Report: 2018 Temkin Experience Ratings (U.S.)

2018 Temkin Experience Ratings: Customer Experience (CX) Benchmark of 318 U.S. Companies2018 marks the eighth straight year that we’ve published the Temkin Experience Ratings, a cross-industry, open standard benchmark of customer experience.

To generate these Ratings, we asked 10,000 U.S. consumers to rate their recent interactions with 318 companies across 20 industries and then evaluated their experiences across three dimensions: success, effort, and emotion. Here are some highlights:

  • Wegmans, H-E-B, Citizens, credit unions, Publix, and Subway earned the highest overall ratings, while CarMax, Spirit Airlines, Optimum, Medicaid, and Comcast received the lowest.
  • When we compared individual company’s ratings with their industry averages, we found that Southwest Airlines and Georgia Power most outperformed their peers, while CarMax and Spirit Airlines fell farthest behind their competitors.
  • The Ratings declined slightly this year, driven mostly by a drop in the emotion component scores.
  • To improve customer experience, companies need to master four competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness

Download report for FreeDownload free report: 2018 Temkin Experience Ratings (Customer Experience Benchmark) You can also download the dataset in Excel for $395

Have questions? See our FAQs about the Temkin Experience Ratings.

Here are the top and bottom companies in the ratings:

2018 Temkin Experience Ratings: Customer Experience (CX) Leaders & Laggards

***See how your company can reference these results or
display a badge for top 10% and industry leaders***

Here’s how the industries compare with each other:

2018 Temkin Experience Ratings: Customer Experience (CX) Benchmark Data for 20 Industries

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You can also download the dataset in Excel for $395

Get the Data

Purchase the 2018 Temkin Experience Ratings datasetDo you want to see all of the data from the 2017 Temkin Experience Ratings? You can purchase an excel spreadsheet for $395. Here’s a sample of the spreadsheet (.xls).

To view all of our ratings (experience, trust, forgiveness, customer service, and web experience), visit the Temkin Ratings website

Temkin Ratings website

Customer Focus Boosts Employee & Business Performance

It turns out that having a customer focus isn’t only good for customers, but it’s also good for employees and financial results.

We asked more than 5,000 U.S. employees to identify what they felt was the top priority for their senior executives. We also asked them about their work efforts and the financial performance of their organization. As you can see in the chart below:

  • When senior executives care the most about customers’ needs, employees try their hardest and the companies have the best financial results.
  • The next best place for senior executives to focus is on fulfilling the organizations mission.
  • When senior executives are mostly focused on generating more profits, they end up with the worst employee and financial performance.

Research on 5,000+ employees shows that companies that focus on customers have better financial results and employees that try harder.The bottom line: Focus on your customers, not on your profits.

Employee Engagement: A Goldmine of Untapped Value (Infographic)

Employee Engagement is one of Temkin Group’s Four CX Core Competencies. In other words, you can’t be customer-centric unless you have a highly engaged workforce. Make sure to visit our Employee Engagement Page.

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

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.

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:

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.

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.

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Purchase and download Temkin Group research report, Lessons in Customer Experience Excellence, 2018

Here are some highlights from the winners: Read More …

Young Employees Are Most Impacted By Purposeful Leaders

As many readers of this blog know, Purposeful Leadership is one of Temkin Group’s Four CX Core Competencies. How do leaders demonstrate this characteristic? By mastering what we call the 5 P’s of Purposeful LeadersPersuasivePassionatePropellingPositive, and Persistent.

In a recent post, we showed how Purposeful Leadershipaffects the behaviors of employees. We decided to take a look at how the impact differs across ages of employees. To do this, we segmented more than 5,000 U.S. employees into two groups, one that said that their boss demonstrated all five characteristics of Purposeful Leadership (about 55% of the total) and those who’s boss did not.

We then examined the percentage of each group who say that they “always” or “almost always” try their hardest at work. As you can see in the chart below:

  • Younger employee are most effected. Looking at the impact of Purposeful Leaders between both groups, we find the largest gap for the youngest employees (27 %-points).
  • Older employees try harder. For both groups of employees, the percentage of employees who try their hardest increases with age.

Temkin Group analysis shows that the positive impact of purposeful leaders is greatest with younger employees

The bottom line: Purposeful leadership is gaining importance.

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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Buy the State of the Voice Of the customer programs report

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

Voice of the customer competency and maturity levels

Download report for $195+Buy the state of the voice of the customer programs report

CX Design Wins A Nobel Prize

Richard Thaler nobel prizeIn 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.

Intuitive thinking versus rational thinkingThat’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.

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.

Free ebook download

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:

25 tips for becoming a more purposeful leader

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

The bottom line: Purposeful leadership really matters!

Report: Net Promoter Score Benchmark Study, 2017

Net Promoter score benchmark study, 2017We published a Temkin Group report, Net Promoter Score Benchmark Study, 2017. This is the sixth year of this study that includes Net Promoter® Scores (NPS®) on 299 companies across 20 industries based on a study of 10,000 U.S. consumers.

Here’s the executive summary:

Many large companies use Net Promoter® Score (NPS) to evaluate their customers’ loyalty. To compare scores across organizations and industries, Temkin Group measured the NPS of almost 300 companies across 20 industries based on a survey of 10,000 U.S. consumers. Here are the highlights from this benchmark:

  • With an NPS of 66, USAA’s insurance business earned the highest score in the study for the fifth year in a row.
  • Comcast received the lowest NPS for the third year in a row with a score of -9.
  • The industry average for NPS ranged from a high of 43 for auto dealers down to a low of 9 for TV & Internet service providers.
  • Citibank, whose NPS lagged 35 points behind the banking average, fell the farthest behind its peers.
  • All industries saw their average NPS decline over the past year, though Utilities dropped the most.
  • 18- to 24-year-old consumers give companies the lowest NPS (with an average score of 17 across industries), while consumers 65 and older give the highest NPS (with an average score of 38 across industries).
  • NPS is highly correlated with customer experience. On average, customer experience leaders enjoy an NPS over 18 points higher than customer experience laggards.

See the NPS Benchmark Studies from 2012, 201320142015, and 2016.

Here’s a list of companies included in this study (.pdf).

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(includes report (in .pdf) plus dataset in Excel)
Purchase Net Promoter Score (NPS) benchmark

Here are the NPS scores across 20 industries:
range of net promoter scores across industries

Download report for $495
(includes report (in .pdf) plus dataset in Excel)
buy Net Promoter Score (NPS) Benchmark Study

If you want to know what data is included in this report and dataset, download this sample Excel dataset Net promoter score study data sets

If you’re looking to create a strong NPS program, check out our VoC/NPS Resource Page.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Large Companies Lack Purposeful Leadership

As you likely know, one of Temkin Group’s Four CX Core Competencies is Purposeful Leadership. It requires demonstrating 5 P’s of Purposeful LeadersPersuasivePassionatePropellingPositive, and Persistent.

How prevalent are these attributes? To answer this question, I tapped into Temkin Group’s consumer benchmark study and examined feedback from more than 5,000 U.S. employees. We asked whether or not they agreed that their bosses demonstrated these behaviors that are consistent with the Five P’s:

  • He/she makes decisions that are consistent with what he/she says is important (Persistent)
  • He/she helps you succeed in your job (Propelling)
  • He/she regularly shows appreciation for the work that you do (Positive)
  • He/she doesn’t just tell you what to do, but he/she explains why it’s important (Persuasive)
  • He/she is passionate about the success of the organization (Passionate)

We examined the data across size of organization. As you can see in the chart below, there’s a substantial drop-off above 5,000 employees for all five areas.Purposeful leadership at an organization

Report: Tech Vendor NPS Benchmark, 2017 (B2B)

tech vendor NPS benchmark studyWe just published a Temkin Group report, Tech Vendor NPS Benchmark, 2017. The research examines Net Promoter Scores® (NPS®) and the link to loyalty for 58 tech vendors based on feedback from 800 IT decision makers in large North American organizations. We also compared overall results to our benchmarks from the previous five years. Here’s the executive summary:

For the sixth year in a row, we looked at the correlation between NPS and loyalty for technology vendors. To examine this link, we surveyed 800 IT decision-makers from large North American firms, asking about their relationships with their technology providers. Through this research, we found that:

  • Across the 58 tech vendors we examined, NPS ranged from +43 to -22.
  • Microsoft, SAS, Google, and VMware earned the highest NPS, while Accenture consulting, ACS, Autodesk, and Fujitsu received the lowest.
  • Overall, the average NPS for the tech vendor industry decreased by more than eight points from last year, down from 29.9 to 21.4 – the lowest level of any year we’ve studied.
  • Our analysis shows that NPS is correlated to customers’ willingness to spend more with tech vendors, try their new products and services, forgive them after a bad experience, and act as a reference for them with prospective clients.
  • When it comes to loyalty, IT decision-makers are most likely to purchase more from Microsoft and HP, try new offerings from Microsoft and Google, forgive SAS and Microsoft if they make a mistake, and act as a reference for Apple and IBM SPSS.

The report includes graphics with data for NPS, likelihood to repurchase, Temkin Forgiveness Ratings, and Temkin Innovation Equity Quotient (likely to try new offerings).. The excel spreadsheet includes this data (in more detail) for the 58 companies as well as summary data for other tech vendors with less than 40 pieces of feedback. It also includes the summary NPS scores from 2016.

Download report for $695
Purchase includes Excel spreadsheet with data.
Download sample spreadsheet to see details. 
buy tech vendor nps benchmark study

As you can see in the chart below, the NPS ranges from a high of 43 for Microsoft servers down to  a low of -22 for Fujitsu.the Net promoter score of 58 tech vendors

The industry average NPS decreased from 29.9 last year to 21.4 this year this year.

the average net promoter score for tech vendors

Report details: The report includes graphics with data for NPS, likelihood to repurchase, Temkin Forgiveness Ratings, and Temkin Innovation Equity Quotient (likely to try new offerings).. The excel spreadsheet includes this data (in more detail) for the 58 companies as well as summary data for other tech vendors with less than 40 pieces of feedback. It also includes the summary NPS scores from 2016.

Download report for $695
Purchase includes Excel spreadsheet with data.
Download sample spreadsheet to see details. 
download net promoter score for tech vendors report

Note: See our 2016 NPS benchmark2015 NPS benchmark2014 NPS benchmark2013 NPS benchmark and 2012 NPS benchmark for tech vendors as well as our page full of NPS resources.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

6 Levers For Executive Commitment to CX (Infographic)

In the report Activating Executive Commitment to CX, Temkin Group introduces a blueprint that CX leaders can use to gain and strengthen senior executive commitment. It’s composed of six levers: Create Vision Clarity, Share Compelling Opportunities, Amplify Emotional Empathy, Feed Intrinsic Motivations, Enable First Steps, and Fuel Ongoing Confidence. Here’s an infographic that provides an overview.

infographic of 6 levesr for gaining executive commitment to CX

You can download the graphic in several formats: