5 Promises That Define B2B Customer Success

We work with many of the largest technology companies, helping them bolster the experiences they deliver to customers, often focusing on their (business-to-business) B2B relationships.

With the shift from on-premise to cloud-based software, technology providers have had to focus even more on customer experience. Why? Because customers buy more incrementally and make renewal decisions more frequently, forcing tech vendors to ensure that customers are continuously getting value.

This shift is not unique to the technology industry. Many B2B companies are realizing that customers aren’t buying products. Instead, customers are making purchases in the expectation that they will achieve some value from the provider’s products and services. We call this a shift to “Value-As-A-Service (VaaS).”

In the world of VaaS, B2B companies must change how they interact with customers. Instead of relying on sales-oriented account management teams, they are creating customer success organizations. These groups are focused on making sure that customers achieve the value and outcomes they expect.

Unfortunately, many customer success organizations still look a lot like old fashioned account management groups. While there are many changes that need to be made, one of the things that can help is to commit to delivering on a set of customer promises. To help organizations start this process, we’ve identified a set of five promises that customer success organizations should make and keep:

  1. Understand My Business: Know how your products/services will help your clients business succeed.
  2. Find & Share Relevant Best Practices: Expose clients to meaningful opportunities for them to create new value with your products and/or services
  3. Prevent Known Issues & Obstacles: Make recommendations that will avoid problems in the future.
  4. Orchestrate Value Across Your Silos: Provide seamless access to appropriate resources across your organization.
  5. Don’t Surprise Me: Anticipate client’s upcoming needs and let them know what to expect during their entire lifecycle.

The bottom line: B2B loyalty depends on customer success.

The Future of VoC: Insight & Action, Not Feedback

The vendor market for Voice of the Customer (VoC) products and services has been heating up, with numerous acquisitions and mergers. All of this is happening as companies are trying to figure out how to run successful VoC programs. It appears that we on the verge of the next stage in evolution for VoC. So I decided to step back and look at the overall market.

VoC Programs Need To Grow Up

Our research shows that nearly three-quarters of large companies rate their voice of the customer (VoC) programs as being successful (only 8% say that they’ve been unsuccessful). That’s great—infusing almost any type of customer insights into a business can add value. 

Level of Maturity for Voice of the Customer (VoC) Programs in Large Enterprises

However, companies aren’t close to reaching their full potential. Only 14% of companies have reached the the two highest levels of Temkin Group’s VoC Maturity Model.

One of the reasons for this immaturity is a simple fact: creating and managing great VoC programs isn’t easy. They take significant leadership commitment and a  variety of expertise. In many cases, however, companies don’t redesign their approach to customer insights, they simply end up updating and automating many of their historical practices.

The big change for VoC programs is that they must focus more on enabling action across their organization. We found that only 24% of large firms think they are good at making changes to the business based on the insights. For VoC programs to fully mature, they need to become hyper-focused on generating insights in the right form at the right time to help people across their organizations make better, more informed decisions.

As if that’s not enough to work on, companies will need to address Six Customer Insight Trends that will reshape VoC programs: 1) Deep Empathy, Not Stacks of Metrics; 2) Continuous Insights, Not Periodic Studies; 3) Customer Journeys, Not Isolated Interactions; 4) Useful Prescriptions, Not Past Descriptions; 5) Enterprise Intelligence, Not Customer Feedback; and 6) Mobile First, Not Mobile Responsive.

VoC Vendors Need To Grow Up

In 2010, I rejected the label “Enterprise Feedback Management (EFM)” that was being used to describe vendors that provided technology and services for VoC programs. Instead of EFM, I labeled them as Customer Insight and Action (CIA) Platforms and here’s why:

To some degree, surveying functionality is becoming a commodity. Organizations are recognizing that feedback is not valuable on its own; it only becomes valuable when it’s used as an input to insights which drive some type of action. So the focus is no longer on feedback, but on insight and action. Hence, Customer Insight and Action (CIA) Platforms.

Fast forward to 2018 and I think that CIA Platforms is still the correct name for these offerings (from vendors such as Confimit, InMoment, MaritzCX, Medallia, and Qualtrics). They continue to evolve towards this description I used in 2010:

CIA Platforms need to support closed-loop voice of the customer (VoC) programs that are going beyond structured, solicited feedback (traditional surveys). With the maturing of text analytics and the rise of social media, companies are increasingly mining insights from unstructured, unsolicited feedback like customer comments on surveys, notes and verbatims from contact center conversations, inbound emails, online chats, social media sites, customer feedback comments, etc

But new channels of feedback (also called “listening posts”) are not the only element that distinguishes CIA Platforms from their predecessors. These applications also provide actionable insights by:

  • Incorporating non-feedback data like customer profiles and transactional history
  • Distributing tailored, contextual insights across an organization
  • Providing alerts based on specific criteria
  • Supporting workflow associated with taking action based on the insights
  • Integrating with other applications like CRM and workforce management

Next Generation CIA Platforms

Okay, so we got that right eight years ago. What’s next? Here’s where I think the market is heading for enterprise CIA Platforms:

  • Advanced analytics. We’ll see a considerable increase in the use of predictive analytics and the use of speech analytics to unlock insights from invaluable contact center conversations.
  • and way smarter analytics. The current set of analytics are mostly designed for analysts to uncover insights, but we’ll see more “packaged” analytics that mask complexity to provide tailored recommendations that improve high-impact decisions across the enterprise.
  • More focus on casual users.The days of generic metrics and dashboards will hopefully be a thing of the past. The information provided to people will be specific to their roles, and will proactively highlight the information that they need to know. It may take the form of highly customized dashboards, but it could also be a monthly infographic that can be posted in the lunchroom for hourly workers.
  • Less surveys, but more data. We already see in our research that organizations are becoming less reliant on surveys. This feedback will become less about understanding what’s being said by individual customers, and more about using the insights in predictive models to extrapolate what it might mean across entire segments of customers. This will require companies to integrate feedback with lots of customer data from other systems.
  • More selective, targeted feedback. Companies will get better at strategic sampling. What is this? Being smarter about who they get feedback from and when they get that feedback. The current approach of trying to hear from as many customers a possible in as many places as possible is conceptually attractive, but it’s an inefficient use of internal resources, and it puts a strain on an even more important commodity—customers’ time and attention.
  • Easier to use, but less “self-service.” In many cases, large enterprises lack the internal skills and know how to create and sustain a strong VoC program. While the technology platforms will continue to become easier for companies to administer and use without vendor support, strong VoC programs will increasingly recognize the need to tap into externally provided support across a number of areas, including:
    • Program setup
    • Data management
    • Sampling strategies
    • Dashboard design
    • Analytics
    • Insight distribution
    • Operational redesign

The bottom line: VoC programs and vendors need a makeover.

Report: Tech Vendors: Product and Relationship Satisfaction, 2018

Tech Vendors: Product & Relationship Satisfaction of IT ClientsWe just published a Temkin Group data snapshot, Tech Vendors: Product and Relationship Satisfaction of IT Clients, 2018.

During Q3 of 2017, we surveyed 800 IT decision-makers from companies with at least $250 million in annual revenues, asking them to rate both the products of and their relationships with 58 different tech vendors. Google, Oracle outsourcing, and Microsoft servers earned the top overall scores, while Autodesk, ADP outsourcing, and Fujitsu received the lowest overall scores. To determine their product rating, we evaluated tech vendors across four product/service criteria: features, quality, flexibility, and ease of use. And we calculated their relationship rating using four different criteria: technical support, support of the account team, cost of ownership, and innovation of company. We also looked at how the average product and relationship scores of tech vendors have changed over the previous four years and found that both product/service and relationship satisfaction have dropped to their lowest levels since the study began.

This research has a report (.pdf) and a dataset (excel). The dataset has the details of Product/Service and Relationship satisfaction for the 58 tech vendors as well as for 31 other tech vendors with sample sizes too small to be included in the published report. Here is a sample of the dataset.

Download report for $495
(includes Excel spreadsheet with data)
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Here’s a link to last year’s study.

Here are the overall results:

Here are the data graphics in the report:

  1. Questions Used to Drive Analysis
  2. Overall Product & Relationship Satisfaction Ratings
  3. Product & Relationship Satisfaction Component Scores
  4. Top Half in Product Satisfaction Ratings
  5. Bottom Half in Product Satisfaction Ratings
  6. Top Half in Relationship Satisfaction Ratings
  7. Bottom Half in Relationship Satisfaction Ratings
  8. Product & Relationship Satisfaction Component Scores, 2014 to 2017

Report details: When you purchase this research, you will receive a written data snapshot and an excel spreadsheet with more data. The dataset has the details of Product/Service and Relationship satisfaction for the 58 tech vendors as well as for 31 tech vendors with sample sizes too small to be included in the published report. If you want to know more about the data file, download this SAMPLE SPREADSHEET without the data (.xls).

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(includes Excel spreadsheet with data)
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12 CX Factoids: Ratings, People, and Leadership (Infographic)

It’s hard to keep up with everything that Temkin Group published in 2017, so we put together a couple of infographics to highlight some of the key data insights. The initial infographic examined CX efforts and ROI.

In this infographic, we examine 12 factoids on CX ratings, people, and leadership. Below the infographic you’ll find links to download the graphic (as well as a poster), along with links to the referenced content.12 Customer Experience Factoids Infographic From Temkin Group, Covers CX Ratings, People & Leadership

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

Off Topic: A Handful of Super Bowl LII Thoughts

First of all, I want to say congratulations to all of the Philadelphia Eagles fans out there. Your team won a great game that capped off an amazing season!

Super Bowl LII in US Bank Stadium, Minneapolis, MN

I was lucky enough to attend my third Super Bowl (SB LII) yesterday. Unlike the endings in Super Bowls XLIX and LI, my Patriots did not win the game. Here are a few quick thoughts about the experience:

  • Minneapolis was a very welcoming community. From the moment we landed, everyone in Minneapolis was wonderful. Our plane was greeted at the gate by about 20 volunteers with signs and a balloon archway. Throughout the city, we ran into locals who volunteered their time to joyfully help us visitors find what we were looking for, and to make sure that we enjoyed our stay in Minneapolis.
  • Winning feels better than losing. When the game ended in a loss, I suddenly was dreading the long trek home—something that I looked forward to during my previous two Super Bowls. And it was a lot more fun celebrating with crowds of people after the last two Super Bowls, than it was this time when we just went back to the hotel and want to bed.
  • Humans should never face negative temperatures. We spent a large portion of our visit in Minneapolis facing sub-zero temperatures. That’s just too cold! Our rental car didn’t even have a negative sign, so it showed the temperatures rising even as we were falling closer to the bottom of the Kelvin scale. It was so cold that I couldn’t handle my cell phone, but it didn’t matter because the touch screen didn’t work and I couldn’t talk.
  • I’m very thankful for Minneapolis’ enclosed maze. This relates to the previous item. We had a one mile walk from lunch to the stadium, which may have led to the loss of feeling in my fingers and toes. Luckily, we were able to stay inside for just about the entire time. How? There’s a labyrinth of enclosed walkways that weave throughout downtown Minneapolis. I guess even Minnesotans can’t get used to those temperatures.
  • The Mall of America was a fun destination. I haven’t visited the Mall of America since I was on a teen tour many, many years ago. In the middle of the mall is a full amusement park with multiple roller coasters. I enjoyed a nice ride on the ferris wheel. It was particularly entertaining, because the mall was full of Super Bowl-related activities.
  • I’m very, very lucky. Despite fighting the cold and seeing my team lose the championship, it was a wonderful experience that I was able to share with my son, father-in-law, and a friend. We’ve been incredibly blessed by the success of the Patriots, and I am proud of what the team has accomplished. We may have lost a game, but having memorable moments with people who you care about is winning in my book.

The bottom line: Looking forward to cheering for my Patriots in Atlanta at Super Bowl LIII!

Report: Customer Experience Expectations and Plans for 2018

Purchase and download Temkin Group report, Customer Experience Expectations and Plans for 2018We just published a Temkin Group data snapshot, Customer Experience Expectations and Plans for 2018.

In December 2017, Temkin Group surveyed 145 respondents – each from a company with $500 million or more in annual revenues – about their customer experience efforts over the past year and their plans for 2018 and beyond. We compared the results of this survey to the results of similar surveys we’ve conducted over the previous seven years. This year’s results show that companies plan on increasing the amount of money and effort they dedicate to improving a variety of customer experience activities.

Here are previous reports from 2017, 2016, and 2015.

 

Download report for $195
Purchase and download Temkin Group data snapshot, Customer Experience Expectations and Plans for 2018

Here are some highlights from the research:

  • 86% of companies have seen a positive impact from their CX efforts in 2017.
  • 81% of companies expect CX to be more important in 2018 than it was in 2017.
  • 62% of companies expect to spend more on CX in 2018 than they did in 2017.
  • The companies that expect to increase their CX staffing in more than five times the percentage that expect to decrease it.
  • Companies plan to increase their spending the most for VoC software and chat bot vendors.
  • Companies plan to increase their focus the most on online self-service experiences, and the least on phone self-service.
  • Companies plan to increase their focus the most on solving customer service issues,  and the least on understanding bills and statement.
  • Companies plan to increase their effort the most on customer insights and analytics.
  • 21% of companies plan to compensate front-line employees based on CX metrics.
  • Compared with other companies, companies with more successful CX efforts in 2017 are employing more CX professionals, focusing more on online chat and new product experiences, and plan to spend more on speech/voice analytics vendors.

Here are the data charts in this data snapshot:

  1. Business Impact of CX
  2. Changes in the Importance of Customer Experience
  3. Changes in Spending on Customer Experience
  4. Changes in CX Staffing Levels
  5. Plans for Spending with CX Vendors
  6. Focus on CX Across Interaction Channels in 2018
  7. Plans to Increase Focus on the CX of Different Channels
  8. Focus on Customer Journeys in 2018
  9. Focus on CX Activities in 2018
  10. Plans to Increase Focus on Different CX Activities
  11. Compensation Based on CX Metrics
  12. Key Differences Between Companies With More Successful And Less Successful CX Programs

Download report for $195
Purchase and download Temkin Group data snapshot, Customer Experience Expectations and Plans for 2018

BlackRock CEO Shares A Sense of Purpose. Hallelujah!

Every once in a while, there’s a signal that things are changing. I hope that this is one of those moments.

Larry Fink, Founder, Chairman and Chief Executive Officer of BlackRock, recently sent out his annual letter to CEOs. This year, it was titled, A Sense of Purpose. I urge everyone to read it. Here’s an excerpt:

Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.

I totally agree!

Companies have a responsibility to all of their stakeholders, not just to a narrow set of needs (financial returns) for a subset of its stakeholders (shareholders). This perspective is part of what has fueled what I call Modernized Leadership, which is a rethinking of outdated management practices.

Fink’s letter is particularly powerful given that Blackrock is the world’s largest asset manager. When investors take a longer-term point of view, they recognize that the creation of true value is driven by a commitment to a strong sense of purpose. As Fink says…

Without a sense of purpose, no company, either public or private, can achieve its full potential. It will ultimately lose the license to operate from key stakeholders. It will succumb to short-term pressures to distribute earnings, and, in the process, sacrifice investments in employee development, innovation, and capital expenditures that are necessary for long-term growth.

Why is purpose so important? This video shows its power:

Purpose has been one of Temkin Group’s core themes for many years, so we have a lot of content on the topic. If you’re interested in becoming a more purposeful leader, I suggest you start here:

Having a sense of purpose isn’t just a notion reserved for CEOs and leaders, its applicable to everyone. We all share the responsibility for making the world around us a better place. With that in mind, I urge you to join Temkin Group in making 2018 The Year of Humanity.

2018 The Year of Humanity (Temkin Group)

The bottom line: We can make this a moment of change.

Customer Empathy, Lin-Manuel Miranda, and Qualtrics X4

I love it when my work overlaps with some of my other passions. Well, it’s happening in a big way at the Qualtrics X4 Experience Summit in Salt Lake City on March 6th through 9th. I’ll be skiing in Deer Valley before the event, I’ll be speaking about customer empathy at the event, and Lin-Manuel Miranda will also be speaking.

Did you hear me… Lin-Manuel Miranda!Lin-Manuel Miranda at Qualtrics X4 Experience SummitI’m not just a fan of Miranda’s, I’m a super fan. I saw In the Heights when it first opened and loved it. And while I wasn’t able to see Hamilton in The Public Theater, I saw it when it first opened on Broadway. Wow! I’ve seen it a second time and am looking forward to my third visit. It’s by far the best show that I’ve ever seen. Miranda is a genius!

If you come to the X4 Summit, then there’s more to do then just swoon over Miranda. Enjoy some other parts of the event… like my speech on Thursday, March 8th after lunch. Here’s the description:

Customer Empathy: The Missing Key to Turn Intelligence Into Action
Most organizations collect data about their customers, but very few have fully cracked the code on taking action on what they learn. What’s missing? Customer empathy. People are creatures of habit, and data alone is often not enough to persuade them to change their behaviors and actions. Learn how to extend the impact of your customer intelligence efforts by raising the level of both cognitive and emotional empathy across your organization.

If you’ve seen me speak in the past, then you know that I like to make my speeches entertaining. Given that Miranda is at the event, I’ve decided to incorporate an homage to Hamilton. We’re having fun brainstorming different approaches. If you want to know what happens, make sure to be there!

I’d be remiss if I didn’t mention that there will be other great speakers at the event who I am really looking forward to seeing, including “Magic” Johnson (NBA legend), Angela Duckworth (who is doing amazing work on the topic of passion, perseverance, and grit), Shawn Anchor (who discusses one of my favorite topics, Happiness), , and Tony Hawk (the skateboard legend). And I just heard that media pioneer Arianna Huffington will also be speaking. I’m also looking forward to seeing Adam Levine and Maroon 5 who will be performing (I wonder if Maroon 5 has ever been so buried in an event description before).

To be fully transparent, Qualtrics sponsored this post (although they did not have any input on the content). That allows me to provide this discount code that saves $300 on the event: TEMKN (not “Temkin”). Use this link to register.

I hope you can make it to my speech and will be in The Room Where It Happens!

Report: Channel Preferences Benchmark, 2018

Purchase and download Channel Preferences Data SnapshotWe just published a Temkin Group data snapshot, Channel Preferences Benchmark, 2018.

Here’s the executive summary: 

In Q3 2017, we surveyed 10,000 U.S. consumers about their channel preferences when performing 12 different activities – such as selecting a life insurance policy or applying for a new credit card – and compared their responses to the results of a similar study we conducted in Q3 2016. This data snapshot examines how channel preferences vary across age groups, how these preferences have changed over the past year, and how channel preferences differ across multiple activities.

Here are previous benchmarks from 2016, 2015, and 2014.

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Purchase and download Temkin Group data snapshot, Channel Preferences Benchmark, 2018

Here is an excerpt from one of the 14 charts in the report:

Channel Preferences of U.S. Consumers Shows Desire For Digital Channels

Here are all of the data charts int he report:

  1. Channel Preferences Across Multiple Activities
  2. Channel Preferences: Changes between 2016 and 2017
  3. Channel Preference By Age: Check the Delivery Status of a Purchase You Made
  4. Channel Preference By Age: Check the Balance on a Savings or Checking Account
  5. Channel Preference By Age: Update Your Address on an Account After You Move
  6. Channel Preference By Age: Purchase a New Book
  7. Channel Preference By Age: Apply for a New Credit Card
  8. Channel Preference By Age: Change the Beneficiary on a Life Insurance Account
  9. Channel Preference By Age: Resolve a Technical Problem with Your Computer
  10. Channel Preference By Age: Purchase a New Auto Insurance Policy
  11. Channel Preference By Age: Select a Life Insurance Policy
  12. Channel Preference By Age: Investigate a Mistake in Your Monthly Cell Phone Bill
  13. Channel Preference By Age: Open a New Investment Account
  14. Channel Preference By Age: Schedule a Medical Procedure

Download report for $195
Purchase and download Temkin Group data snapshot, Channel Preferences Benchmark, 2018

CX Institute Fills Customer-Centric Transformation Gap

For years, Temkin Group has worked with organizations that are looking to become more customer-centric, providing guidance to the executives and teams who are responsible for driving this change. But over the last couple of years, we’ve noticed a shift in our work. It’s no longer just about providing our clients with the skills and knowledge they need to be masterful CX professionals. We are increasingly helping them train and motivate a broader group of employees.

This evolution makes sense. During the early stages of CX maturity, modest goals for change only require a few employees to be on-board. But as their efforts expand, CX teams attack more far-reaching issues that affect a larger group of employees. Ultimately, becoming truly customer-centric requires a culture change, which means you really need to influence how all employees think, believe, and act.

That’s where the CX institute comes into play. Our online training is meant to provide 100s or 1,000s of employees with the training they need to become more customer-centric. Here’s a recent webinar that provides an overview of CX Institute.

I’m excited that CX Institute just completed its beta period with its first two online training modulesCustomer Experience Foundations and Creating a Customer-Centric Culture. While Temkin Group provides a wide range of services, CX Institute fills a gap in helping our clients economically propel a customer-centric culture across their organizations.

Temkin Group and CX Institute Offerings to Improve Customer Experience and Drive Customer-Centric Transformation

Overcoming organizational inertia is hard, but CX Institute can help turn unacquainted and reluctant employees into active participants in the transformation by providing them with:

  • Motivation: Helps employees understand why it’s so important for the organization to become more customer-centric.
  • Mindset: Shows employees how they (all) play a role in making the organization become more customer-centric.
  • Momentum: Identifies tangible ways that employees can change their behaviors, and provides them with support and encouragement along the way.

To make it easy for companies to start using CX Institute’s online training, we’re offering a 25% discount for 60 days on both our individual training (purchase online and start right away) and corporate training (license for 100s or 1,000s of employees). If you’re interested, visit the CX Institute website or send us an email at info@cxinstitute.com.

The bottom line: It takes all employees to create a customer-centric culture.

15 CX Factoids: Customer Experience Efforts & ROI (Infographic)

It’s hard to keep up with everything that Temkin Group published in 2017, so we put together a couple of infographics to highlight some of the key data insights. This first infographic looks at CX efforts and the ROI of those activities. Below the infographic you’ll find links to download the graphic (as well as a poster), along with links to the referenced content.

Infographic shows 15 customer experience (CX) factoids form Temkin Group research, including ROI data

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

Free eBook: The 6 Laws Of Customer Experience

Download free Temkin Group eBook, The Sx Laws of Customer ExperienceThis is an update to the original eBook that was published in 2008. It has been downloaded and read by tens of thousands of people around the world and is likely one of the most-read documents ever published on the topic of customer experience.

So enjoy the updated eBook: The 6 Laws Of Customer Experience: The Fundamental Truths That Define How Organizations Treat Customers

Download free eBook: The Six Laws of Customer Experience

Just like the three laws that govern all of physics, there are a set of fundamental truths about how customer experience operates. This eBook outlines the following 6 laws of customer experience:

  1. Every interaction creates a personal reaction.
  2. People are instinctively self-centered.
  3. Customer familiarity breeds alignment.
  4. Unengaged employees don’t create engaged customers.
  5. Employees do what is measured, incented, and celebrated.
  6. You can’t fake it.

The bottom line: To understand CX, you must first understand these laws.

NOTE: CX Institute’s CX Fundamentals eLearning module provides online training for employees across an organization to learn and apply these laws, helping organizations to become more customer-centric.

Happy MLK Day in The Year of Humanity!

Happy MLK Day!

Martin Luther King Jr. Wikipedia Page
Source: Wikipedia

Every year on this day I like to celebrate lessons that we can learn from Martin Luther King, Jr. This year, I’ll focus on this quote:

We must live together as brothers or perish together as fools

This line is from King’s commencement address at Oberlin College in 1965 titled, Remaining Awake Through a Great Revolution. Here’s a bit more of the speech that surrounded that quote:

What we are facing today is the fact that through our scientific and technological genius we’ve made of this world a neighborhood. And now through our moral and ethical commitment we must make of it a brotherhood. We must all learn to live together as brothers – or we will all perish together as fools. This is the great issue facing us today. No individual can live alone; no nation can live alone. We are tied together.

It’s amazing to me that King’s words from this speech are as relevant today as they were when he delivered them more than 50 years ago.

Unfortunately, many of our current political leaders promote partisan, divisive agendas. Instead of demonstrating genuine concern and caring for the people to whom they serve, they cater to the most ideologically extreme members of their base. As a result, it’s a challenge to accomplish even clearly humane activities like passing a DACA bill (to allow children born in the U.S. to remain in the U.S.).

Let’s choose to not follow their example. Instead of treating every interaction as if it’s a fight between “us and them,” let’s act as if every person is our brother (or sister). We can collectively make a difference.

Temkin Group has labeled 2018 The Year of Humanity. Join us in making it a reality.

Join Temkin Group in making 2018 the Year of Humantiy

CX ROI: Better Customer Experience = More Recommendations

In a recent post, I showed the correlation between customer experience and consumers’ likelihood to repurchase.

Since that post was so popular, I decided to once again tap into our survey of 10,000 U.S. consumers to analyze the relationship between CX (Temkin Experience Ratings) and likelihood to recommend.

To determine likelihood to recommend, we asked consumer how likely they were to recommend the company to friends and family. We calculated the percentage of each company’s customers who selected “8,” “9,” or “10” on a scale from “0” (not at all likely) to “10” (extremely likely).

In the chart below, we normalize the data for 329 across 20 industries by subtracting each company’s scores from the average for their industries.

As you can see, CX is highly correlated to recommendations (R= 0.70).

Data showing ROI of Customer Experience, correlating CX with loyalty through recommendations

In the chart below, we segmented consumers into five groups based on the TxR scores they gave companies (an average of success, effort, and emotion ratings). We then averaged the future purchase intentions of those groups across the 20 industries.

As you can see, consumers who have had a very good CX are 5x more likely to recommend a company than consumers who have had a very poor CX.

CX ROI: Customer experience correlates to more positive recommendations.

Report: Lessons in CX Excellence, 2018

Download Temkin Group research report, Lessons in Customer Experience Excellence, 2018We just published a Temkin Group report, Lessons in CX Excellence, 2018. The report provides insights from six winners in the Temkin Group’s 2017 CX Excellence Awards. The report, which has more than 70 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 past November, we named six organizations the winners of Temkin Group’s 2017 Customer Experience Excellence Award – AARP, Allianz Worldwide Partners, Century Support Services, Nurse Next Door Home Care Services, Reliant, and Sage. 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.
  • Includes all of the winners’ detailed nomination forms to help you collect examples and ideas to apply to your own CX efforts.

Download report for $195
Purchase and download Temkin Group research report, Lessons in Customer Experience Excellence, 2018

Here are some highlights from the winners: Read More …