Happiness Affects How Consumers View Companies

After an inspiring weekend at the 2017 World Congress of Positive Psychology in Montreal, I decided to take a look at some of our data that connects positive psychology with customer experience. I started by examining the question:

Does the innate happiness of a consumer influence how she perceives her experiences with companies?

The answer is yes!

I analyzed the happiness of consumers (based on the degree to which they agree with the statement “I am typically happy“) and the Temkin Emotion Ratings ( a subset of the Temkin Experience Ratings) that they gave to companies with which they’ve recently interacted. The data represented more than 106,000 interactions across 20 different industries.

As you can see in the graphic below, consumers who are happier are more likely to rate their interactions as being positive emotional experiences and less likely to rate them as being negative emotional experiences.

customer happiness affects emotional perception of company interactions

The bottom line: Happy people make more emotionally connected customers.

The Human Conversational Model (Infographic)

In the report, Humanizing Digital Interactions, we decoded successful person-to-person interactions as a step in developing the Human Conversational Model. It’s the foundation for building compelling interactions with customers. This infographic provides an overview of the model and shows how to apply it to your digital efforts.

Foundations for humanizing customer interactionsYou can download the infographic in several forms:

The Four CX Core Competencies (Infographic)

Hopefully you’ve read our FREE report, The Four CX Core Competencies. It outlines the blueprint to building a customer-centric organization. We’ve created this infographic to showcase the competencies:

  1. Purposeful Leadership: Operate consistently with a clear set of values.
  2. Compelling Brand Values: Deliver on your brand promises to customers.
  3. Employee Engagement: Align employees with the goals of the organization.
  4. Customer Connectedness: Infuse customer insight across the organization.

four customer experience core competencies

You can also download an 18″ x 24″ poster version.

Report: The Shift To Customer Journey Insights

THe shift to customer journey insights reportWe just published a Temkin Group report, The Shift To Customer Journey Insights. Here’s the executive summary:

Customer insights are critical to customer experience programs. However, current insights’ efforts tend to focus on individual interactions rather than on a customer’s entire journey, and as a result, they often fail to provide a complete picture of a customer’s experience with the company. This report helps companies shift their insights efforts from concentrating narrowly on single transactions to focusing broadly on customers’ journeys.

Here are some highlights :

  • We developed an approach to help companies create a comprehensive view of journeys called Customer Journey Insights (CJI), which is made up of five strategies: Internal Journey Alignment, Journey Data Farming, Journey Performance Tracking, Journey Visualization, and Journey Prioritization.
  • We share 20 examples of best practices from companies that are applying these strategies to develop a more complete understanding of their customers’ journeys.
  • To help companies master these strategies, we have identified three stages organizations proceed through on their path to enabling customer journeys: 1) Customer Journey Orientation, 2) Customer Journey Enablement, and 3) Customer Journey Mastery.

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Here are the best practices focused around five strategies for shifting towards customer journey insights:

  1. Internal Journey Alignment. Shift the company’s mindset away from siloed interaction success to customer goal facilitation.
  2. Journey Data Farming. Tap into adjacent data sources and make linkages across channels.
  3. Journey Performance Tracking. Overhaul metrics to measure performance across customer journeys.
  4. Journey Visualization. Create mechanisms for communicating insights in a way that reinforces the centrality of customer journeys.
  5. Journey Prioritization. Focus on the journeys, customer segments, and channels that are strategic business priorities.

Customer journey insights best practices

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Report Outline:

  • Customer Insights Need An Overhaul
    • Customer Insights Are Falling Short
  • The Rise of Customer Journey Insights
    • Strategy No. 1: Internal Journey Alignments
    • Strategy No. 2: Journey Data Farming
    • Strategy No. 3: Journey Performance Tracking
    • Strategy No. 4: Journey Visualization
    • Strategy No. 5: Journey Prioritization
  • The Path To Customer Journey Analytics

 

Figures in the Report:

  1. The Changing Importance of Customer Insight Channels
  2. CX Measurement Across Different Interaction Channels
  3. Shift To Customer Journey Insights
  4. Customer Journey Insights Best Practices
  5. Linking Customer Journey InsightsTo A Strategic Goal
  6. Examples Of Data Types And Uses By Channel
  7. Use of CX Metrics
  8. Visualization Of A Financial Services Journey
  9. Design Dashboards Differently For Customer Journeys
  10. Explore Variation by Channel
  11. Identify and Prioritize Specific Customer Journeys
  12. Customer Journey Insights: Common Challenges
  13. The Evolution to Customer Journey Insights

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Report: The Four Customer Experience Core Competencies (Free)

the four customer experience core competenciesIf you are only going to read only one thing about customer experience, then this report is it. It’s the blueprint for building a customer-centric organization… and it’s free.

We just published a Temkin Group report, The Four CX Core Competencies. This blueprint to building a customer-centric organization is an update to our groundbreaking research that was originally published in 2010 and updated in 2013.

Temkin Group has conducted multiple large-scale studies demonstrating that customer experience (CX) is highly correlated with loyalty across many different industries, in both business-to-consumer and business-to-business environments. When customers have a good experience with a company, they are more likely to repurchase from the company, try its new offerings, and recommend it to others.

While many companies try to improve their CX by making superficial changes, Temkin Group has found that the only path to lasting differentiation and increased loyalty is to build a customer-centric culture. Temkin Group has studied hundreds of companies to uncover the difference between CX leaders and their less successful peers, and has identified four CX competencies that companies must master if they wish to build and sustain CX differentiation:

  1. Purposeful Leadership: Operate consistently with a clear set of values. (see video)
  2. Compelling Brand Values: Deliver on your brand promises to customers. (see video)
  3. Employee Engagement: Align employees with the goals of the organization. (see video)
  4. Customer Connectedness: Infuse customer insight across the organization. (see video)

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This whiteboard video describes the Four CX Core Competencies:

Here’s an infograhic with the best practices described in the report:the four customer experience core competencies

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Report Outline:

  • Customer Experience: The Case For A New Approach
  • The Customer Experience Core Competencies
    • Purposeful Leadership: Operate with Clear and Consistent Values
    • Compelling Brand Values: Deliver on Your Brand Promises to Customers
    • Employee Engagement: Align Employees with Goals of the Organization
    • Customer Connectedness: Infuse Customer Insight Across the Organization
  • The Journey to Customer Experience Maturity
  • Assessing Your Customer Experience Competency

 

Figures in the Report:

  1. Customer Experience Correlates To Loyalty
  2. The Four Customer Experience Core Competencies
  3. Strategies For The Four CX Core Competencies
  4. Characteristics of Strong Brand Promises
  5. Employee Engagement Virtuous Cycle
  6. Six D’s of a Successful Voice of the Customer Program
  7. Operationalize Critical Fixes: Four Closed Loops For Taking Action
  8. Design Personas
  9. Example of a Customer Journey Map
  10. The Customer Journey Mapping Pyramid
  11. Strategies For Designing Experiences Based on Human Behaviors and Biases
  12. Six Stages of Customer Experience Maturity
  13. Temkin Group’s Customer Experience Competency and Maturity Assessment

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Report: Humanizing Digital Interactions

humanizing digital interactionsWe just published a Temkin Group report, Humanizing Digital Interactions.

Emotions play an integral role in how customers make decisions and form judgments. This means that how a customer feels about an interaction with a company has an enormous impact on his or her loyalty to that company. However, companies tend to ignore customer emotions, especially during digital interactions, which is problematic as customers are increasingly interacting with companies online. This report focuses on humanizing digital interactions by replicating the elements of strong human conversations.

Here are some highlights:

  • We developed The Human Conversational Model, which is made up of seven elements – Intent Decoding, Contextual Framing, Empathetic Agility, Supportive Feedback, Basic Manners, Self-Awareness, and Emotional Reflection.
  • We share over 35 examples of best practices from companies that are designing digital experiences across the seven elements of The Human Conversational Model.
  • We demonstrate how you could apply The Human Conversational Model to three types of digital activities: opening a new bank account online, purchasing a pair of shoes through an app, and getting technical support online.

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A gratifying conversation requires two processes:

  • Cooperative Interface. Each participant is required to collaborate with her partner to achieve the shared goal of the conversation – be that casually catching up, gathering information, sharing knowledge, etc. This is the part of the model that a conversational partner sees and responds to, and it consists of five elements: contextual framing, intent decoding, empathetic agility, supportive feedback, and basic manners.
  • Background Mindfulness. This portion of the model is not observable within what would normally be considered the scope of the conservation as it pertains to what happens internally within person. Each participant has a pre-existing notion of who he is as an individual (self-awareness) and throughout the course of the conversation, learns about how he affects other people (emotional reflection). Though not directly observable, “background mindfulness” informs the way in which each participant communicates with his current and future partners.

Here’s an overview of the Human Conversation Model along with best practices we highlight in the report:

human conversation model for digital interactions

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Report Outline:

  • Emotion in Digital Experiences
    • Digital Interactions Need an Emotional Makeover
  • Introducing The Human Conversational Model
    • The Seven Elements of The Human Conversational Model
  • Applying The Human Conversational Modelto Digital Interactions
    • Intent Decoding
    • Contextual Framing
    • Empathetic Agility
    • Supportive Feedback
    • Basic Manners
    • Self-Awareness
    • Emotional Reflection
  • Applying The Human Conversational Model

 

Figures in the Report:

  1. The Three Components of a Customer’s Experience
  2. Impact of Success,Effort, and Emotionon Loyalty
  3. The Human Conversational Model
  4. Best Practices Across The Human Conversational Model
  5. Amazon: Remember previous interactions
  6. NorthFace: Ask Questions
  7. HomeAdvisor: Group together like-minded customers
  8. Regions Bank: Modulate tone
  9. Hilton: Use chat
  10. Types of Digital Body Language
  11. Virgin Atlantic and MusicMagpie: Monitor digital body language
  12. TELUS: Make it easy to reach a human
  13. Moven: Adjust communication style
  14. HomeAdvisor: Use loading animation to indicate delays
  15. MailChimp: Use microcopy
  16. Walgreens: Design for mental models
  17. Don’t Interrupt
  18. USAA: Make Information Easily Digestible
  19. California State Lottery: Core brand emotions
  20. Organizational Personality
  21. Moven: Incorporate Emotions Into CJM
  22. Applying The Human Conversational Model

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Winners: 2017 CX Vendor Excellence Awards

Congratulations!

Temkin Group announces the winners of its 2017 Customer Experience Vendor Excellence Awards:

Clarabridge, Medallia, Qualtrics, Rant & Rave, and Root.

 

Here are excerpts from the winners’ submissions:

  • Clarabridge’s CX Suite helps companies understand and manage the customer experience. Customer feedback is taken in and analyzed, using Clarabridge’s advanced text analytics and sentiment analysis capabilities. The meaning of the text is analyzed, and the underlying root causes of each trend, complaint, and compliment is identified.
  • Medallia strives to be a single source of truth across all customer touchpoints and to make real-time customer feedback available to employees across the organization. Medallia’s core differentiation lies in our ability to drive thousands of active users to our application rather than depending on centralized CX teams to interpret customer feedback and share periodic reports.
  • Qualtrics’ XM Platform™ provides human-factor data–the beliefs, emotions, and sentiments that tell you “why” things are happening. The predictive intelligence layer within the platform allows companies to not only respond to the experiences they have delivered in the past, but also predict how changes will influence customer satisfaction in the future.
  • Rant & Rave helps businesses profit from customer sentiment, turning customers into Ravers by reacting and responding to their emotions and feelings in realtime. Whilst traditional CX vendors continue to rely on the collation and reporting of feedback through lengthy surveys and market research, we provide our clients with a disruptive engagement model, which delivers industry-leading response rates.
  • Root Inc.’s Customers for Life process includes defining a customer-first culture at the leader level, empowering managers to make customer-focused decisions, and providing the front line with coaching and tools to deliver an authentic customer experience. This approach engages employees at every level so they can internalize their specific role in driving the customer experience and how they impact big-picture outcomes.

Below are the first two sections from the winners’ nomination forms, Company Overview and Make The CaseRead More …

Examining 10 Emotions, 8 Interactions, and Resulting Loyalty

Any regular reader of this blog likely knows that emotion is a key topic for Temkin Group. We labelled 2016 as The Year of Emotion and operationalizing emotion is one of our 2017 CX trends.

As part of our push to drive more detailed discussions about emotion, we examined the emotions that consumers feel after specific interactions. It turns out that different interactions lead to a variety of emotions which have differing loyalty effects.

The chart below shows 10 emotions that 10,000 consumers selected to describe how they felt after completing eight interactions.

As you can see above:

  • Most interactions lead to positive emotions, as the four most prevalent emotions on our list are Happy, Excited, Relieved, and Confident.
  • Happy and Excited are the most common emotions.
  • Purchasing a new pair of shoes leads to the most frequent emotion, Happy.
  • Researching a health insurance plan doesn’t create any consistent emotional response, as the most common emotion (Relieved) was selected by less than one-third of consumers.
  • Investigating a mistake in a monthly bill is the interaction that most frequently leads to Angry and Frustrated.
  • Filing a claim with a home or auto insurance company is the interaction that most frequently leads to Appreciated and Worried.
  • Researching a hotel or rental car for a trip is the interaction that most frequently leads to Confident.
  • Researching a health plan is the interaction that most frequently leads to Confused and Disappointed.
  • Using a new mobile phone or tablet for the first time is the interaction that most frequently leads to Excited.
  • Reaching out for technical support for a computer is the interaction that most frequently leads to Relieved.

We also looked at the loyalty that consumers have to companies based on the emotions that they’ve experienced. The chart below examines the loyalty for each of the 10 emotions averaged across all eight interactions (I’ll examine interaction-specific data in a future post):

As you can see:

  • Excited and Appreciated lead to the most loyalty.
  • Disappointed leads to the worst loyalty profile.
  • The lack of any of these emotions leads to less of both loyalty and disloyalty.

The bottom line: Focus on the specific customer emotions you’re creating.

Report: Lessons in CX Excellence, 2017

1701_lessonsincxexcellence_coverWe just published a Temkin Group report, Lessons in CX Excellence, 2017. The report provides insights from eight finalists in the Temkin Group’s 2016 CX Excellence Awards. The report, which has 62 pages of content, includes an appendix with the finalists’ nomination forms. This report has rich insights about both B2B and B2C customer experience.

Here’s the executive summary:

This year, we named five organizations the winners of Temkin Group’s 2016 Customer Experience Excellence Award – Business Development Bank of Canada (BDC), Century Support Services, Crowe Horwath, Oxford Properties, and VCA. This report highlights specific examples of how these companies’ customer experience (CX) efforts have created value for both their customers and for their businesses, describes winners’ best practices across the four customer experience competencies: purposeful leadership, compelling brand values, employee engagement, and customer connectedness. it includes all of the winners’ detailed nomination forms to help you collect examples and ideas to apply to your own CX efforts.

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Here are some highlights from the winners: Read More …

Free eBook: 25 Tips For Tapping Into Customer Emotions

1609_ebook_25emotiontips_finalAs part of our CX Day celebration, we’re giving away this free eBook: 25 Tips For Tapping Into Customer Emotions.

Here’s the executive summary:

Emotions play an essential role in how people form judgments and make decisions. Consequently, a customer’s emotional response to an experience with a company has a significant impact on their loyalty to that company. To help you improve your customer experience, we’ve compiled a list of 25 examples from companies who are tapping into customer emotions, which you can emulate at your own organization.

FreeDownloadButton

The eBook contains 25 tips across four areas: Experience Design, Organizational Personality, Organizational Empathy, and Customer Segmentation.

1610_25emotiontips

The bottom line: Apply these lessons to tap into your customers’ emotions

Report: Five C’s of Mobile VoC Disruption

1607_MobileVOCDisruption_COVERWe just published a Temkin Group report, Five C’s of Mobile VoC DisruptionBest Practices for Embracing the Power of Mobile in Your Voice of the Customer Program.

As mobile continues to grow in importance, companies will need to renovate their voice of the customer (VoC) programs. Why? Because mobile is more than just another communications channel – it is transforming the way that companies and customers interact. To help companies modernize their VoC programs to account for this increase in mobile usage, we’ve identified the key areas in which mobile is different from other channels, what we call the “Five C’s of Mobile VoC Disruption: “Condensed, Comprehensive, Current, Conversational, and Contextual. These disruptive characteristics will force companies to redefine how they capture, share, and act on customer insights. We’ve identified more than 20 best practices that span all areas of a VoC program, including soliciting in-the-moment feedback for key interactions and accelerating the sharing of useful insights. In order to use mobile successfully, companies need to evolve through three stages of change: 1) Mobile-Enabled, 2) Mobile-Adjusted, and 3) Mobile-First.

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Here’s an overview of the Five C’s:

5CsOfMobileVoC

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Report: Emotion-Infused Experience Design

1606_EmotionInfusedExperienceDesign_COVERWe just published a Temkin Group report, Emotion-Infused Experience Design.

Emotions play an essential role in how people make decisions. Consequently, how a customer feels about their experience with a company has the most significant impact on their loyalty to that company. And yet despite their importance, both customers and companies agree that organizations do a poor job of engaging customers’ emotions. To help companies create a stronger emotional connection with customers, we’ve developed an approach called Emotion-Infused Experience Design (EIxD). To master EIxD, organizations must continuously focus on three questions: “Who exactly are these people (who happen to be our customers)?” “What is our organizational personality?” and “How do we want customers to feel?” This report offers both advice and examples about how to apply these three questions across four facets that affect emotion: senses, feelings, social, and values. And to help infuse these practices across the organization, we have also identified some strategies for how to turn employees into agents of EIxD.

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Our research shows that emotion is often a missing link in customer experience. While emotions may seem ephemeral and subjective, we developed a concrete methodology you can use to design for emotion. We call this methodology “Emotion-Infused Experience Design” (EIxD), and we define it as:

An approach for deliberately creating interactions that evoke specific customer emotions.

To master EIxD, you must ask (and answer) three questions throughout the entire design process:

  1. Who exactly are these people (who happen to be our customers)? You cannot design emotionally engaging experiences without a solid grasp on who your target customers are—what they want, what they need, what makes them tick.
  2. What is our organizational personality? Research shows that people relate to companies as if they are fellow human beings rather than inanimate corporate entities.
  3. How do we want our customers to feel? People are inherently emotional beings, and every interaction they have with you will make them feel a certain way—whether you intend it to or not.

To address the three questions of EIxD, this report shows how to design around four elements of emotion: senses, feelings, social, and values. Here are two of the 26 figures in the report:

1606_TwoPartsofEmotion1605_CokeStarbucksEmotions

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Report: Customer-Infused Process Improvement

1604_CustomerInfusedProcessImprovement_COVERWe just published a Temkin Group report, Customer-Infused Process Improvement, which provides five strategies for instilling customers’ needs into process improvement methodologies. Here’s the executive summary:

Process improvement and customer experience have traditionally served different roles in a company. However, these two disciplines are starting to intersect as customer experience looks to process improvement to operationalize key customer interactions and process improvement needs customer experience to provide customer-focused insights and continually monitor new processes. Temkin Group proposes that companies bring these two approaches together into Customer-Infused Process Change. This report highlights five strategies critical to driving this new approach: Prioritize Improvements Across Customer Journeys, Embrace Deep Customer Empathy, Involve Customers in Solution Development, Innovate to Meet Latent Needs, and Measure Success with Customer-Focused Metrics. To make process improvement efforts more customer-centric, organizations need to infuse these strategies across all aspects of process improvement.

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It’s time for process improvement to become more focused on customers. Rather than abandoning existing process improvement methodologies, Temkin Group recommends bringing a customer orientation into your efforts. We call this approach Customer-Infused Process Change (CiPC), which we define as:

Driving improvements based on a deep understanding of customer needs.

The report provides best practices across five strategies of CiPC:

  1. Prioritize Improvements Across Customer Journeys: By understanding customer interactions in the context of their broader journeys, companies can invest in process improvements projects that have the most impact on the customer’s experience.
  2. Embrace Deep Customer Empathy: In order to effect sustainable changes, employees impacted by redesigned processes need to understand why these changes are important to customers.
  3. Involve Customers in Solution Development: Process improvement efforts must have resources available to ensure that ongoing, incremental changes can be made based on this customer input.
  4. Innovate to Meet Latent Needs: Customers can’t always articulate what they want; instead, they often describe a slightly improved version of what they already know.
  5. Measure Success with Customer-Focused Metrics: Companies can’t measure the success of process improvement efforts with internally focused, operational metrics.

1604_CustomerInfusedProcess5Strategies

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The bottom line: Process improvements need more customer insights.

Report: B2B Customer Experience Best Practices

1510_B2B CX Best Practices_COVERWe published a Temkin Group report, Business-to-Business (B2B) Customer Experience Best Practices. This report provides data on the state of customer experience (CX) in B2B as well as 20 CX best practices across five critical B2B processes. Here’s the executive summary:

Temkin Group research shows that although business-to-business (B2B) organizations are raising their customer experience (CX) ambitions, they still have a way to go before achieving their goals. Despite the fact that most large B2Bs have a low level of CX maturity, our research shows that 57% of them aspire to deliver industry-leading customer experience within three years. However, to improve their CX, B2Bs must master Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Our research uncovered 20 practices that B2Bs can emulate when applying those competencies across these five key business processes: sales and account management, implementation/project execution, support and issue resolution, partner alignment, and product management and innovation. To assess your organization’s CX maturity, use Temkin Group’s Customer Experience Competency Assessment and compare the results to data from other large B2B firms to chart your path to improvement.

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The report examines the state of B2B CX, including the results from large companies that completed Temkin Group’s CX Competency & Maturity Assessment:

1511_B2BCXMaturity

To help B2B organizations raise their CX maturity, we identify 20 best practices for mastering Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. These practices are aligned with five key B2B activities: sales and account management, implementation/project execution, support and issue resolution, partner alignment, and product management and innovation:

1511_B2B5Processes

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Maximizing Value From Customer Journey Mapping

1509_ValueFromCJMs_COVERWe just published a Temkin Group report, Maximizing Value From Customer Journey Mapping. Here’s the executive summary:

Customer Journey Maps (CJMs) are a valuable tool for understanding how customers truly interact across an entire organization, but companies aren’t capturing enough value from their CJM efforts. Creating a CJM is only the first step in the process for change; the real benefit comes from using the insights from CJMs to drive action. In this report, we identify 23 best practices for using CJMs, and these practices cut across five areas: 1) Find and Fix Problems, 2) Build a Customer-centric Mindset, 3) Design Innovative Experiences, 4) Create Strategic Alignment, and 5) Refine Customer Measurement. To truly maximize value from customer journey maps, companies need to set themselves up for success by establishing organizational alignment, determining if outside help is needed, training key stakeholders in customer journey mapping, and scaling customer journey mapping techniques across the organization by employing Customer Journey Thinking.

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Here are the 23 best practices in the report:1509_CJMbestpractices

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The bottom line: Get more value from your CJM efforts.