Report: State of the CX Profession, 2017

1702_stateofcx-profession2017_coverWe just published a Temkin Group report, State of the CX Profession, 2017. 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 understand the mindset and roles of customer experience professionals today, we surveyed 237 CX professionals and then compared their responses to similar studies we’ve conducted over the previous five years. We asked them how their CX efforts impacted their organization last year and about their plans for the coming year. This report also includes a compensation study, which is based on the 158 respondents who agreed to participate. Here are some highlights from the research:

  • Eighty-four percent of respondents say that their customer experience efforts have had a positive business impact in 2016.
  • Ninety-nine percent think that customer experience is a great profession to be in, the highest level we’ve seen in the six years we’ve been doing the study.
  • Eighty percent think that customer experience will be more important for their companies in 2017 than it was in 2016, compared to the 3% who think it will be less important.
  • Forty-nine percent expect to see an increase in their customer experience staffing levels this year – a higher percentage than we’ve seen in previous years.
  • Respondents plan to increase their spending most on voice of the customer software and text analytics.
  • Respondents plan to increase their focus most on Web experiences and customer insights and analysis.
  • The total amount of compensation in our study ranges from $93,000 for mid-level individual contributors to $239,000 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….

1702_cxprofessionalssummary

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The bottom line: The CX profession is thriving.

Podcast: Purposeful Leadership With Tom Feeney, Safelite CEO

As part of Temkin Group’s celebration of 2017 as The Year of Purpose, I interviewed Tom Feeney, President & CEO of Safelite Group.

Temkin Group defines purposeful leadership as operating consistently with a clear, well-articulated set of values. That also describes Tom. I’ve had the pleasure of knowing Tom for many years, and believe that he is a great example of a purposeful leader.

While Safelite is by far the largest auto glass repair and replacement company in the U.S., the podcast does not focus on the company’s strong financial growth. Instead, Tom and I discuss Safelite’s purpose statement: Making a difference by bringing unexpected happiness to people’s everyday lives. Enjoy the podcast!

You can also download the podcast

Tom Feeney’s Bio:
Since joining Safelite Group in 1988, Tom Feeney has held several positions within the organization including senior vice president retail operations. In October 1991, Feeney was promoted to senior vice president, client sales and support and again in 2003 as executive vice president and chief client officer with responsibility for Safelite Solutions. Feeney became president and CEO of Safelite Group in 2008 and introduced a new vision for Safelite supported by two core principles: “People Powered, Customer Driven.”

Modernize Leadership: Observe and Improve

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In a previous post, I described how today’s management techniques reflect outdated assumptions of technology-enabled practices, human behavior, and the meaning of success. That’s why organizations must shift to what I’m calling Modernize Leadership.

I’m writing individual posts for each of the eight key changes required to modernize leadership. In this post, I’m examining the shift from:

Measure and Track to Observe and Improve

Here’s some more information to better understand this shift:

Outdated Thinking
Here are some ways in which leaders must change how they view the world:

  • You can’t manage what you can’t measure. That’s a refrain that I often hear, and it pushes people in the totally wrong direction. The reality is that most things in life are managed without explicit measurements. Think about a typical day. You get up, get dressed, eat breakfast, and commute to work without referring to a dashboard of metrics. That does not mean that measurements can’t help, but they hardly ever tell the entire story.
  • Managers often look for metrics they can to use to hold people and organizations accountable. Setting measurable goals is not a bad thing, but it can cause bad behaviors. Managers will sometimes overly focus on the metrics and ignore nuances such as actual behaviors of the team and shifts in the situation. They act as  if it’s possible to manage something you don’t truly understand. That all falls apart when the an organization needs to deviate from a “straight ahead” orientation.
  • When employees believe that a metric is very important, they are explicitly and implicitly encouraged to do whatever it takes to achieve the goal. This can lead to inappropriate behaviors such as a car salesperson insisting that you give him a “10” on a survey. At Staples, a metric of $200 of add-ons for each computer pushed employees to refuse selling computers to customers who weren’t going to purchase add-ons.

Heres a quote that is often attributed to Albert Einstein:

“Not everything that counts can be counted, and not everything that can be counted counts.”

Modernized Leadership Actions
Here are some ways in which leaders should act based on a modernized perspective:

  • Look positively forward. Metrics often show how an organization has performed during some previous timeframe, but what you really care about is how it will get better in the future. Make sure that your discussions with people are focused on what the organization can learn in order to  improve, not on blaming people for the problems that caused a poor score.
  • Encourage the right behaviors. If you want your organization to make improvements, then nurture the employee behaviors that will deliver better results. So celebrate employees who are doing the right things, even when the metrics aren’t great.
  • Build operational empathy. If you want your employees to do the right things, then they should feel as if you know their environment. Rather than having employees just see you commenting on metrics from afar, set aside time to regularly get immersed in different parts of the organization. Ask employees how they think the company can improve. This will help you understand when to “back off” reacting too strongly to the metrics and let employees know that numbers aren’t everything.
  • Enable continuous improvement. Instead of using measurements as a pure grading system, use them to identify places for improvement, and always ask: what have we learned and how can we get better? Your organization needs to have an ongoing improvement cycle that is at least at the same pace as your measurement system, otherwise metrics will only lead to frustration.

The bottom line: Observe your organization and focus on improvements.

My 5 Super Bowl Observations (Good For CX and Leadership)

1702_brucesuperbowlgear2I was very fortunate (as a die-hard Patriots fan) to have attended Super Bowl LI in Houston. It was the most amazing game that I’ve ever seen.

I’m still a bit numb.

After spending most of the game feeling very melancholy and wondering why I had bothered to make the trip to Houston, the Patriots did the near-impossible. They came back to win after being behind by 25 points. At one point in the game, the Falcons had a 99.6% chance of winning!

Here’s my video from right after we won…

Now that it’s been a few days, I can reflect back on the Patriots victory. Here are some of my thoughts that I also think apply to customer experience and leadership:

  1. Every player counts. Throughout the Super Bowl, playoffs, and the regular season, different Patriots players made key plays. There are 53 people on an NFL roster and more than 60 people play for the team during a year (with injuries and roster shifts). While many people focus on Tom Brady, the Patriots won because of the performance of all 60+ players. This insight drives how the Patriot’s allot their cap-limited player salaries.
  2. Do your job. Throughout the season, the Patriots repeated a mantra: Do Your Job! While it’s always easy to focus on what other people might be doing, or the hype around big games, each player will best influence the outcome if they are physically and mentally prepared. In this environment, players are motivated to prepare and they have trust in their teammates.
  3. Focus on the next play. When the Patriots were down 28 to 3, it looked bleak. The players could have put their heads down and pouted about the previous plays, but they didn’t. They went back on the field and did their best on the next play. And then the next play, and the next, and the next. The team’s success was not based on a single play (although Edelman’s catch was amazing). Instead, it came from a large number of next plays.
  4. Leadership drives culture. Getting 60+ well-paid athletes to share a common vision, and operate in a consistent manner does not happen by accident. And it’s not practical to micro manage every player’s minute-by-minute activities. This type of alignment only comes from a strong culture, which has been modeled and nurtured by Bill Belichick and the rest of the coaching staff.
  5. Live events are special. I’m sure that every Patriots fan watching or listening to the Super Bowl went crazy when we won the game, but there’s something magical about being there in person. The energy that’s created during a live event cant be replicated on TV or radio. It was a truly emotional experience that I shared with 10’s of 1,000’s of my closest Patriots friends. I was also at Super Bowl XLIX in Phoenix, and felt the same massive energy when we beat the Seahawks.

The bottom line: All I can say is… Go Pats!

Data Snapshot: CX Expectations and Plans for 2017

1702_ds_cxplansfor2017_coverTemkin Group just published a data snapshot, Customer Experience Expectations and Plans for 2017. This annual research effort shows an increase in focus, effort, and spending on customer experience in 2017. Here’s a description of the data snapshot:

In December 2016, Temkin Group surveyed 165 respondents – each from a company with $500 million or more in annual revenues – about their customer experience efforts over the past year and their plans for 2017 and beyond. We compared the results of this survey to the results of similar surveys we’ve conducted over the previous six years. This year’s results show that companies plan on dedicating more money and effort to improving a variety of customer experience activities.

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The data snapshot has 12 graphics with data about CX plans and expectations for 2017. Here’s an excerpt from two of the graphics:

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Here are some highlights from the research:

  • The percentage of respondents who report at least moderately positive results from their previous year’s CX efforts grew from 44% in Q4 2015 to 52% in Q4 2016.
  • Sixty-four percent of companies that report at least moderately positive results from their 2016 CX efforts had better financial performance than their peers, compared with only 44% of other firms.
  • The percentage of respondents who looked ahead and said that CX will be significantly more important in the following year grew from 40% in Q4 2015 to 45% in Q4 2016.
  • The percentage of respondents who expect CX spending to increase in the following year grew from 57% in Q4 2015 to 67% in Q4 2016.
  • The percentage of respondents who expect to increase their full-time CX staff in the following year grew from 37% in Q4 2015 to 44% in Q4 2016 (only 5% expect to cut back their staffing this year).
  • Spending growth is expected to be strongest for VoC software, predictive analytics, and experience design agencies.
  • Web and mobile will remain the most important channels of focus in 2017, while social media experiences decline in importance.
  • Customer insights and analytics remains the most important CX activity.
  • Companies are planning to increase their use of CX metrics to drive compensation across all types of employees.
  • More than half of respondents expect to increase CX training with customer-facing employees.

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Report: Engaging A Tethered Workforce

1701_engagingatetheredworkforce_coverWe just published a Temkin Group report, Engaging A Tethered Workforce.  Here’s the executive summary:

Companies across a number of industries create and deliver customer experiences (CX) through a combination of traditional employees and other workers who they do not directly control – such as contractors or employees of channel partners or outsourcing partners. Despite not being directly employed by the company, these other workers – who make up what Temkin Group calls a “tethered workforce” – still play a critical role in delivering experiences that represent the company’s brand. However, tethered workers differ from typical full-time, corporate employees in ways that pose challenges to brands’ efforts to align these workers with their customer experience goals and objectives. In this report, we examine how brands are tapping into these tethered employees. Here are some highlights:

  • Companies must manage three connections: 1) Between themselves and their partners that employ the tethered workers, 2) Between their partners and the tethered employees, and 3) Between themselves and the tethered workers.
  • We share over 30 examples of best practices from across Temkin Group’s Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.
  • We offer brands a blueprint for engaging tethered workers with key things to think about across the three connections of tethered workforces.

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Here are the 17 best practices described in the report:

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Free Customer Experience Training For Non-Profit Organizations

1701_nonprofitscholarshipprogram2I’m really excited to announce that Temkin Group has launched its Non Profit Scholarship Program (NPSP).

During 2017, the company will provide free enrollment to its U.S. workshops for up to 20 employees of non-profit institutions. The NPSP will enable these employees to gain access to customer experience training that their organizations may not have been able to afford.

Temkin Group recently labeled 2017, “The Year of Purpose.” As part of the company’s commitment to elevating purpose, it launched the NPSP to help non-profit institutions better deliver on their missions. By providing access to its world-class customer experience workshops, Temkin Group hopes to provide employees in non-profit organizations with the skills and knowledge to deliver better experiences to their constituents, whether they’re customers, members, patients, visitors, students, or donors.

Any employee of a 501(c) organization with an operating budget of at least $10 million can apply for the NPSP at TemkinGroup.com/scholarship. Temkin Group will chose winners of the scholarships based on its assessment of the value that the workshops will have on the applicants and their organizations.

NPSP winners will be provided free tuition ($1,895 value) to attend any of Temkin Group’s public enrollment workshops in the U.S. throughout 2017. Here is the current schedule for workshops during the first half of the year.

  • March 21 & 22, 2017 in Miami: Engaging Employees In Your CX Journey. This workshop provides attendees with the insights and tools to raise employee engagement, a critical element for organizational success.
  • April 4 & 5, 2017 in San Diego: Mapping and Improving Your Customers’ Journey. This workshop provides attendees with the insights and tools to use customer journey mapping, an important customer experience capability.
  • April 25 & 26, 2017 in Alexandria, VA: Driving Customer Experience Transformation. This workshop provides attendees with the insights and tools to create and sustain a customer-centric culture.
  • June 14 & 15, 2017 in Boston: Mapping and Improving Your Customers’ Journey. This workshop provides attendees with the insights and tools to use customer journey mapping, an important customer experience capability.
  • Temkin Group plans to offer additional workshops throughout 2017.

For more information about the NPSP or to apply for a scholarship, visit TemkinGroup.com/scholarship.

2017 Customer Experience Trends (Video and Infographic)

We recently published our annual listing of CX trends. In case that wasn’t enough to satiate your needs, here’s a recorded webinar and an infographic describing the trends…

 

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Click on figure above to download infographic as a .png file, or click here to download it as a .pdf.

The Power of Purpose (Temkin Group Video)

As you may know, Temkin Group has labelled 2017, “The Year of Purpose.” As part of our effort to infuse more meaning and purpose to our community, we created the Elevate Purpose campaign, where we will share relevant thoughts and research.

A new piece of content is this video, The Power of Purpose. I hope that you enjoy it…

elevate-purpose-24I hope that you enjoy this video and find it inspiring. If so, I invite you to join Temkin Group in making 2017 “The Year of Purpose.” To find out more, visit ElevatePurpose.com.

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.

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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.

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Celebrating MLK Day in the Year of Purpose

1701_mlkpurposeHappy Martin Luther King Jr. Day!

In this Year of Purpose, it seems more appropriate than ever to celebrate MLK Day. When Temkin Group evaluates purposeful leaders, we look for someone who operates consistently with a clear, well-articulated set of values. MLK was one of the most purposeful leaders in the history of the U.S.

On this MLK day, I hope that you elevate purpose in your life. If you want to see what purpose looks like, here’s an excerpt from MLK’s “I Have A Dream” speech:

I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.

I have a dream that one day this nation will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident; that all men are created equal.”

I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.

I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice.

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

I have a dream today.

I have a dream that one day down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification, that one day right down in Alabama little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.

I have a dream today.

I have a dream that one day every valley shall be exhalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.

This is our hope. This is the faith that I will go back to the South with. With this faith we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood.

The bottom line: Follow MLK’s lead and elevate purpose in 2017.

 

Top 25 Customer Experience Matters Posts in 2016

It’s always interesting to see what people are reading, so I periodically share a list of our most popular posts. Below is a word cloud made from the titles of the 25 most-read posts from Customer Experience Matters in 2016. As you can see, there was a lot of interest in Net Promoter Score, infographics, and emotion.1612_top25postswordcloud

Here are the 25 most-read posts:

1

Report: Net Promoter Score Benchmark Study, 2015 (note: there is an updated version)

2

ROI of Customer Experience (Infographic)

3

11 Customer Experience Trends for 2016 (The Year of Emotion)

4

Report: 2016 Temkin Experience Ratings

5

Seven Steps for Developing Customer Journey Maps

6

Emotion: The Missing Link in Customer Experience (Video)

7

CX for Smarties, A Beginner’s Guide to Customer Experience

8

Intensify Emotion: Positive Feelings Create Loyal Customers

9

Customer Experience: The Path From Fluff to Tough (Infographic)

10

Net Promoter Score and Market Share For 60 Tech Vendors

11

15 Customer Experience Factoids From 2015 (Infographic)

12

What Is The Perfect Customer Experience?

13

Five Questions That Drive Customer Journey Thinking

14

Report: ROI of Customer Experience, 2015

15

Don’t Confuse Customer Service With Customer Experience

16

Customer Experience Needs More Emotion (Infographic)

17

With Customer Service, CARES Beats ACES

18

The Ultimate Customer Experience Infographic, 2015

19

Free eBook: The 6 Laws Of Customer Experience

20

Report: The Four Customer Experience Core Competencies

21

2015 Customer Experience Excellence Awards

22

Report: Net Promoter Score Benchmark Study, 2016

23

9 Recommendations For Net Promoter Score (NPS)

24

My Latest 9 Recommendations For NPS

25

Report: Economics of Net Promoter Score, 2016

The bottom line: I hope you enjoyed our 2016 posts, and find even more value in 2017!

Employee Engagement Workshop in Miami in March

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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 of this post

2017 Customer Experience Trends, “The Year of Purpose”

2017cxIt’s once again the time of year when I publish Temkin Group’s CX trends. In my post last year, we named 2016 “The Year of Emotion.” With my previous post, we declared 2017 “The Year of Purpose.”

During this year, companies will be:

  1. Elevating Purpose. Over the past year, we’ve seen more articles discussing purpose, and leaders are beginning to recognize the role that it plays in motivating employees. At the same time, we believe that the uncertainty around the world creates an increasing desire for people to find purpose and meaning in their lives. For these reasons, we’re calling 2017 “The Year of Purpose.” In 2017, we expect to see more leaders sharpening and sharing their organization’s purpose.
  2. Operationalizing Emotion. After our push to Intensify Emotion in 2016, I’m happy to say that the needle is moving! As we anticipated, many companies started to recognize the importance of emotion, with the help of many vendors who are working to demystify this key area. In 2017, we expect to see even more organizations focus on customer emotion and start to embed these efforts in their ongoing operations.
  3. Orienting Around Customer Journeys. Customer journey mapping continues to grow in popularity as companies recognize the need to develop a more customer-oriented viewpoint. That’s why we see so much demand for our customer journey mapping workshops. However, this tool only affects a small portion of an organization. To help companies embed thinking about customer journeys into day-to-day decisions across the entire organization, we created Customer Journey Thinking©. In 2017, we expect more companies to realign their metrics, analytics, experience design, and innovation around customer journeys.
  4. Continuing… Mobile, Mobile, Mobile. Mobile continues to become an increasingly dominant interaction channel… and now can be accessed through increasingly varied types of devices (including those described as “Internet of Things”). In 2017, we expect more companies to shift to a mobile first strategy and to design customer offerings with the assumption that the primary interface may be a remote digital device.
  5. Embracing Employee Engagement. Employee engagement (EE) has been one of Temkin Group’s Four CX Core Competencies for more than six years. While EE has always been critical to how we view customer experience, companies are finally starting to recognize that it’s a limiting factor to their CX efforts. In 2017, we expect to see a jump in EE activities and we hope to see CX and human resources groups finally coming together to work on engaging employees.
  6. Federating Customer Experience. We’ve seen many companies make great strides in their CX efforts by using strong centralized teams. However, as these efforts mature, companies often find that they need to distribute CX efforts across their organizations. In 2017, we expect many companies to shift to a federated CX model by developing CX Centers of Excellence, Enterprise CX Coordination, and Distributed CX Skills and Mindset.
  7. Predicting Through Behaviors. With the rise of digital and mobile interactions, companies have more data on what their customers are doing. This behavioral data can both provide rich insights into what drives customers and fuel strong predictive models. In 2017, we expect more companies to start collecting behavioral data and then using it to predict customer attitudes and future activities.
  8. Tapping Into Speech Recognition. Text analytics tools have become mature enough that they are now frequently a staple in customer insights toolkits. As these tools mature, companies are setting their sites on the next vein of unstructured data – customer calls. At the same time, we see a rise of voice interfaces, from Comcast’s XFINITY remote control to Amazon’s Echo. In 2017, we expect more companies to increase their use of speech recognition for insights and interfaces.
  9. Smartening Self-Service. Our research shows that people prefer to handle of lot of their interactions using self-service. While companies have been enabling these capabilities for years, technology is getting better for anticipating and customizing these interactions. In 2017, we expect more companies to incorporate technologies such as virtual agents and interactive guides to enable even smarter self-service.

The bottom line: Please join us in Elevating Purpose in 2017!

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