Report: 2011 Temkin Customer Service Ratings

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

Companies are recognizing that customer service is more than a cost-center; it’s often a critical moment of truth that drives customer loyalty. But how effective are companies at delivering good customer service experiences?

Here’s the executive summary:

USAA and Edward Jones took the top spots in the 2011 Temkin Customer Service Ratings. We asked 6,000 US consumers to rate their recent customer service experience. This data allowed us to rate 129 companies across 12 industries. Only 12 of those companies received a “strong” customer service rating. Retailers, hotel chains, and investment firms have the highest average rating, while Internet and TV Service Providers are squarely at the bottom of the ratings. To improve customer service, companies should look at the experience holistically, using Temkin Group’s SLICE-B methodology.

Download report for $195

First of all, kudos to the top 10 firms in the ratings:

1. USAA (insurance)
2. Edward Jones (investments)
3. Courtyard By Marriott (hotels)
3. Sam’s Club (retail)
5. Kohl’s (retail)
5. Lowe’s (retail)
5. Marriott (hotels)
8. BJ’s Wholesale Club (retail)
8. Costco (retail)
8. Hyatt (hotels)

Here are the results across industries:

The report also looks at how companies perform relative to these industry averages. In that analysis, we find that USAA and Southwest Airlines are the most ahead of their industries while RadioShack and HSBC are the farthest behind.

Download report for $195

If you want to get access to all of the data in this ratings, check out the Temkin Ratings website

The bottom line: Customer service needs an experience makeover

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!

The 2011 Temkin Experience Ratings

We just published a new Temkin Group report, 2011 Temkin Experience Ratings. Congratulations to the top five companies (out of 143 in the ratings):

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

The ratings evaluate 143 large organizations across 12 industries based on feedback from 6,000 US consumers.

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

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

Here are the top 20 companies in the ratings:

Here are the results for the 12 industries:

Here are some interesting findings from the report:

  • 15 of the top 20 firms are retailers. The exceptions are three hotel chains (Marriot, Hyatt, and Courtyard By Marriott), one bank (Regions), and an insurance company (USAA).
  • Anthem is at the bottom of the list along with six other health plans that are in the bottom 13. Comcast and Charter Communications each show-up twice in the bottom six spots.
  • Only 24 companies ended up with “excellent” or “good” ratings.
  • When we compare company ratings with their industry averages, three companies outperformed their peers by at least 10 points: TriCare (health plan), USAA (insurance and credit cards), and Regions (bank).

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Are you interested in getting a deeper look at the data? Or do you want to see the differences across age, ethnicity, education, and income segments? Then you should visit Temkin Ratings at www.temkinratings.com.

The bottom line: Customer experience excellence is in short supply.

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

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.

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