eBook: Humanizing Customer Experience

Temkin Group eBook: Humanizing Customer Experience (CX)Temkin Group has labeled 2018 “The Year of Humanity.” To support this theme, over the past year we have conducted research and developed content – such as this eBook – specifically aimed at helping fellow CX professionals improve the world around us. In this eBook, Humanizing Customer Experience, you will learn about:

  • The Six Key Traits Of Human Beings that are important to understand how people think, feel, and act.
  • How individuals can improve humanity by embracing diversity, extending compassion, and expressing appreciation.
  • Three strategies for CX professionals to improve humanity: act with purpose, create positive memories, and cultivate deep empathy.

Temkin Group eBook: Humanizing Customer Experience (CX)

 

Report: Net Promoter Score Benchmark Study, 2018

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

Here’s the executive summary:

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

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

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

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

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(includes report (in .pdf) plus dataset (.xlsx)
Check out this sample of the dataset
Purchase Net Promoter Score (NPS) benchmark

Here are the top and bottom 10 companies:

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

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Check out this sample of the dataset
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Report Outline:

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

 

Figures in the Report:

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

Download report for $495+
(includes report (in .pdf) plus dataset (.xlsx)
Check out this sample of the dataset
buy Net Promoter Score (NPS) Benchmark Study

If you’re looking to create a strong NPS program, check out our VoC/NPS Resource Page.

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

Report: Tech Vendor NPS & Loyalty Benchmark, 2018 (B2B)

We just published Temkin Group’s annual Tech Vendor NPS & Loyalty Benchmark Study. Here’s the executive summary:

Temkin Group Net Promoter Score (NPS) & Loyalty Benchmark Study of B2B Tech VendorsFor the seventh year in a row, we have calculated the Net Promoter Score® (NPS®) of over 60 technology vendors and analyzed the correlation between NPS and four client loyalty behaviors – likelihood of repurchasing from that technology vendor, likelihood of trying new offerings, likelihood of forgiving the vendor if it makes a mistake, and willingness to act as a reference for the vendor. To gather this data, we surveyed 800 IT decision-makers from large North American firms about their relationships with their technology providers. Through this research, we found that:

  • Across the 61 tech vendors we examined, NPS ranged from +51 to -22.
  • VMware, IBM software products, DellEMC, and Microsoft server software earned the highest NPS, while Check Point, Splunk, and Alcatel-Lucent received the lowest.
  • Overall, the average NPS for the tech vendor industry stayed steady from last year, declining only slightly from 21.4 in 2017 to 21.2 this year.
  • Our analysis shows that NPS is strongly correlated to customers’ willingness to spend more with tech vendors, try their new products and services, forgive them after a bad experience, and act as a reference for them with prospective clients.
  • In addition to examining NPS, the research also provides a benchmark of several areas of loyalty. IT decision-makers are most likely to purchase more from DellEMC and Microsoft server software, try new offerings from Oracle outsourcing and Dell outsourcing, forgive Oracle outsourcing and Micro Focus if they make a mistake, and act as a reference for AWS and IBM outsourcing.

This report includes a .pdf report and a spreadsheet with the company-level data. You can see a sample of the data spreadsheet (.xls).

Download report for $695+
ROI of Customer Experience (CX), 2018

Here are two of the 11 graphics in the report:

Download report for $695+ROI of Customer Experience (CX), 2018


Report Outline:

  • Net Promoter Scores for 61 Tech Vendors
    • VMware Earns Top Net Promoter Score
    • Net Promoter Score Correlates to Multiple Aspects of Loyalty

 

Figures in the Report:

  1. Net Promoter Score (NPS) of 61 Tech Vendors
  2. Average NPS for Tech Vendors, 2012 to 2018
  3. Likelihood of Repurchasing from Tech Vendors
  4. NPS Versus Likely to Repurchase
  5. NPS Responses Versus Likely to Repurchase
  6. Temkin Innovation Equity Quotient(TIEQ) of Tech Vendors
  7. NPS Versus Temkin Innovation Equity Quotient
  8. Temkin Forgiveness Ratings (TFR) of Tech Vendors
  9. NPS Versus Temkin Forgiveness Ratings
  10. Willingness to Act As A Reference For Tech Vendors
  11. NPS Versus Willingness To Act As A Reference

Download report for $695+ROI of Customer Experience (CX), 2018

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

CX Myth #3: You Can’t Manage What You Don’t Measure

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 #3: You Can’t Manage What You Don’t Measure

What’s Wrong: When people talk about CX, they often repeat a popular saying “you can’t manage what you don’t measure.” That’s just not true. Most of the things we manage in life don’t have a formal measurement. Every day we wake up in the morning, get dressed, and get to work – all without any specific measurements. The same is true at work, and with CX. If we see an employee make a client upset, we don’t need a score on a customer survey to know that it’s a problem.

What’s Right: The correct saying should be “you can’t manage what you don’t understand.” Unfortunately, leaders sometimes just slap measurements on CX, which leads to the suboptimal approach of blindly managing by the numbers. When you talk with customers and employees about different aspects of customer experience, you can often discover insights that either never show up in your measurements, or appear long after you should have known about them. Ideally, you use CX measurements to enhance your understanding, not to replace it.

What You Should Do:

  • Increase leadership CX IQ. If you want leaders to be less metrics-centric and more successful at driving an organization towards becoming more customer-centric, then those leaders need to have a clear and consistent view of how a customer-centric organization operates. A good place to start is by having leaders review Temkin Group’s CX Competency & Maturity Model. After that, you can create measurements that map to the leaders’ understanding of CX.
  • Prune action-less metrics. Since leaders are often enamored with metrics, they tend to track an increasingly larger number of them over time. The growth remains unfettered, as very few organizations have a good approach for stopping measurements once they’ve been created. Every year or so, companies should have a metrics cleansing period, during which time there’s a pro-active focus on removing metrics that have not recently provided demonstrable value.
  • Prioritize qualitative research. The push to metrics often causes organizations to put most of their market research budget on quantitative studies that result in trackable measurements. But deep insights into customers often comes from qualitative studies that examine why customers think and behave the way that they do. Look for places to explicitly fund more qualitative studies by cutting back on the least impactful quantitative studies.
  • Measure collective results. CX success requires efforts across an entire organization. So watch out for measurements that isolate the activities of individual people or teams. The narrower the measurements you use, the more likely you are to de-incentivize collaborative behaviors. Focus on metrics that capture real-world team-based activities.
  • Look for leading indicators. Most metrics represent backwards-looking scorecards, describing how an organization performed in the past. While a retrospective view can be helpful, it’s more valuable to understand what activities will impact your organization’s future CX trajectory. Use predictive analytics to identify what activities with different customer segments will most improve your CX metrics in the future.

The bottom line: CX insights don’t always require CX metrics.

Report: ROI of Customer Experience, 2018

ROI of Customer Experience (CX), 2018We just published a Temkin Group report, ROI of Customer Experience, 2018. Here’s the executive summary:

To understand the connection between customer experience (CX) and loyalty, we examined feedback from 10,000 U.S. consumers describing both their experiences with and their loyalty to different companies. The CX scores used in this model come from the 2018 Temkin Experience Ratings (TxR), which evaluated 318 companies across 20 industries. Our analysis shows that:

  • The correlation between CX and repurchasing is very high (Pearson correlation= 0.82).
  • There’s a 21-point difference in Net Promoter Score between consumers who’ve had a very good experience with a company and those who’ve had a very poor experience.
  • CX is made up of three components – success, effort, and emotion. While all three elements impact customer loyalty, an improvement in emotion drives the most significant increase in loyalty.
  • We built a model to estimate how a modest improvement in CX would impact the revenue of a typical $1 billion company across in 20 industries. On average, companies can gain $775 million over three years. Software companies stand to earn the most ($1 billion over three years), while utilities stand to earn the least ($476 million over three years).
  • The report contains data charts showing how loyalty levels change based on customer experience across 20 industries.
  • We also describe a five-step process for calculating the ROI of CX for your organization.

Download report for $195+
ROI of Customer Experience (CX), 2018

Here are two of the 14 graphics in the report:

Correlation between customer experience (CX) improvement and future purchase intentionsRevenue increase from improvement in customer experience (CX)

Download report for $195+ROI of Customer Experience (CX), 2018


Report Outline

  • Customer Experience Is Highly Correlated With Loyalty
    • Correlates with repurchasing
    • Links to Net Promoter Score
    • Significantly impacts emotion
  • CX Improvements Results: Up to $1.1B In Revenue Over Three Years
  • CX and Loyalty Across 20 Industries
    • Recommend a company
    • Repurchase from a company
    • Trust a company
    • Forgive a company
    • Try a new offering right away
  • Build Your Own CX ROI Model

 

Figures in the Report:

  1. Customer Experience Correlates to Future Purchase Intentions
  2. Customer Experience Correlates to Net Promoter® Scores (NPS®)
  3. Impact of SuccessEffort, and Emotion on Loyalty (Average Across 20 Industries)
  4. Elements Used in Model to Derive Revenue Impact Based on Improvement in Customer Experience
  5. Improvements in Customer Loyalty From Modest Improvements in Customer Experience
  6. Revenue Increases From A Moderate Improvement in Customer Experience
  7. Revenue Increases From A Moderate Improvement in Customer Experience (Details)
  8. Loyalty Differences Across CX Performance Levels
  9. Recommendations Based on Customer Experience
  10. Likelihood to Repurchase Based on Customer Experience
  11. Trust Based on Customer Experience
  12. Forgiveness Based on Customer Experience
  13. Try New Products Based on Customer Experience
  14. Steps for Calculating the Value Of Customer Experience

Download report for $195+
ROI of Customer Experience (CX), 2018

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

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2018 Temkin Emotion Ratings: Wegmans Earns Top Spot

Emotion is one of the three components of a customer’s experience (along with success and effort), so it’s a fundamental element for companies to track. In this post, I examine the eight annual Temkin Emotion Ratings for U.S. companies. It’s one of the components of the overall Temkin Experience Ratings, the open standard CX metric.

Temkin Experience Ratings: The Open Source Customer Experience (CX) Metric

In January 2018, we surveyed 10,000 U.S. consumers about their experiences with companies. We used that feedback to calculate the Temkin Emotion Ratings for 318 companies across 20 industries (see full list of companies).

***Detailed data is included in the overall Temkin Experience Ratings dataset***

Here are some highlights of the ratings:

  • Wegmans earned the highest rating (78%), followed by H-E-B (76%), Aldi (75%), Bed & Body Works (74%), Regions Bank (74%), and Baskin Robbins (74%).
  • At the other end of the spectrum, Cox Communications earned the lowest ratings (32%), just slightly behind Comcast (34%), Spectrum (35%), and Optimum (35%).
  • On average, supermarkets, earned the highest ratings (68%), followed by fast food chains (65%), hotels (64%), and retailers (64%). TV/Internet service providers (40%) and health plans (46%) earned “very poor” average scores.
  • Ten companies earned ratings that are 10 or more points above their industry averages: Georgia Power, Regions Bank, ACE Rent A Car, Alaska Airlines, Alabama Power Company, Citizens Bank, USAA (for credit cards and banking), credit unions, and Bath & Body Works.
  • Nine companies earned ratings that are 12 or more points below their industry averages: Hitachi, Consolidated Edison of NY, Days Inn, DHL, Haier, Chrysler, CarMax, Spirit Airlines, and Motel 6.
  • We compared Temkin Emotion Ratings between 2017 and 2018 and found that nine companies improved by at least eight points: BCBS of Florida, MetroPCS, Dollar General, Airbnb, Avis, Aldi, Wawa Food Markets, Taco Bell, and Hyundai.
  • Eight companies dropped by 15 or more points over the previous year: Hitachi, Audi, Amazon Fresh, Southern California Edison, Haier, HSBC, TXU Energy, and Appalachian Power Company.
  • Led by a seven point drop in utilities and a four point drop in auto dealers, 18 of the 20 industries declined over the previous year.

2018 Temkin Emotion Ratings: Company Leaders and Laggards2018 Temkin Emotion Ratings: Range of Industry Scores

Purchase Temkin Experience Ratings dataset (includes Temkin Effort Ratings)You can access this data as part the overall Temkin Experience Ratings dataset

What is Net Promoter Score? (Video)

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


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


Video Script:

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

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

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

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

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

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

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

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

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

Calculating Net Promoter Score (NPS)

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

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

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

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

What do you do with the data?

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

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

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

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

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

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

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

2018 Temkin Effort Ratings: Wegmans Earns Top Spot

Effort is one of the three components of a customer’s experience (along with success and emotion), so it’s a fundamental element for companies to track. In this post, I examine the eight annual Temkin Effort Ratings for U.S. companies. It’s one of the components of the overall Temkin Experience Ratings, the open standard CX metric.

Temkin Experience Ratings: The Open Source Customer Experience (CX) Metric

In January 2018, we surveyed 10,000 U.S. consumers about their experiences with companies. We used that feedback to calculate the Temkin Effort Ratings for 318 companies across 20 industries (see full list of companies).

***Detailed data is included in the overall Temkin Experience Ratings dataset***

Here are some highlights of the ratings:

  • Wegmans earned the top spot with a score of 90%, followed closely by Subway, Citizens Bank, Ace Hardware, and Wawa Food Markets at 89%.
  • Spirit Airlines earned the lowest ratings, 43%), just slightly behind Medicaid (45%), and CarMax (46%).
  • On average, supermarkets, fast food chains, and retailers earned “excellent” Temkin Effort Ratings. Health plans and TV/Internet service providers earned “poor” scores.
  • Ten companies earned ratings that are 10 or more points above their industry averages: Dish Network, USAA, Southern California Gas Company, TriCare, Whirlpool, Citizens, National Car Rental, Florida Power & Light, Georgia Power, and Southwest Airlines.
  • Seven companies earned ratings that are 15 or more points below their industry averages: Spirit Airlines, HSBC, CarMax, Fujitsu, Hitachi, DHL, and Days Inn.
  • We compared Temkin Effort Ratings between 2017 and 2018 and found that three companies increased by more than 10 points: MetroPCS, Avis, and Showtime. Five companies declined by 12 points or more: HSBC, CarMax, BMW, Fujitsu, and Dollar Car Rental.
  • At an industry level, banks and streaming media improved the most over the previous year, while  auto dealers and utilities declined the most.

2018 Temkin Effort Ratings- Leaders and Laggards

Temkin Effort Ratingstemkin effort ratings methodology

Purchase Temkin Experience Ratings dataset (includes Temkin Effort Ratings)You can access this data as part the overall Temkin Experience Ratings dataset

Report: The Customer Journeys That Matter The Most

Few organizations deliver outstanding experiences to their customers. In fact, only 6% of companies earned an “excellent” score in the 2018 Temkin Experience Ratings. To better understand which types of interactions are most likely to affect the customer’s perception of an organization, we asked customers to identify the most problematic journeys across 19 different industries. In this report, we:

  • Examine feedback from 10,000 U.S. consumers about their journeys with 318 companies across 19 industries.
  • Identify which customer journeys consumers think most need improvement and look at how those responses differ across age groups.
  • Evaluate how different customer journeys impact five loyalty behaviors: likelihood to recommend the company, likelihood to repurchase from the company, likelihood to forgive the company if it makes a mistake, likelihood to trust the company, and likelihood of trying new offerings from the company.
  • One of the key findings across industries is that journeys that touch customer service are often the most prevalent and the most impactful on customer loyalty.

Download report for $195
Purchase and download Temkin Group report: The Customer Journeys That Matter The Most

Here’s the first figure in the report, which has a total of 58 figures (three detailed graphics for each of the industries):

Most Problematic Customer Journeys Across Industries

Download report for $195
Purchase and download Temkin Group report: The Customer Journeys That Matter The Most


Report Outline:

  • Why Focus On Customer Journeys?
  • Examining Customer Journeys Across 19 Industries
    • Banking Customer Journeys
    • Computers & Tablets Customer Journeys
    • Insurance Customer Journeys
    • Investment Customer Journeys
    • Credit Card Customer Journeys
    • Health Plan Customer Journeys
    • TV & Internet Service Customer Journeys
    • Parcel Delivery Customer Journeys
    • Wireless Carriers Customer Journeys
    • Airline Customer Journeys
    • Hotels & Rooms Customer Journeys
    • Retail Customer Journeys
    • Fast Food Chains Customer Journeys
    • Rental Car Customer Journeys
    • Supermarket Customer Journeys
    • TV & Appliance Customer Journeys
    • Auto Dealers Customer Journeys
    • Software Customer Journeys
    • Utility Customer Journeys

 

Figures in the Report:

  1. Most Problematic Customer Journeys Across Industries
  2. Banking: Severity of Problems Across Customer Journeys
  3. Banking: Loyalty Impact of Problems Across Customer Journeys
  4. Banking: Problematic Customer Journeys Across Age Groups
  5. Computers & Tablets: Severity of Problems Across Customer Journeys
  6. Computers & Tablets: Loyalty Impact of Problems Across Customer Journeys
  7. Computers & Tablets: Problematic Customer Journeys Across Age Groups
  8. Insurance: Severity of Problems Across Customer Journeys
  9. Insurance: Loyalty Impact of Problems Across Customer Journeys
  10. Insurance: Problematic Customer Journeys Across Age Groups
  11. Investments: Severity of Problems Across Customer Journeys
  12. Investments: Loyalty Impact of Problems Across Customer Journeys
  13. Investments: Problematic Customer Journeys Across Age Groups
  14. Credit Cards: Severity of Problems Across Customer Journeys
  15. Credit Cards: Loyalty Impact of Problems Across Customer Journeys
  16. Credit Cards: Problematic Customer Journeys Across Age Groups
  17. Health Plans: Severity of Problems Across Customer Journeys
  18. Health Plans: Loyalty Impact of Problems Across Customer Journeys
  19. Health Plans: Problematic Customer Journeys Across Age Groups
  20. TV & Internet Service: Severity of Problems Across Customer Journeys
  21. TV & Internet Service: Loyalty Impact of Problems Across Customer Journeys
  22. TV & Internet Service: Problematic Customer Journeys Across Age Groups
  23. Parcel Delivery: Severity of Problems Across Customer Journeys
  24. Parcel Delivery: Loyalty Impact of Problems Across Customer Journeys
  25. Parcel Delivery: Problematic Customer Journeys Across Age Groups
  26. Wireless Carriers: Severity of Problems Across Customer Journeys
  27. Wireless Carriers: Loyalty Impact of Problems Across Customer Journeys
  28. Wireless Carriers: Problematic Customer Journeys Across Age Groups
  29. Airlines: Severity of Problems Across Customer Journeys
  30. Airlines: Loyalty Impact of Problems Across Customer Journeys
  31. Airlines: Problematic Customer Journeys Across Age Groups
  32. Hotels & Rooms: Severity of Problems Across Customer Journeys
  33. Hotels & Rooms: Loyalty Impact of Problems Across Customer Journeys
  34. Hotels & Rooms: Problematic Customer Journeys Across Age Groups
  35. Retailers: Severity of Problems Across Customer Journeys
  36. Retailers: Loyalty Impact of Problems Across Customer Journeys
  37. Retailers: Problematic Customer Journeys Across Age Groups
  38. Fast Food: Severity of Problems Across Customer Journeys
  39. Fast Food: Loyalty Impact of Problems Across Customer Journeys
  40. Fast Food: Problematic Customer Journeys Across Age Groups
  41. Rental Cars & Transport: Severity of Problems Across Customer Journeys
  42. Rental Cars & Transport: Loyalty Impact of Problems Across Customer Journeys
  43. Rental Cars & Transport: Problematic Customer Journeys Across Age Groups
  44. Supermarkets: Severity of Problems Across Customer Journeys
  45. Supermarkets: Loyalty Impact of Problems Across Customer Journeys
  46. Supermarkets: Problematic Customer Journeys Across Age Groups
  47. TVs & Appliances: Severity of Problems Across Customer Journeys
  48. TVs & Appliances: Loyalty Impact of Problems Across Customer Journeys
  49. TVs & Appliances: Problematic Customer Journeys Across Age Groups
  50. Auto Dealers: Severity of Problems Across Customer Journeys
  51. Auto Dealers: Loyalty Impact of Problems Across Customer Journeys
  52. Auto Dealers: Problematic Customer Journeys Across Age Groups
  53. Software Firms: Severity of Problems Across Customer Journeys
  54. Software Firms: Loyalty Impact of Problems Across Customer Journeys
  55. Software Firms: Problematic Customer Journeys Across Age Groups
  56. Utilities: Severity of Problems Across Customer Journeys
  57. Utilities: Loyalty Impact of Problems Across Customer Journeys
  58. Utilities: Problematic Customer Journeys Across Age Groups

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Report: What Happens After a Good or Bad Experience, 2018

To understand how the quality of a customer’s experience – whether it was good or bad – affects their behavior, we asked 10,000 U.S. consumers about their recent interactions with more than 300 companies across 20 industries. We then compared results with similar studies we’ve conducted over the previous seven years.

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Here are some highlights:

  • Purchase and download Temkin Group report: What Happens After a Good or Bad Experience, 2018About 18% of the customers who interacted with TV & Internet service providers reported having a bad experience – a considerably higher percentage than in other industries. Of the companies we evaluated, 21st Century, Comcast, Cox Communications, and New York Life deliver bad experiences most frequently.
  • We created a Sales at Risk Index for all 20 industries by combining the percentage of customers in an industry who reported having a bad experience with the percentage who said they decreased their spending after a bad experience. According to this Index, TV & Internet service providers stand to lose the most revenue (6.4%) from delivering bad experiences, while utilities stand to lose the least (1.4%).
  • When it comes to recovering from delivering a bad experience, Investment firms are the most effective and TV & Internet service providers are the least effective.
  • After customers have a very bad or very good experience with a company, they are more likely to give feedback directly to the company than they are to post about it on Facebook, Twitter, or third party rating sites. Customers are also more likely to share positive feedback through online surveys and share negative feedback through emails.
  • Compared to previous years, customers are less likely to share feedback across almost all channels, with a particularly large drop in the percentage who post on Facebook or Twitter.
  • Across almost all age groups, consumers are most likely to share their feedback directly with the company. Consumers between 18 and 34 years old are the most likely to share their good and bad experiences on Facebook, while older consumers tend to use 3rd party ratings sites more than Facebook or Twitter.

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Here is one of the 12 graphics in the report:


Report Outline:

  • Bad Experiences are Prevalent in the TV & Internet Services Sector
  • Bad Experiences Can Be Very Costly
  • Consumers Give More Feedback After a Bad Experience
    • The Channels for Direct Company Feedback
    • Feedback Differs Across Age Groups

 

Figures in the Report:

  1. TV & Internet Service Providers Deliver the Highest Percentage of Bad Experiences
  2. Companies That Deliver The Most And The Fewest Bad Experiences
  3. How Consumers Cut Their Spending After A Bad Experience, By Industry
  4. How Consumers Cut Their Spending After A Bad Experience, By Industry
  5. Sales at Risk Due to Bad Experiences
  6. How Industries Respond to Bad Experiences Overall
  7. How Consumers Give Feedback
  8. How Consumers Give Feedback to Companies
  9. Changes in How Consumers Give Feedback After a VERY GOOD Experience, 2013 to 2017
  10. Changes in How Consumers Give Feedback After a VERY BAD Experience, 2013 to 2017
  11. How Consumers Across Age Groups Give Feedback After VERY GOOD and VERY BAD Experiences
  12. How Consumers Across Age Groups Give Feedback Directly to Companies After VERY GOOD and VERY BAD Experiences

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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: