In the 2016 Temkin Experience Ratings (TxR), we found that the average ratings for all 20 industries declined between 2015 and 2016 (see graphic). Here are some observations:
- Across the 20 industries, TxR dropped by an average of 5.2 points between 2015 and 2016.
- Three industries dropped by less than 4 points (banks, software, and wireless carriers), while five dropped by more than 6 points (investment firms, auto dealers, airlines, rental cars, and health plans).
- Hotels are the only industry to improve since 2014.
- Of the 12 industries that have been in the ratings for all six years, five have declined from 2011 (Internet Service Providers declined the most, down 7 points). Banks and computers improved the most since 2011 (up 5 points).
- The percentage of good and excellent companies dropped from 37% in 2015 to 18% in 2016.
- Of the 271 companies in both the 2015 and 2016 TxR, 85% declined by 1-point or more, while 6% increased by 1-point or more.
- Coventry Health Care, Con Edison, True Value, Consumers Energy, and Fox Rent A Car had the highest level of improvement in TxR between 2015 and 2016.
- Volkswagen, Fairfield Inn, Fujitsu, Commonwealth Edison, Humana, BMW dealers, and Bed, Bath & Beyond had the largest decline in TxR between 2015 and 2016.
What’s going on?
As I mentioned last year when we saw our first major decline (10 out of 19 industries dropped), the issue has to do with consumer perceptions. Companies aren’t getting worse at CX. As a matter of fact, our data shows that large companies are putting more effort into CX and are actually getting better.
This year, something else seems to have kicked in as well. It looks like there’s a widespread decline in consumer sentiment, as you’ll see when we publish this year’s Temkin Well-Being Index.
What should you do about it?
Forget the noise about the overall decline, there’s nothing you can do about consumer attitudes. But with consumers comparing your company to the best companies across all industries, you probably need to set your CX sights a bit higher. Keeping up with mediocre peers is a losing strategy.
As the gap between customer expectations and existing CX grows, there will be more opportunities to improve CX and expand your business. But only some companies will be able to take advantage of this growing CX thirst; others will see an exodus of increasingly disappointed customers. Choose your path.
The bottom line: Hopefully consumers will feel more positive next year!