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

We have also published industry snapshots for all 20 industries.

Have questions? See our FAQs about the Temkin Experience Ratings and watch this previously recorded webinar.

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 2018 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

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: 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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Here are some highlights from the winners: Read More …

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:

Voice of the customer competency and maturity levels

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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.

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

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If you want to know what data is included in this report and dataset, download this sample Excel dataset file.download 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.

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.

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Download sample spreadsheet to see details. 
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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 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.

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 years 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: Renovating Your Voice of the Customer Program

renovating your voice of the customer programWe 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:

Innovative voice of the customer practices

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The Human Conversational Model (Infographic)

In the report, Humanizing Digital Interactions, we decoded successful person-to-person interactions as a step in developing the Human Conversational Model. It’s the foundation for building compelling interactions with customers. This infographic provides an overview of the model and shows how to apply it to your digital efforts.

Foundations for humanizing customer interactionsYou can download the infographic in several forms:

How Comcast Ignored This Customer’s Journey

Customer journey mappingWe recently had an experience with Comcast that shows the importance of Customer Journey Thinking™. I’m not sharing this example to pick on Comcast (although it can be an easy target for bad customer experience given its consistently poor performance in the Temkin Experience Ratings), but instead I want to get across a key lesson for all companies.

We had a problem with our cable box and the Comcast phone agent said that we could bring it to the local Comcast center and get a new one. It’s a good move by Comcast to let people self-repair as much as possible; it keeps costs down and allows customers to accelerate the corrective action.

I wasn’t sure which of the cables that plug into the cable box I needed to bring, so I just grabbed the power cable. We went to Comcast and got the new box. Voila, success!

Unfortunately, that was not the end of the story. We got the cable box home and it didn’t work. There were no instructions. It wasn’t until a Comcast repairman showed up in a couple of days that we found out that the problem wasn’t with the box, it was with the remote. We needed to reprogram our remote.

What went wrong? Comcast treated our experience as a set of isolated interactions, instead of viewing our experience as a multi-step journey. We were looking for our TV to work again, and Comcast treated us as if we wanted to get help over the phone and swap a box at the local Comcast shop.

That’s where Customer Journey Thinking (CJM) comes into play. CJM is a way to focus on customers’ journeys when you are creating a new product, service, interaction, or experience. It requires people to always ask (and answer) these five questions:

  1. Who is the customer?
  2. What is the customer’s real goal?
  3. What did the customer do right before? (repeat three times)
  4. What will the customer do right afterwards? (repeat three times)
  5. What will make the customer happy?

Let’s say we were working at Comcast when they were looking at the self-service transaction of swapping a cable box at the Comcast stores. Here’s how a simple use of the CJM might have worked.

The team working on what looked like a modem swap st the Comcast store would have gone through the questions something like this:

  1. Who is the customer?
    • Are we targeting people who regularly swap out cable boxes and programs our remotes, or is our key market people who are much less familiar with our products and processes. We need to keep in mind any steps that might not be obvious or easy to understand for this type of customer (Note: As a best practice, it would be great to name an explicit design persona that we’re focusing on for this process).
  2. What is the customer’s real goal?
    • This customer probably wants to get his/her TV to start working again.
  3. What did the customer do right before? (repeat three times)
    • Unplugged the cable box and cables and drove to the Comcast store.
    • Went online to find the local Comcast store and its operating hours.
    • Spoke to someone at Comcast (or went online) where they found out that they could swap out the box.
  4. What will the customer do right afterwards? (repeat three times)
    • Take the box home.
    • Plug the box in.
    • Try and use the television… oops, they might not know they have to reprogram their remote.
  5. What will make the customer happy?
    • Getting their TV up and running quickly without any frustrations along the way.

If you were part of the team that went through these CJM questions, then you might have realized that the in-store element was only a piece in the overall journey, and that target customers would likely run into problems.

Using that Insight, the team might have identified these types of opportunities to improve the customers’ journey:

  • Have phone agents explain (or send a link to simple instructions about) which cables to bring with you when you swap out the box and explain that you will likely have to reprogram your remote.
  • At the store, provide instructions on reprogramming the remote and explain that it is a natural part of the process.
  • Send an email to customers who swap boxes with a link to instructions (including reprogramming of remote) and a diagnostic app if the box is not working properly.

The bottom line: Companies (not just Comcast) need to obsess about their customers’ journeys.

CX Competency: Customer Connectedness (Video)

Temkin Group has found that the only path to sustainable customer experience differentiation is to build a customer-centric culture. How? By mastering Four Customer Experience Core Competencies.

This video provides an overview of one of those competencies, Customer Connectedness, where the goal is to infuse customer insight across the organization.

Here Are Four Strategies For Customer Connectedness:

Customer Connectedness

Human Beings Are Driven By Their Personal Predictive Analytics

In yesterday’s NY Times, there’s an excellent article, We Aren’t Built to Live in the Moment (written by Martin Seligman and John Tierney). It discusses how human beings process information, and the emergence of a new field called prospective psychology. Here’s a very simplified summary of what it says…

Human beings:

  • Are distinctive from other species in our ability to focus on, value, and plan for the future.
  • Store our memories in three different components: what happened, when it happened, and where it happened.
  • Use our mental “downtime” to run many, many simulations about the future by reconfiguring the elements of our memory in different ways.
  • Tap into the results of simulations to make fast decisions by predicting the likely outcomes of different options.

My take: First of all, we pay attention to whatever Seligman says; he’s the father of the Positive Psychology movement (see the post, Positive Psychology Meets Customer Experience). This view of human psychology describes that the brain as if it is constantly running a very advanced suite of predictive analytics. Here’s why this is meaningful for CX professionals:

  • Humans’ focus on the future is what gives power to Purposeful Leadership, as it creates the motivation for people to be part of achieving something important in the future alongside other people.
  • Since people selectively reconfigure their memories, we need to design experiences to create specific memories. That’s the cornerstone of what we call “Design for Real People,” which is one of the strategies of the CX competency: Customer Connectedness.
  • The myriad of simulations provide people with an expectation that doing something good for someone else will likely lead to a good emotional outcome, which is what creates empathy.
  • To motivate customers, employees, or leaders, it’s helpful to introduce future scenarios that tap into elements of their previous experiences.

And here’s why prospective psychology is important for everyone: it determines your happiness. Like any predictive model, it needs fine tuning. If your model is always calculating the worst-case outcomes, then you’ll tend to be sad and depressed. On the other hand, if your model is looking for positive scenarios, then you’ll stay happy and motivated. We’ll be following the research to see how people can adjust their personal predictive models.

The bottom line: Pay attention to prospective psychology.

Report: The Shift To Customer Journey Insights

THe shift to customer journey insights reportWe just published a Temkin Group report, The Shift To Customer Journey Insights. Here’s the executive summary:

Customer insights are critical to customer experience programs. However, current insights’ efforts tend to focus on individual interactions rather than on a customer’s entire journey, and as a result, they often fail to provide a complete picture of a customer’s experience with the company. This report helps companies shift their insights efforts from concentrating narrowly on single transactions to focusing broadly on customers’ journeys.

Here are some highlights :

  • We developed an approach to help companies create a comprehensive view of journeys called Customer Journey Insights (CJI), which is made up of five strategies: Internal Journey Alignment, Journey Data Farming, Journey Performance Tracking, Journey Visualization, and Journey Prioritization.
  • We share 20 examples of best practices from companies that are applying these strategies to develop a more complete understanding of their customers’ journeys.
  • To help companies master these strategies, we have identified three stages organizations proceed through on their path to enabling customer journeys: 1) Customer Journey Orientation, 2) Customer Journey Enablement, and 3) Customer Journey Mastery.

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Here are the best practices focused around five strategies for shifting towards customer journey insights:

  1. Internal Journey Alignment. Shift the company’s mindset away from siloed interaction success to customer goal facilitation.
  2. Journey Data Farming. Tap into adjacent data sources and make linkages across channels.
  3. Journey Performance Tracking. Overhaul metrics to measure performance across customer journeys.
  4. Journey Visualization. Create mechanisms for communicating insights in a way that reinforces the centrality of customer journeys.
  5. Journey Prioritization. Focus on the journeys, customer segments, and channels that are strategic business priorities.

Customer journey insights best practices

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Report: What Happens After a Good or Bad Experience, 2017

what happens after a good or bad experience reportWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2017. This is our annual analysis of which companies deliver the most and least bad experiences, how consumers respond after those experience (in terms of sharing those experiences and changing their purchase behaviors), and the effect of service recovery (see last year’s report).

Here’s the executive summary:

To understand how good and bad experiences effect customer behavior, we asked 10,000 U.S. consumers about their recent interactions with more than 300 companies across 20 industries. We then compared results with similar studies we’ve conducted over the previous six years. Here are some highlights:

  • About 19% of the customers who interacted with Internet service providers and TV service providers reported having a bad experience – a considerably higher percentage than in other industries. Of the companies we evaluated, 21st Century, Spirit Airlines, and HSBC deliver bad experiences most frequently.
  • We looked at the percentage of customers in an industry had a bad experience and combined that number with the percentage of customers who said they decreased their spending after a bad experience and then used this data to create a Sales at Risk Index for all 20 industries. Rental car agencies stand to lose the most revenue (6.7%) from delivering bad experiences, while retailers stand to lose the least (1%).
  • Investment firms are most effective at recovering after a bad experience, whereas TV service providers are the least effective.
  • After customers have a very bad or very good experience with a company, they are more likely to give feedback directly to the company than they are to post about it on Facebook, Twitter, or third party rating sites. Customers are also more likely to share positive feedback through online surveys and share negative feedback through emails.
  • Compared to previous years, customers are more likely to share feedback over Facebook and Twitter, and these channels are most popular with consumers who are between 25- and 44-years-old.
  • Of all the companies we evaluated, The Hartford is the most likely to receive negatively biased feedback directly from its customers, while Chubb is likely to receive the most positively biased feedback.

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Here are excerpted versions of 3 (out of 19) graphics in the report:
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