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: 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:

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:

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: The State of CX Metrics, 2017

Purchase and download report: State of Customer Experience (CX) MetricsWe published a Temkin Group report, The State of CX Metrics, 2017.

Temkin Group surveyed 169 companies to learn about how they use customer experience (CX) metrics and then compared their answers with similar studies we’ve conducted annually since 2011. We also had them complete our CX Metrics Program Assessment that evaluates the degree to which these efforts are Consistent, Impactful, Integrated, and Continuous.

Here are some of the highlights:

  • Only 11% of CX metrics programs received “strong” or “very strong” ratings, while 64% of companies received “weak” or “very weak” ratings. Only one out of five companies earned at least a moderate rating for being Integrated.
  • Sixty-five percent of companies are good at collecting and calculating metrics, but less than 20% are good at using analytics to predict future changes in the CX metric.
  • Satisfaction and likelihood to recommend remain the most popular CX metrics, with satisfaction at a transactional level delivering the most positive impact.
  • Only 10% of companies always or almost always make explicit tradeoffs between CX metrics and financial results.
  • Companies identified the lack of taking action based on CX metrics as a top obstacle to their programs. The identification of this as a top problem increased the most between 2016 (54%) and 2017 (62%).
  • We asked companies about their effectiveness at measuring 19 different elements of customer experience. They are most effective at measuring customer service, phone interactions, and customers who are using their products and services. They are least effective at measuring the experiences of prospects, customers who have defected, and multi-channel interactions.
  • When we compared companies with stronger CX metrics programs with those with weaker efforts, we found that the stronger firms have better overall CX results, more frequently use and get value from likelihood to recommend metrics, and report fewer obstacles.

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Here are the results from Temkin Group’s CX Metrics Program Assessment:

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Report: Five Steps For Building A Strong CX Metrics Program

Five steps for building a customer experience metrics programWe published a Temkin Group report, Five Steps For Building A Strong CX Metrics Program.

A robust customer experience (CX) metrics program allows an organization to systematically measure the quality of the experience it delivers to customers and provides insights that help companies spot improvement opportunities, prioritize investments, track CX progress, and unify the organization around a common goal. Despite these benefits, few organizations have actually built a strong metrics program. In this report, we provide a blueprint that organizations can follow to create an actionable CX metrics program. Here are some highlights:

  • Temkin Group has identified five steps an organization must go through to create a strong CX metrics program: 1) Determine a Core CX Metric, 2) Set Achievable Goals, 3) Identify Key Drivers, 4) Establish Key Driver Metrics, and 5) Make the Suite of Metrics Actionable.
  • To illustrate what these steps should look like, we share nearly 30 best practices from companies including Brainshark, Caesars Entertainment, Ciena, Cisco, Horizon BCBSNJ, Oxford Properties, and Wyndham Worldwide.
  • We provide an assessment companies can use to both evaluate the effectiveness of their CX metrics program and identify where to focus improvement efforts.

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Here are the best practices highlighted in the report:

Examples of 5 Steps for An Actionable CX Metrics Program

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Net Promoter Score: Fact and Fiction

It seems like every year I get a surge of questions about Net Promoter® Score (e.g., NPS®). Well, it’s that time of year.

Rather than re-writing my answers, I decided to share a webinar that I recorded a few years ago. Much of that data has been updated, but the content remains totally applicable. This is a great primer on NPS. Enjoy!

You should also check out Temkin Group’s VoC/NPS Resource Page for current data and more advice on how to use NPS. In particular, read My Latest 9 Recommendations For NPS.

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

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.

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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.

La Quinta “Gaming” Highlights Flaws in NPS

I’m in Las Vegas to watch some NBA Summer League games (Go Celtics!), and am staying overnight at a La Quinta near the airport. I found this note on the table next to the bed.

While there’s no problem with a nice thank you note, one section caught my eye…

*********
You may be receiving a guest satisfaction survey from La Quinta in the near future and we hope you feel confident that you may answer the question “Would you recommend us to your family and friends” with a 10.

If you should be surveyed, La Quinta uses a 1-10 scale (10 being the best). Although the scale ranking is from 1 to 10, scores of 8 or below results in a negative impact on the overall rating for this hotel.
*********

First of all, this is what I would call “gaming” the system. Anytime you ask for a specific score or range of scores, it’s gaming. Instead of getting a true response from the customer about his/her experience, the customer is forced to balance her honest feedback with a request for a specific score. Some customers are likely to be intimidated, since they may think that the hotel has visibility into their specific response. This would lower response rates and alter true feedback.

The second problem this highlights is the Net Promoter Score (NPS) calculation (since this is clearly an NPS question). As you probably know, NPS segments responses into three categories: Detractors (6 or less), Passives, (7 or 8) and Promoters (9 or 10). Is there really that much difference between an “8” or “9” on this scale? I think people giving either of these ratings would think that they are saying that the experience was good, but not the best that they’ve ever had. The choice of an “8” or “9” may be more driven by an internal rating gauge (that is different in each person), then it is being caused by a distinctive difference in the actual experience.

[Side note: La Quinta’s NPS is 9 points below the hotel industry average in Temkin Group’s latest NPS benchmark study]

The final, more substantial problem is how the metric is being used. My guess is that La Quinta is using NPS to substantially impact the compensation of some hotel employees. This pushes people to focus on “the number” as opposed to what’s really important, the ability to continuously improve.

To be honest, the issues I discuss above are not NPS-specific. I’ve seen them with a variety of metrics, and we work with many companies that are successfully using NPS. So let me share some advice for improving your use of CX metrics….

I wrote a post a few years ago that listed these five rules to stop employees from gaming your feedback system:

  1. Don’t mention or refer to a score
  2. Don’t mention specific survey questions
  3. Don’t mention any consequences
  4. Don’t say or imply that you will see their responses
  5. Don’t intimidate customers in any way

Check out my most about nine recommendations for NPS programs:

  1. The choice of metric is not as important as people think
  2. Driving improvements is what’s critical
  3. Promoters & detractors need their individual attention
  4. Sampling patterns really, really matter
  5. NPS is for relationships, not transactions
  6. NPS is for teams, not individuals
  7. Compensation can be a real problem
  8. Target ranges make more sense than single numbers
  9. There are four loops to close

The bottom line: CX metrics need to focus on improvements, not numbers

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:
Read More …

Customer Experience Leads to Recommendations (Charts For 20 Industries)

If you want customers to recommend your company, make sure they have a good experience. In this post, I share data and analysis showing how customer experience correlates to customer recommendations across 20 industries. At the bottom of this post we’ve assembled a number of industry-specific data charts that you can download and use.

In the report, ROI of Customer Experience, 2016, we provide a lot of data on how customer experience affects a number of different aspects of loyalty for 20 industries. Here’s a summary of some of the data showing the average connection between customer experience and loyalty across all industries.

Here’s how we calculate this data:

  • We ask 10,000 U.S. consumers to identify the companies that they’ve interacted with during the previous 90 days
  • We have those consumers rate their experiences and segment the respondents into five buckets based on their Temkin Experience Ratings feedback
  • For each of the five buckets of consumers, we calculate the average loyalty of the group across different dimensions using the calculations below…

1612_cxandloyaltymetrics

(Note: See Temkin Loyalty Index for data on specific companies)

CX and Recommendations Charts for 20 Industries

If you’re looking for good data for your industry, we’ve put together these 20 industry charts that show the relationship between customer experience and customers making recommendations. Feel free to use them within your presentations in accordance with our citation policy.

Here’s a way to share the data internally…

At [Your Company’s Name], we work hard to improve our Customer Experience, and this industry chart from Temkin Group shows why it’s important and meaningful. As our Customer Experience improves, research shows that consumers are more likely to recommend us, which is one of the many ways in which our customers show their increased loyalty. 

Read More …

CX & Loyalty: A Bad Experience Decreases Spending (Charts For 20 Industries)

Can a single bad experience cost a company money? You bet! As a matter of fact, 53% of consumers reported a cut in spending at fast food restaurants and rental car agencies after they’ve had a very bad experience. Those are the highest levels across the 20 industries we examined. At the bottom of this post we’ve assembled a number of industry-specific data charts that you can download and use.

In the report, What Consumers Do After a Good or Bad Experience, 2016, we analyzed how 10,000 U.S. consumers changed their spending after having a bad experience with hundreds of companies.

1612_afterbad_20industryaverage

On average across all industries, 10% of consumers have had a very bad experience in the previous six months. After that experience, 37% of consumers cut back on their spending. As a result, 3,7% of revenues are at risk after a very bad experience (10% x 37%). This at-risk revenue ranges from a high of 6.5% for rental cars down to a low of 1.6% for supermarkets and retailers.

Bad Experience And Spending Change Charts for 20 Industries

If you’re looking for good data for your industry, we’ve put together these 20 industry charts. Feel free to use them within your presentations in accordance with our citation policy.

For example, here’s some draft copy you might use, together with your industry’s chart, in your company’s internal or external blog:

At [Your Company’s Name], we work hard to improve our Customer Experience, and this industry chart from Temkin Group shows why even one bad experience can cost us lost sales.

Read More …

Report: Tech Vendors: Product and Relationship Satisfaction, 2017

1701_ds_techproductsandrelationships_coverWe just published a Temkin Group data snapshot, Tech Vendors: Product and Relationship Satisfaction of IT Clients, 2017.

During Q3 of 2016, we surveyed 800 IT decision-makers from companies with at least $250 million in annual revenues, asking them to rate both the products of and their relationships with 62 different tech vendors. HPE outsourcing, Google, and IBM SPSS earned the top overall scores, while Trend Micro, Infosys, and SunGard received the lowest overall scores. To determine their product rating, we evaluated tech vendors across four product/service criteria: features, quality, flexibility, and ease of use. And we calculated their relationship rating using four different criteria: technical support, support of the account team, cost of ownership, and innovation of company. We also looked at how the average product and relationship scores of tech vendors have changed over the previous three years.

This research has a report (.pdf) and a dataset (excel). The dataset has the details of Product/Service and Relationship satisfaction for the 62 tech vendors as well as for several tech vendors with sample sizes too small to be included in the published report.

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Here’s a link to last year’s study.

The research examines eight areas of satisfaction; four that deal with products & services and four that examine relationships. Tech vendors earned the highest average satisfaction level for product features (64%) and the lowest for total cost of ownership (57%).

As you can see in the chart below, the overall product/service & relationship satisfaction ranges from a high of 76% for HPE outsourcing down to a low of 42% for Trend Micro.

1701_techproductrelationshipoverallresults

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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 …