Report: Net Promoter Score Benchmark Study, 2012

We just published a Temkin Group report, Net Promoter Score Benchmark Study, 2012. It provides NPS data on 175 U.S. companies across 19 industries. Here’s the executive summary:

USAA took the top two spots for its banking and insurance businesses while HSBC came in at the bottom for banking and credit cards. Our analysis of differences across consumer demographic segments showed that NPS tends to go up with age, doesn’t vary much by income levels, and is often highest with Asians. We also asked consumers what would make them more likely to recommend the companies and found that promoters are more likely to select lower prices and detractors are more likely to select better customer service. While there is some debate about the efficacy of NPS, our analysis shows that promoters are much more likely than detractors to purchase more in the future across all industries. 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.

Download report for $295
(includes the data)

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.

The report contains the following components:

  • NPS for 175 companies across 19 industries
  • NPS differences based on age, income, and ethnicity of consumers
  • Improvement areas selected by promoters and detractors by industry
  • Connection between NPS and future purchases by industry
  • Eight tips for implementing a successful NPS program

Figure1Figure4

Download report for $295
(Includes the data)

The bottom line:  Companies need to give customers a reason to recommend them

2012 Temkin Web Experience Ratings

Temkin Group has just released the 2012
We introduced the Temkin Web Experience Ratings last year. The 2012 Web Experience Ratings include 159 companies from 18 industries and is based on a survey of 10,000 U.S. consumers.

Congratulations to the top firms in this year’s ratings: Amazon, credit unions, USAA, PNC, Southwest Airlines, eBay, Sam’s Club, ShopRite, JCPenney, and ING Direct. Of course, not every company has earned good web experience, especially the companies at the bottom of the 2012 ratings:  Charter Communications, Humana, Qwest, Cigna, Time Warner Cable, Anthem, Road Runner, Medicare, Blue Shield of CA, and TracFone.

We also  examined industry averages and found that banks and investment firms have earned the highest Temkin Web Experience Ratings followed by hotel chains and retailers. But consumers gave very low ratings to Internet service providers, health plans, and TV service providers.

The research also examines how individual companies are rated relative to their industry peers. The following 11 firms outscored their industry average Temkin Web Experience Ratings by 10 percentage points or more: Kaiser Permanente, Amazon, ShopRite, Southwest Airlines, USAA, Starbucks, H.E.B., Publix, credit unions, Marriott, and Apple.

The following 15 companies fell 10 percentage points or more below their industry averages: Wells Fargo Advisors, AAA, Charter Communications, Delta Airlines, Citibank, Bank of America, Humana, TracFone, Qwest, Old Navy, U.S. Airways, Rite Aid, Kohl’s, Kmart, and Charter Communications.

Temkin Group also analyzed changes from the 2011 Temkin Web Experience Ratings. Led by TV service providers and insurance carriers 11 of the 12 industries that were in both the 2011 and 2012 ratings improved since last year.

Seventy-two percent of companies that were in the 2011 and 2012 Temkin Web Experience Ratings showed improvement. Led by Comcast (Internet and TV service), Allstate, AOL, Charter Communications, Toshiba, and Sam’s Club, 20 companies improved by 10 percentage points or more between 2011 and 2012. Only three companies­— Kohl’s, TracFone, and Rite Aid—declined by 10 percentage points or more during that timeframe.

Do you want to see the data? Go to the Temkin Ratings website where you can sort through all of the results for free. You can even purchase the underlying data if you want to get more access.

The bottom line: Web experience is not good enough for how important it is

Sam’s Club and Amazon Deliver Best Customer Experience in Retail

This post examines the 24 retailers included in the 2012 Temkin Experience Ratings.

Sam’s Club was the top rated company across all industries and only one of eight organizations with an “excellent” rating. Five other retailers were in the top 20 positions in the overall rankings: Amazon.com (#10), Target (#14), Walgreens (#14), BJs Wholesale Club (#18), and Lowe’s (#18).

The retail industry received the third highest average customer experience rating, falling only behind grocery chains and fast food restaurants. Despite the strong performance of the industry, one retailer, RadioShack, earned a “poor” rating while seven other retailers at the bottom of the list received “okay” ratings: Office Depot, eBay, Barnes & Noble, Sears, Kmart, Best Buy, and Macy’s. The remaining retailers earned “good” ratings.

While most industries showed improvement between 2011 and 2012, retailers were one of four industries that registered a slight decline. Sam’s Club and Toys “R” Us are the only two retailers with more than a five-point increase in their ratings between 2011 and 2012. Kohl’s and Costco are the only two retailers with more than a five-point decrease in their ratings between 2011 and 2012.

Do you want to see the data? Go to the Temkin Ratings website where you can sort through all of the results for free. You can even purchase the underlying data if you want to get more access.

The bottom line: There’s a wide gap between good and bad in retail CX

Kudos To Customer Service Leaders

The annual Customer Service Week starts today and goes through Friday (10/7). Given the occasion, it seems like a good opportunity to acknowledge some of the better performers in our 2011 Temkin Customer Service Ratings, which ranks 129 large companies across 12 industries.

First of all, kudos to the top 25 companies in the ratings. led by USAA, Edward Jones, Courtyard by Marriott, and Sam’s Club:

But, overall, companies aren’t very good at customer service and there is a wide difference across industries…

…so I want to give a shout out to companies that most outperformed their industry averages. Led by USAA, Southwest Airlines, Discover, American Express, and Edward Jones here are the top 25:

The bottom line: Happy customer service week!

Amazon.com Leads, RadioShack Lags Retail Customer Experience

In the 2011 Temkin Experience Ratings, we examined the customer experience across 12 industries. Retail is the highest rated industry with an average rating of “good.” Here are the results for all 27 retailers that we rated…

As you can see, Amazon.com and Kohl’s are the only retailers with “excellent” ratings. At the other end of the spectrum, RadioShack is the only retailer with a “poor” rating. There are some interesting differences on the list:

  • Gap can learn from its much higher scoring “sister brand” Old Navy
  • Costco, Sam’s Club, and BJs Wholesale all score highly
  • Walgreens outpaces Rite Aid and CVS
  • Kohl’s has a five point gap over Target
  • Lowe’s has a six point gap over Home Depot 
  • Wal-Mart has a six point gap over Kmart

Let’s take a look at the three components of the Temkin Experience Ratings…

Costco and Amazon.com are the top retailers when it comes to the functional element of experience while Kohl’s  is the top-performing retailer when it comes to accessible experience. Best Buy falls below the good line for “functional” experience while Gap and Radio Shack fall below the good line for “functional” and “accessible” experience. All three of those laggards also score poorly when it comes to “emotional” experience.

The bottom line: Not all retailers are created equal

Report: 2011 Temkin Loyalty Ratings

We just published a new Temkin Group report, 2011 Temkin Loyalty Ratings.

The report identifies the level of loyalty that US consumers have for 143 organizations across 12 industries.

Here’s the executive summary:

Amazon.com, Kohl’s, and Costco took the top spots in the 2011 Temkin Loyalty Ratings. We asked 6,000 US consumers to rate their level of loyalty to companies across three components: purchasing additional products and services, reluctance to switch business away, and likelihood to recommend the company to friends and relatives. This data allowed us to rate 143 companies across 12 industries. Only 17% of those companies received a “strong” or “very strong” loyalty rating. The results show that retailers have the highest level of loyalty while TV service providers and health plans have the lowest.

Download report for $195

First of all, let me give a shoutout to the five companies with the highest ratings, indicating that they have the most loyal customers:

  • 1. Amazon.com
  • 2. Kohl’s
  • 3. Costco
  • 4. (tie) Lowe’s
  • 4. (tie) Sam’s Club

Here’s a list of the top 20 companies in the ratings. Click on the graphic below or click right here if you want to see the results for all 143 companies.

The Temkin Loyalty Ratings are calculated by examining three levels of loyalty that companies have earned from consumers: willingness to buy more products, reluctance to switch business away from, and likelihood to recommend those companies.

Overall, consumers don’t have a strong degree of loyalty across many industries. Retailers, by far, earn the highest levels of loyalty. TV Service providers and Internet Service providers, on the other hand, have earned woefully little loyalty with consumers.

Here are some of the other findings from the research:

  • Results versus industry averagesLed by USAA (insurance and credit cards), TriCare (health plans), credit unions (banks), and Southwest Airlines, 12 companies had double-digit advantages in loyalty over their industry. At the other end of the spectrum, Radio Shack (retailers), Super 8 (hotel chains), and Gap (retailers) led 18 companies with loyalty scores at least 10 points below their industry averages.
  • “Recommending” leaders and laggardsLed by Costco and Amazon.com, 36 companies have “very strong” ratings for consumers that are likely to recommend them to friends and colleagues. At the other end of the spectrum, Charter Communications, Anthem, and Comcast are the only firms with a “very weak” rating in this area.
  • “Switching” leaders and laggards. While no companies have very strong ratings for customers that are reluctant to switch, TriCare and USAA lead the five companies that have a “strong” rating in this area. Blue Shield Of California and Lenovo are at the low-end of the spectrum along with 12 other companies that have negative ratings in this area.
  • “Repurchasing” leaders and laggards. When it comes to having customers who are likely to purchase something else from them, Amazon.com and Old Navy lead 21 companies with “very strong” loyalty ratings in this area. HSBC and Charter Communications are two of the seven companies that didn’t even cross the 20% mark in this area.

Download report for $195

For access to more data, you can visit Temkin Ratings Website.

Now that we’ve published the Temkin Loyalty Ratings and the Temkin Experience Ratings, we’re analyzing the correlation between the two datasets. Look for out upcoming report: Customer Experience And Loyalty: Connecting The Dots

The bottom line: Loyalty is up for grabs!

Customer Service Is The Worst Touchpoint

I recently published a report called Experiences Across the Customer Lifecycle that examines how satisfied US consumers are with four interactions (researching a product/service, purchasing a product/service, using a product/service, getting customer service) across 14 industries.

In 12 of the 14 industries, customer service was the lowest (or tied for lowest) rated interaction. Across all four touchpoints, hotels are at the top and health plans are at the bottom. Here are some of the highlights from the analysis:

I also examined how consumers rated individual companies. Here’s a shout-out to the companies that outperformed their industry averages by more than 10 percentage points:

  • Researching a product/service: Credit unions, American Express, AT&T, DirecTV, USAA, Amazon.com, Verizon, and Barnes & Noble.
  • Purchasing a product/service: Credit unions, American Express, Medicare, Vanguard, Visa, Apple, Aol, Southwest Airlines, and ING Direct.
  • Using a product/service: Credit unions, Apple, Medicare, USAA, and Toshiba.
  • Getting customer service: Credit unions, Kaiser, Apple, Cox Communications, American Express, Visa, USAA, Barnes & Noble, Marriott, Kohl’s, Southwest Airlines, and Verizon.

The bottom line: The entire customer lifecycle needs and upgrade, especially customer service.

Which Companies Do Consumers Recommend The Most?

I recently published a research report called Consumers’ Likelihood To Recommend 133 Firms that examines how loyal consumers are to 133 firms across 14 industries (the same firms that are in the 2010 Customer Experience Index). Based on surveying more than 4,600 US consumers, I created a metric called Net Recommendations*.

Here are the top 10 firms and their Net Recommendations rates:

  • Barnes & Noble (86%)
  • Amazon (81%)
  • eBay (81%)
  • Vanguard (79%)
  • Kohl’s (79%)
  • USAA (78%)
  • Apple (77%)
  • BJs Wholesale Club (76%)
  • Marriott Hotels & Resorts (75%)
  • Costco (75%)

To get a more complete picture of which firms are generating loyal customers, I compared the Net Recommendations score for each company to its industry average. The top five on the list are credit unions, Sun Trust Bank, JetBlue, Vanguard, and Kaiser.  Here are the 25 firms that were 10 points or more above their peers:

 

 

*Net Recommendations: We asked consumers how likely they were to recommend firms to a friend or colleague on a 5-point scale from (1) not at all likely to (5) very likely. To create the Net Recommendations score, we took the percentage of consumers who gave the company a “4″ or “5″ and subtracted the percentage of consumers that gave the company a “1″ or “2.”

The bottom line: Does your business generate enough recommendations?

Barnes & Noble Leads Retailers In Customer Experience

My research plan for Forrester’s 2010 Customer Experience Index (CxPi) includes an analysis of all 14 industries in the rankings. I recently published the retail analysis which examines the 25 retailers (out of 133 total companies) in the CxPi. Here are the overall results: 

As a group, the retailers did quite well; grabbing 12 out of the top 20 spots in the rankings. Retailers also showed a modest improvement over the 2008 CxPi. Here are some insights from looking at the retail results:

  • The best retail customer experience. At the top of the list, 7 retailers ended up with “excellent” ratings: Barnes & Noble, Amazon.com, Kohl’s, JCPenney, Macy’s, BJs Wholesale Club, and Costco Wholesale.
  • The worst retail customer experience. At the bottom of the list, 2 retailers ended up with “okay” ratings: Office Depot and Marshalls.
  • Best Buy & Macy’s got better. When we compared the 2010 results with those of the 2008 CxPi, we found that nine retailers improved. Best Buy and Macy’s made the largest gains. Going in the other direction, Toys “R” Us, Old Navy, Borders, and Staples had the largest declines.
  • Wal-Mart and  Office Depot aren’t enjoyable. The CxPi contains three underlying components: 1) meeting needs, 2) being easy to work with, and 3) enjoyability. There were only 2 ratings that fell below “okay” in any of those three areas: Both Wal-Mart and Office Depot received “poor” ratings for “enjoyability.”
  • iTunes is most difficult to work with. 24 of the retailers received “good” or “excellent” ratings in the second area, being easy to work with. The lone exception: Apple iTunes received only an “okay” rating.

The bottom line: Retailers are good, but not great in customer experience

Forrester’s 2010 Customer Experience Rankings

This is our third year publishing the CxPi. The 2007 CxPi and the 2008 CxPi rankings were published in Q4. We decided to publish this year’s CxPi in Q1 2010, so we don’t have a 2009 CxPi.

The 2010 CxPi ranks 133 organizations across 14 industries: Airlines, Banks, Credit Card Providers, Health Plans, Hotels, Insurance Firms, Internet Service Providers, Investment Firms, Parcel Shipping Services (new this year), PC Manufacturers, Retailers, TV Service Providers, Utilities (new this year), and Wireless Carriers.

The CxPi is based on consumer evaluations during November 2009 across three areas: 1) meeting needs; 2) being easy to work with; and 3) enjoyability (see the methodology section below).

Here are the full 2010 CxPi rankings

Barnes & Noble took the top spot in the CxPi rankings for the second year in a row. Marriot Hotels, Hampton Inn, Amazon.com, and Holiday Inn Express round out the top 5. At the other end of the spectrum, Charter Communications landed at the bottom of the CxPi rankings for the third year in a row. Here are some additional insights about the overall results:

  • Retailers take 12 out of the top 20 spots. Most of the top rated companies on the list are retailers. Hotels also grabbed three of the top 20 spots. Interestingly, three financial services firms also cracked the top 20: credit unions, SunTrust Bank, and Vanguard.
  • Healthcare, Internet and TV services dominate the bottom. The bottom 11 companies on the list came from only four industries: five health insurance plans (United Healthcare, Medicaid, Anthem, and CIGNA), three ISPs (Charter Communications, Comcast, and Qwest), two TV service providers (Charter Communications and Comcast), and one credit card provider (HSBC).
  • There was very little excellence. Only 13 firms ended up with an “excellent,” and 35 received a “good” rating. 40 companies fell in the middle with “okay” ratings. At the bottom of the list, 45 received either a “poor” or “very poor” rating.
  • Liberty Mutual improved the most. When we compared firms’ 2010 CxPi with last year’s results, we found that 22 companies had improved by at least five percentage points. Led by Liberty Mutual’s 15 percentage point increase, five firms even had double-digit improvements (Comfort Inn, Sprint, and Time Warner Cable).

CxPi Results Across Industries

We also looked at the overall results for the 14 industries included in the CxPi.

Read more of this post

World Usability Day Shoutout To 25 Firms

In honor of World Usability Day (WUD) 2009, I’m publishing a second post today. As part of our annual Customer Experience Rankings, we get consumers to answer several questions about their experiences with companies. One of those questions is “How easy is it to work with this firm?

For our analysis, we take the percentage of consumers that say the company was easy to work with and subtract the percentage that say the company was difficult to work with. Using this net score, we ranked 113 companies. Here are the top 25 firms from last year’s rankings:

(Forrester) Top 25 Firms In Ease Of Use from 2008 CxPi

We just got the data back from our 2009 survey, so I am about to start the analysis for this year’s Customer Experience Index rankings. Look for the results in early December.

The bottom line: Every company should strive to be easier to work with.

Web Satisfaction Snapshot- USAA, Amazon.com, and Barnes & Noble Top The List

We asked more than 4,500 US consumers about their satisfaction with experiences across 12 different industries: airlines, banks, cell phone service providers, credit card providers, hotels, insurance firms, Internet service providers, investment firms, medical insurance companies, PC manufacturers, retailers, and TV service providers. Our analysis looked at phone, store/branch, and Web interactions.

Satisfaction With Web Interactions

Here are some highlights of consumer feedback on Web interactions. The analysis looked at satisfaction rates at an industry level and changes from last year’s results, examined satisfaction for individual companies, and compared responses across generations of consumers.

  • Highest industry satisfaction: Banks (84%) and credit card providers (84%)
  • Lowest industry satisfaction: Heath plans (66%) and wireless carriers (66%)
  • Most improved industry: Banks (improved 1%)
  • Least improved industry: TV service providers (declined 6%)
  • Highest company satisfaction: USAA (93%), Amazon.com  (93%), Barnes & Noble  (93%), eBay  (92%), Southwest Airlines  (91%), and Hilton Hotels  (91%) 
  • Lowest company satisfaction: Comcast- TV (60%), Sprint (61%), Time Warner Cable (62%), Medicare (62%), Comcast- ISP (62%), and AAA (64%).
  • Most satisfied generation: Seniors were most satisfied for eight of the industries
  • Least satisfied generation: Gen Yers were least satisfied for seven of the industries
  • Largest generation gap: Airlines (Seniors at 91% versus Gen Y at 73%)

The bottom line: What’s it like when customers go to your Websites?

In-Person Satisfaction Snapshot- Costco, Barnes & Noble, and Marriott Top The List

We asked more than 4,500 US consumers about their satisfaction with experiences across 12 different industries: airlines, banks, cell phone service providers, credit card providers, hotels, insurance firms, Internet service providers, investment firms, medical insurance companies, PC manufacturers, retailers, and TV service providers. Our analysis looked at phone, store/branch, and Web interactions.

Satisfaction with Store Interactions

Here are some highlights of consumer feedback on in-person interactions. The analysis looked at satisfaction rates at an industry level and changes from last year’s results, examined satisfaction for individual companies, and compared responses across generations of consumers.

  • Highest industry satisfaction: Retailers (88%)
  • Lowest industry satisfaction: Heath plans (69%) and TV service providers (69%)
  • Most improved industry: Credit card providers (improved 6%)
  • Least improved industry: Internet service providers (declined 7%) and health plans (declined 7%)
  • Highest company satisfaction: Costco (94%), Barnes & Noble (94%), Marriott (94%), Old Navy (93%), credit unions (93%), and Sam’s Club (93%) 
  • Lowest company satisfaction: Time Warner Cable (61%), Road Runner (63%), Sprint (64%), and Comcast (66%)
  • Most satisfied generation: Seniors and Gen Y were most satisfied for four of the industries
  • Least satisfied generation: Gen Yers were least satisfied for six of the industries
  • Largest generation gap: Banks (Gen Y at 86% versus Younger Boomers at 68%)

The bottom line: What’s it like when customers come to see you?

Barnes & Noble Tops Retail Customer Experience List

As a part of my effort to examine the industry results from Forrester’s Customer Experience Index (CxPi), I recently published a research report called Customer Experience Index 2008 Snapshot: Retail analyzing the 25 retailers in the rankings. Here are some of the findings:

  • Retailers did well. As a group, the retailers received a “good” rating of 81% and ended up taking 9 of the 10 top spots in the overall rankings. The industy had the second highest increase from last year’s rankings (behind only banks).
  • Books lead. Barnes & Noble replaced Costco at the top of the 2008 CxPi rankings, and the next two retailers near the top of the rankings were also booksellers: Borders and Amazon.com.
  • Electronics lag. The electronics retailers Best Buy, Circuit City, and Radio Shack ended up tied for next to last place in the retail list.
  • Depots disappoint. In many cases, retailers in the same sectors ended up with very similar CxPi scores. But there were a couple of notable exceptions: Staples ended up 9% higher than Office Depot, and Lowe’s ended up 5% higher than The Home Depot.
  • Barnes & Noble and Office Depot lead opposite trajectories. Comparing results from last year, Barnes & Noble showed the largest improvement while Office Depot had the largest decline.

The bottom line: Retailers are good, but could be much better.

Amazon.Com, Barnes & Noble Top Hispanic Customer Experience Index

We recently published the 2008 US Hispanic Customer Experience Index (thanks to Tamara Barber who researches Hispanic consumers). Unlike the overall US Customer Experience Index (CxPi) that examined 114 firms across 12 industries, the Hispanic CxPi ranked 37 US firms across three industries (retailers, retail banks, and credit card providers) based on a survey of 3,370 US Hispanics. Here are the rankings:

2008-hispanic-cxpi_small

The bottom line: Financial institutions don’t satisfy Hispanic consumers.

%d bloggers like this: