15 CX Factoids: Customer Experience Efforts & ROI (Infographic)

It’s hard to keep up with everything that Temkin Group published in 2017, so we put together a couple of infographics to highlight some of the key data insights. This first infographic looks at CX efforts and the ROI of those activities. Below the infographic you’ll find links to download the graphic (as well as a poster), along with links to the referenced content.

Infographic shows 15 customer experience (CX) factoids form Temkin Group research, including ROI data

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

Free eBook: The 6 Laws Of Customer Experience

Download free Temkin Group eBook, The Sx Laws of Customer ExperienceThis is an update to the original eBook that was published in 2008. It has been downloaded and read by tens of thousands of people around the world and is likely one of the most-read documents ever published on the topic of customer experience.

So enjoy the updated eBook: The 6 Laws Of Customer Experience: The Fundamental Truths That Define How Organizations Treat Customers

Download free eBook: The Six Laws of Customer Experience

Just like the three laws that govern all of physics, there are a set of fundamental truths about how customer experience operates. This eBook outlines the following 6 laws of customer experience:

  1. Every interaction creates a personal reaction.
  2. People are instinctively self-centered.
  3. Customer familiarity breeds alignment.
  4. Unengaged employees don’t create engaged customers.
  5. Employees do what is measured, incented, and celebrated.
  6. You can’t fake it.

The bottom line: To understand CX, you must first understand these laws.

NOTE: CX Institute’s CX Fundamentals eLearning module provides online training for employees across an organization to learn and apply these laws, helping organizations to become more customer-centric.

Happy MLK Day in The Year of Humanity!

Happy MLK Day!

Martin Luther King Jr. Wikipedia Page
Source: Wikipedia

Every year on this day I like to celebrate lessons that we can learn from Martin Luther King, Jr. This year, I’ll focus on this quote:

We must live together as brothers or perish together as fools

This line is from King’s commencement address at Oberlin College in 1965 titled, Remaining Awake Through a Great Revolution. Here’s a bit more of the speech that surrounded that quote:

What we are facing today is the fact that through our scientific and technological genius we’ve made of this world a neighborhood. And now through our moral and ethical commitment we must make of it a brotherhood. We must all learn to live together as brothers – or we will all perish together as fools. This is the great issue facing us today. No individual can live alone; no nation can live alone. We are tied together.

It’s amazing to me that King’s words from this speech are as relevant today as they were when he delivered them more than 50 years ago.

Unfortunately, many of our current political leaders promote partisan, divisive agendas. Instead of demonstrating genuine concern and caring for the people to whom they serve, they cater to the most ideologically extreme members of their base. As a result, it’s a challenge to accomplish even clearly humane activities like passing a DACA bill (to allow children born in the U.S. to remain in the U.S.).

Let’s choose to not follow their example. Instead of treating every interaction as if it’s a fight between “us and them,” let’s act as if every person is our brother (or sister). We can collectively make a difference.

Temkin Group has labeled 2018 The Year of Humanity. Join us in making it a reality.

Join Temkin Group in making 2018 the Year of Humantiy

CX ROI: Better Customer Experience = More Recommendations

In a recent post, I showed the correlation between customer experience and consumers’ likelihood to repurchase.

Since that post was so popular, I decided to once again tap into our survey of 10,000 U.S. consumers to analyze the relationship between CX (Temkin Experience Ratings) and likelihood to recommend.

To determine likelihood to recommend, we asked consumer how likely they were to recommend the company to friends and family. We calculated the percentage of each company’s customers who selected “8,” “9,” or “10” on a scale from “0” (not at all likely) to “10” (extremely likely).

In the chart below, we normalize the data for 329 across 20 industries by subtracting each company’s scores from the average for their industries.

As you can see, CX is highly correlated to recommendations (R= 0.70).

Data showing ROI of Customer Experience, correlating CX with loyalty through recommendations

In the chart below, we segmented consumers into five groups based on the TxR scores they gave companies (an average of success, effort, and emotion ratings). We then averaged the future purchase intentions of those groups across the 20 industries.

As you can see, consumers who have had a very good CX are 5x more likely to recommend a company than consumers who have had a very poor CX.

CX ROI: Customer experience correlates to more positive recommendations.

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.

Download report for $195
Purchase and download Temkin Group research report, Lessons in Customer Experience Excellence, 2018

Here are some highlights from the winners: Read More …

Welcome to the Year of Humanity!

Happy New Year and welcome to 2018, The Year of Humanity!

Gelukkige nuwejaar, Gëzuar vitin e ri, e glëckliches nëies, aam saiid, shnorhavor nor tari, yeni iliniz mubarek, bonne année, urte berri on, Зновым годам, subho nababarsho, asgwas amegas, mbembe mbu, bonne année, sretna nova godina, bloavezh mat, честита нова година, hnit thit ku mingalar pa, kung hé fat tsoi, bon any nou, xin nian kuai le, pace e salute, sretna nova godina, šťastný nový rok, godt nytår, gelukkig Nieuwjaar, felicxan novan jaron, head uut aastat, gott nýggjár, onnellista uutta vuotta, gelukkig Nieuwjaar, bonne année, lokkich neijier, bon an, feliz aninovo, gilotsavt aral tsels, ein gutes neues Jahr, kali chronia, rogüerohory año nuévo-re, sal mubarak, bònn ané, hauoli makahiki hou, shana tova, nav varsh ki subhkamna, nyob zoo xyoo tshiab, boldog új évet, farsælt komandi ár, selamat tahun baru, ath bhliain faoi mhaise, felice anno nuovo, akemashite omedetô, asseguèsse-ameguèsse, hosa varshada shubhaashayagalu, zhana zhiliniz kutti bolsin, sur sdei chhnam thmei, umwaka mwiza, seh heh bok mani bat uh seyo, sala we ya nû pîroz be, sabai di pi mai, felix sit annus novus, Happy New Year, laimīgu Jauno gadu, feliçe annu nœvu, bonana, laimingų Naujųjų Metų, gelükkig nyjaar, e gudd neit Joër, srekna nova godina, arahaba tratry ny taona, selamat tahun baru, is-sena t-tajba, kia hari te tau hou, shine jiliin bayariin mend hurgeye, wênd na kô-d yuum-songo, godt nytt år, bon annada, sâle no mobârak, szczęśliwego nowego roku, feliz ano novo, bun di bun onn, bangi vasilica baxt, un an nou fericit, С Новым Годом, ia manuia le tausaga fou, nzoni fini ngou, bonu annu nou, bliadhna mhath ur, srećna nova godina, mwaha mwema, goredzwa rakanaka, nain saal joon wadhayoon, suba aluth avuruddak vewa, stastlivy novy rok, srečno novo leto, dobir leto, feliz año nuevo, wan bun nyun yari, mwaka mzuri, gott nytt år, es guets Nöis, manigong bagong taon, ia orana i te matahiti api, iniya puthandu nalVazhthukkal, yaña yıl belän, nuthana samvathsara subhakankshalu, สวัสดีปีใหม่, tashi délek, yeni yiliniz kutlu olsun, Vyľ Aren, Z novym rokom, naya saal mubarik, yangi yilingiz qutlug’ bo’lsin, Chúc Mừng Nǎm Mới, bone annéye, blwyddyn newydd dda, bon lanné, dewenati!!!!

(Source of translations: http://www.freelang.net/expressions/newyear.html)

The bottom line: Wishing you and your family a year full of health, happiness, and humanity!

An Exciting Year For Temkin Group Research

As the year winds down, it’s fun to look back and appreciate what’s been done. As you can see in the chart below, Temkin Group published a lot of interesting research in 2017.

I’m very proud of what our team accomplished. We used many different research approaches (e.g., best practice interviews, company surveys, and large-scale consumer studies) to deliver insights about customer experience that shaped the thinking and actions of 1,000s of professionals around the world. The topics covered a number of areas, including:

Temkin Group's Customer Experience Research Published in 2017

Next year should be even more exiting. We’re already working on research that examines the evolution of experience design, identifies ways to leverage artificial intelligence, best practices for motivating employees, lessons learned from award winning CX programs, and the CX plans of large companies.

As you think through your 2018 plans, consider a Temkin Group Research & Advisory Subscription that provides access to all of our research and also includes a strategy session and ad-hoc advice to support your efforts throughout the year.

The bottom line: We’re looking forward to exciting new research in 2018!

15 Customer Experience Trends for 2018

Temkin Group's 15 customer experience (CX) trends for 2018Every year, Temkin Group publishes a list of customer experience trends for the upcoming year. We identify some of the key things that CX professionals will need to be on the lookout for throughout the upcoming year. Well, it’s that time again.

During 2018, The Year of Humanity, we expect to see the following 15 trends:

  1. Metrics Reexamination. Although many organizations are using some CX metrics, such as NPS or satisfaction, as a core piece of their customer experience efforts, most have not built effective programs around these measurements. We’re seeing an increasing number of companies rethinking the CX metrics they use and how those metrics are driving change across their organization. In 2018, we expect to see many companies revamping and reconfiguring their CX measurement programs.
  2. 15 Customer Experience (CX) trends for 2018 from Temkin Group.Customer Feedback Pullback.More and more companies have jumped on the voice of the customer bandwagon, sending surveys to customers after any and all interactions. Rather than providing companies with actionable insights, this slew of activity often just generates a lot of unused feedback and sometimes annoys customers along the way. In 2018, we expect to see companies cut back on the number of surveys they deploy and instead focus their data collection only on areas where they are prepared to take action.
  3. Voice Recognition Momentum. Now that text analytics tools have become a staple within customer insights toolkits, many companies are moving on to the next hurdle – speech analytics. At the same time, tools like Amazon Echo, Google Home, and Comcast’s XFINITY remote are making people more comfortable interacting with digital products through natural voice interface. As a result of these two trends, in 2018 we expect companies to focus much more heavily on speech recognition for insights and interfaces.
  4. Brand Promise Alignment. Many companies that begin focusing on customer experience end up realizing that they don’t have a clear enough view of their brand to direct the priorities of their CX efforts. As a result, they recognize the need to undergo projects to clarify or redefine the meaning of their brand. In 2018, we expect many more companies to explicitly articulate the customer promises that will deliver on their brand values.
  5. Experience Design Orientation. Experience design is an area that has been steadily growing inside of companies, with many large companies employing some design thinking methodologies. As the discipline grows, more and more employees are getting exposed to its principles, which helps focus attention on critical topics such as empathy and customer emotions. In 2018, we expect to see significantly more investment in design-oriented projects and efforts as companies try to internalize this capability.
  6. Customer Journey Expansion. Customer journey mapping continues to deliver value to CX professionals as it helps them infuse the customer’s point of view into their activities. However, this tool currently tends to only affect a small portion of an organization. To help companies embed consideration of customer journeys into day-to-day decisions across the entire organization, we created Customer Journey Thinking. In 2018, we expect to see more companies realign their metrics, analytics, experience design, and innovation around customer journeys.
  7. Digital Integration. Over the last few years, companies have made heavy investments to build up their digital skills and capabilities. These efforts represented initial baby steps on the path towards true digitation. In 2018, we expect to see companies take the next step by building (and analyzing) experiences that tie together digital channels with contact centers and physical locations.
  8. Chatbot Rationalization. Over the previous few years, we’ve seen an unprecedented number of people and articles focused on chatbots. While these tools are undeniably valuable in certain situations, they are not important enough to warrant the massive amount of attention they’ve received, much of which has been siphoned off from other critical CX activities. In 2018, we expect to see more chatbot deployments, but the short-term hysteria for chatbots subside. Based on learnings from these deployments, a  longer-term wave of new AI-based applications will emerge.
  9. Persona Popularization. Design personas have been around for a while and are a great tool for communicating the behavioral attributes of target customer segments. While the use of personas has steadily grown, we’ve started to see a more dramatic increase in the number of companies employing them in a broader set of applications and sharing them more widely with employees. In 2018, we expect design personas to become an even more mainstream tool.
  10. Analytics Expertise Shortage. More and more companies are recognizing the value of new forms of analytics – such as behavioral analytics, predictive analytics, and speech analytics. As the business case for these capabilities becomes increasingly compelling, companies are looking to do much more with analytics and are searching for people with the appropriate expertise. In 2018, we expect to see companies aggressively recruit the relatively small group of available analytics experts and invest in retraining and retooling some internal employees to fill this role.
  11. Preemptive Problem Resolution. We’ve seen more companies actively looking for ways to solve customer problems before they escalate into larger issues, such as JetBlue providing credit for TV screens that don’t work or Safelite AutoGlass deploying its “Catastrophe Response” team to areas about to be hit by bad weather. In 2018, we expect to see service organizations apply predictive analytics to find the use cases where they can proactively identify and resolve/avoid customer issues.
  12. Newly Energized Executives. More and more senior leaders are beginning to recognize the need to jump on the customer experience bandwagon. However, most of these leaders don’t have a realistic sense of what it takes to drive customer experience success. So when they direct people to “improve customer experience,” it often creates a flurry of activity and some near-term chaos. In 2018, we expect to see more newly formed CX initiatives that lack the appropriate plans and resources.
  13. Customer Experience Dispersion. The customer experience movement is now about a decade old and has become a mainstream theme within many organizations. As it evolves, people have begun using the CX moniker to describe a range of different activities, some of which have nothing to do with customer experience. In 2018, we expect to see this misuse of “CX” continue, causing the term to become increasingly diluted.
  14. “People and Culture” Emergence. Culture has been a topic that companies frequently discuss but rarely focus on explicitly. We are starting to see this change as more companies are beginning to task professionals with creating a customer-centric culture, which is resulting in an increased number of people with titles that include the words “people” and “culture.” In 2018, we expect to see a dramatic jump in the number of efforts that are explicitly focused on creating customer-centric culture.
  15. Empathy & Emotion Dialogue. Over the past few years, we’ve done a lot of work on the human side of customer experience, connecting employees’ actions to customers’ loyalty. We’ve noticed that leaders are getting much more comfortable discussing what used to be considered “squishy” topics, such as empathy and emotions. In “The Year of Humanity,” we expect to see some executive agendas actually contain the words “emotion” and “empathy” on them.

The bottom line: 2018 will be another exciting year for CX.

Introducing The Year of Humanity (2018)

Every year, Temkin Group identifies a theme that we believe deserves the attention of the entire CX community. We focused on Elevate Purpose in 2017, Intensify Emotion in 2016, Engage Employees in 2015, and Amplify Empathy in 2014.

We’ve decided to label 2018 as “The Year of Humanity.”

With all of the discord and tension throughout the world, it seems like a good time for all of us to refocus on what’s most important, our collective humanity. So Temkin Group will dedicate our energy in 2018 to promote the following mindset:

  • Embrace diversity. Applaud our differences and find ways to treat people as individuals.
  • Extend compassion. Tune into the condition of the people around us and care about their well-being
  • Express appreciation. Proactively look for and acknowledge the positive aspects of the world around us.

How are we translating this focus into the world of customer experience?  By creating a concept that we call Humanize CX.Humanize Customer Experience: Putting People FirstIt can be enticing to look at an organization’s efforts through the lens of its technologies or processes, but those are just conduits to the ultimate objective: people. Since organizational success is driven by engaged employees and loyal customers, it’s important to focus on the underlying needs and behaviors of these human beings.

That’s why Temkin Group created Humanize CX, which we define as:

Thinking about people first in every activity and endeavor

In order to Humanize CX, companies should adopt three principles:

  1. Act with Purpose. Although human beings respond to external stimuli like bonuses and coupons, they are truly motivated by the desire to find meaning in their lives. So we need to enlist people’s commitment and loyalty by sharing the purpose of our efforts, and understanding the purpose that motivates other people.
  2. Cultivate Deep Empathy. Dynamics within organizations tend to reinforce an internal and myopic perspective. So we need to break the status quo by proactively uncovering and satisfying the needs of other people.
  3. Create Positive Memories. What human beings experience is not what they remember and what they remember drives their loyalty. So we need to focus our energies on the moments that have the most emotionally significant impact on people.

This theme pulls together many of the areas that we’ve been focusing on for the past several years. Look for us to publish more research and highlight the theme throughout the year.

I hope that you will join Temkin Group in making 2018 The Year of Humanity, and finding ways to Humanize CX in your efforts.

The bottom line: The world needs more humanity.

CX ROI: Better Customer Experience = More Purchases

We examined the connection between customer experience and loyalty by tapping into our survey of 10,000 U.S. consumers to analyze the relationship between Temkin Experience Ratings (TxR) and future purchase intentions.

To determine future purchase intentions, we asked consumer how likely they were to purchase more from the company in the future. We calculated the percentage of each company’s customers who selected “6,” or “7” on a scale from “1” (not at all likely) to “7” (extremely likely).

In the chart below, we normalize the data for 329 across 20 industries by subtracting each company’s scores from the average for their industries.

As you can see, CX is highly correlated to future purchases (R= 0.75).

CX ROI: Customer experience correlates to future purchases

In the chart below, we segmented consumers into five groups based on the TxR scores they gave companies (an average of success, effort, and emotion ratings). We then averaged the future purchase intentions of those groups across the 20 industries.

As you can see, consumers who have had a very good CX are 54 %-points more likely to buy from a company than consumers who have had a very poor CX.

CX ROI: Customer experience correlates to future purchases

The bottom line: If you want loyal customers, improve your customer experience

Young Employees Are Most Impacted By Purposeful Leaders

As many readers of this blog know, Purposeful Leadership is one of Temkin Group’s Four CX Core Competencies. How do leaders demonstrate this characteristic? By mastering what we call the 5 P’s of Purposeful LeadersPersuasivePassionatePropellingPositive, and Persistent.

In a recent post, we showed how Purposeful Leadershipaffects the behaviors of employees. We decided to take a look at how the impact differs across ages of employees. To do this, we segmented more than 5,000 U.S. employees into two groups, one that said that their boss demonstrated all five characteristics of Purposeful Leadership (about 55% of the total) and those who’s boss did not.

We then examined the percentage of each group who say that they “always” or “almost always” try their hardest at work. As you can see in the chart below:

  • Younger employee are most effected. Looking at the impact of Purposeful Leaders between both groups, we find the largest gap for the youngest employees (27 %-points).
  • Older employees try harder. For both groups of employees, the percentage of employees who try their hardest increases with age.

Temkin Group analysis shows that the positive impact of purposeful leaders is greatest with younger employees

The bottom line: Purposeful leadership is gaining importance.

Tech Vendors: Good CX Correlates to Referenceable B2B Clients

In our Q3 2017 tech vendor study, we asked 800 IT decision makers in large North American companies if they would be willing to be references for the vendors that they use. As you can see in the chart below, Apple leads the pack with 48% of its clients saying that they’d act as a reference. At the other end of the spectrum, only 11% of Alcatel-Lucent clients would be willing to be a reference.

We also looked at the connection between referenceability and the Temkin Experience Ratings (TxR) for Tech Vendors. Take a look at the second chart, where you can see that:

  • There’s a high correlation (R=0.65) between customer experience (TxR) and referenceability.
  • Two vendors are outliers in terms of having a higher level of referenceability than their TxR would suggest: Capgemini (+19 %-points) and Apple (+16 %-points).
  • Two vendors are outliers in terms of having a lower level of referenceability than their TxR would suggest: Hitachi (-14 %-points) and Alcatel-Lucent (-13 %-points).

Level of client referenceability for tech vendorsLevel of client references versus customer experience for tech vendors

Methodology notes:

  • We only included tech vendors that had at least 40 client responses.
  • After having IT decision makers select the tech vendors they use, we asked them this question: For which of the following vendors would you be willing to act as a reference, and speak with their prospective clients?

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.

Download report for $195
Purchase and download report: State of Customer Experience Metrics

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

Download report for $195
Purchase and download report: State of Customer Experience Metrics

Collage of Great Customer Experience Infographics

If you like customer experience and visualizations, then you should enjoy this collection of CX infographics that we’ve published over the last year or so. Each of the infographics can be downloaded as a traditional infographic, or in the form of an 18″ x 24″ poster. Collage of Great Customer Experience Infographics

Here are some of our most recent infographics:

The bottom line: A picture of CX is worth more than a 1,000 words