Chick-fil-A and Papa John’s Lead Fast Food in Customer Experience

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

Chick-fil-A took the top spot for the fourth year in a row, earning a rating of 82%, which put it in 4th place out of 293 companies across 20 industries. Papa John’s—a newcomer to the Ratings—came in second with a rating of 81% and an overall ranking of 8th. Four other fast food chains earned an “excellent” rating: Dairy Queen, Panera Bread, Subway, and Sonic Drive-In. The only fast food company not to receive at least a “good” score was Jack in the Box, who received a rating of 67% and placed 128th overall.

Overall, the fast food industry averaged a 76% rating in the 2015 Temkin Experience Ratings and came in 2nd place out of 20 industries. It was also one of the 14 industries whose ratings declined in the past year, with its average decreasing by 2.0 percentage-points.

Here are some additional findings:

  • The ratings of all fast food chains in the Ratings are as follows: Chick-fil-A (82%), Papa John’s (81%), Dairy Queen (80%), Panera Bread (80%), Subway (80%), Sonic Drive-In (80%), Dunkin’ Donuts (78%), Pizza Hut (78%), Popeye’s (78%), Taco Bell (78%), Starbucks (77%), Chipotle Mexican Grill (77%), Wendy’s (77%), Arby’s (76%), Little Caesar’s (75%), Domino’s (74%), Panda Express (74%), KFC (74%), Burger King (73%), Hardees (72%), McDonalds (72%), and Jack in the Box (67%).
  • Dunkin’ Donuts (+2 points) and Taco Bell (+1 point) were the only fast food companies to improve their ratings between 2014 and 2015.
  • Jack in the Box (-9 points), Burger King (-7 points), Little Caesar’s (-5 points), and Domino’s (-5 points) declined by the most percentage-points between 2014 and 2015.

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H-E-B and Trader Joe’s Earn Highest Emotion Ratings

In a previous post, I defined the three elements of an experience: Success, Effort, and Emotion.

Emotion is a significant blind spot for most organizations. In the Temkin Group report State of CX Metrics, 2013, we found that only 11% of large companies feel that they do a very good job of measuring customers’ emotional responses. Our ROI of Customer Experience, 2014 shows that emotion is the most significant driver of loyalty, especially when it comes to consumers recommending firms to their friends.

We’ve been measuring emotion as part of our Temkin Experience Ratings for four years. Our emotion rating is based on asking consumers the following question:

Thinking of your most recent interactions with each of these companies, how did you feel about those interactions?

Responses range from 1 (upset) to 7 (delighted) and the emotion rating is calculated as the percentage of consumers who select 6 or 7 minus the percentage who select 1, 2, or 3.

As you can see in the list of leaders and laggards below (from ratings of 268 companies across 19 industries based on a survey of 10,000 U.S. consumers), H-E-B earned the highest overall emotion rating of 84%, outpacing second place Trader Joe’s by three points.

At the other end of the spectrum, Empire BCBS earned the l0west rating of 31% and several companies were just slightly better with 32%: Comcast (Internet and TV service), Charter Communications, and US Cellular.

1411_EmotionLeadersLaggards

The bottom line: Stop ignoring how your customers feel.

H-E-B Earns Highest Effort Rating, Medicaid Earns Lowest

In a previous post, I defined the three elements of an experience: Success, Effort, and Emotion. We’ve been measuring each of these areas as part of our Temkin Experience Ratings for four years. So I decided to share some insights from the effort ratings component of those overall ratings (you can see this data as part of the Temkin Experience Ratings datasets).

As you can see in the charts below (from ratings of 268 companies across 19 industries based on a survey of 10,000 U.S. consumers):

  • H-E-BFood LionBurger KingChick-fil-APublixcredit unionsSonic Drive-InTrader Joe’sDairy QueenKroger, Little Caesar’sStarbucksPiggly Wiggly, and Regions have the highest effort ratings.
  • MedicaidEmpire (BCBS), Coventry Health CareHighmark (BCBS), Motel 6Super 8Residence InnHitachiHaierComcastUS Airways, and Chrysler have the lowest effort ratings.
  • Grocery chains and fast food chains have the highest average effort ratings while health plans, TV service providers, Internet service providers, and hotels have the lowest.
  • Led by a five point improvement in credit cards, 13 out of the 19 industries improved between 2013 and 2014.
  • Hotels dropped eight points from 2013 to 2014, by far the largest of the three industries that declined. the others: parcel delivery services and retailers.

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Congrats To Industry Leaders in Customer Service

Since today is the last day of Customer Service Week, I’m give a shout out to industry leaders in the 2014 Temkin Customer Service Ratings. The chart below shows the leaders across 19 industries, along with where they ranked compared with the 233 companies in the ratings.

1410_TCSR_IndustryLeaders

The bottom line: Happy Customer Service Week!

 

Chick-fil-A and Sonic Drive-In Lead Fast Food Industry 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.

Chick-fil-A led the food chains for the third year in a row, landing it in 3rd place overall out of 268 companies across 19 industries. Sonic Drive-In came in a very close second with an overall ranking of 5th. Five other fast food chains earned an “excellent” rating:  Dairy Queen, Starbucks, Little Caesar’s, Subway, and Burger King. The food chains with the lowest rated customer experience are McDonalds, Baskin Robins, and Orange Julius.

Download entire dataset for $395

FastFoodsA
Here are some additional findings from the fast food industry: Read more of this post

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).

Download report for $195
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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.

Download report for $195
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The bottom line: Make sure to recover quickly after a bad experience

Congratulations to Customer Service Industry Leaders

Today is the first day of Customer Service Week, so it’s a great opportunity to once again congratulate the industry leaders in the 2013 Temkin Customer Service Ratings (60% or more is a strong score):

  • Airlines: Alaska Airlines (67%)
  • Appliance maker: WhirlpoolSamsung (51%)
  • Auto dealer: Toyota (62%)
  • Bank: USAA (75%)
  • Computer maker: Apple (57%)
  • Credit card issuer: USAA (63%)
  • Fast food chain: Chick-fil-A (70%)
  • Grocery chain: Hy-VeeTrader Joe’s (69%)
  • Health plan: Kaiser PermanenteTriCare (59%)
  • Hotel chain: Marriott (65%)
  • Insurance carrier: USAA (76%)
  • Internet service: AOL (47%)
  • Investment firm: Charles Schwab (71%)
  • Parcel delivery: FedEx (58%)
  • Rental car agency: Advantage (68%)
  • Retailer: Ace Hardware (71%)
  • Software firm: Blackboard (56%)
  • TV service: Bright House Networks (46%)
  • Wireless carrier: Virgin Mobile (46%)

I also want to congratulate the organizations that are improving. These firms earned 2013 Temkin Customer Service Ratings that are 15 percentage points or more higher than their 2012 ratings: Citibank, U.S. Bank, Hyundai, Nissan. Citigroup, and Old Navy.

It’s also a good time to reiterate the distinction between customer service and customer experience. I like what Amazon.com’s CEO Jeff Bezos had to say on this topic:

Internally, customer service is a component of customer experience. Customer experience includes having the lowest price, having the fastest delivery, having it reliable enough so that you don’t need to contact [anyone]. Then you save customer service for those truly unusual situations. You know, I got my book and it’s missing pages 47 through 58

The bottom line: Happy Customer Service Week!

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