Report: Lessons in CX Excellence, 2017

1701_lessonsincxexcellence_coverWe just published a Temkin Group report, Lessons in CX Excellence, 2017. The report provides insights from eight finalists in the Temkin Group’s 2016 CX Excellence Awards. The report, which has 62 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 year, we named five organizations the winners of Temkin Group’s 2016 Customer Experience Excellence Award – Business Development Bank of Canada (BDC), Century Support Services, Crowe Horwath, Oxford Properties, and VCA. 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. it 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 of this post

Report: The State of CX Metrics, 2016

1612_stateofcxmetrics2016_coverWe published a Temkin Group report, The State of CX Metrics, 2016. This is the sixth year of this study that examines the CX metrics efforts within large companies. Here’s the executive summary:

Temkin Group surveyed 183 companies to learn about how they use customer experience (CX) metrics and then compared their answers with similar studies we’ve conducted every year since 2011. We found that the most commonly used metrics continue to be likelihood-to-recommend and satisfaction, while the most successful metric is transactional interaction satisfaction. Only 10% of companies regularly consider the effect of CX metrics when they make day-to-day decisions. The top two problems companies face are limited visibility of CX metrics and the lack of taking action on metrics. Companies are best at measuring customer service and phone-based experiences and are worst at measuring the experiences of prospects and customers who defect. We also had companies complete Temkin Group’s CX Metrics Program Assessment, which examines four characteristics of a metrics program: consistent (does the company use common CX metrics across the organization?), impactful (do the CX metrics inform important decisions?), integrated (are trade-offs made between CX and financial metrics?), and continuous (do leaders regularly examine the CX metrics?). Only 11% of respondents received at least a “good” overall rating in this assessment, and companies earned the lowest average rating in integrated. Companies with stronger CX metrics programs deliver better customer experience and use more effort and likelihood-to-repurchase metrics.

See the State of CX Metrics studies from 2011, 201220132014, and 2015.

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Here are the results form our CX Metrics Competency & Maturity Assessment (one of 22 graphics in the report):

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The Customer Experience Shift From Centralized To Federated

In the report, The Federated Customer Experience Model, we discuss the direction that mature CX organizations will eventually go in—distributing CX capabilities across the organization.  It’s built on three components: CX Centers of Excellence, Enterprise CX Coordination, and Distributed CX Skills and Mindset.

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Federation is not just a path for customer experience, it’s a common path for successful transformation within large organizations. Here’s why:

  • Changing an organization requires a concerted effort to define the desired end state, and to align the resources and commitment to drive change. This requires a centralized model.
  • Embedding behaviors in an organization requires distributed capabilities and beliefs, which needs to be disbursed and cultivated. This requires a federated model.

The bottom line: Centralized CX success leads to federated sustainability.

Report: State of Voice of the Customer Programs, 2016

1610_stateofvocprograms2016_coverWe published a Temkin Group report, State of Voice of the Customer Programs, 2016. This is the sixth year that we’ve benchmarked the competency & maturity of voice of the customer programs within large organization. Here’s the executive summary:

For the sixth straight year, Temkin Group has benchmarked the competency and maturity levels of voice of the customer (VoC) programs within large organizations. We found that while most companies think that their VoC efforts are successful, less than one-third of companies actually consider themselves good at reviewing implications that cut across the organization. Respondents think that in the future, the most important source of insights will be customer interaction history and the least important source will be multiple-choice questions. And although respondents believe that technology will play an increasingly important role in their VoC efforts, they also cite “integration across systems” as the biggest obstacle to their VoC success, and this concern has only grown in the past year. In addition to asking questions about their VoC program, we also had respondents complete Temkin Group’s VoC Competency and Maturity Assessment, which examines capabilities across what we call the “Six Ds”: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. Only 16% of companies have reached the two highest levels of VoC maturity, while 43% 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, they focus more on analytics, and they have more full-time staff, more strongly coordinated efforts, and more involved senior executives.

See the State of VoC reports from 2010201120132014, and 2015.

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Here are the results from Temkin Group’s VoC Competency & Maturity Assessment:

1610_vocmaturity

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Free eBook: 25 Tips For Tapping Into Customer Emotions

1609_ebook_25emotiontips_finalAs part of our CX Day celebration, we’re giving away this free eBook: 25 Tips For Tapping Into Customer Emotions.

Here’s the executive summary:

Emotions play an essential role in how people form judgments and make decisions. Consequently, a customer’s emotional response to an experience with a company has a significant impact on their loyalty to that company. To help you improve your customer experience, we’ve compiled a list of 25 examples from companies who are tapping into customer emotions, which you can emulate at your own organization.

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The eBook contains 25 tips across four areas: Experience Design, Organizational Personality, Organizational Empathy, and Customer Segmentation.

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The bottom line: Apply these lessons to tap into your customers’ emotions

The Ultimate Customer Experience Infographic, 2016

Once again, Temkin Group is publishing a new infographic as part of our CX Day celebration.

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Take a look at last year’s ultimate CX infographic.

Here are links to download different versions of the infographic:

1610_cxmattersinfographic Infographic: in .jpg format, in .pdf format

1610_cxmattersinfographic_poster 18″ x 24″ poster: in .jpg format, in .pdf format

 

Report: The State of CX Management, 2016

1605_StateOfCXMgt16_COVERWe just published a Temkin Group report, The State of CX Management, 2016. This is the seventh annual benchmark of CX activities, competencies, and maturity levels.  Here’s the executive summary:

For the seventh straight year, Temkin Group surveyed large companies to evaluate the state of their Customer Experience (CX) management. This year we found an abundance of CX ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Temkin Group has identified four CX core competencies that companies must master if they want to become customer-centric: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Using Temkin Group’s CX competency and maturity assessment, we found that only 10% of companies have reached the highest two levels of customer experience, and companies are weakest in the Compelling Brand Values competency. We additionally compared CX laggards with CX leaders and discovered that the leaders have stronger financial results, have more senior executives leading the company-wide CX efforts, have more full-time CX employees, use more analytics, and have more support from senior leaders. This report also includes an assessment that companies can use to benchmark their CX efforts and capabilities.

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Temkin Group’s Customer Experience Maturity Model uses six stages of CX maturity based on the four customer experience core competencies. Here’s what we found when 210 companies completed the assessment:

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2016 Temkin Experience Ratings: 20 Industry Snapshots

Temkin Experience Ratings

We released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers. Here’s a link to FAQ’s about the Ratings.

As a follow-up, we published blog posts that examine the results for each of the 20 industries. You can see links to all of those industry snapshots below:

1606_TxRIndustries> Airlines
> Auto Dealers
> Banks
> Computers & Tablets
> Credit Card Issuers
> Fast Food Chains
> Health Plans
> Hotels
> Insurance Carriers
> Internet Service Providers
> Investment Firms
> Major Appliances
> Parcel Delivery Services
Rental Car Agencies
> Retailers
> Software Firms
> Supermarkets
> TV Service Providers
> Utilities
> Wireless Carriers

Temkin Ratings websiteYou can see the ratings of all companies on the Temkin Ratings website

Analytics Obstacle to Avoid: Forgetting to Be Relevant

Every day, analysts find a myriad of insights that could provide significant value for their organizations. Unfortunately, many (very possibly most) of them are ignored. What’s getting in the way?

In a recent webinar for Clarabridge, I discussed five customer analytics mistakes to avoid. One of the mistakes is “Forgetting to be relevant.” Rather than trying to replicate my entertaining banter, I put together this figure showing an example of the obstacle… and the opportunity to overcome it.

1604_AnalyticsObstacleRelevancyThe key lesson is described in the graphic:

Analytical findings must be translated into meaningful terms for the people who need to take action on the insights.

And remember…

  • Analytics are meaningless unless they lead to action.
  • You need to translate insights into a language that stakeholders understand.
  • People want to know what’s in it for them.

The bottom line: You may need to focus less on the analytics, and more on the business.

Report: Customer-Infused Process Improvement

1604_CustomerInfusedProcessImprovement_COVERWe just published a Temkin Group report, Customer-Infused Process Improvement, which provides five strategies for instilling customers’ needs into process improvement methodologies. Here’s the executive summary:

Process improvement and customer experience have traditionally served different roles in a company. However, these two disciplines are starting to intersect as customer experience looks to process improvement to operationalize key customer interactions and process improvement needs customer experience to provide customer-focused insights and continually monitor new processes. Temkin Group proposes that companies bring these two approaches together into Customer-Infused Process Change. This report highlights five strategies critical to driving this new approach: Prioritize Improvements Across Customer Journeys, Embrace Deep Customer Empathy, Involve Customers in Solution Development, Innovate to Meet Latent Needs, and Measure Success with Customer-Focused Metrics. To make process improvement efforts more customer-centric, organizations need to infuse these strategies across all aspects of process improvement.

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It’s time for process improvement to become more focused on customers. Rather than abandoning existing process improvement methodologies, Temkin Group recommends bringing a customer orientation into your efforts. We call this approach Customer-Infused Process Change (CiPC), which we define as:

Driving improvements based on a deep understanding of customer needs.

The report provides best practices across five strategies of CiPC:

  1. Prioritize Improvements Across Customer Journeys: By understanding customer interactions in the context of their broader journeys, companies can invest in process improvements projects that have the most impact on the customer’s experience.
  2. Embrace Deep Customer Empathy: In order to effect sustainable changes, employees impacted by redesigned processes need to understand why these changes are important to customers.
  3. Involve Customers in Solution Development: Process improvement efforts must have resources available to ensure that ongoing, incremental changes can be made based on this customer input.
  4. Innovate to Meet Latent Needs: Customers can’t always articulate what they want; instead, they often describe a slightly improved version of what they already know.
  5. Measure Success with Customer-Focused Metrics: Companies can’t measure the success of process improvement efforts with internally focused, operational metrics.

1604_CustomerInfusedProcess5Strategies

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The bottom line: Process improvements need more customer insights.

CX Metrics: Immature, But Improving (Infographic)

Here are some of insights from the report, State of CX Metrics, 2015.

2016TemkinGroupINFOGRAPHIC_CXMetrics

You can download (and print) this infographic in different forms:

Report: What Happens After a Good or Bad Experience, 2016

1603_WhatHappensAfterGoodBadExperiences_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2016. 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:

We asked 10,000 U.S. consumers about their recent interactions with 315 companies across 20 industries, and compared results with similar studies over the previous five years. More than 20% of the customers of Internet service providers and TV service providers reported a bad experience, considerably above the rates for any other industry. Air Tran Airways, Time Warner Cable (TV service and Internet service), Comcast (TV service), and HSBC delivered bad experience to at least one-quarter of their customers. At the same time, less than 3% of Michael’s, Advance Auto Parts, Whole Foods, Publix, Subway, Vanguard, Trader Joe’s, and GameStop customers report having bad experiences. We examined the combination of the volume of bad experiences and the resulting revenue impact and created a Revenues at Risk Index for all 20 industries. At the top of the list, TV service providers and rental car agencies stand to lose at least 6.5% of their revenue from bad experiences. Conversely, less than 2% of the revenues for retailers and supermarket chains are at risk. The companies that recovered very poorly after a bad experience lost sales from 63% of their customers, more than 2.5 times as many as companies that recovered very well. Companies that do a very good job at recovering after a bad experience have more customers who increase spending than those who decrease spending. After a very bad or very good experience, consumers are more likely to give feedback directly to the company than they are to post on Facebook, Twitter, or third party rating sites. Regardless of the channel, consumers are more likely to discuss a very bad experience than a very good one. While the way that consumers give feedback has not changed much since last year, the volume of Twitter usage grew for both positive and negative experiences. Piggly Wiggly, US Cellular, Fifth Third, The Hartford, TriCare, and PSE&G face the potential for the most negatively biased feedback from customers.

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Here are excerpted versions of 4 (out of 15) graphics in the report: Read more of this post

Customer-Centric Culture Change (Video)

Our research and work with clients show that customer experience is a reflection of an organization’s culture. Any company that wants to build sustainable customer experience must build a customer-centric culture. How? By mastering Employee-Engaging Transformation.

Want to know more? Watch this short video:

The bottom line: CX success almost always requires culture change

Report: 2016 Temkin Experience Ratings

1603_2016TemkinExperienceRatings_FINALTemkin Ratings websiteWe published the 2016 Temkin Experience Ratings, the most comprehensive benchmark of customer experience. In the sixth year of the Ratings, we analyze feedback from 10,000 U.S. consumers to rate 294 organizations across 20 industries. Here’s the executive summary:

2016 marks the sixth straight year that we’ve published the Temkin Experience Ratings, a cross-industry, open standard benchmark of customer experience. This year, Publix and H-E-B earned the top two spots, and supermarket chains overall took six of the top 11 spots. At the other end of the spectrum, Fujitsu received the lowest score of any company, closely followed by Health Net. Five other health plans joined them in the bottom 11. To generate these ratings, we asked 10,000 U.S. consumers to rate their recent interactions with 294 companies across 20 industries and then evaluated their experiences across three dimensions: success, effort, and emotion. Publix and H-E-B earned the highest ratings for success, while Publix, O’Reilly Auto Parts, True Value, and Save-a Lot earned the highest for effort, and Publix, Chick-fil-A, and Residence Inn earned the highest for emotion. And when we looked at who had the best and the worst ratings for each industry, we found that USAA actually earned the highest ratings in two industries, while Comcast received the lowest ratings in two industries. Amazon.com, USAA, Holiday Inn Express, and Residence Inn outperformed their industry averages by the most points, while Fujitsu, Motel 6, and HSBC fell behind by the most points. Although all industries declined between 2015 and 2016, rental car agencies and health plans experienced the most dramatic drops. Meanwhile, Coventry Health Care, Con Edison of New York, and True Value improved the most over the last year, and Volkswagen dealers, Fairfield Inn, and Fujitsu dropped the most. To improve customer experience, companies need to master four competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.

Download report for FreeFreeDownloadButton You can also download the dataset in Excel for $395

See our FAQs about the Temkin Experience Ratings.

Also, see individual snapshots of all 20 industries.

The Temkin Experience Ratings are based on evaluating three elements of experience:

  1. Success: How well do experiences meet customers’ needs?
  2. Effort: How easy is it for customers to do what they want to do?
  3. Emotion: How do customers feel about the experiences?

Here are the top and bottom companies in the ratings:

1603_2016TxR_TopBottomOrgs

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

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Report: State of the CX Profession, 2016

1603_StateOfCX Profession2016_COVERWe just published a Temkin Group report, State of the CX Profession, 2016. This is the fifth year that we’ve examined the roles of CX professionals and the third year that we’ve done a compensation study. Here’s the executive summary:

To better understand the mindset and roles of CX professionals today, we surveyed 208 CX professionals and then compared their responses to similar studies we’ve conducted over the previous four years. Eighty-six percent of respondents reported that their CX efforts positively impacted their organization’s business results in 2015, while 96% believe that customer experience is a great profession to work. About nine out of 10 respondents feel satisfied with the people they work with, the content of their jobs, and the company they work for; however only 61% are satisfied with their opportunities for professional advancement. Both web interactions and voice of the customer programs continue to be key areas of responsibility for these professionals, and respondents expect spending on CX activities to grow in 2016, with text analytics and predictive analytics showing the most positive momentum. On this year’s survey, we included our third annual compensation study. We looked at 105CX professionals from large organizations and found that their average compensation (salary plus bonus) ranged from $135,000 for mid-level individual contributors to $260,000 for CX executives.

1602_DontBuyReportJoinCXPA

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Here’s some data that combines pieces of two graphic, showing that CX continues to be a great profession….

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The bottom line: The CX profession is thriving.

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