Report: Net Promoter Score Benchmark Study, 2018

Temkin Group Net Promoter Score (NPS) BenchmarkWe published a Temkin Group report, Net Promoter Score Benchmark Study, 2018. This is the seventh year of this study that includes Net Promoter® Scores (NPS®) on 342 companies across 20 industries.

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 342 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 65, USAA’s banking business earned the highest score in the study, followed closely by its insurance business and Navy Federal Credit Union.
  • Spectrum and Consolidated Edison of NY received the two lowest NPS, with scores of -16 and -12 respectively.
  • The industry average for NPS ranged from a high of 39 for auto dealers and streaming media down to a low of 0 for TV/Internet service providers.
  • USAA’s and Navy Federal Credit Union’s scores both outpaced the banking industry average by more than 40 points, while Motel 6’s and Super 8’s scores both fell nearly 30 points behind the hotel industry average.
  • Only five industries saw their average NPS increase over the past year. Of those, airlines’ and utilities’ scores increased the most, going up three points each.
  • Although a majority (54%) of companies’ NPS declined over the previous year, three companies – BCBS of Florida, Fairfield Inn, and Ameren Illinois Company – actually increased their NPS by more than 20 points since 2017.
  • 18- to 24-year-old consumers give companies the lowest NPS, with an average score of 3 across all industries. Meanwhile, two age groups – consumers between the ages of 25 and 34 and those who are older than 74 – tied for giving the highest NPS, with an average score of 36 across industries.
  • NPS is highly correlated with customer experience. On average, customer experience leaders enjoy an NPS that is 21 points higher than the NPS of customer experience laggards.

See the NPS Benchmark Studies from 2012, 2013201420152016, and 2017.

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

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Here are the top and bottom 10 companies:

Here are the NPS scores across 20 industries:
Temkin Group Net Promoter Score (NPS) Benchmark Industry Scores

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Report Outline:

  • USAA and Navy Federal Credit Union Earn Top NPS Across 342 Companies
    • USAA and Navy Federal Credit Union Earn Top Spots in NPS Rankings
    • NPS Increases With Age
  • Want Higher NPS? Improve Customer Experience

 

Figures in the Report:

  1. Temkin Group Measured Net Promoter Scores For 342 Companies Across 20 Industries
  2. Net Promoter Scores (NPS): Top and Bottom 20 Companies
  3. Range of Net Promoter Scores (NPS) Across Industries
  4. Net Promoter Scores (NPS) By Industry (Page 1)
  5. Net Promoter Scores (NPS) By Industry (Page 2)
  6. Net Promoter Scores (NPS) By Industry (Page 3)
  7. Net Promoter Scores (NPS) By Industry (Page 4)
  8. Net Promoter Scores (NPS) By Industry (Page 5)
  9. Promoters, Passives, and Detractors By Industry
  10. Net Promoter Scores (NPS): Most Above and Below Industry Average
  11. Industry Average NPS, 2016 to 2018
  12. Net Promoter Scores (NPS): Largest Gains and Losses Between 2017 and 2018
  13. Net Promoter Score (NPS) by Age by Industry
  14. Customer Experience Correlates To Net Promoter Scores (NPS)

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Check out this sample of the dataset
buy Net Promoter Score (NPS) Benchmark Study

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.

Propelling Experience Design (Infographic)

In the report Propelling Experience Design Across An Organization, we examine how companies can best use a very important skill, experience design. This infographic provides an overview.

Here are links to download different versions of the infographic:

Here are some of the reports with data included in the infographic:

The Six Key Traits of Human Beings (Video)

One of the most important – but often forgotten – elements of customer experience is that it’s all about human beings. Customers are human beings, employees are human beings, and executives are human beings. This video identifies six key characteristics to keep in mind whenever you’re dealing with all types of people.


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.


Video Script:

One of the most important – but often forgotten – elements of customer experience is that it’s all about human beings. Customers are human beings, employees are human beings, and executives are human beings.

So if you want to improve customer experience, you need to understand and embrace how human beings actually think and behave.

But human beings are complex and can be difficult to fully understand. That’s why Temkin Group has identified Six Key Traits of Human Beings, which you will need to keep in mind at all times.

Six Key Traits Of Human Beings

First of all, human beings are INTUITIVE. People have two different modes of decision making. One mode is rational, which is slow, logical, and deliberate. The second mode is intuitive, which is fast, automatic, and based on biases and a set of heuristics, or rules of thumb.

Human beings make almost all of their decisions using the intuitive mode, but organizations focus most of their attention on customers’ rational behavior. You can better meet customers‘ needs by catering to their intuitive mode.

Human beings are also SELF-CENTERED. We look at the world through our own personal perspective, which, because of our unique life experiences, is totally different than anyone else’s.  This individual perspective often separates employees and customers, as employees are more familiar with their company than customers are. This knowledge gap frequently causes miscommunications and a lack of empathy. Once we recognize our self-centeredness, we can take steps to mitigate the issues it creates.

Human beings are EMOTIONAL. We remember experiences based on how they make us feel. Our memories are not like video cameras, they’re more like an Instagram account where we take pictures whenever we feel strong emotions, and then we judge that experience in the future based on reviewing those pictures. That’s why it’s critical to proactively think about which emotions an experience is likely to generate.

Human beings are MOTIVATED. We all strive to fulfill our four intrinsic needs: a sense of meaning, control, progress, and competence. So when we think about the people who work for us and with us, we need to spend less time focusing on their compensation and more time helping them fulfill their intrinsic needs.

Human beings are also SOCIAL. We want to connect with other people who are “like us,” and we tend to trust those people more than we trust other people or institutions. So to create good experiences, we should not only recognize that people’s social groups are an important area of influence, we should also help employees and customers build meaningful connections between themselves and each other

And finally, human beings are HOPEFUL. We flourish when we envision a positive future. So you can motivate employees, leaders, customers, and partners by painting a picture of future success that addresses their needs and aspirations.

Make sure to focus on these Six Key Traits of Human Beings whenever you are thinking about customers, employees, leaders, or partners. It will allow you to better influence their behaviors and fulfill their needs.

If being customer-centric matters to your organization, then why leave it to chance? Contact Temkin Group, the customer experience experts, by emailing info@temkingroup.com, or visit our website, at TemkinGroup.com.

What is Net Promoter Score? (Video)

Net Promoter® Score (NPS®) is one of the most popular CX metrics, so we are often asked to discuss it with clients. In addition to helping build successful NPS systems, we often provide a basic overview for executive teams and broader audiences of employees. That’s why created this video. It’s meant to explain what NPS is all about and why it may be a valuable approach for some companies. It’s a great video to share across your organization if you are using or considering using NPS. If you’d like more information, check out our NPS/VoC program resources.


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.


Video Script:

You may have heard of Net Promoter Score, which is often referred to as NPS. It’s a popular customer experience metric. Let’s examine what it is.

Walt Disney once said “Do what you do so well that they want to see it again and bring their friends.” He understood the incredible value of customers who actively recommend a company.

NPS is a measurement system that helps companies track and increase the likelihood of customers recommending an organization.

First of all, let’s describe the actual NPS measurement. It begins by asking customers a simple question:

“How likely are you to recommend this company to a friend or relative?”

Customers choose a response from an 11-point scale that goes from 0 “not at all likely” to 10 “extremely likely.”

Based on their response, customers are placed into one of three categories:

  • If they choose between 0 and 6, then they are DETRACTORS.
  • If they choose 7 or 8, then they are PASSIVES.
  • If they choose 9 or 10, then they are PROMOTERS.

NPS is calculated by taking the percentage of Promoters and subtracting the percentage of Detractors. You then multiply the percentage by 100 to get a whole number between -100 and +100.

Calculating Net Promoter Score (NPS)

Let’s say that 100 people answered the question, and 40 are Promoters, 50 are Passives, and 10 are Detractors. To calculate NPS, we would take the 40% for Promoters, subtract the 10% for Detractors, which leaves 30%. After multiplying it by 100, the NPS is 30.

While NPS provides a score, 30 in this case, the power of the system does not come from overly focusing on the number.

The goal of using NPS is to find and correct issues that create Detractors and to find and repeat activities that create Promoters. So it is important to understand what is causing customers to choose their responses.

That’s why most NPS programs include a follow-up question that asks the customer why they chose the score that they did. This question should be open-ended, not multiple choice, so customers can express their views in their own words.

What do you do with the data?

First of all, you want to “close the loop” with the customers who responded. This means contacting at least some of the customers who respond. Companies often try to reach out to all of the Detractors, to find out more about their problems and to see if their issues can be resolved. They also often contact Promoters, to thank them and hear more about what they like.

Next, you want to examine the opportunities to improve NPS by looking at what situations and activities cause Promoters and Detractors. This requires analyzing the responses from each group separately, and often involves incorporating other information about customers. You may also want to examine what drives Promoters and Detractors across different business areas or customer segments.

There’s no value in identifying the items that are driving NPS up or down unless a company does something with what they learn.

That’s why companies establish processes for reviewing, prioritizing, and taking action on the items that they uncover. In other words, the way to improve NPS is to have an ongoing approach for improving customer experience.

When used correctly, NPS helps companies follow Disney’s advice and do what they do so well that their customers want to see them again and bring their friends.

If being customer-centric matters to your organization, then why leave it to chance? Contact Temkin Group, the customer experience experts, by emailing info@temkingroup.com, or visit our website, at TemkinGroup.com.

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

Introducing The Temkin Customer Success Index

Over the last few years, many B2B organizations have created customer success organizations that focus on ensuring that their clients are happy. These companies are realizing that customers aren’t just buying their products, they’re making purchases with the expectation that they will achieve some value from the provider’s products and services.

As I discussed in a previous post, many customer success organizations still look a lot like old-fashioned account management teams. We think that to be successful customer success teams must blend account management with a strong CX mindset.

To help these efforts move forward,  we’re defining customer success as:

A set of activities focused on ensuring that B2B customers achieve the value and outcomes they desire.

As you can see from the definition, these efforts are not the domain of a single group or department, but are the responsibility of the entire organization. They can, and often should, be facilitated by a formal customer success team.

While there are many changes that need to be made to create a successful customer success organization, one of the things that it should do is to commit on keeping these five promises to customers:

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

Temkin Customer Success Index

As a result, we’ve created the Temkin Customer Success Index (TCSi), which is a measure of an organization’s effectiveness delivering value above and beyond its products and services.

The TCSi is based on asking business clients how well their providers live up to each of the five customer promises, with answers on a seven point scale (as you an see below).

To calculate the index, we first create a net score for each promise by taking the percentage of 6s and 7s and subtracting the percentage of 1s, 2s, and 3s. The overall TCSi is an average of the net scores for all five promises.

We will be including the TCSi in our upcoming B2B tech vendor research, and expect to publish the results before the end of the year.

Feel free to use the TCSi to measure your organization’s customer success!

Report: The Customer Journeys That Matter The Most

Few organizations deliver outstanding experiences to their customers. In fact, only 6% of companies earned an “excellent” score in the 2018 Temkin Experience Ratings. To better understand which types of interactions are most likely to affect the customer’s perception of an organization, we asked customers to identify the most problematic journeys across 19 different industries. In this report, we:

  • Examine feedback from 10,000 U.S. consumers about their journeys with 318 companies across 19 industries.
  • Identify which customer journeys consumers think most need improvement and look at how those responses differ across age groups.
  • Evaluate how different customer journeys impact five loyalty behaviors: likelihood to recommend the company, likelihood to repurchase from the company, likelihood to forgive the company if it makes a mistake, likelihood to trust the company, and likelihood of trying new offerings from the company.
  • One of the key findings across industries is that journeys that touch customer service are often the most prevalent and the most impactful on customer loyalty.

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Here’s the first figure in the report, which has a total of 58 figures (three detailed graphics for each of the industries):

Most Problematic Customer Journeys Across Industries

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Report Outline:

  • Why Focus On Customer Journeys?
  • Examining Customer Journeys Across 19 Industries
    • Banking Customer Journeys
    • Computers & Tablets Customer Journeys
    • Insurance Customer Journeys
    • Investment Customer Journeys
    • Credit Card Customer Journeys
    • Health Plan Customer Journeys
    • TV & Internet Service Customer Journeys
    • Parcel Delivery Customer Journeys
    • Wireless Carriers Customer Journeys
    • Airline Customer Journeys
    • Hotels & Rooms Customer Journeys
    • Retail Customer Journeys
    • Fast Food Chains Customer Journeys
    • Rental Car Customer Journeys
    • Supermarket Customer Journeys
    • TV & Appliance Customer Journeys
    • Auto Dealers Customer Journeys
    • Software Customer Journeys
    • Utility Customer Journeys

 

Figures in the Report:

  1. Most Problematic Customer Journeys Across Industries
  2. Banking: Severity of Problems Across Customer Journeys
  3. Banking: Loyalty Impact of Problems Across Customer Journeys
  4. Banking: Problematic Customer Journeys Across Age Groups
  5. Computers & Tablets: Severity of Problems Across Customer Journeys
  6. Computers & Tablets: Loyalty Impact of Problems Across Customer Journeys
  7. Computers & Tablets: Problematic Customer Journeys Across Age Groups
  8. Insurance: Severity of Problems Across Customer Journeys
  9. Insurance: Loyalty Impact of Problems Across Customer Journeys
  10. Insurance: Problematic Customer Journeys Across Age Groups
  11. Investments: Severity of Problems Across Customer Journeys
  12. Investments: Loyalty Impact of Problems Across Customer Journeys
  13. Investments: Problematic Customer Journeys Across Age Groups
  14. Credit Cards: Severity of Problems Across Customer Journeys
  15. Credit Cards: Loyalty Impact of Problems Across Customer Journeys
  16. Credit Cards: Problematic Customer Journeys Across Age Groups
  17. Health Plans: Severity of Problems Across Customer Journeys
  18. Health Plans: Loyalty Impact of Problems Across Customer Journeys
  19. Health Plans: Problematic Customer Journeys Across Age Groups
  20. TV & Internet Service: Severity of Problems Across Customer Journeys
  21. TV & Internet Service: Loyalty Impact of Problems Across Customer Journeys
  22. TV & Internet Service: Problematic Customer Journeys Across Age Groups
  23. Parcel Delivery: Severity of Problems Across Customer Journeys
  24. Parcel Delivery: Loyalty Impact of Problems Across Customer Journeys
  25. Parcel Delivery: Problematic Customer Journeys Across Age Groups
  26. Wireless Carriers: Severity of Problems Across Customer Journeys
  27. Wireless Carriers: Loyalty Impact of Problems Across Customer Journeys
  28. Wireless Carriers: Problematic Customer Journeys Across Age Groups
  29. Airlines: Severity of Problems Across Customer Journeys
  30. Airlines: Loyalty Impact of Problems Across Customer Journeys
  31. Airlines: Problematic Customer Journeys Across Age Groups
  32. Hotels & Rooms: Severity of Problems Across Customer Journeys
  33. Hotels & Rooms: Loyalty Impact of Problems Across Customer Journeys
  34. Hotels & Rooms: Problematic Customer Journeys Across Age Groups
  35. Retailers: Severity of Problems Across Customer Journeys
  36. Retailers: Loyalty Impact of Problems Across Customer Journeys
  37. Retailers: Problematic Customer Journeys Across Age Groups
  38. Fast Food: Severity of Problems Across Customer Journeys
  39. Fast Food: Loyalty Impact of Problems Across Customer Journeys
  40. Fast Food: Problematic Customer Journeys Across Age Groups
  41. Rental Cars & Transport: Severity of Problems Across Customer Journeys
  42. Rental Cars & Transport: Loyalty Impact of Problems Across Customer Journeys
  43. Rental Cars & Transport: Problematic Customer Journeys Across Age Groups
  44. Supermarkets: Severity of Problems Across Customer Journeys
  45. Supermarkets: Loyalty Impact of Problems Across Customer Journeys
  46. Supermarkets: Problematic Customer Journeys Across Age Groups
  47. TVs & Appliances: Severity of Problems Across Customer Journeys
  48. TVs & Appliances: Loyalty Impact of Problems Across Customer Journeys
  49. TVs & Appliances: Problematic Customer Journeys Across Age Groups
  50. Auto Dealers: Severity of Problems Across Customer Journeys
  51. Auto Dealers: Loyalty Impact of Problems Across Customer Journeys
  52. Auto Dealers: Problematic Customer Journeys Across Age Groups
  53. Software Firms: Severity of Problems Across Customer Journeys
  54. Software Firms: Loyalty Impact of Problems Across Customer Journeys
  55. Software Firms: Problematic Customer Journeys Across Age Groups
  56. Utilities: Severity of Problems Across Customer Journeys
  57. Utilities: Loyalty Impact of Problems Across Customer Journeys
  58. Utilities: Problematic Customer Journeys Across Age Groups

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Report: What Happens After a Good or Bad Experience, 2018

To understand how the quality of a customer’s experience – whether it was good or bad – affects their 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 seven years.

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Here are some highlights:

  • Purchase and download Temkin Group report: What Happens After a Good or Bad Experience, 2018About 18% of the customers who interacted with TV & Internet service providers reported having a bad experience – a considerably higher percentage than in other industries. Of the companies we evaluated, 21st Century, Comcast, Cox Communications, and New York Life deliver bad experiences most frequently.
  • We created a Sales at Risk Index for all 20 industries by combining the percentage of customers in an industry who reported having a bad experience with the percentage who said they decreased their spending after a bad experience. According to this Index, TV & Internet service providers stand to lose the most revenue (6.4%) from delivering bad experiences, while utilities stand to lose the least (1.4%).
  • When it comes to recovering from delivering a bad experience, Investment firms are the most effective and TV & Internet 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 less likely to share feedback across almost all channels, with a particularly large drop in the percentage who post on Facebook or Twitter.
  • Across almost all age groups, consumers are most likely to share their feedback directly with the company. Consumers between 18 and 34 years old are the most likely to share their good and bad experiences on Facebook, while older consumers tend to use 3rd party ratings sites more than Facebook or Twitter.

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Here is one of the 12 graphics in the report:


Report Outline:

  • Bad Experiences are Prevalent in the TV & Internet Services Sector
  • Bad Experiences Can Be Very Costly
  • Consumers Give More Feedback After a Bad Experience
    • The Channels for Direct Company Feedback
    • Feedback Differs Across Age Groups

 

Figures in the Report:

  1. TV & Internet Service Providers Deliver the Highest Percentage of Bad Experiences
  2. Companies That Deliver The Most And The Fewest Bad Experiences
  3. How Consumers Cut Their Spending After A Bad Experience, By Industry
  4. How Consumers Cut Their Spending After A Bad Experience, By Industry
  5. Sales at Risk Due to Bad Experiences
  6. How Industries Respond to Bad Experiences Overall
  7. How Consumers Give Feedback
  8. How Consumers Give Feedback to Companies
  9. Changes in How Consumers Give Feedback After a VERY GOOD Experience, 2013 to 2017
  10. Changes in How Consumers Give Feedback After a VERY BAD Experience, 2013 to 2017
  11. How Consumers Across Age Groups Give Feedback After VERY GOOD and VERY BAD Experiences
  12. How Consumers Across Age Groups Give Feedback Directly to Companies After VERY GOOD and VERY BAD Experiences

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Mastering Customer Experience Metrics (Infographic)

As an organization’s customer experience efforts mature, CX metrics become a critical guidepost for all of its activities. You can see different ways to download this infographic below.

Mastering Customer Experience (CX) Metrics Infographic

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

Making AI Customer-Centric

Making AI Customer-Centric (Temkin Group Report)Temkin Group just published a new report, Making AI Customer-Centric. Here’s the executive summary:

The use of Artificial Intelligence (AI) – often in the form of chatbots and intelligent virtual assistants – is becoming more widespread in customer experience. However, despite its prevalence, few companies are employing AI in the right scenarios or using it to its fullest potential. In this report, Temkin Group creates a model and shares best practices for AI-Driven Interfaces (AIDI), which we define as digital interactions with customers that are being directly manipulated by machine learning algorithms.

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To successfully deploy customer-centric AI, companies need to:

  • Integrate the elements of the Human Conversational Model into the design of AIDI.
  • Bring together Five Ingredients: Conversational Design, Targeted Use Cases, Optimized Data Aggregation, Responsive AI Engine, and Continuous Tuning.
  • Determine Organizational AI Readiness before deployment by tying AI to business strategy, auditing data sources, assessing employee skills, and planning for agent/AIDI interactions.

Five Ingredients of Customer-Centric AI

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Report Outline:

  • Current AI Efforts Miss the Mark
  • Five Ingredients For Customer-Centric AI
    • Ingredient #1: Conversational Design
    • Ingredient #2: Targeted Use Cases
    • Ingredient #3: Optimized Data Aggregation
    • Ingredient #4: Responsive AI Engine
    • Ingredient #5: Continuous Tuning
  • Determine Organizational AI Readiness

 

Figures in the Report:

  1. Artificial Intelligence Terminology
  2. Five Ingredients for Customer-Centric AI
  3. The HumanConversational Model
  4. American Express Platinum: Handoff to live agent
  5. Organizational Personality
  6. Organizational Personality: U.S. Army’s SGT STAR
  7. Attributes of Good Initial AI Use Cases
  8. How AI Supports Contact Center Agents
  9. NorthFace: Identify Intent in the Moment
  10. Questions For Determining Organizational AI Readiness
  11. Changing Responsibilities for AI Development

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The Future of VoC Actionable Insights: Assistance Engines

Earlier this week I gave a speech called “The Future of CX: Humanistic, Prescriptive, and Responsive.” During that session, I discussed a missing link in today’s VoC technology: Assistance Engines. Here’s a picture of the future that I have in mind.

Architecture For Prescriptive Customer Insights

Before I describe Assistance Engines, I want to go back to 2010 when I labelled VoC technologies as Customer Insight & Action (CIA) Platforms. The naming was important, because it correctly identified that vendors needed to focus more on “insight & action” than on customer feedback.

It turns out that this is still the case. In the future, VoC vendors will be completely judged by results that their clients get from taking actions on the insights that these vendors provide.

Action is the holy grail! All of the efforts around surveying, integrating data, analyzing, etc. are only as valuable as the actions that they lead to. Most of the vendors now understand this key concept, and are working feverishly to improve the actionability of the insights they provide.

Companies still have a long way to go in taking action on their VoC insights. As you can see in our recent infographic, only 24% of large companies think they are good at taking action.

To help refine the insights, most vendors are developing some sort of an Intelligence Engine. This technology combines direct customer feedback with other customer information, and then applies different analytical and machine learning approaches to create predictive insights about large groups of customers.

While this technology is helping companies to better understand their customers, the output does not often translate directly into actionable insights. Why not? Because there’s a wide gap between insights from the Intelligence Engine which are often delivered in charts and dashboards, and the types of information that employees need to make their a day-to-day decisions.

No matter how much smarter these platforms get about customers, they won’t be truly actionable until they also get smarter about employees.

That’s where Assistance Engines come into play. What is an Assistance Engine?

A set of technologies that uses analytics and machine learning to provide increasingly valuable advice to help different employees across an organization make customer-centric decisions.

Or you can think of it more simply as…

Technology that recommends employee actions based on customer insights.

Assistance Engines will provide timely, actionable insights that are embedded within role-based processes, and delivered as answers and recommendations, not as charts and numbers. This technology will also fine-tune its recommendations based on feedback from employees about the types of recommendations that they find valuable.

Think of the Assistance Engine as being like an analyst who works for the employee. A good analyst can comb through data in an Intelligence Engine, understanding her bosses needs, and translate the customer insights into a very relevant set of recommendations. Over time, the analyst gets better at anticipating what her boss needs or wants to see.

Here are some examples of insights that an Assistance Engine might deliver (think about the employee simply asking Alexa a question):

  • When a product manager is defining a new product, the Assistance Engine will recommend a set of features that a product manager should include in its next release.
  • When a contact center supervisor finds that she has 15 minutes free, the Assistance Engine can tell her which agent to spend time with and what to cover during the session.
  • When an executive is looking to improve the companies NPS, the Assistance Engine will identify the regions to focus on and the activities that should be improved in those regions.

The early use cases for Assistance Engines will likely focus on recommendations that are already being made by analysts. But instead of having someone spend a lot of time manually digging through troves of data, the Assistance Engine will simply answer end users’ questions.

Companies still have a long way to go in building out their Intelligence Engines, so we do not expect to see Assistance Engines become mainstream for several years. But the maturing of end-user responsive analytics such as IBM Watson and Amazon Analytics will help accelerate the development.

The bottom line: Actionability requires more focus on employees.

 

Building A Strong Voice of The Customer Program (Infographic)

Voice of the Customer (VoC) programs are a critical component for many CX efforts. This infographic examines those efforts. Make sure to visit our VoC/NPS Resource Page for more help in building your VoC program.

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

Report: Propelling Experience Design Across An Organization

Propelling Experience Design Across An OrganizationWe just published a Temkin Group report, Propelling Experience Design Across An Organization.

Although customer experience (CX) management has become a relatively common activity within large organizations, companies still struggle to deliver consistently positive experiences to their customers. One major issue impeding companies’ current CX efforts is that few organizations design customer interactions in a purposeful and deliberate manner. This report explores how companies can use Experience Design – which we define as a repeatable, human-centric approach for creating emotionally resonant interactions – to craft consistently excellent interactions and how they can share and spread these capabilities across the entire organization.

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Here are some highlights from this report:

  • The Experience Design process is made up of three generic phases (Clarification, Generation, Realization), each of which contains two stages (empathize and synthesize, conceptualize and materialize, scrutinize and actualize).
  • To help propel Experience Design capabilities across the organization, we developed The Federated Experience Design Model, which is made up of three tiers of employees – Experts, Boosters, and Dabblers.
  • We share over 30 examples of best practices from companies that are spreading and sharing Experience Design capabilities throughout their entire organization.
  • We also provide some tools that employees can use across the six stages of the Experience Design process.

The move towards propelling CX across an organization is part of a broader trend that we describe in the report, The Federated Customer Experience Model.

Here are two of the 22 figures in the report:

Process, Mindsets, and Skills of Experience DesignFederated Experience Design Model

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Report Outline:

  • Customers Suffer from Haphazard Experiences
  • Components of an Experience Design Methodology
    • Phase 1) Clarification: Understand the Objectives
    • Phase 2) Generation: Explore Potential Solutions
    • Phase 3) Realization: Share Solutions with Customers
  • Federating Experience Design Across an Organization
    • The role of Experts, Boosters, and Dabblers
  • Simple Experience Design Tools Support Federation

Figures in the Report:

  1. Process, Mindsets, and Skills of Experience Design
  2. Experience Design Mindsets
  3. Experience Design Skills
  4. Examples Across the Experience Design Processes
  5. Examples Across the Experience Design Processes
  6. Examples of Empathizing
  7. Three Levels of a Federated Experience Design Model
  8. Federated Experience Design Model
  9. Means of Providing Ongoing Coaching and Support
  10. IBM Design Thinking Badge Program
  11. Tools Across the Three Levels of Employees
  12. Tools for Clarification: Empathize
  13. Tools for Clarification: Synthesize
  14. Tools for Generation: Conceptualize
  15. Tools for Generation: Materialize
  16. Tools for Realization: Scrutinize and Actualize
  17. Customer Journey Maps
  18. Customer Journey Thinking™
  19. Temkin Group’s SLICE-B Experience Review Methodology
  20. Temkin Group’s SLICE-B Experience Review Assessment
  21. Empathy Maps
  22. Starbursting

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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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Report Outline:

  • Wegmans Earns Top Customer Experience Ratings
    • Supermarkets Dominate Top and TV/Internet Service Providers Occupy the Bottom
    • Success,Effort, and EmotionExperience Ratings
  • Slight Decline in the Temkin Experience Ratings
  • Calculating the Temkin Experience Ratings
  • The Path to Customer Experience Excellence

 

Figures in the Report:

  1. The Temkin Experience Ratingsis Based on the Three Components of an Experience
  2. 2018 Temkin Experience Ratings(TxR) Evaluates 318 Companies Across 20 Industries
  3. 2018 Temkin Experience Ratings(TxR), Top 50 Organizations
  4. 2018 Temkin Experience Ratings(TxR), Bottom 50 Organizations
  5. 2018 Temkin Experience Ratings(TxR), Range of Industry Scores
  6. 2018 Temkin Experience Ratings(TxR), Industry Leaders and Laggards
  7. 2018 Temkin Experience Ratings, Most Above and Below Industry Average
  8. Industry Component Average Scores for 2018 Temkin Experience Ratings
  9. 2018 Temkin Experience Ratings, Leaders and Laggards in SuccessComponent
  10. 2018 Temkin Experience Ratings, Leaders and Laggards in EffortComponent
  11. 2018 Temkin Experience Ratings, Leaders and Laggards in EmotionComponent
  12. Temkin Experience Ratings(TxR), Distribution of Scores
  13. Temkin Experience Ratings, Industry Averages From 2017 to 2018
  14. Temkin Experience Ratings, Largest Improvers and Decliners Between 2017 and 2018
  15. Calculating the Temkin Experience Ratings
  16. Customer Experience Competencies and Maturity

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

Here are some highlights from the winners: Read More …