Report: 2016 Temkin Experience Ratings of Tech Vendors

1610_temkinexperienceratingstechvendors_coverWe just published a Temkin Group report 2016 Temkin Experience Ratings of Tech Vendors that rates the customer experience of 62 large tech vendors based on a survey of 800 IT decision makers from large North American firms. This is the fifth year of the ratings, here are links to the 2012, 20132014, and 2015 ratings.

Here is the executive summary of the report:

The 2016 Temkin Experience Ratings of Tech Vendors evaluates the customer experience of 62 large technology vendors. We surveyed 800 IT decision-makers from large companies regarding three components – success, effort, and emotion – of their experiences with these IT providers. Out of all the vendors we looked at, HPE outsourcing, IBM SPSS, and Google earned the highest ratings, while Capgemini, Infosys, and Accenture received the lowest ratings. The average score for the Ratings dropped by one percentage-point over the past year, down from 59% in 2015 to 58% this year. Furthermore, our research shows that the Temkin Experience Ratings are strongly correlated with multiple elements of loyalty behavior, including likelihood of repurchasing from the company, likelihood of recommending the company, likelihood of trying new products, and likelihood of forgiving the company if it makes a mistake.

This product has a report (.pdf) and a dataset (excel). The dataset has the details of the 2016 Temkin Experience Ratings, including all three components, for the 62 tech vendors as well as data on customers’ likelihood to repurchase from the vendors, their 2016 Temkin Forgiveness Ratings, and their 2016 Temkin Innovation Equity Quotient. It also includes a summary of the 2015 Temkin Experience Ratings, likelihood to repurchase, and Temkin Forgiveness Ratings.

Download for $695, includes report (.pdf) and data file (.xls)
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The Temkin Experience Ratings of Tech Vendors evaluates three areas of customer experience: success (can customers achieve what they want to do), effort (how easy is it for customers to do what they want to do), and emotion (how do customers feel about their interaction). Here are the overall results:

1610_techvendortxr_companies

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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.

The Ultimate Customer Experience Infographic, 2016

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

1610_cxmattersinfographic

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

Here are links to download different versions of the infographic:

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

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

 

The (Large) Connection Between Emotion And Loyalty

In case you missed it, we labeled 2016 as The Year of Emotion in our annual listing of CX trends. To help organizations better understand customer emotions, we created the Intensify Emotion Movement. Why did we put so much of a focus on emotion? Because it drives loyalty.

We tapped into our recent consumer benchmark study to examine the connection between how consumers rate the emotional component of their interactions and their loyalty across 20 industries. [Note: The emotional data is from the emotion component of the Temkin Experience Ratings]

In the graphic below, we examined the average across all 20 industries. Compared with consumers who had negative emotional experience, consumers who had positive emotional experiences are:

  • 15.1 times more likely to recommend the company
  • 8.4 times more likely to trust the company
  • 7.8 times more likely to try new products and services
  • 7.1 times more likely to purchase more from company
  • 6.6 times more likely to forgive company after a mistake

1608_EmotionAndLoyalty

If you’d like to see this data for each of the 20 industries, you can purchase and download the dataset for $195. To see what you’ll be purchasing, download this sample spreadsheet.

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The bottom line: Want loyal customers? Provide positive emotional experiences.

Report: Economics of Net Promoter Score, 2016

1606_EconomicsofNetPromoter_COVERWe just published a Temkin Group report, Economics of Net Promoter, 2016. Here’s the executive summary:

Net Promoter® Score (NPS®) is a popular metric that companies use to analyze their customer experience efforts, but how does it actually relate to loyalty? We asked thousands of consumers to give an NPS to 294 companies across 20 industries, and then we examined the connection between NPS and four key areas of loyalty. We found that compared to detractors, promoters are more than five times as likely to repurchase from companies, more than seven times as likely to forgive companies if they make a mistake, and almost nine times as likely to try new offerings from companies. Our research also shows that promoters recommend a company to an average of 3.5 people. The following analysis provides detailed loyalty data of promoters, passives, and detractors across 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarkets, TV service providers, utilities, and wireless carriers. Ultimately, if a company wants to benefit from using NPS as a key metric, it must focus on improving customer experience, not obsessing over the metric itself.

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Here’s one of the 12 graphics in the report, which shows the average loyalty differences for promoters, passives, and detractors across all industries:NPSEconomicsOverview

The report provides this loyalty data for promoters, passives, and detractors for 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarket chains, TV service providers, utilities, and wireless carriers.

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See our VoC/NPS resource page, which includes great resources for creating a successful NPS program. You mat also want to see our latest NPS Benchmark Report with NPS data on 291 companies.

The bottom line: Promoters are much more valuable than detractors.

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

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

Temkin Group’s research shows that companies evolve through six stages of CX maturity, but the higher levels of maturity take a significant jump in focus and commitment. What does that path look like? Take a look at this infographic.

1601_CXFluffToTough_infographic

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

The bottom line: Make the leap from fluff to tough

ROI of Customer Experience (Infographic)

People always ask about the connection between customer experience and business results. Well, here’s some visual evidence of the linkage. In this infographic, we share data from the Temkin Group research report, ROI of Customer Experience 2015.

1601_ROIofCX_Infographic

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

Why CX Does Not Always Drive Loyalty

We recently published the Temkin Loyalty Index (TLi), which examines five areas of loyalty for 293 companies. So I looked at how that data related to the Temkin Experience Ratings (TxR) for those same companies. To normalize the data across industries, we compared company scores to the averages for their industries. As you can see below, there’s a very high correlation between the two.

1512_LoyaltyIndexTxR2

For most companies, their CX is fairly predictive of their loyalty. But this connection is not equally strong for all companies. We took a look at the outliers, the companies that have loyalty levels that are much stronger or much weaker than their CX would suggest.

1512_CXLoyaltyOutliers

Why is it that some companies have a much higher or lower loyalty than their CX would suggest? Here are some reasons:

  • Brand halo: Sometimes consumers’ view of a brand is stronger or weaker than would be supported by their experiences with the company. For some reason, there are emotional drivers that make consumers love or hate the company.
  • Loyalty latency. When consumers have an experience that is not reflective of their expectations for a company, they often treat it as an exception. So it can take time for consumers to recognize that a company’s CX has improved or declined, and to adjust their loyalty accordingly.
  • Switching costs. The harder it is for a consumer to move from one provider to another, the less effect bad CX will have on loyalty.
  • Perceived alternatives. The fewer direct replacements that a consumer thinks he/she has for a company’s product or service, the less effect bad CX will have on loyalty.

The bottom line: CX has a strong, but not complete effect on loyalty

Report: ROI of Customer Experience, 2015

1510_RoIofCX_COVERWe published a Temkin Group report, ROI of Customer Experience, 2015. 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 293 companies across 20 industries. Our analysis shows a strong correlation between customer experience and loyalty factors such as repurchasing, trying new offerings, forgiving mistakes, and recommending the company to friends and colleagues. 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 we compared the consumers who gave companies a very good customer experience rating to those who gave companies a very bad customer experience rating, we found that at companies with high customer experience ratings, the percentage of customers who plan on purchasing more is 18 points higher, the percentage who will forgive the company if it makes a mistakes is 12 points higher, the percentage who will try a new offering is 10 points higher, and the percentage who trust the company is 19 points higher. Additionally, companies with very good CX ratings have an average Net Promoter® Score that is 24 points higher than the scores of companies with poor CX. We built a model to evaluate how, over a three-year period, customer experience impacts the revenue of a $1 billion business within each of the 20 industries. This model shows that CX has the largest impact on the revenue of hotels ($823 million) and rental cars ($755 million) over three years. This report also includes a five-step approach for building a model that estimates the value of CX for your organization.

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This is the first figure in the report, and it shows the high correlation between Temkin Experience Ratings (customer experience) and purchase intentions for 293 companies across 20 industries:
1510_CXvsRepurchase

Here’s an excerpt from the graphic showing the three year impact on revenues for a $1 billion company in 20 different industries:

1510_ROIRevenues

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To see the customer experience levels of all 293 companies, download to the free 2015 Temkin Experience Ratings report.

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

The Ultimate Customer Experience Infographic, 2015

Once again, Temkin Group is publishing a new infographic for CX Day.

CXMattersInfoCut

You can see the full infographic below. Here are links to:

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Customer Experience Matters (The Video)

CX Day is less than one week away!

As part of Temkin Group’s CX Day celebration, we created a new video, Customer Experience Matters® . It shows the value and power of customer experience. Share it, share it, share it!

The bottom line: Customer experience really matters

Customer Experience Matters is a registered trademark of Temkin Group

Report: Economics of Net Promoter, 2015

1506_Economics of Net Promoter_COVERWe just published a Temkin Group report, Economics of Net Promoter, 2015. Here’s the executive summary:

Net Promoter® Score (NPS®) is a popular metric that companies use to analyze their customer experience efforts, but how does it actually relate to loyalty? We asked thousands of consumers to give an NPS to 293 companies across 20 industries, and then we examined the connection between NPS and four key areas of loyalty. We found that compared to detractors, promoters are more than five times as likely to repurchase from a company, more than five times as likely to forgive a company if it makes a mistake, more than seven times as likely to try a new offering shortly after its introduction, and that they recommend the company to about four times as many people. This analysis examines the loyalty behaviors of promoters, passives, and detractors across 20 industries: airlines, appliance makers, auto dealers, banks, rental car agencies, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, supermarkets, TV service providers, utilities, and wireless carriers. The percentage of promoters who are likely to repurchase ranges from 96% for retailers, fast food chains, and supermarkets down to 77% for airlines, while the percentage of those who are likely to forgive ranges from 72% for computers & tablets, utilities, and supermarkets down to 51% for airlines. Meanwhile, the percentage of those who are likely to try new offerings ranges from 70% for major appliances and software firms down to 52% for banks. Ultimately, if a company wants to benefit from using NPS as a key metric, it must focus on improving customer experience, not obsessing over the metric itself.

Download report for $295
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Here’s an excerpt from one of the 12 graphics, which shows the loyalty differences for promoters, passives, and detractors across all industries:

1506_ValueOfPromotersDetractors

The report provides loyalty data for promoters, passives, and detractors across 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarket chains, TV service providers, utilities, and wireless carriers.

Download report for $295
BuyDownload3

See our VoC/NPS resource page, which includes great resources for creating a successful NPS program. You mat also want to see our latest NPS Benchmark Report with NPS data on 283 companies.

The bottom line: Promoters are much more valuable than detractors.

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

The Ultimate Customer Experience Infographic, 2014

In honor of Customer Experience Day, Temkin Group created its second annual “The State of Customer Experience” infographic.

1410_TemkinGroup_StateOfCX_POSTER

You can see a vertical  infographic below or:

Here are links to the research referenced in this infographic:

Here’s a link to last year’s infographic.

The bottom line: Happy Customer Experience Day!

This blog post is part of the 2014 CX Day Customer Experience Blog Carnival hosted here:  http://community.cxpa.org/blogs/val-moschella/2014/10/07/cx-day-blog-carnival-cx-core-competencies

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Report: ROI of Customer Experience, 2014

1409_RoIofCX_COVERWe just published a Temkin Group report, ROI of Customer Experience, 2014. The research shows the connection between customer experience, loyalty, and revenue growth for 19 industries. Here’s the executive summary:

To understand how customer experience corresponds to loyalty, we examined feedback from 10,000 U.S. consumers describing their experiences with and their loyalty to 268 companies. Our analysis shows a strong correlation between customer experience and loyalty factors such as repurchasing, trying new offerings, forgiving mistakes, and recommending the company to friends and colleagues. We compared the consumers who gave companies a very good customer experience rating to those who gave companies a very bad customer experience rating, and we found that the percentage of customers who plan on repurchasing products is 18 percentage-points higher at organizations with excellent CX ratings. Additionally, the Net Promoter Scores of companies with very good CX ratings average 22 points higher than the scores of companies with poor CX. We built a model to evaluate how customer experience impacts a $1 billion business’s revenue over three years in each of the 19 industries, and this model shows that CX has the largest impact on hotels ($461 million), fast food chains ($437 million), and retailers ($428 million). This report also includes a five-step approach for building a model that estimates the value of CX for your organization.

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The report has 29 charts, which includes specific details on the connection between customer experience, loyalty, and increased revenues for each of the 19 industries in the study: airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, TV service providers, and wireless carriers.

Here’s the first figure in the report:

CXLoyaltyCorrelation

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The bottom line: Customer experience is highly correlated with loyalty.

My Manifesto: Great Customer Experience Is Free

Here’s a replay of a post from July 2012 that was a replay of a post from September 2007 with a few updates. I thought it was still relevant and worthy of a re-replay…

Here’s my new quest: To dramatically increase the focus on customer experience within companies by getting everyone to understand that great customer experience is really good business. Great customer experience is not only free, it is an honest-to-everything profit maker. In these days of “who knows what is going to happen to our business tomorrow” there aren’t many ways left to make a profit improvement. If you concentrate on improving customer experience, you can very likely increase your profits. Good customer experience is an achievable, measureable, profitable entity that can be installed once you have commitment and understanding, and are prepared for hard work. But I’ve had a great many talks with sincere people who were clear that there was no way to attain great customer experience: “The engineers won’t cooperate.” “The salesman are untrainable as well as too shifty.” “Top management cannot be reached with such concepts.” So how do I plan on igniting the great customer experience is free movement? First, it is necessary to get top management, and therefore lower management, to consider customer experience a leading part of the operation, a part equal in importance to every other part. Second, I have to find a way to explain what customer experience is all about so that anyone can understand it and enthusiastically support it. And third, I have to get myself in a position where I have a platform to take on the world in behalf of customer experience. That’s really what I believe, but I must confess that those aren’t all my words. Just about everything written after the first paragraph came directly from the book Quality Is Free: The Art of Making Quality Certain by Philip B. Crosby. I’ve made minor edits and changed references from “quality” to “customer experience,” but those are Crosby’s words from his book that was initially published in 1979. Why did I “borrow” Crosby’s words? Because I see a lot of similarities between today’s need for customer experience improvements and the 1980’s quest for quality in the US. I was actually involved in the quality movement in the late 80’s and early 90’s — running quality circles, developing process maps, running workout sessions at GE, using fishbone diagrams, etc. Here are 7 critical areas in which the great customer experience is free movement can learn from the quality is free movement:

  1. Nobody owns it (or the corollary, everybody owns it). In the early stages of the quality movement, companies put in place quality officers. Many of these execs failed because they were held accountable for quality metrics and, therefore, tried to push quality improvements across the company. The successful execs saw their role more as change facilitators — engaging the entire company in the quality movement. Today’s chief customer officers need to see transformation as their primary objective — and not take personal ownership for improvement in metrics like satisfaction and NetPromoter.  
  2. It requires cultural change. Many US companies in the 1980’s put quality circles in place to replicate what they saw happening in Japan. But the culture in many firms was dramatically different than within Japanese firms. So companies did not get much from these efforts, because they didn’t have the ingrained mechanisms for taking action based on recommendations from the quality circles. Discrete efforts need to be part of a larger, longer-term process for engraining the principles of good customer experience in the DNA of the company.
  3. It requires process change. Quality efforts of the 1980’s grew into the process reengineering fad of the 1990’s. As business guru and author Michael Hammer showcased in his 1994 book Reengineering the Corporation: A Manifesto for Business Revolution, large-scale improvements within a company requires a change to its processes. That perspective remains as valid today as it was back then. Customer experience efforts, therefore, need to incorporate process reengineering techniques. That’s why these efforts must be directly connected to any Six Sigma or process change initiatives within the company.
  4. It requires discipline. Ad-hoc approaches can solve isolated problems, but systemic change requires a much more disciplined approach. That’s why the quality movement created tools and techniques — many of which are still used in corporate Six Sigma efforts. These new approaches were necessary to establish effective, repeatable, and scalable methods. A key portion of the effort was around training employees on how to use these new techniques. Customer experience efforts will also require training around new techniques. Here are a few posts that describe this type of discipline: Four Customer Experience Core Competencies, Customer Journey Mapping, and The Six Ds of a closed-loop VoC Program.
  5. Upstream issues cause downstream problems. This is a key understanding. The place where a problem is identified (a defective product, or a bad experience) is often not the place where systemic solutions need to occur. For instance, a problem with a computer may be caused by a faulty battery supplier and not the PC manufacturer. A bad experience at an airline ticket counter may be caused by ticketing business rules and not by the agent. So improvements need to encompass more than just front-line employees and customer-facing processes. Attacking upstream issues is part of moving from fluff to tough in your CX efforts.
  6. Employees are a key asset in the battle. The quality movement recognized that people involved with a process had a unique perspective for spotting problems and identifying potential solutions. So the many of the tools and techniques created during the quality movement tap into this important asset: Employees. Customer experience efforts need to systematically incorporate what front-line employees know about customer behavior, preferences, and problems as well as what other people in the organization know about processes that they are involved with. That’s why we’ve assembled a page of employee engagement resources.
  7. Executive involvement is essential. For all of the items listed above, improvements (in quality then and in customer experience now) require a concerted effort by the senior executive team. It can not be a secondary item on the list of priorities. Change is not easy. To ensure the corporate resolve and commitment to make the required changes, customer experience efforts need to be one of the company’s top efforts. Senior executives can’t just be “supportive,” they need to be truly committed to and involved with the effort. It may help to share our Executive’s Guide to Customer Experience with your leaders.

Corporations removed major quality defects in the 80’s, re-engineered business processes in the 90’s, and now it’s time to take on the next big challenge for corporate America:  Customer experience. It’s critically important, it’s broken, and fixing it can be very profitable. So don’t settle for the status quo! It’s up to you. As Crosby said in his book:

You can do it too. All you have to do is take the time to understand the concepts, teach them to others, and keep the pressure on.

The bottom line: The great customer experience is free movement is underway. Join me!

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