2012 Temkin Trust Ratings

Temkin Group has just released the 2012

We introduced the Temkin Trust Ratings last year to gauge which companies are earning this important element of loyalty. The 2012 Temkin Trust Ratings include 206 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: USAA, credit unions, H.E.B., Publix, Chick-fil-A, Sam’s Club, Hy-Vee and BMW. Of course, not every company has earned such a high degree of trust with their customers, especially the companies at the bottom of the 2012 ratings: Charter Communications, Citigroup, Bank of America, HSBC, Time Warner Cable, Comcast, and Qwest.

We also examined industry averages and found that grocery chains have earned the most trust from consumers followed by investment firms, retailers, and parcel delivery services. But consumers do not trust TV service providers, Internet service providers, or credit card issuers.

We examined how individual companies are rated relative to their industry peers. Twenty-one companies are 10 or more percentage points above their industry averages. The ones that are farthest out in front: USAA (34 above credit cards), credit unions (30 above banks), USAA (28 above banks), USAA (22 above insurers), and PNC (21 above banks).

Twenty-nine companies are at least 10 percentage points behind their industry averages. Here are the ones that fall the farthest behind: Bank of America (23 behind banks), Citibank (22 behind banks), Super 8 (19 behind hotels), Charter Communications (18 behind TV service providers),  Days Inn (18 behind hotels), and Citigroup (18 behind credit card issuers).

We also analyzed changes from the 2011 Temkin Trust Ratings. The research shows that consumers are more trusting this year than they were last year. Led by computer makers and insurance carriers, all 12 industries that were in both the 2011 and 2012 Temkin Trust Ratings showed improvement.

Fifty-two of the 139 companies that were in the 2011 and 2012 Temkin Trust Ratings earned double-digit improvements and six companies improved by more than 20 percentage points: USAA, PNC, Lenovo, credit unions, U.S. Bank, and HSBC. Seventeen companies lost ground over the last year with the biggest drops coming for Cox Communications, Bank of America, Citigroup, Edward Jones, TriCare, and Costco.

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: It’s hard to succeed without your customers’ trust

2012 Temkin Forgiveness Ratings

Temkin Group has just released the 2012
Every company makes mistakes now and then, but how willing are customers to forgive the company when it happens? Forgiveness is a valuable asset that companies earn by consistently meeting customers’ needs.

We introduced the Temkin Forgiveness Ratings last year to gauge which companies are earning this important element of loyalty. The 2012 Temkin Forgiveness Ratings include 206 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: USAA, Hyatt, credit unions, H.E.B., Hy-Vee, Dollar Rent A Car, Chick-fil-A, PublixCostco, and Amazon.com. Of course, not every company enjoys such a high degree of forgiveness from their customers, especially the companies at the bottom of the 2012 ratings: Citigroup, Charter Communications, HSBCChrysler dealers, EarthLink, Bank of America, Comcast, Quest, and US Airways.

We also examined industry averages and found that grocery chains have earned the most forgiveness from consumers followed by retailers, appliance makers, and parcel delivery services. But consumers are not very likely to forgive mistakes by credit card issuers, Internet service providers, and TV service providers.

We examined how individual companies are rated relative to their industry peers. USAA holds the top two spots, outpacing its credit card and banking peers by more than 30 percentage points. USAA also outpaces the insurance industry by more than 20 percentage points. Credit unions, Hyatt, US Cellular, Dollar Rent A Car, Chick-fil-A, and Bright House Networks are also more than 15 percentage points above their industry averages. Five companies fall 15 or more percentage points below their industry’s average Temkin Forgiveness Ratings: Chrysler dealers, Citigroup, Travelers, Charter Communications, and RadioShack.

We also analyzed changes from the 2011 Temkin Forgiveness Ratings. The research shows that consumers are more forgiving this year than they were last year. Led by banks and insurance carriers, all 12 industries that were in both the 2011 and 2012 Temkin Forgiveness Ratings showed improvement.
Sixty-eight of the 139 companies that were in the 2011 and 2012 Temkin Forgiveness Ratings earned double-digit improvements and four companies improved by more than 25 percentage points: TD Ameritrade, Lenovo, USAA, and credit unions. Ten companies lost ground over the last year with the biggest drops coming for Citigroup, Continental Airlines, Travelers, Sears, Holiday Inn Express, and The Hartford.

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: To err is possible, to earn forgiveness is divine

USAA and Credit Unions Are Highly Recommended

The 2012 Temkin Loyalty Ratings quantifies the loyalty of consumers to 206 companies across 18 industries based on a survey of 10,000 U.S. consumers. I examined one of the three elements of loyalty in the ratings: the likelihood to recommend.

When comparing company ratings to industry averages, it turns out that USAA earns the top two spots. In credit cards and banking, USAA’s Temkin Loyalty Ratings are at least 25 percentage points above their industry averages. Credit unions are next in line, 24 points above the banking average.

At the bottom of the list is Charter Communications, 23 points below the TV service industry average. RadioShack and Citibank also fall far behind their industries.

The bottom line: Will your customers recommend your firm?

Report: 2012 Temkin Loyalty Ratings

Access the data from all Temkin Ratings research at the Temkin Ratings website.

We just published a new Temkin Group report, 2012 Temkin Loyalty Ratings. The report analyzes feedback from 10,000 U.S. consumers to rate their loyalty to 206 organizations across 18 industries. Congratulations to the top firms in this year’s ratings: Sam’s ClubAldi, USAA, Publix, credit unions, and Amazon.com.

We added six industries (fast food chains, grocery chains, major appliances, car rental agencies, auto dealers, and parcel delivery services) and 63 companies compared with the 2011 Temkin Loyalty Ratings.

Here is the executive summary from the report:

Sam’s Club, Aldi, and USAA earned the top spots in the 2012 Temkin Loyalty Ratings while Citigroup (banking and credit cards) and Charter Communications (TV service and Internet service) each show up twice in the bottom four. We asked 10,000 U.S. consumers to rate their loyalty to companies across three dimensions: likely to recommend, reluctant to switch, and willing to repurchase. Their responses allowed us to rate the loyalty of customers to 206 companies across 18 industries. One-quarter of companies have “strong” or “very strong” ratings while 50% have “weak” or “very weak” ratings. At an industry level, grocery chains and retailers have the most loyal customers while internet service providers and TV service providers have the least loyal customers. USAA has the most loyal customers across three industries, banking, insurance, and credit cards. When comparing the results from the 2011 and 2012 Temkin Loyalty Ratings, we find that PNC and USAA improved the most and Kohl’s and Hyatt declined the most.

Download report for $195

The Temkin Loyalty Ratings are based on evaluating three components of loyalty:

  1. Recommending: How likely are consumers to recommend the company to friends and colleagues?
  2. Switching: How reluctant are consumers to switch business away from the company?
  3. Repurchasing: How willing are customers to purchase additional products and services from the company?

Here are the ratings for all 206 companies:

Here’s how the industries compare with each other:

Here are some other highlights from the research:

  • USAA (in their banking and credit card divisions) as well as credit unions (banking) outpaced their industry peers by more than 25 percentage points.
  • DHL and RadioShack are the furthest behind their peers, falling more than 20 percentage points below their industry averages.
  • Across the 12 industries we examined in both years, nine earned higher loyalty scores in 2012 and three showed a decline. Computer makers are at the top of the list of gainers while retailers had the largest decline.
  • Of the 139 companies that are included in both the 2011 and 2012 Temkin Loyalty Ratings, 84 firms made at least a small improvement in their scores. Led by PNC and USAA, 19 companies earned double-digit improvements over the last year.
  • Kohl’s and Hyatt are the only companies that declined by more than 10 percentage points over the previous year.

Download report for $195

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: Consumer loyalty remains up for grabs across most industries.

Schwab and Fidelity Top Customer Experience Ratings for Investments

This post examines the 12 investment firms included in the 2012 Temkin Experience Ratings.

Charles Schwab is the top rated investment firm and the only firm in the industry to receive a “good” rating. Fidelity Investments was close behind and leads six investment firms with “okay” ratings. The bottom five investment firms have “poor” customer experience ratings: Wells Fargo Advisors, TD Ameritrade, Morgan Stanley Smith Barney, Merrill Lynch, and E*TRADE.

The average ratings for the investment industry placed it 10th out of 18 industries in the study. Temkin Group also analyzed the changes between 2011 and 2012 and found that the investment industry has seen the sharpest decline in its customer experience ratings over the previous year.

Morgan Stanley Smith Barney and TD Ameritrade had the largest decline from last year’s Temkin Experience Ratings and five other investment firms also received lower ratings this year. Charles Schwab had the largest improvement in its customer experience score 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: The investment industry is heading in the wrong CX direction

Credit Unions and PNC Deliver Best Customer Experience in Banking

This post examines the 16 banks included in the 2012 Temkin Experience Ratings.

Credit unions, which are ranked third across all industries, as a group were the only bank to receive an excellent rating. Four banks earned “good” ratings: PNC, TD Bank, USAA, and ING Direct. Eight banks received “okay” ratings while three banks received “poor” ratings: Citibank, Bank of America, and HSBC.

The banking industry received the fifth highest average customer experience rating, falling behind grocery chains, fast food restaurants, retailers, and parcel delivery services. Compared with 2011, banks increased their ratings by three percentage points, an improvement that was only outdone by insurance carriers and personal computer makers. Thirteen of the 16 banks improved their customer experience ratings between 2011 and 2012.

Credit unions and PNC experienced double-digit increases in their ratings between 2011 and 2012 while ING Direct, TD Bank, and Fifth Third improved by more than five percentage points. Only Regions experienced a double-digit decline in its ratings between 2011 and 2012 and Citibank is the only other bank that declined by more than five percentage points.

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: Some big banks are heading in the wrong direction

Report: 2012 Temkin Experience Ratings

Access the data from all Temkin Ratings research at the Temkin Ratings website.

We just published a new report, 2012 Temkin Experience Ratings. The report analyzes feedback from 10,000 U.S. consumers to rate 206 organizations across 18 industries. Congratulations to the top firms in this year’s ratings: Sam’s ClubPublix, Starbucks, Subway, Chick-fil-A, Aldi, Winn-Dixie, H.E.B, and credit unions.

We added six industries (fast food chains, grocery chains, major appliances, car rental agencies, auto dealers, and parcel delivery services) and 63 companies compared with the 2011 Temkin Experience Ratings.

Here is the executive summary from the report:

Sam’s Club and Publix earned the top two spots in the 2012 Temkin Experience Rankings, with three fast food chains rounding out the top five. We asked 10,000 U.S. consumers to rate their recent interactions with companies across three dimensions of their experience: functional, accessible, and emotional. Their responses allowed us to rate 206 companies across 18 industries. Only 28% of those companies received at least a “good” rating. Grocery chains earned the highest average scores and health plans dominated the bottom of the ratings. Kaiser Permanente and credit unions most outperformed their industries while DHL and RadioShack fell the farthest behind their peers. None of the companies earned an “excellent” rating for the emotional component, while Charter Communications and Earthlink lead 10 companies falling below the “very poor” threshold in that area. Compared with last year’s ratings, most industries improved, led by a 5.3 point average increase by insurance carriers. When it comes to changes over the past year by individual firms, PNC and Lenovo improved the most while Regions Bank had the sharpest decline.

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The Temkin Experience Ratings are based on evaluating three elements of experience:

  1. Functional: How well do experiences meet customers’ needs?
  2. Accessible: How easy is it for customers to do what they want to do?
  3. Emotional: How do customers feel about the experiences?

Here are the ratings for all 206 companies:

Here’s how the industries compare with each other:

Here are the companies that are leaders across the 18 industries:

Download report for FREE

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: Customer experience is improving, but there’s a long way to go

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!

Regions Delivers Top Banking Experience

In The 2011 Temkin Experience Ratings, we examined the customer experience across 12 industries. For this post, we will take a closer look at the 16 banks in the ratings.

Banks, as a group, had an average rating of “Okay” and ended up in the middle of the pack; the 5th ranked industry out of 12…

Let’s take closer look at the results for all of the individual banks…

As you can see, Regions is the only bank with a “Good” customer experience rating, but is closely followed by USAA, credit unions (as a group), and TD. At the other end of the spectrum, five banks ended up with “Poor” overall customer experience ratings: HSBC, Citibank, Capital One, Bank Of America, and Citizens.

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

While 10 of the 16 banks crossed the “Good” line for the Functional component of their experience, only the top three made it to that level for the Accessible component.

For more access to the data, visit the Temkin Ratings website.

The bottom line: Banks need to make it easier for customers

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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.

Barnes & Noble, Kohl’s, and Marriott Top Customer Service Ratings

In a new report called Rating Customer Service Experiences, 2010, I analyzed how 4,600+ US consumers rated their customer service experiences with 92 large companies across 14 industries. Led by Barnes & Noble, Kohl’s, and Marriott, 24 companies received a Net Satisfaction Score* of 80% or higher.

At the other end of the spectrum, 10 firms had Net Satisfaction Scores below 50%: Charter Communications, Comcast, Washington Mutual, United Healthcare, Aetna, Citigroup, AOL, HSBC, Bank of America, and Capital One.

The absolute scores tell only a part of the story. We also compared the customer service rating for each company with the average for its industry. It turns out that credit unions, Kaiser, and Apple led 25 firms that were five or more percentage points above their peers.

At the other end of the spectrum, 11 firms fell more than 10 percentage points below their industry average: Washington Mutual, Charter Communications, Bank of America, Citigroup, HSBC, United Healthcare, JP Morgan Chase, Aetna, Capital One, United Airlines, and Office Depot.

I also examined the ratings given by different generations of consumers. In 10 of the 14 industries, Seniors were the most satisfied with customer service. For nine of the industries, Gen Y were the least satisfied.

*Net Satisfaction Score: We asked consumers to rate their customer service experiences on a 5-point satisfaction scale. To create the Net Satisfaction 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: Focus on customer service in 2010.

Credit Unions And SunTrust Lead Banks In Customer Experience

Forrester’s 2010 Customer Experience Index (CxPi) ranks 133 firms across 14 industries. I recently published the bank analysis which examines the 13 banks in the CxPi. Here are the overall results:

As a group, the banks were in the middle of the pack of industries with an “okay” average rating of 66%. But banks had the largest drop of any industry, down five percentage points from the 2008 CxPi. Here are some insights from looking at the banking results:

  • The best bank customer experience. Credit unions and SunTrust Bank up well above the other 11 banks on the list.
  • The worst bank customer experience. At the bottom of the list, three banks ended up with “very poor” ratings: Washington Mutual, Bank of America, and Capital One.
  • Most banks declined. Of the 11 banks that were also ranked in 2008, only three of them improved: SunTrust Bank, Wachovia, and U.S. Bancorp. Going in the other direction, Bank of America, Washington Mutual, and Wells Fargo had double-digit declines.
  • Capital One and Bank Of America and Citibank aren’t enjoyable. The CxPi has three underlying components: 1) meeting needs, 2) being easy to work with, and 3) enjoyability. Three banks tied for the bottom of the “enjoyability” ratings: Bank of America, Capital One, and Citibank.

The bottom line: Banks headed in the wrong direction in 2009

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.

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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.

Vanguard And Credit Unions Top Investment Experiences

In Forrester’s 2008 Customer Experience Index (CxPi), we ranked 113 companies across 12 industries. I recently published a snapshot of the investment industry looking at the results from the seven firms on the list (Charles Schwab, credit unions, Edward Jones, Fidelity, Merrill Lynch, Vanguard, and “other” full service brokers). Here’s some of what we found:

  • Experiences are “okay.” As a group, the seven firms ended up with an “okay” rating of 69%; a drop of three percentage points from the 2007 CxPi results.
  • Vanguard and credit unions lead the pack. With the only “good” scores on the list, Vanguard and credit unions ended up with a rating of 77%. Not only were these the highest rated investment firms, but they were also the only ones to show an improvement from 2007.
  • Merrill Lynch takes the bottom. With the only poor rating in the group, Merrill Lynch ended up with the lowest score. It also ended up with the largest drop from 2007, eight percentage points. Edward Jones’ decline wasn’t far behind, dropping seven points.
  • Enjoyability took a hit. Three of the four double-digit declines in the underlying CxPi elements were in the enjoyability components for Edward Jones, Merrill Lynch, and “other” full service brokers. The other large decline came in Merrill Lynch’s meeting needs score.

The bottom line: Investment firms should get bullish on customer experience

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