Report: Net Promoter Score Benchmark Study, 2018

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

Here’s the executive summary:

Many large companies use Net Promoter® Score (NPS®) to evaluate their customers’ loyalty. To compare scores across organizations and industries, Temkin Group measured the NPS of 342 companies across 20 industries based on a survey of 10,000 U.S. consumers. Here are the highlights from this benchmark:

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

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

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

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Here are the top and bottom 10 companies:

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

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Report Outline:

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

 

Figures in the Report:

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

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Check out this sample of the dataset
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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.

What is Net Promoter Score? (Video)

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


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


Video Script:

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

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

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

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

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

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

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

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

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

Calculating Net Promoter Score (NPS)

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

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

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

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

What do you do with the data?

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

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

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

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

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

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

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

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: 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 Outline:

  • How Companies Are Using CX Metrics
    • Effectiveness of Measuring Different Customer Experiences
  • Competency & Maturity of CX Metrics Programs
    • Temkin Group’s CX Metrics Competency and Maturity Assessment
  • Examining Stronger CX Metrics Programs
  • Assess and Improve Your CX Metrics Programs
    • Build A Strong CX Metrics Program in Five Steps

 

Figures in the Report:

  1. Effectiveness of Components of CX Metrics Programs
  2. Effectiveness of Components of CX Metrics Programs (2015 to 2017)
  3. Use of CX Metrics (2015 to 2017)
  4. Effectiveness of Components of CX Metrics Programs
  5. Effectiveness of Components of CX Metrics Programs (2015 to 2017)
  6. Elements of CX Metrics Programs
  7. Elements of CX Metrics Programs (2015 to 2017)
  8. Problems With CX Metrics Programs (2015 to 2017)
  9. CX Measurement Across The Customer Lifecycle
  10. CX Measurement Across Different Types of Customers
  11. CX Measurement Across Different Types of Customers
  12. CX Measurement Across Different Elements of Experience
  13. CX Measurement Across Different Elements of Experience
  14. Temkin Group’s CX Metrics Program Assessment
  15. Results From Temkin Group Assessment of CX Metrics Programs
  16. Comparing Strong and Weak CX Metrics Programs: Customer Experience and Business Performance
  17. Comparing Strong and Weak CX Metrics Programs: Metrics Tracked
  18. Comparing Strong and Weak CX Metrics Programs: Successful Use of Metrics
  19. Comparing Strong and Weak CX Metrics Programs: Measurement Effectiveness
  20. Comparing Strong and Weak CX Metrics Programs: Obstacles to Success
  21. Percentiles of Results From Temkin Group CX Competency Assessment
  22. Five Steps For Building a Strong CX Metrics Program

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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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Report Outline:

  • Customer Experience Metrics Need a Makeover
  • The Essence of a Strong CX Metrics Program
  • Five Steps for Creating a Strong CX Metrics Program
    • Step #1: Determine a Core CX Metric
    • Step #2: Set Achievable Goals
    • Step #3: Identify Key Drivers
    • Step #4: Establish Key Driver Metrics
    • Step #5: Make the Suite of Metrics Actionable
  • Assess Your CX Metrics Program

 

Figures in the Report:

  1. Problems With CX Metrics Programs
  2. Effectiveness of Component of CX Metrics Programs
  3. Best Practices Across Consistent, Impactful, Integrated, & Continuous
  4. Best Practices Across the Five Steps
  5. How to Craft a Strong Core CX Metric
  6. Use of CX Metrics (2014 to 2016)
  7. Ciena’s Approach to Identifying a Core CX Metric
  8. Tools for Identifying Key Drivers
  9. Examples of Company’s Suites of Metrics
  10. Types of Key Driver Metrics
  11. Ciena’s Inside-out/Outside-In CX Scorecard
  12. Example of Oxford Properties Cascading CX Metrics
  13. Dashboard Metrics: Create Operational Metrics
  14. Tailoring Metrics By Audience: Wyndham Worldwide
  15. Tying Compensation to CX Metrics
  16. Examples of Companies’ Compensation Programs
  17. Temkin Group’s CX Metrics Program Assessment

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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).

Download report for $495
(includes report (in .pdf) plus dataset in Excel)
Purchase Net Promoter Score (NPS) benchmark

Here are the NPS scores across 20 industries:
range of net promoter scores across industries

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(includes report (in .pdf) plus dataset in Excel)
buy Net Promoter Score (NPS) Benchmark Study


Report Outline:

  • USAA and JetBlue Lead the NPS Benchmark of 299 U.S. Companies
    • USAA and JetBlue Earn Top Spots in NPS Rankings
    • NPS Increases With Age
  • Want Higher NPS? Improve Customer Experience

 

Figures in the Report:

  1. Temkin Group Measured Net Promoter Scores For 299 Companies Across 20 Industries
  2. Net Promoter Scores (NPS): Top and Bottom 20 Companies
  3. Range of Net Promoter Scores (NPS) Across Industries
  4. Net Promoter Scores (NPS) By Industry (Page 1)
  5. Net Promoter Scores (NPS) By Industry (Page 2)
  6. Net Promoter Scores (NPS) By Industry (Page 3)
  7. Net Promoter Scores (NPS) By Industry (Page 4)
  8. Net Promoter Scores (NPS) By Industry (Page 5)
  9. Net Promoter Scores (NPS) By Industry (Page 6)
  10. Promoters, Passives, and Detractors By Industry
  11. Net Promoter Scores (NPS): Most Above and Below Industry Average
  12. Industry Average NPS, 2015 to 2017
  13. Net Promoter Score (NPS) by Age by Industry
  14. Customer Experience Correlates To Net Promoter Scores (NPS)

Download report for $495
(includes report (in .pdf) plus dataset in Excel)
buy Net Promoter Score (NPS) Benchmark Study

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: 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):

1612_cxmetricsmaturity

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Report: ROI of Customer Experience, 2016

1610_roiofcx_coverWe published a Temkin Group report, ROI of Customer Experience, 2016. This research shows that CX is highly correlated to loyalty across 20 industries. Here’s the executive summary:

To understand the connection between customer experience (CX) and loyalty, we examined feedback from 10,000 U.S. consumers that describes both their experiences with and their loyalty to different companies. To examine the CX component, we used the 2016 Temkin Experience Ratings (TxR), which evaluated 294 companies. Our analysis shows that there’s a very large correlation between companies’ TxR and the willingness of customers to purchase more from them. This connection holds true for other areas of customer loyalty as well. We used this data to calculate the revenue impact of CX across 20 industries. We found that a moderate increase in CX generates an average revenue increase of $823 million over three years for a company with $1 billion in annual revenues. Rental car agencies have the most to gain from improving CX ($967 million), while utilities have the least to gain ($645 million). While all three components of customer experience¬—success, effort, and emotion—have a strong effect on loyalty, our research shows that emotion is the most important element. When compared with companies with very poor CX, companies with very good CX have a 16.7 percentage-point advantage in customers who are willing to purchase more from them, 16.7 percentage-point advantage in customers who trust them, 10.3 percentage-point advantage in customers willing to forgive them if they make a mistake, and 7.1 percentage-point advantage in customers who are willing to try their new products. Additionally, companies with very good CX ratings have an average Net Promoter Score that is 22 points higher than the scores of companies with poor CX. We recommend that you build your own CX ROI models, using our five-step approach for guidance.

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This is one of the figures in the report, and it shows the high correlation between Temkin Experience Ratings (customer experience) and purchase intentions for 294 companies across 20 industries:
1610_purchasemorecorrelationgraphHere’s an excerpt from the graphic showing the three year impact on revenues for a $1 billion company in 20 different industries:

1610_roirevsbyindustry

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To see the customer experience levels of all 294 companies, download to the free 2016 Temkin Experience Ratings report.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

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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Report: Net Promoter Score Benchmark Study, 2016

1610_npsbenchmarkstudy_coverWe published a Temkin Group report, Net Promoter Score Benchmark Study, 2016. This is the fifth year of this study that includes Net Promoter® Scores (NPS®) on 315 companies across 20 industries based on a study of 10,000 U.S. consumers. Here’s the executive summary:

As many large companies use Net Promoter® Score (NPS) to evaluate their customer loyalty, Temkin Group measured the NPS of 315 companies across 20 industries. With an NPS of 68, USAA’s insurance business earned the highest score in the study for the fourth year in a row. Four other companies also earned an NPS of 60 or higher: Cadillac, USAA’s banking business, Apple, and USAA’s credit card business. In addition to earning some of the top scores, USAA’s banking, credit card, and insurance businesses also all outpaced their respective industries’ averages by more than any other company. Comcast, meanwhile, earned the lowest NPS for the second year in a row, coming in just below Time Warner Cable, Cox Communications, and McDonalds. And while all 20 industries increased their average NPS from last year, utilities enjoyed the biggest improvement in its score. Out of all the companies, US Airways’s and Advantage Rent-A-Car’s scores improved the most, whereas TriCare’s and Lexus’s scores declined the most. On average across the industries, the youngest consumers gave companies the lowest NPS, while 35- to 44-year-olds gave them the highest NPS.

See the NPS Benchmark Studies from 2012, 20132014, and 2015.

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

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Here are the NPS scores across 20 industries:
1610_rangeofindustrynps

Here are some other highlights of the research:

  • Five industries toped the list with an average NPS of 40 or more: auto dealers, software, investments, computers & tablets, and appliances.
  • The bottom scoring industries are TV service providers, Internet service providers, and health plans.
  • USAA’s insurance, banking, and credit card businesses earned NPS levels that are 30 or more points above their industry averages. Five other firms are 20 or more points above their peers: com, credit unions, Chick-fil-A, Apple, and Trader Joe’s.
  • Five companies fell 25 or more points below their industry averages: RadioShack, Motel 6, eMachines, McDonalds, and Days Inn.
  • US Airway’s NPS increased by 31 points between 2015 and 2016, the largest increase of any company. Eight other companies improved by 25 or more points: Fifth Third, 21st Century, Fujitsu, DHL, MetLife, HSBC, Commonwealth Edison, PSE&G, and Hannaford.
  • TriCare, Lexus, Mercedes-Benz, Baskin Robins, and Nordstrom had double-digit declines in NPS between 2015 and 2016.

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If you want to know what data is included in this report and dataset, download this sample Excel dataset file.Screen Shot 2014-10-17 at 4.05.17 PM

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Report: Benchmarking HR’s Support of CX and Employee Engagement

1602_HRinCXBenchmark_FCOVERWe published a Temkin Group report, Benchmarking HR’s Support of CX and Employee Engagement.  We surveyed 300 HR professionals from large organizations in North America and compared the results to a similar study we did in 2012. Here’s the executive summary:

Employee engagement is a critical component of customer experience (CX). To determine how effectively human resource (HR) departments support these engagement efforts, we surveyed 300 HR professionals from large companies and compared the results to a similar study we conducted in 2012. Seventy-three percent of HR professionals believe that it’s very important for their organization to become more customer-centric, but only 31% believe that HR professionals are significantly helping these efforts. The good news? That’s more than twice the level of HR support we found in 2012. Compared with 2012, companies are both measuring and acting on employee feedback more frequently, and HR professionals have more bandwidth to work on employee engagement. When we compared the companies that deliver outstanding customer experience with the companies that don’t, we found that the CX leaders have better financial performance, enjoy higher levels of engaged employees, are more customer- and mission-centric, have HR groups that are more actively involved in CX and employee engagement activities, and more frequently measure employee feedback. To improve employee engagement, companies must master the Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve and Incent.

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Here’s one of the 25 figures in the report:

1602_ImportanceOfCXCulture

Here are some other findings in the research: Read More …

Report: The State of CX Metrics, 2015

1512_StateOfCXMetrics2015_COVERWe published a Temkin Group report, The State of CX Metrics, 2015. This is the fifth year of this study that examines the CX metrics efforts within large companies. Here’s the executive summary:

Temkin Group surveyed nearly 200 large companies to learn about how they use customer experience (CX) metrics, and we then compared their answers with similar studies we’ve conducted every year since 2011. The most commonly used metrics continue to be likelihood-to-recommend and satisfaction, while the most successful metric is interaction satisfaction. And although the percentage of companies where senior leaders regularly refer to CX metrics has increased significantly from last year, fewer companies are making explicit trade-offs between CX metrics and financial 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. In addition to answering survey questions, we also had companies complete Temkin Group’s CX Metrics Competency and Maturity Assessment, which examines four areas 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 14% of respondents received at least a “good” overall rating, and companies earned the lowest rating in integrated. Ultimately, companies with stronger CX metrics programs deliver better customer experience, have stronger business results, more frequently measure ease of doing business, and compensate more employees based on CX metrics.

See the State of CX Metrics studies from 2011, 20122013, and 2014.

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Here are the results form our CX Metrics Competency & Maturity Assessment:

1512_CXMetricsAssessmentResults

Here are some other highlights of the research:

  • Forty-nine percent of companies with stronger CX metrics programs have well above average customer experience compared to 17% of those with weaker CX metrics programs. The stronger CX metrics programs are also 50% more likely to have significantly better business performance then their competitors.
  • While 64% of respondents rate their company as good or very good at collecting and sharing CX metrics, only 22% gave themselves those high marks when it came to making trade-offs between CX metrics and financial metrics.
  • Likelihood to recommend and satisfaction remain the most popular CX metrics, while companies are most successful in using satisfaction as a measure of specific customer interactions.
  • Seven out of 10 companies have compensation tied to CX metrics for some of their employees. Net Promoter® Score is the most common metric used and customer service is the most common group to have its compensation tied to CX metrics.
  • Companies are most effective at measuring customer service and phone interactions and least effective at measuring the experiences of prospects and customers who have defected.

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P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

Report: 2015 Temkin Loyalty Index

1511_TemkinLoyaltyIndex_COVERWe published a Temkin Group report, 2015 Temkin Loyalty Index. This report ranks the loyalty of consumers to 293 companies across 20 industries. Here’s the executive summary:

The 2015 Temkin Loyalty Index evaluates the loyalty of 10,000 U.S. consumers to 293 companies across 20 industries. The Index is based on evaluating consumers’ likelihood to do five things: repurchase from the company, recommend the company to others, forgive the company if it makes a mistake, trust the company, and try the company’s new offerings. Our research shows that USAA, H-E-B, Publix, and Trader Joe’s are at the top of the list when it comes to consumer loyalty, while Con Edison of NY, Coventry Health Care, Comcast, and Time Warner Cable are at the bottom. At an industry level, supermarkets, fast food chains, and retailers inspire the highest loyalty levels. At the other end of the spectrum, TV service providers and Internet service providers have the lowest levels of loyalty. USAA, JetBlue Airways, TriCare, credit unions, ACE Rent A Car, Apple, and Georgia Power have loyalty levels that most outperform their industry averages. Conversely, Con Edison of NY, RadioShack, Blackboard, Coventry Health Care, Citibank, Jeep, Bi-Lo, and McDonalds fall farthest behind their peers.

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Here are the leaders and laggards as well as the industry scores:

1511_TLi_TopBottom

1511_TLi_IndustryRanges

Here are some other highlights of the research:

  • The Temkin Loyalty Index is an average rating across consumers’ likelihood to do five things:
    • Repurchase from the company
    • Recommend the company to others
    • Forgive the company if it makes a mistake
    • Trust the company
    • Try the company’s new offerings
  • At an industry level, supermarkets, fast food chains, and retailers have the highest loyalty levels. At the other end of the spectrum, TV service providers and Internet service providers have the lowest.
  • USAA (for credit cards, banking, and insurance), JetBlue Airways, TriCare, credit unions, ACE Rent A Car, Apple, and Georgia Power have loyalty levels that most outperform their industry averages.
  • Con Edison of NY, RadioShack, Blackboard, Coventry Health Care, Citibank, Jeep, Bi-Lo, and McDonalds fall farthest behind their peers.
  • The average likelihood to purchase across all industries is the highest (67%) while the average likelihood to try new offerings is the lowest (42%).
  • H-E-B and USAA lead, and Con Edison of NY lags in repurchase.
  • Aldi and Hy-Vee lead, and Coventry Health Care lags in recommendations.
  • USAA and ACE Rent A Car lead, and Con Edison of NY lags in forgiveness.
  • ACE Rent A Car leads, and Citibank and Citizens lag in new product loyalty.
  • Credit unions and H-E-B lead, and Comcast lags in trust.

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If you want to know what data is included in this report and dataset, download this sample Excel dataset file.

Report: State of Voice of the Customer Programs, 2015

1510_StateOfVoCPrograms2015_CoverWe published a Temkin Group report, State of Voice of the Customer Programs, 2015. This is the fifth year that we’ve benchmarked the competency & maturity of voice of the customer programs within large organization. Here’s the executive summary:

For the fifth year, Temkin Group has benchmarked the voice of the customer (VoC) programs within large organizations. We found that while most organizations consider their VoC efforts to be successful, less than one-third of organizations actually believe they are good at making changes to the business based on these insights. Respondents think that the most important source of insights in the future will be customer interaction history, and they think that going forward, multiple-choice questions will be the least important. Respondents believe that technology will play an increasingly important role in their efforts, but the largest obstacle to VoC success remains integration across systems. 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. Although only 16% of companies have reached the two highest levels of VoC maturity, this is still an improvement from the 11% last year. When we compared high-scoring VoC programs with lower-scoring programs, we found that companies with mature programs are more successful, focus more on analytics, have more full-time staff, have more strongly coordinated efforts, and have more involved senior executives.

See the State of VoC reports from 201020112013, and 2014.

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

1510_VoCCompetencyMaturity

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