Exciting News From The XM Institute

The time has finally come for me to tell people to stop purchasing Temkin Group research reports. Are we eliminating them? No. Are they irrelevant? No. We’ve just decided to give them away for free on the Qualtrics XM Institute site.

That’s right, you can now get access to almost our entire research library for free. One of the reasons we joined Qualtrics was to be able to help more people and organizations. This move shows you the commitment that Qualtrics is making to help the world understand and deliver on the promise of Experience Management (XM).

One of the things you’ll notice on the XM Institute page is a filter to select reports based on Six XM Competencies. Yes, we’ve created a new model. It’s based on the following six competencies:

  • Lead. Architect, align, and sustain successful XM efforts. Driving XM transformation requires a strong program and active support from senior leadership.
  • Realize. Track and ensure that XM efforts achieve business objectives. For XM efforts to have lasting, positive impact, they must align with the overall priorities of the organization.
  • Activate. Create the appropriate skills, support, and motivation. People generally gravitate towards the status quo. To help overcome that inertia, the organization must ensure that employees have all the appropriate XM-related training and support needed.
  • Enlighten. Provide actionable insights across an organization. At the center of XM is the constant flow of data being transformed into useful information and shared with those most capable of taking the appropriate action.
  • Respond. Prioritize and drive improvements based on insights. An organization must act on what it learns by making constant improvements as insights are uncovered.
  • Disrupt. Identify and create experiences that differentiate the organization. Truly successful XM efforts go beyond simply reacting to problems to proactively developing innovative experiences that give the organization a competitive advantage.

That’s just a quick summary. We will be publishing much, much more on this model in the future. It will be the primary lens for all of our content, which is why and we’ve created categories on this blog for the Six XM Competencies.

Enjoy all of the free content on the Qualtrics XM Institute site!

Complexity Is An Experience Killer

I just spent two days in Miami with a great group of executives who are part of the SAP CX Client Advisory Board. One of their presentations described the company’s technology transformation, and included a stream of activity around “decomplexing.” I loved seeing that!

Complexity ends up oozing its way into all types of experiences. Complex products, prices, or processes lead to ill-prepared employees and confused customers. A complex set of benefits leads to ill-prepared HR representatives and confused employees. A complex brand positioning leads to erratic messages and a confused marketplace.

The problem even goes beyond confusion, as complexity causes people to make mistakes — or even to think they made mistakes when they hadn’t. It generates large numbers of unproductive interactions, as people try and sort through the complexity to figure out what they want to, or need to do.

People often try and mask complexity. And while that may be effective in some situations, it ends up failing almost all the time. Why? Because complexity oozes its way into everything. It’s extremely hard to contain. A complex pricing structure can be masked with a configurator, but customers end up being confused about why they have to buy something, the price associated with the purchase, or the information on their first bill.

Organizations have a natural tendency to create complexity. They add rules and processes on top of of other rules and processes. That’s why decomplexing is a great thing to work on. It requires an explicit focus and an ongoing discipline. Making things simple is often much harder than continuing to make them complex.

Decomplexing is worth the effort.

The bottom line: Simplification is a wonderful enabler of great experiences.

The Inextricable Link Between CX & EX

CXEX_LinkedIn.pngIf you’ve followed our research, then you know that we’ve always viewed employee engagement as a fundamental component of customer experience.  One of our Six Laws of Customer Experience is that “Unengaged employees don’t create engaged customers.” It just makes sense. How can you possibly expect to consistently deliver great customer experience with apathetic or disengaged employees?!?!

Although the connection between customer experience (CX) and employee experience (EX) may seem obvious to many people, it’s important that we periodically test the linkage. So we took a look at the data from our survey that drove the report, State of CX Management, 2018.

We started by splitting the 194 respondents from companies that have 1,000 or more employees into three groups based on how they rated the customer experience that their organizations currently delivers compared with their competitors:

  • 51 companies that deliver considerably above average CX (“CX Leaders“)
  • 61 companies that deliver slightly above average CX (“CX Moderates“)
  • 82 companies that deliver average or below average CX (“CX Laggards“)

We compared their responses to Temkin Group’s 20-question CX Competency & Maturity Assessment. As you can see in the chart below:

  • The percentage of CX Leaders who earned “good” or “very good” employee engagement ratings is more than 5-times larger than the percentage of CX Laggards.
  • Most organizations have a long way to go on EX; less than 40% of CX Leaders are good at it–and they’re the best!
  • CX Leaders significantly outperformed CX Laggards across all five employee engagement behaviors in our assessment. Here are the gaps in the percentages of companies that either “always” or “almost always” demonstrate these behaviors:
    • My company celebrates and rewards the employees who exemplify its core values (32 %-point gap)
    • My company actively solicits and acts upon employee feedback (35 %-point gap)
    • Managers are evaluated based on the engagement level of their employees (38 %-point gap)
    • The human resources organization is actively involved in strategic initiatives (36 %-point gap)
    • My company provides employees with industry-leading training (31 %-point gap)

1812_CXandEX_v2

The bottom line: EX is a fundamental enabler of CX.

CX Myth #6: Compensation Drives Good CX Behaviors

CX Myths: Debunking Misleading Beliefs About Customer Experience

Many common beliefs about customer experience are misguided, based on oversimplifications or a lack of consideration for real-world constraints. In this series of posts, we debunk these myths.


CX Myth #6: Compensation Drives Good CX Behaviors

What’s Wrong: Many organizations try to drive behavior change by tying employees’ compensation to customer experience metrics. While some level of compensation tied to CX can be helpful, it is often overdone. When you overly compensate on a single metric, it can often lead to unintended and detrimental consequences. Symptoms of these counterproductive behaviors include pestering customers for scores; focusing on activities that may improve scores, but aren’t good for the business; and actively debating the accuracy of the metrics. Rather than engaging in these activities, we want employees focusing on ways to improve customer experience.

What’s Right: Don’t use compensation to drive behavior change; instead, use it to reward good behaviors. With that in mind, you need to find other mechanisms to drive change, such as appealing to employee’s four intrinsic needs; their sense of meaning, control, progress, and competence. As I’ve previously written, keep in mind these three underlying principles about compensation:

  1. If there is significant compensation tied to any metric (including customer feedback), then people will look for ways to manipulate the measurement.
  2. If people don’t understand a metric, then tying compensation to it will have little impact on their behavior and any downside in compensation may create negative behaviors.
  3. If people don’t understand how they personally can affect a metric, then tying compensation to it will have little impact on their behavior and any downside in compensation may create negative behaviors.

What You Should Do:

  • Treat CX as a team sport. Your customers’ experience is almost never the result of a single person, even if that person is the only one interacting with the customer. So focus on team-level metrics and compensation that encourages key groups of employees to work together towards a shared objective.
  • Use an organization-wide CX metric. Developing a core CX metric for the entire organization that is tied to some compensation (not too large), is a great way to show commitment to improving CX, and it will encourage a regular dialogue about your overall CX performance.
  • Bias rewards towards the upside. Consider starting with a compensation plan that is biased towards upside. In other words, you may want to introduce the plan where there is little negative impact on compensation if the group doesn’t hit a goal, but there is positive impact of they exceed it. This can help eliminate some of the negative perceptions early in a program.
  • Celebrate good CX behaviors. Compensation is not the only reward system in an organization. If you want employees to behave in a certain way, then provide them with positive role models. Find ways to highlight employees who are demonstrating the behaviors that you would like others to emulate. This can include monthly or quarterly awards, shout outs at company meetings, or highlights across your internal communications.
  • Make it unacceptable to game the scores. When an employee asks a customer to “give me a 10 on a survey or I’ll get fired,” can you really count on the accuracy of that customer’s rating? This may be an extreme example of “gaming feedback,” but many versions of this behavior occur all the time. To keep gaming feedback in check, it’s important to be explicit with employees about what the company considers to be unacceptable behaviors.  I’ve identified five rules that you should strictly enforce with employees, which includes not talking with customers about survey questions, scores, or consequences.

The bottom line: Use compensation to reinforce, not force, good CX behaviors.

Employees Want To Make A Positive Impact

What motivates employees? This may seem like a difficult question to answer, but it’s not hard at all. There’s one overwhelming answer: Making a positive difference.

In our latest consumer benchmark study, we asked more than 5,000 full-time U.S. employees to select which of eight job characteristics they felt was the most important. Here’s what we found:

  • Making a positive impact: 42%
  • Earning a lot of money: 14%
  • Advancing your career: 13%
  • Building stronger skills: 12%
  • Using your judgment: 8%
  • Being seen as a top performer: 6%
  • Making friends at work: 3%
  • Impressing your family and friends: 2%

Making a positive impact is also the most important job characteristic across all age groups. As you can see below, it becomes increasingly more important as employees get older. For the youngest employees, being seen as a top performer comes in a close second place, but nothing is even close with older employees.

1811_JobImportanceByAge_v1

We also asked employees about the elements of their job that they enjoy. The chart below shows that once again, making a positive impact comes out on top across age groups and increases with age. For younger employees, building stronger skills is a very close second. As employees get older, using your judgement becomes an increasingly enjoyable element of their job.

1811_JobEnjoymentByAge_v1

The bottom line: Help employees feel like they’re making a positive impact.

CX Myth #4: Net Promoter Score Is The Best/Worst Metric

CX Myths: Debunking Misleading Beliefs About Customer Experience

Many common beliefs about customer experience are misguided, based on oversimplifications or a lack of consideration for real-world constraints. In this series of posts, we debunk these myths.


CX Myth #4: Net Promoter Score Is The Best/Worst Metric

What’s Wrong: People often argue that Net Promoter Score (NPS) is the greatest metric, while other people argue that it’s a terrible metric. Both of those points of view are off the mark.

What’s Right: We rarely see a company succeed or fail based on the specific metric that it choses. That doesn’t mean that you can chose a ridiculous metric, but most reasonable metrics provide the same potential for success (and failure). In many cases, NPS is a reasonable choice, as our data shows that it often correlates to customer loyalty. The way you use a metric is often far more important than the metric that you chose.

What You Should Do:

  • Pick a simple metric. It’s important that you choose a metric that employees will understand, so they are motivated to help improve it. The metric can be based on customer attitudes (like NPS), behaviors (like repeat purchases), or even results (like first call resolution). Just pick a simple metric that aligns with your business goals.
  • Follow our five steps. To drive improvements using the metric, follow Temkin Group’s five steps. to 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.
  • Focus on all four action loops. People often discuss an action loop with CX metrics, but we’ve identified four customer insight-driven action loopsImmediate responsecorrective actioncontinuous improvement, and strategic change. Any CX metrics program should put in places processes to close all four loops.
  • Don’t compensate too much. When companies establish CX metrics, they often establish compensation based on them. While this can be a valuable approach to raise awareness and alignment, it can also be a problem if the level of compensation is too large (can encourage bad behaviors), it focuses on individual results (CX is a team sport), or the goals are too precise (some metrics are inherently jittery).
  • Have very clear sampling strategy. The approach for sampling often has a very significant impact on results. If you have multiple segments of customers and they each have a different profile (as many do), then your overall scores can change wildly based on the mix of those customers that are included in your calculations.

The bottom line: Obsess about your metrics program, not your metric.

CX Myth #2: You Need A 360-Degree View of Customers

CX Myths: Debunking Misleading Beliefs About Customer Experience

Many common beliefs about customer experience are misguided, based on oversimplifications or a lack of consideration for real-world constraints. In this series of posts, we debunk these myths.


CX Myth #2: You Need A 360-Degree View of Customers

What’s Wrong: If companies had an unlimited set of resources to plow into their customer insights efforts and an equally unlimited number of people prepared to take action on those insights, then shooting for a 360-degree view of your customers would be viable. But this is not the case for most organizations. So striving to understand everything about every customer (360-degree view) pushes organizations to over-invest in data and squeezes out the critical focus on taking action on the insights.

What’s Right: Organizations need to focus their insights efforts in areas where they are prepared to take action. Rather than aiming for a 360-degree view of all customers, organizations would be better served with a more targeted approach, focusing their insights investments on understanding key customer groups during specific parts of their journeys.

What You Should Do:

  • Separate the notions of Detect and Diagnose, which are two parts of the Six D’s of a Voice of the Customer Program. You can track the high-level feedback from a large number of customers (“Detect”) and then use those insights to identify areas where you should dig deeper to drive action (“Diagnose”).
  • Identify the actions that your organization is prepared or willing to take based on customer insights. This includes items across all four action loops: immediate response, corrective action, continuous improvement, and strategic change.
  • Define the target customers that you need to understand in order to support actions. This should include the type of customers and the specific stages of their journey that you’re most interested in understanding.
  • Make it as easy as possible for people across your organization to use the insights. Tailor the information to the specific ways that people in your organization make decisions. Minimize the requirement for non-analyst users to interpret and manipulate the data to uncover actionable insights.
  • Whenever you’re presenting customer insights, try not spend more than 20% of the time discussing data. Use the majority of the time talking about what the data means,  implications, opportunities for improvement, and next steps.
  • Help stakeholders across your organization understand new and more impactful ways that they can use customer insights to drive action. They may not immediately understand how to best use insights, so you may need to help them evolve through seven stages to a data-centric mindset.

The bottom line: Focus on developing the most actionable insights.

Propelling Experience Design (Infographic)

In the report Propelling Experience Design Across An Organization, we examine how companies can best use a very important skill, experience design. This infographic provides an overview.

Here are links to download different versions of the infographic:

Here are some of the reports with data included in the infographic:

Report: Employee Engagement Competency & Maturity, 2018

Purchase report: Employee Engagement Competency & Maturity, 2018We just published a Temkin Group report, Employee Engagement Competency & Maturity, 2018. Here’s the executive summary of this annual review of employee engagement activities, competencies, and maturity levels for large companies:

To understand how companies are engaging their employees, we surveyed 178 large companies and compared their responses with similar studies we’ve conducted in previous years. We also asked survey respondents to complete Temkin Group’s Employee Engagement Competency & Maturity (EECM) Assessment. The EECM Assessment places companies in one of five stages of maturity and evaluates their performance across five employee engagement competencies: Inspire, Inform, Instruct, Incent, and Involve. Highlights from our analysis of their responses include:

  • Team leaders of non-customer-facing groups are the least supportive of customer-centric activities.
  • Nearly 70% of companies measure employee engagement at least annually, yet only 40% of executives consider acting on the results to be a high priority.
  • The top obstacle to employee engagement activities continues to be the lack of an employee engagement strategy.
  • While only 19% of companies are in the top two stages of employee engagement maturity, 49% are in the bottom two.
  • When we compared companies with above average employee engagement maturity to those with lower maturity, we found that employee engagement leaders have better customer experience, enjoy better financial results, have more coordinated employee engagement efforts, have more widespread support across employee groups, are more likely to act on employee feedback, and face fewer obstacles than their counterparts with less engaged workforces.
  • You can use the results of the EECM Assessment to benchmark your own employee engagement activities.

Download report for $195+
Buy employee engagement competency and maturity report

Here’s an excerpt from two of the 19 graphics that shows the maturity levels of employee engagement efforts in large companies and their effectiveness across five employee engagement competencies:

Employee Engagement Competency & Maturity ModelEmployee Engagement Competency & Maturity Levels of Large Organizations

Download report for $195+download employee engagement competency report


Report Outline:

  • Employee Engagement Efforts Are Underway
  • Assessing Employee Engagement Competencies and Maturity
  • Employee Engagement Leaders Versus Laggards
  • Propel Your Employee Engagement Efforts

 

Figures in the Report:

  1. Importance of Employee Engagement and Customer-Centric Culture
  2. Support For Customer-Centric Activities
  3. Employee Engagement Measurement
  4. Overview of Employee Engagement Activities
  5. Employee Engagement Obstacles, 2016 to 2018
  6. Employee Engagement Competencies and Maturity Levels
  7. Employee Engagement Competency & Maturity Assessment
  8. Results From Employee Engagement Competency Assessment
  9. Results From Employee Engagement Competency AssessmentBetween 2016 and 2018
  10. Highest Performing Employee Engagement (EE) Competency Elements
  11. Lowest Performing Employee Engagement (EE) Competency Elements
  12. Customer Experience and Financial Results: Employee Engagement Leaders Versus Laggards
  13. Organizational Culture: Employee Engagement Leaders Versus Laggards
  14. Executive Priorities: Employee Engagement Leaders Versus Laggards
  15. Overview of Employee Engagement Activities: Employee Engagement Leaders Versus Laggards
  16. Employee Engagement Measurement: Employee Engagement Leaders Versus Laggards
  17. Support For Customer-Centric Activities: Employee Engagement Leaders Versus Laggards
  18. Employee Engagement Obstacles: Employee Engagement Leaders Versus Laggards
  19. Percentiles of Results From Temkin Group Employee Engagement Competency Assessment

Download report for $195+
Buy employee engagement competency and maturity report

Mastering Customer Experience Metrics (Infographic)

As an organization’s customer experience efforts mature, CX metrics become a critical guidepost for all of its activities. You can see different ways to download this infographic below.

Mastering Customer Experience (CX) Metrics Infographic

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

The Future of VoC Actionable Insights: Assistance Engines

Earlier this week I gave a speech called “The Future of CX: Humanistic, Prescriptive, and Responsive.” During that session, I discussed a missing link in today’s VoC technology: Assistance Engines. Here’s a picture of the future that I have in mind.

Architecture For Prescriptive Customer Insights

Before I describe Assistance Engines, I want to go back to 2010 when I labelled VoC technologies as Customer Insight & Action (CIA) Platforms. The naming was important, because it correctly identified that vendors needed to focus more on “insight & action” than on customer feedback.

It turns out that this is still the case. In the future, VoC vendors will be completely judged by results that their clients get from taking actions on the insights that these vendors provide.

Action is the holy grail! All of the efforts around surveying, integrating data, analyzing, etc. are only as valuable as the actions that they lead to. Most of the vendors now understand this key concept, and are working feverishly to improve the actionability of the insights they provide.

Companies still have a long way to go in taking action on their VoC insights. As you can see in our recent infographic, only 24% of large companies think they are good at taking action.

To help refine the insights, most vendors are developing some sort of an Intelligence Engine. This technology combines direct customer feedback with other customer information, and then applies different analytical and machine learning approaches to create predictive insights about large groups of customers.

While this technology is helping companies to better understand their customers, the output does not often translate directly into actionable insights. Why not? Because there’s a wide gap between insights from the Intelligence Engine which are often delivered in charts and dashboards, and the types of information that employees need to make their a day-to-day decisions.

No matter how much smarter these platforms get about customers, they won’t be truly actionable until they also get smarter about employees.

That’s where Assistance Engines come into play. What is an Assistance Engine?

A set of technologies that uses analytics and machine learning to provide increasingly valuable advice to help different employees across an organization make customer-centric decisions.

Or you can think of it more simply as…

Technology that recommends employee actions based on customer insights.

Assistance Engines will provide timely, actionable insights that are embedded within role-based processes, and delivered as answers and recommendations, not as charts and numbers. This technology will also fine-tune its recommendations based on feedback from employees about the types of recommendations that they find valuable.

Think of the Assistance Engine as being like an analyst who works for the employee. A good analyst can comb through data in an Intelligence Engine, understanding her bosses needs, and translate the customer insights into a very relevant set of recommendations. Over time, the analyst gets better at anticipating what her boss needs or wants to see.

Here are some examples of insights that an Assistance Engine might deliver (think about the employee simply asking Alexa a question):

  • When a product manager is defining a new product, the Assistance Engine will recommend a set of features that a product manager should include in its next release.
  • When a contact center supervisor finds that she has 15 minutes free, the Assistance Engine can tell her which agent to spend time with and what to cover during the session.
  • When an executive is looking to improve the companies NPS, the Assistance Engine will identify the regions to focus on and the activities that should be improved in those regions.

The early use cases for Assistance Engines will likely focus on recommendations that are already being made by analysts. But instead of having someone spend a lot of time manually digging through troves of data, the Assistance Engine will simply answer end users’ questions.

Companies still have a long way to go in building out their Intelligence Engines, so we do not expect to see Assistance Engines become mainstream for several years. But the maturing of end-user responsive analytics such as IBM Watson and Amazon Analytics will help accelerate the development.

The bottom line: Actionability requires more focus on employees.

 

Report: Propelling Experience Design Across An Organization

Propelling Experience Design Across An OrganizationWe just published a Temkin Group report, Propelling Experience Design Across An Organization.

Although customer experience (CX) management has become a relatively common activity within large organizations, companies still struggle to deliver consistently positive experiences to their customers. One major issue impeding companies’ current CX efforts is that few organizations design customer interactions in a purposeful and deliberate manner. This report explores how companies can use Experience Design – which we define as a repeatable, human-centric approach for creating emotionally resonant interactions – to craft consistently excellent interactions and how they can share and spread these capabilities across the entire organization.

Download report for $195
buy the state of customer experience management report

Here are some highlights from this report:

  • The Experience Design process is made up of three generic phases (Clarification, Generation, Realization), each of which contains two stages (empathize and synthesize, conceptualize and materialize, scrutinize and actualize).
  • To help propel Experience Design capabilities across the organization, we developed The Federated Experience Design Model, which is made up of three tiers of employees – Experts, Boosters, and Dabblers.
  • We share over 30 examples of best practices from companies that are spreading and sharing Experience Design capabilities throughout their entire organization.
  • We also provide some tools that employees can use across the six stages of the Experience Design process.

The move towards propelling CX across an organization is part of a broader trend that we describe in the report, The Federated Customer Experience Model.

Here are two of the 22 figures in the report:

Process, Mindsets, and Skills of Experience DesignFederated Experience Design Model

Download report for $195
download the state of customer experience management


Report Outline:

  • Customers Suffer from Haphazard Experiences
  • Components of an Experience Design Methodology
    • Phase 1) Clarification: Understand the Objectives
    • Phase 2) Generation: Explore Potential Solutions
    • Phase 3) Realization: Share Solutions with Customers
  • Federating Experience Design Across an Organization
    • The role of Experts, Boosters, and Dabblers
  • Simple Experience Design Tools Support Federation

Figures in the Report:

  1. Process, Mindsets, and Skills of Experience Design
  2. Experience Design Mindsets
  3. Experience Design Skills
  4. Examples Across the Experience Design Processes
  5. Examples Across the Experience Design Processes
  6. Examples of Empathizing
  7. Three Levels of a Federated Experience Design Model
  8. Federated Experience Design Model
  9. Means of Providing Ongoing Coaching and Support
  10. IBM Design Thinking Badge Program
  11. Tools Across the Three Levels of Employees
  12. Tools for Clarification: Empathize
  13. Tools for Clarification: Synthesize
  14. Tools for Generation: Conceptualize
  15. Tools for Generation: Materialize
  16. Tools for Realization: Scrutinize and Actualize
  17. Customer Journey Maps
  18. Customer Journey Thinking™
  19. Temkin Group’s SLICE-B Experience Review Methodology
  20. Temkin Group’s SLICE-B Experience Review Assessment
  21. Empathy Maps
  22. Starbursting

Download report for $195
download the state of customer experience management

Report: The State of CX Management, 2018

The State of Customer Experience (CX) Management, 2018We just published a Temkin Group report, The State of CX Management, 2018.

Temkin Group has evaluated the state of Customer Experience (CX) management at large companies for nine years in a row. This year, the benchmark is based on a survey of 171 companies with at least $500 million in annual revenues. Respondents not only answered questions about CX management, they also completed our CX Competency and Maturity Assessment. When we analyzed organizations’ CX efforts and progress towards maturity, we found that:

  • While only 7% of companies view themselves as industry leaders in CX today, 54% aspire to be leaders within three years.
  • Only 13% of companies have reached the top two (out of six) levels of CX maturity.
  • Of the four CX Core Competencies, Compelling Brand Values continues to be the most problematic for companies.
  • Twenty-two percent of firms have at least 21 FTEs in their centralized CX groups.
  • Companies rate themselves highest for customer insights & analysis and weakest for ambassador programs.
  • Voice of the customer software and market research vendors are the most valuable CX tools and services.
  • Two-thirds of companies think that their phone agents typical deliver a good experience, while only 11% feel that way about chat bots.
  • The top obstacle that companies face is other competing priorities, which has been at the top of the list for several years.
  • When we compared CX leaders with CX laggards, we discovered that the leaders enjoy stronger financial results, are more likely to have senior executives leading company-wide CX efforts, employ more full-time CX employees, use more experience design agencies, and feel more supported by senior leaders.
  • CX leaders are more likely to describe their culture as being Customer- or Mission-Centric, while CX laggards are more likely to describe theirs as Sales- or Profit-Centric.

This report also includes an assessment that companies can use to benchmark their CX efforts and capabilities.

Download report for $195
buy the state of customer experience management report

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

Download report for $195
download the state of customer experience management


Report Outline:

  • Customer Experience Management Within Large Firms
  • Assessing The Four Customer Experience Core Competencies
  • Comparing CX Leaders and CX Laggards
  • Assess and Improve Your CX Competencies

 

Figures in the Report:

  1. Customer Experience Today and Future Ambitions
  2. Customer Experience Leadership and Coordination
  3. Customer Experience Coordination and Staffing
  4. Customer Experience Team Effectiveness
  5. Customer Experience Tools and Services
  6. Customer Experience Tools and Services (2016 to 2018)
  7. Quality of Customer Experience Across Different Channels
  8. Quality of Customer Experience Across Different Channels (2016 to 2018)
  9. Obstacles to Customer Experience Successes
  10. The Four Customer Experience Core Competencies
  11. Temkin Group Customer Experience Competency Assessment
  12. Results From Temkin Group’s Customer Experience Competency and Maturity Assessment
  13. Results From Temkin Group’s Customer Experience Competency and Maturity Assessment(2010 to 2018)
  14. Most Frequently Practiced Customer Experience Competency Attributes
  15. Least Frequently Practiced Customer Experience Competency Attributes
  16. Customer Experience Competency Attributes that Improved and Declined Between 2017 to 2018
  17. Overview: CX Competency Leaders Versus CX Competency Laggards
  18. Effectiveness of CX Teams, CX Leaders Versus CX Laggards
  19. Use of CX Tools and Services, CX Leaders Versus CX Laggards
  20. Effectiveness of CX Tools and Services, CX Leaders Versus CX Laggards
  21. Quality of Customer Experience Across Different Channels, CX Leaders Versus CX Laggards
  22. Obstacles to CX Success, CX Leaders Versus CX Laggards
  23. Executive Priorities, CX Leaders Versus CX Laggards
  24. Predominant Culture, CX Leaders Versus CX Laggards
  25. Percentiles of Results From Temkin Group’s CX Competency and Maturity Assessment

Download report for $195
buy the state of customer experience management report

 

Temkin Group's FREE Online Customer Experience (CX) Competency & Maturity AssessmentWant to gauge your organization’s customer experience maturity or how well it’s doing across the Four CX Core Competencies? You can access Temkin Group’s online CX Competency & Maturity Assessment… and it’s FREE.

Report: State of the CX Profession, 2018

Download report, State of the Customer Experience (CX) Profession, 2018We just published a Temkin Group report, State of the CX Profession, 2018. This is the fifth year that we’ve examined the roles of CX professionals and the third year that we’ve done a compensation study. Here’s the executive summary:

To understand the mindset and roles of customer experience professionals today, we surveyed 221 CX professionals and then compared their responses to similar studies we’ve conducted over the previous six years. We asked respondents about how their CX efforts impacted their organization last year and what their company plans to do during the coming year. This report also includes a compensation study, which is based on the 158 respondents who agreed to participate. Here are some highlights from the research:

  • Eighty-seven percent of respondents say that their customer experience efforts have had a positive business impact in 2017.
  • Ninety-six percent think that customer experience is a great profession to be in.
  • Eighty percent think that customer experience will be more important for their companies in 2018 than it was in 2017, compared to the 5% who think it will be less important.
  • Forty-eight percent expect to see an increase in their customer experience staffing levels this year, compared with only 6% that expect a decline.
  • Respondents plan to increase their spending most on voice of the customer software.
  • Respondents plan to increase their focus most on Web experiences and customer insights and analysis.
  • The total amount of compensation in our study ranges from $104,000 for mid-level individual contributors to $296,000 for CX executives.

Download free report from CXPA website

Download report for $195
BuyDownload3

Here’s some data showing some of the results from the compensation study:

Compensation ranges for customer experience (CX) professionals

Download report for $195
BuyDownload3


Report Outline:

  • The Life of A Customer Experience Professional, Circa 2018
    • CX Professionals Have More on Their Plates in 2018
  • CX Professional Compensation Study

 

Figures in the Report:

  1. Demographics of Respondents
  2. Business Impact of CX
  3. Satisfaction with the Profession
  4. Satisfaction with Elements of their Roles
  5. Job Searching and Professional Development
  6. Key Activities of CX Professionals
  7. Change in Importance and Staffing
  8. CX Spending Levels
  9. Focus on CX Interaction Channels
  10. Focus on CX Activities
  11. Range of Compensation for CX Professionals
  12. Comparison of CX Professionals Across Job Types

Download report for $195
BuyDownload3

The Future of VoC: Insight & Action, Not Feedback

The vendor market for Voice of the Customer (VoC) products and services has been heating up, with numerous acquisitions and mergers. All of this is happening as companies are trying to figure out how to run successful VoC programs. It appears that we on the verge of the next stage in evolution for VoC. So I decided to step back and look at the overall market.

VoC Programs Need To Grow Up

Our research shows that nearly three-quarters of large companies rate their voice of the customer (VoC) programs as being successful (only 8% say that they’ve been unsuccessful). That’s great—infusing almost any type of customer insights into a business can add value. 

Level of Maturity for Voice of the Customer (VoC) Programs in Large Enterprises

However, companies aren’t close to reaching their full potential. Only 14% of companies have reached the the two highest levels of Temkin Group’s VoC Maturity Model.

One of the reasons for this immaturity is a simple fact: creating and managing great VoC programs isn’t easy. They take significant leadership commitment and a  variety of expertise. In many cases, however, companies don’t redesign their approach to customer insights, they simply end up updating and automating many of their historical practices.

The big change for VoC programs is that they must focus more on enabling action across their organization. We found that only 24% of large firms think they are good at making changes to the business based on the insights. For VoC programs to fully mature, they need to become hyper-focused on generating insights in the right form at the right time to help people across their organizations make better, more informed decisions.

As if that’s not enough to work on, companies will need to address Six Customer Insight Trends that will reshape VoC programs: 1) Deep Empathy, Not Stacks of Metrics; 2) Continuous Insights, Not Periodic Studies; 3) Customer Journeys, Not Isolated Interactions; 4) Useful Prescriptions, Not Past Descriptions; 5) Enterprise Intelligence, Not Customer Feedback; and 6) Mobile First, Not Mobile Responsive.

VoC Vendors Need To Grow Up

In 2010, I rejected the label “Enterprise Feedback Management (EFM)” that was being used to describe vendors that provided technology and services for VoC programs. Instead of EFM, I labeled them as Customer Insight and Action (CIA) Platforms and here’s why:

To some degree, surveying functionality is becoming a commodity. Organizations are recognizing that feedback is not valuable on its own; it only becomes valuable when it’s used as an input to insights which drive some type of action. So the focus is no longer on feedback, but on insight and action. Hence, Customer Insight and Action (CIA) Platforms.

Fast forward to 2018 and I think that CIA Platforms is still the correct name for these offerings (from vendors such as Confimit, InMoment, MaritzCX, Medallia, and Qualtrics). They continue to evolve towards this description I used in 2010:

CIA Platforms need to support closed-loop voice of the customer (VoC) programs that are going beyond structured, solicited feedback (traditional surveys). With the maturing of text analytics and the rise of social media, companies are increasingly mining insights from unstructured, unsolicited feedback like customer comments on surveys, notes and verbatims from contact center conversations, inbound emails, online chats, social media sites, customer feedback comments, etc

But new channels of feedback (also called “listening posts”) are not the only element that distinguishes CIA Platforms from their predecessors. These applications also provide actionable insights by:

  • Incorporating non-feedback data like customer profiles and transactional history
  • Distributing tailored, contextual insights across an organization
  • Providing alerts based on specific criteria
  • Supporting workflow associated with taking action based on the insights
  • Integrating with other applications like CRM and workforce management

Next Generation CIA Platforms

Okay, so we got that right eight years ago. What’s next? Here’s where I think the market is heading for enterprise CIA Platforms:

  • Advanced analytics. We’ll see a considerable increase in the use of predictive analytics and the use of speech analytics to unlock insights from invaluable contact center conversations.
  • and way smarter analytics. The current set of analytics are mostly designed for analysts to uncover insights, but we’ll see more “packaged” analytics that mask complexity to provide tailored recommendations that improve high-impact decisions across the enterprise.
  • More focus on casual users.The days of generic metrics and dashboards will hopefully be a thing of the past. The information provided to people will be specific to their roles, and will proactively highlight the information that they need to know. It may take the form of highly customized dashboards, but it could also be a monthly infographic that can be posted in the lunchroom for hourly workers.
  • Less surveys, but more data. We already see in our research that organizations are becoming less reliant on surveys. This feedback will become less about understanding what’s being said by individual customers, and more about using the insights in predictive models to extrapolate what it might mean across entire segments of customers. This will require companies to integrate feedback with lots of customer data from other systems.
  • More selective, targeted feedback. Companies will get better at strategic sampling. What is this? Being smarter about who they get feedback from and when they get that feedback. The current approach of trying to hear from as many customers a possible in as many places as possible is conceptually attractive, but it’s an inefficient use of internal resources, and it puts a strain on an even more important commodity—customers’ time and attention.
  • Easier to use, but less “self-service.” In many cases, large enterprises lack the internal skills and know how to create and sustain a strong VoC program. While the technology platforms will continue to become easier for companies to administer and use without vendor support, strong VoC programs will increasingly recognize the need to tap into externally provided support across a number of areas, including:
    • Program setup
    • Data management
    • Sampling strategies
    • Dashboard design
    • Analytics
    • Insight distribution
    • Operational redesign

The bottom line: VoC programs and vendors need a makeover.