Dataset: 2017 Temkin Loyalty Index, UK

In our Q1 2017 UK consumer benchmark study, we asked 5,000 UK consumers to rate their loyalty with the companies that they had interacted with during the previous 90 days. The analysis examined four areas of loyalty: Likelihood to repurchase, likelihood to recommend, likelihood to forgive, and likelihood to trust. Then we combined those components to calculate the Temkin Loyalty Index for 157 companies across 16 industries.

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You can purchase and download the dataset, which includes companies that had at least 85 respondents. The excel spreadsheet includes the four areas of loyalty and the overall TLi for 157 companies. along with the industry averages.

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2017 Temkin Group CX Excellence Award Winners

Winners of Temkin Group Customer Experience Excellence Awards

I’m thrilled to announce (and congratulate) the winners of Temkin Group’s sixth annual Customer Experience Excellence Awards:

  • AARP – formally established its AARP Experience (AARPx) team in 2016 with the mission to work across the enterprise to create a seamless, personalized experience for members that is supported by a customer-centric culture. One of the team’s strategic objectives this year was to make sure that CX is considered in decisions made across the company, and to that end it developed empathy programs, widely shared customer insights both horizontally and vertically, and established Enterprise and business unit metrics that incentivize an outside-in perspective. One of AARPx’s first projects, known as “Loved Ones of Deceased Members,” has tangibly improved the experience of closing the account of a deceased member through efforts such as building FAQs, improving search terminology, making the process faster, and sending condolence cards – all of which has resulted in an outpouring of appreciative feedback and a 50% reduction in repeat calls on this topic.
  • Allianz Worldwide Partners – an insurance company best known for its travel insurance products – recently began mapping and reviewing its customer journey in an effort to improve its processes and minimize customer pain points. Allianz’s VoC program is at the heart of these efforts, combining data from customer service call monitoring, customer satisfaction surveys, and social media platforms to deliver actionable insights about customer preferences and problems across the entire organization. Allianz then uses this real-time data to identify opportunities to make its products more useful and valuable to customers, such as adding coverage for existing medical conditions or coverage for people who have to cancel their plans due to work obligations.
  • Century Support Services – a large debt settlement firm – has a simple mission, “We do what we do to improve people’s financial lives,” and to achieve this mission, it leverages technology within three key drivers: Lifecycle marketing, customer advocacy, and customer metrics. “Lifecycle marketing” uses marketing automation technology to keep customers informed and involved in the process as Century settles their debt, while “customer advocacy” empowers employees to do whatever it takes to satisfy its clients. CX metrics, meanwhile, are tracked as part of Century’s management and board-level reporting and include tools like predictive analytics and AI to predict negative experiences and proactively work to resolve them.
  • Nurse Next Door Home Care Services is a private-duty home care provider that aims to deliver a unique, happier aging experience by helping clients get back to doing the things they love. Nurse Next Door is founded on four core values – admire people, WOW customer experience, find a better way, and passionate about making a difference – and it delivers on these values by developing a tailored care package around each individual customer’s needs, desires, and personality. To ensure it lives up to these values, Nurse Next Door deploys a “Listen 360 – NPS survey” and has instituted a mostly flat organizational structure that gives team members more direct control and empowerment in their jobs.
  • Reliant’s CX program recently evolved from a dedicated customer experience department to a hub-and-spoke structure that relies on 15 subject matter experts, or “fanatics,” to drive their team or department’s CX efforts. A fanatic is an influential and passionate member of a specific team who is trained on customer experience, the expectations of their role, and Reliant’s customer insights platform. Each fanatic is responsible for reviewing metrics and insights to identify improvement opportunities and then either personally driving these improvements or delegating the task to a team member. Fanatics attend monthly meetings where they discuss the status of their projects, and they present their efforts at executive level board meetings dedicated to CX.
  • Sage has made “Customer Obsession – Starts with Me” its goal for 2018. To help employees across the organization understand and fully commit to its organizational CX goals, Sage has developed a few employee engagement programs, including “Sage Listens,” which offers employees a variety of ways to connect with customers through an online self-service portal, “Sage Magic Moments,” which allows employees to send small personalized gifts and notes to inspiring customers, and “Customer Success Safari,” which highlights ways employees can participate in CX initiatives. Sage has also recently launched “Sage Ideas” – a portal where customers can submit their ideas for improvements directly to developers and can vote on ideas submitted by other customers.

Organizations were evaluated by five industry experts based on three criteria: 1) customer experience transformation efforts, 2) business and customer results, and 3) sustainability.

Last year’s winners wereBusiness Development Bank of Canada, Century Support Services, Crowe Horwath, Oxford Properties, and VCA.

Report: 2017 Temkin Experience Ratings of Tech Vendors

Temkin Experience Ratings of Tech Vendors Benchmarks Customer ExperienceWe just published a Temkin Group report 2017 Temkin Experience Ratings of Tech Vendors that rates the customer experience of 58 large tech vendors based on a survey of 800 IT decision makers from large North American firms. This is the sixth year of the ratings, here are links to the 2012, 201320142015, and 2016 ratings.

Here is the executive summary of the report:

The 2017 Temkin Experience Ratings of Tech Vendors evaluates the customer experience of 58 large technology vendors. We surveyed 800 IT decision-makers from large companies regarding three components – success, effort, and emotion – of their experiences with these IT providers. Here are some of the highlights:

  • Out of all the vendors we looked at, VMware, IBM software & IBM SPSS, and Google earned the highest ratings, while ADP outsourcing, Unisys, Autodesk, and Fujitsu received the lowest.
  • When we compared this year’s results with data from the previous five Temkin Experience Ratings of Tech Vendors, we found that the average rating dropped over the past year, down from 58% in 2016 to 54% in 2017.
  • Compared with companies in the bottom quartile of the Temkin Experience Ratings, those in the upper quartile have customers who are 1.3 times more likely to repurchase from them, 2.5 times more likely to try new offerings, and 2.1 times more likely to forgive the company if it makes a mistake.
  • Companies in this upper quartile of ratings have a Net Promoter Score that’s an average of 28 points higher than their bottom quartile counterparts.
  • To improve customer experience, tech vendors will need to master Four CX Core Competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.

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The Temkin Experience Ratings of Tech Vendors evaluates three areas of customer experience: success (can customers achieve what they want to do), effort (how easy is it for customers to do what they want to do), and emotion (how do customers feel about their interaction). Here are the overall results:

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Emotional Responses to Tech Support Differs Across Age Groups

In a recent post, Temkin Group analyzed 10 emotions that consumers feel after completing a number of different interactions. We decided to dig deeper into one of those interactions, getting tech support for a computer. We analyzed the emotional responses across different ages of consumers after that interaction and found that:

  • All ages of consumers are most likely to feel relieved
  • The next most frequent emotions are happy and frustrated

As you can see in the chart below:

  • 18- to 24-year-olds: While relieved is the most common emotion (37%), this group is more likely to feel frustrated, confused and worried than any other age group.
  • 25- to 34-year-olds: After relieved and happy (34%), this group is most likely to feel more appreciated than any other age group.
  • 35- to 44-year-olds: After relieved (44%), this group is most likely to feel happy. It is also the age group that is most likely to feel excited.
  • 45- to 54-year-olds: After relieved (43%), this group is most likely to feel confident, a feeling that it has more than any other age group.
  • 55- to 64-year-olds: After relieved (43%), this group is most likely to feel frustrated and happy.
  • 65-years-old or older: After feeling more relieved than any other age group (47%), this group is most likely to feel happy.

Consumer emotions after customer experience with technical support

Why is this important? Our research shows that emotion is the largest driver of customer loyalty. So companies must not only start talking about emotion, but they also need to develop unique approaches for dealing with different emotions across their customer segments.

The bottom line: It’s time to make customer emotion a top priority.

Report: Five Steps For Building A Strong CX Metrics Program

Five steps for building a customer experience metrics programWe published a Temkin Group report, Five Steps For Building A Strong CX Metrics Program.

A robust customer experience (CX) metrics program allows an organization to systematically measure the quality of the experience it delivers to customers and provides insights that help companies spot improvement opportunities, prioritize investments, track CX progress, and unify the organization around a common goal. Despite these benefits, few organizations have actually built a strong metrics program. In this report, we provide a blueprint that organizations can follow to create an actionable CX metrics program. Here are some highlights:

  • Temkin Group has identified five steps an organization must go through to create a strong CX metrics program: 1) Determine a Core CX Metric, 2) Set Achievable Goals, 3) Identify Key Drivers, 4) Establish Key Driver Metrics, and 5) Make the Suite of Metrics Actionable.
  • To illustrate what these steps should look like, we share nearly 30 best practices from companies including Brainshark, Caesars Entertainment, Ciena, Cisco, Horizon BCBSNJ, Oxford Properties, and Wyndham Worldwide.
  • We provide an assessment companies can use to both evaluate the effectiveness of their CX metrics program and identify where to focus improvement efforts.

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Here are the best practices highlighted in the report:

Examples of 5 Steps for An Actionable CX Metrics Program

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Five Great Stories About Purpose From AARP

As you hopefully already know, Temkin Group has labeled 2017, The Year of Purpose. We want to raise awareness to the relatively untapped power of purpose.

Five stories about AARP Purpose and Customer Experience

So I was thrilled to see the AARP Purpose Prize™, which recognizes outstanding work by people age 50 and over that is focused on advancing social good.

Here are the five winners, I urge you to read the links to each of their stories:

  • Cynthia Barnett, founder and CEO, Amazing Girls Science
    Retired high school administrator Barnett was disappointed to see girls losing interest in science, technology, engineering and math (STEM), so she created Amazing Girls Science. Through activities like coding camps, robotics workshops, and hackathons, the nonprofit inspires young girls to consider STEM-focused careers.
  • Reid Cox, co-founder and CFO, iFoster
    Cox and his wife Serita, a former foster child, put their tech company experience to work in order to help families navigate the challenges of foster care. Their online community, iFoster, connects foster children and families with highly needed financial, educational, and social support resources.
  • James Farrin, executive director, The Petey Greene Program
    In 2007, former business consultant Farrin gathered 20 students from his alma mater Princeton University to tutor prison inmates studying for the GED. The Petey Greene Program — named for a former inmate-turned-activist and popular 70s- and 80s-era radio/TV host — has flourished, with students from 30 colleges now tutoring 1,500 individuals in 34 facilities.
  • Celeste Mergens, founder and CEO, Days for Girls
    Mergens started Days for Girls eight years ago to supply young girls in a Kenyan orphanage with feminine hygiene products so they wouldn’t have to miss school during their periods. This nonprofit has helped 800,000 women and girls worldwide, sidestepping cultural taboos to educate them about their bodies.
  • Mike Weaver, Founder, Weaver & Concerned Citizens of Aiken/Atlanta Now
    Former college professor Weaver teaches the value of public service by bringing teens and adults together for service-learning trips to communities in need. From cleaning vacant lots to creating community gardens, Weaver and Concerned Citizens of Aiken/Atlanta Now is making a difference in the lives and futures of its participants as well as the recipients of their volunteerism. Weaver is also the recipient of 2017 Andrus Award for Intergenerational Excellence, named after AARP’s founder.

The bottom line: Stories of great purpose are always worth celebrating!

Tech Vendors Receive Negatively Biased Customer Feedback (B2B)

We publish an annual report that examines what consumers do after a good or bad experience. So we decided to do that same type of analysis to examine how IT decision makers in large North American organizations respond to a good or bad experience with a tech vendor. As you can see in the chart below:

  • Most share feedback inside their company. After both a very good or very bad experiences, the top thing that IT decision makers do is to tell their colleagues within their company. They are slightly more likely to share good experiences this way.
  • They don’t share a lot in social media. Less than one out of 6 IT professionals say that they’ve shared their experiences in an online community, on Twitter, or on Facebook.
  • They’re more likely to share negative feedback with vendors. Forty-two percent of IT decision makers share their bad experiences directly with tech vendors, but only 33% share their good experiences. This is the largest gap on the list.

As you can see above, IT decision makers are more likely to share bad experiences with tech vendors than they are to share good experiences. So the feedback that tech vendors hear will often be negatively biased.

We examined this negative bias across 64 tech vendors for which we had data from at least 40 of their clients. The chart below shows the feedback behavior of tech vendors’ clients (how they provide feedback across tech vendors). As you can see, Tech Mahindra and TCS are the most likely to hear negatively biased feedback from their customers.

The bottom line: Tech vendors hear more bad news than good news.

What Happens To CX If CVS Buys Aetna?

CVS made an offer to buy Aetna for more than $66 billion. While there may be a lot of value in a combined company’s increase in power in drug distribution, what might this healthcare vertical integration mean for customer experience?

My take: CVS and Aetna have totally different relationships with consumers. One lures in consumers for individual retail transactions and an intermittent set of pharmacy interactions, while the other has an annual contractual relationship that often deals with emotional health situations.

As you can see in the chart below from a number of different Temkin Group research reports, consumers have a much more positive relationship with CVS (see Temkin Experience Ratings and Temkin Loyalty Index). As with most health plans. Aetna has a poor Temkin Experience Ratings, doesn’t have many customers recommending it, haven’t earned a high level of forgiveness, aren’t very trusted, and don’t really want to buy anything else from them.

So what happens to customer relationships if either company takes on attributes of the other?

  • Can Aetna learn and apply lessons from CVS’ retail prowess? Probably not. Stronger retail-like capabilities could help elements of consumers’ relationships with Aetna, but it’s unlikely that there would be much of a change given the radical difference in business models.
  • Can CVS learn and apply lessons from Aetna’s consumer relationship prowess? Probably not. It’s unclear how Aetna can help CVS better treat consumers given its very poor track record.

If this deal goes through, then it looks like consumer experience will lose out in the short-run. Besides the lack of upside in cross-learning, both organizations will likely become more internally-focussed as they work out all of the elements in aligning their operations.

Does mean that this acquisition would be bad for CX? Probably not.

While the short-term impact is not likely positive, there can definitely be improvements in the future. Given the disconnects and inefficiencies across players in the U.S. healthcare system, combinations like this that vertically integrate the market have the potential for improving CX in the long-run. Here are a few of the places where CX may get a boost:

  • More tailored experiences delivered because of better consumer insights coming from applying CVS’ consumer insights capabilities to the combined company’s enlarged consumer dataset.
  • More retail clinical offerings by picking off more straightforward consumer health offerings like vaccines.
  • More creative pharmacy options by co-development of offerings between CVS and Aetna.

The bottom line: CVS + Aetna may provide longer-term CX benefits.

Report: Temkin Loyalty Index, 2017

We published a Temkin Group report, Temkin Loyalty Index, 2017. This is the third year of this study that examines the loyalty of 10,000 U.S. consumers to 329 companies across 20 industries.

To determine companies’ Temkin Loyalty Index (TLi), we asked respondents to rate how likely they are to exhibit five loyalty-related behaviors: repurchasing from the company, recommending the company to others, forgiving the company if it makes a mistake, trusting the company, and trying the company’s new offerings.

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Temkin Group’s TLi is based on evaluating consumers’ likelihood to do these five things (data for these items are included in the dataset):

  • Repurchase from the company
  • Recommend the company to others
  • Forgive the company if it makes a mistake
  • Trust the company
  • Try new offerings from the company

Here are some highlights of the research:

  • ACE Rent A Car and Advantage Rent-A-Car earned the highest TLi, while Time Warner Cable earned the lowest.
  • Supermarkets engender the strongest loyalty in their customers, while TV/Internet service providers engender the least.
  • NFCU and ACE Rent a Car most outpace their industries, while Spirit Airlines and Avis lag the farthest behind.
  • Customers are most likely to recommend ACE Rent a Car, AmazonFresh, and NFCU and least likely to recommend Time Warner Cable, Comcast, and Cox Communications.
  • Customers are most likely to repurchase from Publix, H-E-B, and Trader Joe’s and least likely to repurchase from Time Warner Cable, Comcast, and Cox Communications.
  • Customers are most likely to forgive Advantage Rent-A-Car, ACE Rent A Car, Fujitsu and NFCU and least likely to forgive Comcast, Time Warner Cable, and Cox Communications.
  • Customers are most likely to try a new offering from ACE Rent A Car, Advantage Rent-A-Car, and Siemens and least likely to show product loyalty to Fifth Third, Citizens, and Time Warner Cable.
  • USAA and NFCU are the most trusted companies, while Time Warner Cable, Comcast, and Cox Communications are the least. All of the industries saw an increase in loyalty over last year, though utilities saw the most dramatic improvement.

Here are the top and bottom rated companies:

Here are the overall industry average TLi:

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Here are the 2016 Temkin Loyalty Index and the 2015 Temkin Loyalty Index.

Methodology

We report on companies that have feedback form at least 100 consumers who have interacted with the company over the previous 90 days. This ends up in 329 companies across 20 industries. The TLi is the average of five different measures of loyalty for each of those companies:

1611_tli_methodology

Net Promoter Score: Fact and Fiction

It seems like every year I get a surge of questions about Net Promoter® Score (e.g., NPS®). Well, it’s that time of year.

Rather than re-writing my answers, I decided to share a webinar that I recorded a few years ago. Much of that data has been updated, but the content remains totally applicable. This is a great primer on NPS. Enjoy!

You should also check out Temkin Group’s VoC/NPS Resource Page for current data and more advice on how to use NPS. In particular, read My Latest 9 Recommendations For NPS.

Note: Net Promoter, Net Promoter Score® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc

Report: State of Voice of the Customer Programs, 2017

State of Voice of the Customer Programs, 2017We just published a Temkin Group report, State of Voice of the Customer Programs, 2017. Here’s the executive summary:

For the seventh straight year, Temkin Group has benchmarked the competency and maturity levels of voice of the customer (VoC) programs within large organizations. This year we surveyed close to 200 large companies and asked them to complete Temkin Group’s VoC Competency and Maturity Assessment, which evaluates their capabilities across what we call the “Six Ds:” Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. This report also includes data from these companies’ responses to help you benchmark your own company’s VoC efforts. We compared this year’s results with those from previous years and found that:

  • While most companies think that their VoC efforts are successful, less than one-quarter of companies consider themselves good at making changes to the business based on the insights.
  • Companies find their VoC programs to be most valuable for “identifying and fixing quick-hit operational issues” and least valuable for “identifying innovative product and service ideas.”
  • Companies expect technology will continue to heavily impact their VoC programs in the future, especially for integrating survey data with CRM and operational data.
  • In the future, companies expect the most important source of insights to be customer interaction history and the least important source to be multiple-choice questions.
  • The most common activity for VoC teams is defining customer experience metrics for their companies, and this activity became even more popular over the past year.
  • Only 14% of companies have reached the two highest levels of VoC maturity (out of six levels), while 46% remain in the bottom two levels.
  • When we compared higher-scoring VoC programs with lower-scoring programs, we found that companies with mature programs are more successful, technology-focused, and mobile-oriented and have more full-time staff and more involved senior executives.
  • Companies with more mature VoC programs identified “integration across systems” as the most common obstacle they face, while less mature VoC programs struggle the most with “cooperation across the organization.”

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Here’s the VoC competency & maturity levels, which is one of 29 graphics in the report:

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CX Design Wins A Nobel Prize

In case you missed it, Richard Thaler won the Nobel Prize in Economics. He’s a well-known behavioral economist and author of the popular book Nudge. Thaler often collaborated with another behavioral economist (and one of my favorite economists of all time), Daniel Kahneman, who won a Nobel Prize in 2002.

You may have seen Thaler in this scene from The Big Short where he and Selena Gomez explain a financial instrument called a synthetic collateralized debt obligation (CDO). [Note: there’s some foul language].

So what does this have to do with CX design?

Thaler applied behavioral economics to government interactions with citizens. Through this citizen experience design, he was able to raise the number of organ donors, increase the level of retirement savings, and improve response rates to automotive registration bills among other things.

Thaler’s work demonstrated that experience design can’t assume that humans behave in a rational manner, it must take into account that people make most of their decisions using intuitive thinking.

That’s why behavioral economics is the foundation for what we call Design for Real People, a component of Customer Connectedness. If you’re doing any experience design, then you need to understand how people make decisions and how they respond emotionally to your actions.

The bottom line: Behavioral economics is a foundation for good CX design.

Why Am I So Proud of Customer Experience Day?

Yesterday we celebrated the fifth annual Customer Experience Day. It was a wonderful global event that focused on CX, customers, and the CX profession.

Across the world, CX professionals led activities that included online sessions, free giveaways, and exciting in-person events. DellEMC even had Big Papi, David Ortiz live tweeting from its event!

Every year at this time, I’m reminded just how great it is to be in the CX profession. It’s full of people who passionately care about customers and absolutely know how to have a good time. And all of that goodness comes out on CX Day.

I love CX Day! I wrote about my feelings in a 2014 post, 5 Reasons Why I Love Customer Experience Day. Here are my reasons:

  1. It shines a light on CX professionals.
  2. It raises the visibility of customer experience.
  3. It provides a reason to engage your organization.
  4. It provides a reason to engage your customers.
  5. It reminds me of how proud I am of the CXPA.

The History of CX Day

I started thinking about a CX Day in 2012, because I felt like the profession needed to have the opportunity to celebrate itself. I believed that the creation of an event like CX Day would provide the motivation and backdrop for CX professionals to raise awareness of customer experience in a coordinated, high-energy way.

In early 2013, I introduced the concept of CX Day to the CXPA board and outlined its design, which combined a number of online and local events. We decided to do it in the Fall, because we already had the very popular Insight Exchange in the Spring. This new event would provide an additional benefit of galvanizing our membership for a second time in the year.

We kicked off CX Day on October 1, 2013 and didn’t know what to expect. Luckily, it turned out to be a lot of fun. We actually received a proclamation from the US House of Representatives recognizing CX Day. Pretty cool!

That first CX Day looked a lot like the current model, with webinars, giveaways, online content, awards, and many local events. As part of the CXPA’s activities, I had a great webinar with Sprint’s CEO, Dan Hesse and wrote a post for the blog carnival, Key Ingredient for CX Innovation: LoveTemkin Group offered a bunch of free things including our first annual Ultimate CX Infographic and an eBook with 50 CX Tips that are still valuable today.

It was a huge success, as we energized our global base of CX professionals. In subsequent years, we pushed for more companies to internalize the event by celebrating it with their customers and employees. That part of CX Day has expanded immensely since 2013, which has been wonderful to see.

Over the years, the volume of participants and activities has grown. It has matured into the wonderful event that I envisioned that it could be become… a celebration of great customer experience and the professionals who make it happen.

The bottom line: I am very proud of the CXPA and CX Day!

 

 

Free eBook: 25 Tips For Becoming A More Purposeful Leader

Free eBook: 25 Tips For Becoming A More Purposeful LeaderAs part of our CX Day celebration, which this year is focussed on Elevating Purpose, we’re giving away this free eBook: 25 Tips For Becoming A More Purposeful Leader.

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One of Temkn Group’s Four CX Core Competencies is Purposeful Leadership. To master this competency, a company must be able to affirmatively answer the question, “Do your leaders operate with a clear, well-articulated set of values?” Purposeful leaders create an engaged workforce and help their organizations deliver positive customer experiences.

This eBook contains these 25 easily adoptable tips from across the Five P’s of Purposeful Leadership. Here are the tips:

Also check out our recent video on Purposeful Leadership and the Elevate Purpose page.

The bottom line: Purposeful leadership really matters!

The Ultimate CX Infographic, 2017

Once again, Temkin Group is publishing a new infographic as part of our CX Day celebration.

Take a look at last year’s ultimate CX infographic.

Here are links to download different versions of the infographic:

This post is part of the Customer Experience Professionals Association’s Blog Carnival “Celebrating Customer Experience.” It is part of a broader celebration of Customer Experience Day. Check out posts from other bloggers at www.cxpa.org/blogs/cxpa-admin/2017/09/27/cxdayblogcarnival