January 9, 2017
January 16, 2017 Leave a comment
Happy Martin Luther King Jr. Day!
In this Year of Purpose, it seems more appropriate than ever to celebrate MLK Day. When Temkin Group evaluates purposeful leaders, we look for someone who operates consistently with a clear, well-articulated set of values. MLK was one of the most purposeful leaders in the history of the U.S.
On this MLK day, I hope that you elevate purpose in your life. If you want to see what purpose looks like, here’s an excerpt from MLK’s “I Have A Dream” speech:
I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.
I have a dream that one day this nation will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident; that all men are created equal.”
I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.
I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice.
I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.
I have a dream today.
I have a dream that one day down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification, that one day right down in Alabama little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.
I have a dream today.
I have a dream that one day every valley shall be exhalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.
This is our hope. This is the faith that I will go back to the South with. With this faith we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood.
The bottom line: Follow MLK’s lead and elevate purpose in 2017.
January 11, 2017 Leave a comment
It’s always interesting to see what people are reading, so I periodically share a list of our most popular posts. Below is a word cloud made from the titles of the 25 most-read posts from Customer Experience Matters in 2016. As you can see, there was a lot of interest in Net Promoter Score, infographics, and emotion.
Here are the 25 most-read posts:
Report: Net Promoter Score Benchmark Study, 2015 (note: there is an updated version)
The bottom line: I hope you enjoyed our 2016 posts, and find even more value in 2017!
January 9, 2017 Leave a comment
We just published a Temkin Group report, Lessons in CX Excellence, 2017. The report provides insights from eight finalists in the Temkin Group’s 2016 CX Excellence Awards. The report, which has 62 pages of content, includes an appendix with the finalists’ nomination forms. This report has rich insights about both B2B and B2C customer experience.
Here’s the executive summary:
This year, we named five organizations the winners of Temkin Group’s 2016 Customer Experience Excellence Award – Business Development Bank of Canada (BDC), Century Support Services, Crowe Horwath, Oxford Properties, and VCA. This report highlights specific examples of how these companies’ customer experience (CX) efforts have created value for both their customers and for their businesses, describes winners’ best practices across the four customer experience competencies: purposeful leadership, compelling brand values, employee engagement, and customer connectedness. it includes all of the winners’ detailed nomination forms to help you collect examples and ideas to apply to your own CX efforts.
Here are some highlights from the winners: Read more of this post
January 4, 2017 Leave a comment
During this year, companies will be:
- Elevating Purpose. Over the past year, we’ve seen more articles discussing purpose, and leaders are beginning to recognize the role that it plays in motivating employees. At the same time, we believe that the uncertainty around the world creates an increasing desire for people to find purpose and meaning in their lives. For these reasons, we’re calling 2017 “The Year of Purpose.” In 2017, we expect to see more leaders sharpening and sharing their organization’s purpose.
- Operationalizing Emotion. After our push to Intensify Emotion in 2016, I’m happy to say that the needle is moving! As we anticipated, many companies started to recognize the importance of emotion, with the help of many vendors who are working to demystify this key area. In 2017, we expect to see even more organizations focus on customer emotion and start to embed these efforts in their ongoing operations.
- Orienting Around Customer Journeys. Customer journey mapping continues to grow in popularity as companies recognize the need to develop a more customer-oriented viewpoint. That’s why we see so much demand for our customer journey mapping workshops. However, this tool only affects a small portion of an organization. To help companies embed thinking about customer journeys into day-to-day decisions across the entire organization, we created Customer Journey Thinking©. In 2017, we expect more companies to realign their metrics, analytics, experience design, and innovation around customer journeys.
- Continuing… Mobile, Mobile, Mobile. Mobile continues to become an increasingly dominant interaction channel… and now can be accessed through increasingly varied types of devices (including those described as “Internet of Things”). In 2017, we expect more companies to shift to a mobile first strategy and to design customer offerings with the assumption that the primary interface may be a remote digital device.
- Embracing Employee Engagement. Employee engagement (EE) has been one of Temkin Group’s Four CX Core Competencies for more than six years. While EE has always been critical to how we view customer experience, companies are finally starting to recognize that it’s a limiting factor to their CX efforts. In 2017, we expect to see a jump in EE activities and we hope to see CX and human resources groups finally coming together to work on engaging employees.
- Federating Customer Experience. We’ve seen many companies make great strides in their CX efforts by using strong centralized teams. However, as these efforts mature, companies often find that they need to distribute CX efforts across their organizations. In 2017, we expect many companies to shift to a federated CX model by developing CX Centers of Excellence, Enterprise CX Coordination, and Distributed CX Skills and Mindset.
- Predicting Through Behaviors. With the rise of digital and mobile interactions, companies have more data on what their customers are doing. This behavioral data can both provide rich insights into what drives customers and fuel strong predictive models. In 2017, we expect more companies to start collecting behavioral data and then using it to predict customer attitudes and future activities.
- Tapping Into Speech Recognition. Text analytics tools have become mature enough that they are now frequently a staple in customer insights toolkits. As these tools mature, companies are setting their sites on the next vein of unstructured data – customer calls. At the same time, we see a rise of voice interfaces, from Comcast’s XFINITY remote control to Amazon’s Echo. In 2017, we expect more companies to increase their use of speech recognition for insights and interfaces.
- Smartening Self-Service. Our research shows that people prefer to handle of lot of their interactions using self-service. While companies have been enabling these capabilities for years, technology is getting better for anticipating and customizing these interactions. In 2017, we expect more companies to incorporate technologies such as virtual agents and interactive guides to enable even smarter self-service.
The bottom line: Please join us in Elevating Purpose in 2017!
January 3, 2017 3 Comments
Every year, Temkin Group highlights one theme that we think will be particularly important for companies in the coming year. In 2016 we focused on Emotion, in 2015 we focused on Employees, and in 2014 we focused on Empathy. And now, in 2017, we are focusing on … Purpose.
Why “purpose,” you might ask? At Temkin Group, we have always been passionate about what drives and motivates human beings – regardless of whether they are leaders, employees, or customers. So we have been paying close attention to recent findings from fields like positive psychology that show that purpose and meaning are essential ingredients to our well-being.
As John F. Kennedy once so aptly said:
Efforts and courage are not enough without purpose and direction.
Purpose is powerful. It provides a context around all that we do, which alters our feelings, beliefs, and actions. A strong sense of purpose can:
- Inspire us to find joy in our lives
- Energize us with a sense of hope
- Propel us to overcome obstacles
- Uplift us to feel good about ourselves
- Connect us with others around a shared goal
The business world is finally starting to appreciate the importance of purpose in driving human behavior and aiding decision-making. Over the past year, we’ve seen an uptick in the number of articles discussing purpose. We’ve also observed more leaders recognizing the role that purpose plays in motivating employees and customers, and we see leaders beginning to explicitly connect the purpose of their organization to the purpose of their people.
However, when we at Temkin Group discuss purpose, we are focused not only on how a person interacts with a company, but also on what provides meaning in that person’s daily life. Now more than ever, we believe that feelings of uncertainty around the world are prompting each of us to look for more purpose and meaning in our own lives.
That’s why Temkin Group will spend 2017 Elevating Purpose. Much of our research focuses on helping organizations master four CX core competencies. As you can see in the figure below, purpose is an important component across all four elements: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.
This year, Temkin Group will be dedicating some of our research to this topic, leading to new reports, infographics, videos, and other content, which you will be able to see on our new Elevate Purpose page. Our goal is to help you embrace the power of purpose and tap into this power with your employees and customers. More importantly, we hope that our focus on purpose will bring increased meaning to your life as well.
Please join me in pledging to make 2017 The Year of Purpose!
January 1, 2017 Leave a comment
Gelukkige nuwejaar, Gëzuar vitin e ri, e glëckliches nëies, aam saiid, shnorhavor nor tari, yeni iliniz mubarek, bonne année, urte berri on, Зновым годам, subho nababarsho, asgwas amegas, mbembe mbu, bonne année, sretna nova godina, bloavezh mat, честита нова година, hnit thit ku mingalar pa, kung hé fat tsoi, bon any nou, xin nian kuai le, pace e salute, sretna nova godina, šťastný nový rok, godt nytår, gelukkig Nieuwjaar, felicxan novan jaron, head uut aastat, gott nýggjár, onnellista uutta vuotta, gelukkig Nieuwjaar, bonne année, lokkich neijier, bon an, feliz aninovo, gilotsavt aral tsels, ein gutes neues Jahr, kali chronia, rogüerohory año nuévo-re, sal mubarak, bònn ané, hauoli makahiki hou, shana tova, nav varsh ki subhkamna, nyob zoo xyoo tshiab, boldog új évet, farsælt komandi ár, selamat tahun baru, ath bhliain faoi mhaise, felice anno nuovo, akemashite omedetô, asseguèsse-ameguèsse, hosa varshada shubhaashayagalu, zhana zhiliniz kutti bolsin, sur sdei chhnam thmei, umwaka mwiza, seh heh bok mani bat uh seyo, sala we ya nû pîroz be, sabai di pi mai, felix sit annus novus, Happy New Year, laimīgu Jauno gadu, feliçe annu nœvu, bonana, laimingų Naujųjų Metų, gelükkig nyjaar, e gudd neit Joër, srekna nova godina, arahaba tratry ny taona, selamat tahun baru, is-sena t-tajba, kia hari te tau hou, shine jiliin bayariin mend hurgeye, wênd na kô-d yuum-songo, godt nytt år, bon annada, sâle no mobârak, szczęśliwego nowego roku, feliz ano novo, bun di bun onn, bangi vasilica baxt, un an nou fericit, С Новым Годом, ia manuia le tausaga fou, nzoni fini ngou, bonu annu nou, bliadhna mhath ur, srećna nova godina, mwaha mwema, goredzwa rakanaka, nain saal joon wadhayoon, suba aluth avuruddak vewa, stastlivy novy rok, srečno novo leto, dobir leto, feliz año nuevo, wan bun nyun yari, mwaka mzuri, gott nytt år, es guets Nöis, manigong bagong taon, ia orana i te matahiti api, iniya puthandu nalVazhthukkal, yaña yıl belän, nuthana samvathsara subhakankshalu, สวัสดีปีใหม่, tashi délek, yeni yiliniz kutlu olsun, Vyľ Aren, Z novym rokom, naya saal mubarik, yangi yilingiz qutlug’ bo’lsin, Chúc Mừng Nǎm Mới, bone annéye, blwyddyn newydd dda, bon lanné, dewenati!!!!
(Source of translations: http://www.freelang.net/expressions/newyear.html)
The bottom line: I hope that you and your family have a happy, healthy, and prosperous 2017!
December 29, 2016 Leave a comment
In case you missed some of Temkin Group’s research, here’s a recap of our 2016 publications.
In 2016, we surveyed 20,000 U.S. consumers, 800 IT decision makers, 300 HR professionals, and more than 2,500 other professionals. We also had detailed interviews with more than 150 professionals. All of this research led to reports covering best practices, trends, assessments, benchmarks, and business impact.
We have even more exciting research lined up for 2017 (and a new look for our reports)!
The bottom line: We want to help you drive CX change.
December 27, 2016 2 Comments
Voice of the Customer (VoC) programs are a central part of most customer experience efforts. Here’s some interesting data snippets from the recent report, State of VoC Programs, 2016.
For additional info, check out our VoC resource page.
You can download (and print) this infographic in different forms:
December 22, 2016 Leave a comment
If you’re thinking about improving your organization’s customer experience next year (and why wouldn’t you be?!?), then I hope you are also thinking about some changes in your organization’s culture. As I’ve said many, many times, your customer experience is a reflection of your culture and operating processes. It’s your culture that will sustain any improvements that you make in customer experience.
As I’m sure you know, culture change isn’t easy. People are naturally averse to change. As John Kenneth Galbraith so aptly stated, “Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone gets busy on the proof.”
Any chance of a successful, purposeful change in your culture needs to focus on the thoughts, beliefs, and actions of individual employees. That’s the foundation of a concept that Temkin Group introduced called Employee-Engaging Transformation (EET). EET is based on five practices: Vision Translation, Persistent Leadership, Middle Management Activation, Grassroots Mobilization, and Captivating Communications.
EET is different than typical top-down, autocratic attempts at culture change. Those efforts either just don’t work, or they create unintended negative elements in the culture.
Here’s an assessment that you can use to gauge your effectiveness at applying EET.
For more information, check out all of our rich content on culture change, starting with these two reports:
- Introducing Employee-Engaging Transformation: Five Practices for Creating Sustainable Change Across Large Organizations
- Creating and Sustaining a Customer-Centric Culture: Five Case Studies in Employee-Engaging Transformation
The bottom line: Culture change is a necessary ingredient of CX transformation.
December 20, 2016 Leave a comment
We published a Temkin Group report, The State of CX Metrics, 2016. This is the sixth year of this study that examines the CX metrics efforts within large companies. Here’s the executive summary:
Temkin Group surveyed 183 companies to learn about how they use customer experience (CX) metrics and then compared their answers with similar studies we’ve conducted every year since 2011. We found that the most commonly used metrics continue to be likelihood-to-recommend and satisfaction, while the most successful metric is transactional interaction satisfaction. Only 10% of companies regularly consider the effect of CX metrics when they make day-to-day decisions. The top two problems companies face are limited visibility of CX metrics and the lack of taking action on metrics. Companies are best at measuring customer service and phone-based experiences and are worst at measuring the experiences of prospects and customers who defect. We also had companies complete Temkin Group’s CX Metrics Program Assessment, which examines four characteristics of a metrics program: consistent (does the company use common CX metrics across the organization?), impactful (do the CX metrics inform important decisions?), integrated (are trade-offs made between CX and financial metrics?), and continuous (do leaders regularly examine the CX metrics?). Only 11% of respondents received at least a “good” overall rating in this assessment, and companies earned the lowest average rating in integrated. Companies with stronger CX metrics programs deliver better customer experience and use more effort and likelihood-to-repurchase metrics.
Here are the results form our CX Metrics Competency & Maturity Assessment (one of 22 graphics in the report):
December 16, 2016 Leave a comment
If you’ve followed our research, then you know that organizations build and sustain customer-centric cultures by mastering the Four CX Core Competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.
You also know that we’ve called 2016 The Year of Emotion, and have been trying to raise the visibility of this key area with out Intensify Emotion efforts.
Hopefully you recognize that emotion is a critical component of customer experience. To further deepen that thinking, here’s some advice for infusing emotion across all of the competencies:
December 14, 2016 2 Comments
People are always asking us about the correlation between customer experience and business results. While we recommend that companies examine this relationship for their specific company, we’ve done extensive industrywide analyses on the topic. At the bottom of this post we’ve assembled a number of industry-specific charts that you can download and use.
In the report, ROI of Customer Experience, 2016, we provide a lot of data on how customer experience affects a number of different aspects of loyalty for 20 industries. Here’s a summary of some of the data showing the average connection between customer experience and loyalty across all industries.
Here’s how we calculate this data:
- We ask 10,000 U.S. consumers to identify the companies that they’ve interacted with during the previous 90 days
- We have those consumers rate their experiences and segment the respondents into five buckets based on their Temkin Experience Ratings feedback
- For each of the five buckets of consumers, we calculate the average loyalty of the group across different dimensions using the calculations below…
(Note: See Temkin Loyalty Index for data on specific companies)
CX and Purchase Intention Charts for 20 Industries
If you’re looking for good data for your industry, we’ve put together these 20 industry charts that show the relationship between customer experience and future purchase intention. Feel free to use them within your presentations in accordance with our citation policy.
For example, here’s some draft copy you might use, together with your industry’s chart, in your company’s internal or external blog:
At [Your Company’s Name], we work hard to improve our Customer Experience, and this industry chart from Temkin Group shows why it’s important and meaningful. As our Customer Experience improves, research shows that consumers are more likely to increase their spending with us, which is one of the many ways in which our customers show their increased loyalty.
December 12, 2016 2 Comments
Did you know that customers who feel adoring after an experience are more than 11 times as likely to buy more from a company than customers who feel angry? And customers who feel appreciative are more than 5 times as likely to trust a company than those who feel agitated?
That’s because how customers feel about an interaction has a significant impact on their loyalty to a company. So let’s talk about emotions.
Despite the importance of customer emotions, they are all too often neglected (or outright ignored) inside of companies. As a result of this negligence, consumers give their providers very low emotion scores in our Temkin Experience Ratings.
Every time a customer interacts with you, they feel one of these A’s:
- Angry: Customers feel wronged by the interaction and will look for opportunities to tell other people (a.k.a. vent) about the situation. They will try to stay away from the organization.
- Agitated: Customers didn’t enjoy the interaction and will think twice about doing business with the organization in the future.
- Ambivalent: Customers had no significant emotional response and will remain as loyal as they were before the interaction.
- Appreciative: Customers feel that the organization outperformed their expectations and are more inclined to do business with the organization in the future.
- Adoring: Customers feel like company fully met their needs and will look for opportunities to tell other people about the situation. They will try to interact more with the organization in the future.
If you’re still wondering why you might want to talk about the Five A’s, here’s some data that will hopefully entice you to increase your emotion vocabulary. We analyzed the loyalty of 10,000 U.S. consumers based on the Five A’s of their emotional response to interactions across 20 industries – more than 100,000 overall interactions in total.
As you can see above, the Five A’s aren’t just a set of words, they’re a strong indication of the loyalty of your customers. Compared with those who feel “angry,” customers who feel “adoring” are more than 11 times as likely to buy more, 17 times as likely to recommend the company, 9 times as likely to try new offerings, 6 times as likely to forgive the company if it makes a mistake, and 10 times as likely to trust the company.
If you are not talking about emotion, then you’re not being purposeful about customer loyalty. Here are some ways that you can start using the Five A’s:
- Training. If you teach all employees this scale, then your organization will have a common vocabulary for discussing customer reactions. This framework will help trainees gauge how customers would likely respond to situations and discuss what they could do to improve the customer’s ultimate emotional response.
- Coaching. Supervisors can ask their employees a very simple question after an interaction: “How do you think the customer felt about the call?” This can work for any employee that interacts with customers: phone reps, retail salespeople, cashiers, insurance agents, bank tellers, etc.
- Designing. When you are creating a new experience (product, process, interaction, etc.), get feedback from customers about how they feel. Internally, you can have discussions like… “Most of the customers were ambivalent, but if we make this change then I think we can make most of them appreciative and even a few of them will be adoring.”
- Tracking customer emotions. Every time employees interact with a customer or make a decision, they can give themselves a score based on what they believe is (or will be) the customers’ most likely emotional response to their action:
- Angry (-3)
- Agitated (-1)
- Ambivalent (0)
- Appreciative (+1)
- Adoring (+3)
The total across these interactions and decisions represents a customer delight score. Employees can calculate this score on a regular basis (daily, weekly) and track how well they are doing over time.
Having an emotion vocabulary will hopefully get you to focus more about this critical topic. And if you just start talking about emotion, you will help stimulate employees’ natural empathy. So… start talking about emotion!
The bottom line: Talk about making customers adoring, not angry.
December 9, 2016 Leave a comment
Lots of people talk about the power of service recovery, and now we have the data to prove its value. Not only does a good response to a bad experience cut down on sales loss, but it also increases loyalty for some customers.
In the Temkin Group report What Happens After a Good or Bad Experience, 2016, we examine consumers’ spending patterns after they have a bad experience with a company. As you can see in the following chart:
- The power of service recovery. It’s undeniable that a good service recovery after a bad experience provides excellent results. When the service recovery is very poor, 63% of consumers cut back their spending while only 2% increased their spending. If the service recovery is very good, there’s a 10x improvement in consumers who increase their spending and more than a 39 %-point reduction in consumers who reduced their spending.
- The limitation of service recovery. The advantages of service recovery really kick in when the company reaches at least a “4” on our 7-point scale of goodness. But it takes at least a “6” on the scale to have as many customers increasing their spending as decreasing their spending. That’s a pretty high hurdle.
The bottom line: It’s better to avoid problems than to recover from them.
P.S. Figure is from our CX Data Snippets that can be used in presentations