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.

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.

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!

Report: Net Promoter Score Benchmark Study, 2017

We 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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Here are the NPS scores across 20 industries:

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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 file.Screen Shot 2014-10-17 at 4.05.17 PM

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.

Report: Tech Vendor NPS Benchmark, 2017 (B2B)

We 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.

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

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.

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Purchase includes Excel spreadsheet with data.
Download sample spreadsheet to see details. 
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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.

You can download the graphic in several formats:

Purposeful People Are More Loyal Customers and Employees

Temkin Group has labelled 2017 The Year of Purpose, so we have been examining the topic of purpose across many different angles.

One of the areas we are interested in is the impact that a person’s level of purpose and meaning has on how they behave as an employee and customer. It turns out that it has a pretty significant impact in both of these areas.

In our latest U.S. consumer benchmark study, we asked a number of questions about people’s attitudes, employee behaviors, and company loyalty. As you can see in the chart below, people who believe that they lead a purposeful and meaningful life are better employees and more loyal customers.

The bottom line: Purposefulness creates positivity across all aspects of life.

Want Better Employees? Be A Purposeful Leader

As you likely know, one of Temkin Group’s Four CX Core Competencies is Purposeful Leadership. It requires demonstrating 5 P’s of Purposeful Leaders: Persuasive, Passionate, Propelling, Positive, and Persistent.

Why should leaders bother to adopt these practices?

To answer this question, I took a look at our latest consumer survey and analyzed data from more than 5,000 full-time U.S. employees. As you can see in the chart below, employees who experience the behaviors of purposeful leaders are much more likely to do something that is good for the company even if it’s not expected of them.

This analysis highlights one piece of our dataset that shows how employees work harder for purposeful leaders. We see this same pattern across many other employee behaviors.

Being a purposeful leader is not about being a nice person or a likable manager. It’s about acting in a way that motivates employees and creates a higher performing organization.

The bottom line: Purposeful leaders have more dedicated employees.

Our Nation Needs More Purposeful Leaders

I’m sorry about this somewhat political post (you can stop reading it now if you like), but I feel as though we all have a responsibility to speak up.

I’ve become saddened by the apparent rise of hate across the U.S. Instead of embracing the strength of our diversity, our country seems to be giving rise to hateful rhetoric and policies that target minority groups.

As an American, I believe that this is intolerable. We are a great nation because of our diversity, not in spite of it.

To paraphrase Martin Luther King, Jr., I have a dream that we can live in a society where people are not judged by their religion, race, color, gender, or ethnicity, but by the content of their character.

While I’m not an expert on politics, I’ve spent a lot of time studying leadership. I believe that the leader of a great nation must demonstrate a competency that Temkin Group calls Purposeful Leadership. My hope is that the leaders of our country can better demonstrate these five P’s of purposeful leaders:

  • Persuasive: Don’t just say that we should be doing something, make the case for why it’s good for all citizens and important for the future of the country.
  • Passionate: Don’t motivate people by scaring them, provide a compelling view of the future that inspires hope.
  • Propelling: Don’t focus on your personal needs and ego, empower and enable the people who work for you and around you to be successful.
  • Positive: Don’t focus on finding flaws and blaming people, motivate them by showing appreciation for their successes.
  • Persistent: Don’t adjust your statements to meet the needs of the day, be very clear about your values and always act consistently with them.

The bottom line: The U.S. is a great country because of its inclusive diversity.

The Power of Customer Journey Thinking (Infographic)

I hate to break this news to you, but your customers most often interact with your organization because they have to, not because they want to. And when they do connect with you, it’s part of a larger journey that they’re on to achieve something more important than the interaction with you.

That’s why it’s critical for organizations to understand and to design experiences for their customers’ journeys.

A few year ago, we introduced the concept of Customer Journey Thinking (TM). It’s a simple tool for employees across an organization to continuously focus on customers’ journeys. As you can see in the infographic below, it’s all about asking and answering five simple questions.

Customer journey thinking infographic explaining best practices for using customer journey mapping.You can download the infographic in several forms:

Report: Infusing Culture Throughout The New Employee Journey

We just published a Temkin Group report, Infusing Culture Throughout The New Employee Journey.

Here’s the executive summary:

A company’s culture reflects the attitudes and behaviors of its employees and influences almost every aspect of the employee journey and experience. However, despite its importance, many companies fail to orient new employees to their culture during onboarding. Rather than helping new hires form long-term connections with the organization and its values, companies often use this time to teach new hires about the organization’s processes. Companies instead should use their culture as a focal point during recruiting, hiring, and onboarding and then continue to emphasize it as employees acclimate to their roles. This report:

  • Explores how companies can align new employees with their culture.
  • Describes how companies can infuse culture throughout the four stages of the new hire journey: Establish Cultural Fit, Set Behavioral Expectations, Reinforce Positive Performance, and Prioritize Sustaining Culture.
  • Shares examples of best practices from a number of companies, including Adobe, Crowe Horwath, LexisNexis, Oxford Properties, Touchpoint Support Services, and Safelite Autoglass.
  • Provides a checklist companies can use to execute their culture-focused onboarding program effectively.

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Here are the best practices described in the report:

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Customer Centricity Requires All Four CX Core Competencies

As most readers of this blog will likely know, customer-centric organizations must master Four CX Core Competencies:  Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. It turns out that you’re only as good as your weakest link. Here’s what it looks like when you fall short in one of these areas:

  • Without Purposeful Leadership the company is Stagnant. Lacking alignment, very little progress is made.
  • Without Compelling Brand Values, the company is Adrift. Lacking identify, there’s no focus clear priorities.
  • Without Employee Engagement, the company is Turbulent. Lacking commitment, stress grows between leaders and employees.
  • Without Customer Connectedness, the company is Disappointing. Lacking insights, offerings continually miss their mark.

The bottom line: Master all Four CX Core Competencies.

 

Report: Renovating Your Voice of the Customer Program

We just published a Temkin Group report, Renovating Your Voice of the Customer Program.

Here’s the executive summary:

Voice of the customer (VoC) programs are essential to any customer experience effort. In recent years, VoC efforts have continued to expand and support their organizations; however, going forward they will need to adapt to significant changes in data sources, technology, operational pressures, and consumer behavior. In this report, Temkin Group details how companies can propel their VoC programs into the future by:

  • Identifying 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.
  • Sharing 30 examples that exemplify innovative VoC practices across each of the trends.
  • Helping companies lay the groundwork for VoC innovation with a description of how to drive change through three distinct stages.

For this report, we received submissions of innovative VoC practices from Confirmit, InMoment, Rant & Rave, Qualtrics, Verint, and Walker.

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Here are the best practices described in the report:

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