John Lewis, Amazon, and Waitrose Lead 2012 UK Loyalty Ratings

We are happy to announce the 2012 Temkin Loyalty Ratings UK, which examines how loyal UK consumers are to 66 large brands. Only 28% of the companies  received “good” or “excellent” loyalty ratings while 39% had “very poor” ratings:

As you can see from the distribution across industries below, groceries and retailers are well ahead of other industries in loyalty of their customers while insurers and credit cards are well behind.

The Temkin Loyalty Ratings are based on three underlying areas of loyalty:

  • Willingness to purchase more products or services
  • Likelihood to recommend the company to a friend or colleague
  • Reluctance to switch business away from the company

We ask consumers to rate their loyalty in these areas on a seven-point scale. The “net” scores for each of these areas is calculated by taking the percentage of consumers that select the top two boxes and subtract the percentage of consumers that select the bottom three boxes. The overall loyalty rating is an average of these three scores. Here’s the loyalty for each of those components:

Here are the top and bottom 10 companies in each of the loyalty components:

To access the full ratings and all of the data associated with this study, visit the Temkin Ratings UK website

The bottom line: Most UK companies have a lot of loyalty to build

Report: 2012 Temkin Experience Ratings UK

I’m excited to announce the launch of Temkin Group’s newest offering….

We introduced the Temkin Ratings site in the US last year. The site provides free access to all of our ratings, making it easy to see how consumers rate large companies across a number of dimensions. We decided to extend the Temkin Ratings into the UK with four of our ratings: Experience, Loyalty, Trust, and Forgiveness. You can review all of those ratings from the Temkin Ratings UK site.

As you can see below, we’re also providing the Temkin Experience Ratings report free of charge. We will providing some details around the other ratings in future posts. And, of course, we will be releasing the 2012 ratings in the US later this year — with even more industries.

We just published a new Temkin Group report, 2012 Temkin Experience Ratings UK. Congratulations to the top six companies (out of 66 in the ratings):

1) John Lewis
1) Waitrose
3) Amazon.co.uk
4) Farmfoods
4) Iceland
4) Morrisons

Here is the executive summary from the report:

John Lewis and Waitrose tied for first in the 2012 Temkin Experience Rankings UK, with several other grocery stores and Amazon.com rounding out the top ten. We asked 3,000 British consumers to rate their recent interactions with companies across three dimensions of their experience: functional, accessible, and emotional. These data allowed us to rate 66 companies across seven industries. Only two of those companies received an “excellent” rating, while 26% fell in the “good” category. The results show that retailers and grocery stores deliver the best experience while personal computer manufacturers and insurance companies provide the worst.

Download report for FREE

The Temkin Experience Ratings UK 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 ratings for all 66 companies:

Download report for FREE

Are you interested in getting a deeper look at the data? Or do you want to see the differences in industries across age? Then you should visit Temkin Ratings at www.temkinratings.co.uk.

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

Management Imperative #6: Practice Good Social Citizenship

Management Imperative #6

In a world where companies can control information leaks and quickly hide their mistakes, there’s little need to worry about public relations gaffs like exploiting underage workers in developing nations, dumping pollutants in remote settings, or overselling mortgages to needy home buyers. But we don’t live in that world anymore.

The Internet has created an enormous spotlight that quickly shines on any corporate malfeasance. Whether it’s the uproar of a community of bloggers or an embarrassing video posted on YouTube, corporate executives can expect large numbers of people to learn about their mistakes.

In this environment, where the cost of problems has dramatically increased, companies need to step up their commitment to corporate social responsibility, which is nicely described in Wikipedia:

Organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment.

Here are some areas in which executives can practice good social citizenship:

  • Have a clear social mission. The commitment to good social citizenship needs to be integrated in the firm’s overall mission. Tesco, for instance, incorporates it’s commitment to the community as a core component of its overall strategy steering wheel. Here’s an excerpt from it’s Website: Our commitments under the Community segment of the Steering Wheel are to be fair, responsible and honest in everything we do and to be a good neighbour.
  • Engage employees in community efforts. Don’t view social citizenship as just another top-down executive mandate. Instead, it should be used to engage employees. UMPQUA bank in Oregon, for instance, provides full-time employees with up to 40 hours per year –paid — to volunteer with youth and community development organizations and schools. The result: Employees feel good about working at UMPQUA. And engaging employees like this is a pre-requisite for engaging customers.
  • Be as green as you can be. When it comes to protecting our environment, we all can do a better job. But most shareholders look for companies to deliver ROI, not go green. So executives need to find investments that are both good for the environment and good for their bottom lines. To balance these elements, execs can adjust their funding requirements for “environmentally friendly” projects by factoring in the cost of good/bad press and allowing a longer payback period.
  • Make socially-conscious decisions. How can executives incorporate the right concern for social citizenship in their decision making? Assume there aren’t any secrets. Don’t make any decision that would hurt the company (or your career) if the press, employees, partners, or shareholders happened to find out about it. They will.

The bottom line: Make your organization socially proud; it’s good business.

P.S. Here’s a link to all 6 New Management Imperatives

Tesco Showcases Strategy + Culture

I just read a post on the Harvard Business discussion board about a speech that Sir Terry Leahy, Tesco’s CEO, gave about the company’s strategy. He described the challenges of delivering a distinctive and consistent buying experience to consumers in every store when you have more than 400,000 employees in multiple countries. Here’s how Leahy explained his approach:

Tesco doesn’t want one leader. We want thousands of leaders who take initiative to execute the strategy

That’s just a great quote!

In the early 90’s Tesco created a “steering wheel” to help clarify and communicate its mission, values, and strategy. So I went looking for a copy of the steering wheel on the Tesco corporate site. It wasn’t easy to find, but I finally located a version of it on the “Managing Corporate Responsibility” page.

Interestingly, in the center of the steering wheel is a phrase “Every Little Helps” which seems to be a pervasive theme at Tesco. On the retailer’s Our Values page, I found the following graphic that the company uses to depict its “Every Little Helps” strategy:

My take: Did I mention that I really liked Leahy’s quote?!? It does a great job of capturing the importance of engaging your employees. While I feel the need to insert a word in the phrase “Every Little [Bit?] Helps,” the concept seems quite powerful. Why? Because it defines simple cultural norms using easy-to-understand language and graphics. If you want 10s of thousands of people to get on board with something, it needs to be simple and easy to understand!

The bottom line: This is a great example of “Strulture” (I just made up this word to describe a strategy that focuses heavily on organizational culture).

Play.com Tops UK Customer Experience Index

Last November we introduced Forrester’s Customer Experience Index in the US, with Costco and Borders taking the top 2 spots. Using the same methodology to examine three key elements of customer experience (usefulness, ease of use, and enjoyability), we recently published the The UK Customer Experience Index, 2008.

Based on a survey of nearly 1,200 UK consumers, we ranked 25 firms. Here are some of the details:

  • Top five in the rankings:
    • Play.com [#1]
    • Amazon UK [#2]
    • John Lewis [#3]
    • ASDA [#4]
    • Tesco [#5]
  • Bottom five in the rankings:
    • British Gas [#25]
    • AOL [#24]
    • Virgin/NTL Telewest [#23]
    • BT Internet/Openworld [#22]
    • Vodafone [#21]
  • Retailers took the top 8 spots, but here are the leaders in other sectors:
    • Banking: Lloyds TSB [#8]
    • Mobile: T-Mobile [#17]
    • ISP: BT Internet/Openworld [#22]

We’ll be fielding the survey again in the US in a few months, so keep your eyes out for Forrester’s second annual Customer Experience Index later this year.

The bottom line: There’s room for customer experience improvements everywhere.

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