
Responses from 1= “do not trust at all” to 7= “completely trust”

For all companies with 100 or more consumer responses, we calculated the “net trust” score. The Temkin Trust Ratings are calculated by taking the percentage of consumers that selected either “6” or “7” and subtracting the percentage of consumers that selected either “1,” “2,” or “3.”

Download entire dataset for $295

Temkin Ratings website

To see all of the companies in the Temkin Trust Ratings as ell as all of our other Temkin Ratings and sort through the results, visit the Temkin Ratings website

The bottom line: Without a customer’s trust, it’s hard to expect her loyalty.

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