Report: Tech Vendors: Product and Relationship Satisfaction, 2017

1701_ds_techproductsandrelationships_coverWe just published a Temkin Group data snapshot, Tech Vendors: Product and Relationship Satisfaction of IT Clients, 2017.

During Q3 of 2016, we surveyed 800 IT decision-makers from companies with at least $250 million in annual revenues, asking them to rate both the products of and their relationships with 62 different tech vendors. HPE outsourcing, Google, and IBM SPSS earned the top overall scores, while Trend Micro, Infosys, and SunGard received the lowest overall scores. To determine their product rating, we evaluated tech vendors across four product/service criteria: features, quality, flexibility, and ease of use. And we calculated their relationship rating using four different criteria: technical support, support of the account team, cost of ownership, and innovation of company. We also looked at how the average product and relationship scores of tech vendors have changed over the previous three years.

This research has a report (.pdf) and a dataset (excel). The dataset has the details of Product/Service and Relationship satisfaction for the 62 tech vendors as well as for several tech vendors with sample sizes too small to be included in the published report.

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Here’s a link to last year’s study.

The research examines eight areas of satisfaction; four that deal with products & services and four that examine relationships. Tech vendors earned the highest average satisfaction level for product features (64%) and the lowest for total cost of ownership (57%).

As you can see in the chart below, the overall product/service & relationship satisfaction ranges from a high of 76% for HPE outsourcing down to a low of 42% for Trend Micro.

1701_techproductrelationshipoverallresults

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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 of this post

Report: The State of CX Metrics, 2016

1612_stateofcxmetrics2016_coverWe published a Temkin Group report, The State of CX Metrics, 2016. This is the sixth year of this study that examines the CX metrics efforts within large companies. Here’s the executive summary:

Temkin Group surveyed 183 companies to learn about how they use customer experience (CX) metrics and then compared their answers with similar studies we’ve conducted every year since 2011. We found that the most commonly used metrics continue to be likelihood-to-recommend and satisfaction, while the most successful metric is transactional interaction satisfaction. Only 10% of companies regularly consider the effect of CX metrics when they make day-to-day decisions. The top two problems companies face are limited visibility of CX metrics and the lack of taking action on metrics. Companies are best at measuring customer service and phone-based experiences and are worst at measuring the experiences of prospects and customers who defect. We also had companies complete Temkin Group’s CX Metrics Program Assessment, which examines four characteristics of a metrics program: consistent (does the company use common CX metrics across the organization?), impactful (do the CX metrics inform important decisions?), integrated (are trade-offs made between CX and financial metrics?), and continuous (do leaders regularly examine the CX metrics?). Only 11% of respondents received at least a “good” overall rating in this assessment, and companies earned the lowest average rating in integrated. Companies with stronger CX metrics programs deliver better customer experience and use more effort and likelihood-to-repurchase metrics.

See the State of CX Metrics studies from 2011, 201220132014, and 2015.

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Here are the results form our CX Metrics Competency & Maturity Assessment (one of 22 graphics in the report):

1612_cxmetricsmaturity

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CX & Loyalty: Customer Experience Correlates To Buying (Charts For 20 Industries)

People are always asking us about the correlation between customer experience and business results. While we recommend that companies examine this relationship for their specific company, we’ve done extensive industrywide analyses on the topic. At the bottom of this post we’ve assembled a number of industry-specific charts that you can download and use.

In the report, ROI of Customer Experience, 2016, we provide a lot of data on how customer experience affects a number of different aspects of loyalty for 20 industries. Here’s a summary of some of the data showing the average connection between customer experience and loyalty across all industries.

1612_cxandloyaltyaverage20industries

Here’s how we calculate this data:

  • We ask 10,000 U.S. consumers to identify the companies that they’ve interacted with during the previous 90 days
  • We have those consumers rate their experiences and segment the respondents into five buckets based on their Temkin Experience Ratings feedback
  • For each of the five buckets of consumers, we calculate the average loyalty of the group across different dimensions using the calculations below…

1612_cxandloyaltymetrics

(Note: See Temkin Loyalty Index for data on specific companies)

CX and Purchase Intention Charts for 20 Industries

If you’re looking for good data for your industry, we’ve put together these 20 industry charts that show the relationship between customer experience and future purchase intention. Feel free to use them within your presentations in accordance with our citation policy.

For example, here’s some draft copy you might use, together with your industry’s chart, in your company’s internal or external blog:

At [Your Company’s Name], we work hard to improve our Customer Experience, and this industry chart from Temkin Group shows why it’s important and meaningful. As our Customer Experience improves, research shows that consumers are more likely to increase their spending with us, which is one of the many ways in which our customers show their increased loyalty. 

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Report: Capturing Insights from Online Customer Communities

1612_communityinsights_coverWe published a Temkin Group report, Capturing Insights from Online Customer Communities. Here’s the executive summary:

Companies across a range of industries use online customer communities to augment their customer support, marketing, and product innovation efforts. However, when used thoughtfully, these online communities can provide value far beyond their original purpose. Because these communities signify an ongoing relationship between the company and participating customers, customer insights teams will find that these forums contain a treasure trove of insights. As a result of these deeper relationships, online communities offer unique advantages to voice of the customer (VoC) programs, including Always-on Feedback, Broad and Diverse Insights, Continuous Dialogue, Peer-to-Peer Dynamics, and Employee-to-Community Interactivity. These unique advantages can help companies adapt to the five Customer Insight Trends that are changing the face of 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, and 5) Enterprise intelligence, not customer feedback. To help organizations get the most value from their communities, Temkin Group has highlighted best practices for capturing and using insights from customer communities across these five trends. Companies also must plan for the entire community lifecycle to be successful; this includes Determine Strategy, Structure Community, Recruit Members, Grow and Maintain, and Close Down.

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Online customer communities have some unique attributes that make them a valuable component to voice of the customer programs (one of the 12 figures in the report):

1612_attributesofonlinecommmunities

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Tech Vendor Client Success Ratings, 2016

Are tech vendors helpful in making their IT clients successful? To answer that question, we surveyed 800 IT decision makers from North American companies with at least $250 million in annual revenues.

We asked the following question:

How helpful are these IT vendors in making sure that your organization successfully achieves its desired value from the products and services that you have purchased from them?

Responses are on a scale from 1 (not at all helpful) to 7 (extremely helpful).1611_clientsuccessratingsTemkin Group created the Client Success Ratings (CSR), which is the percentage of respondents who answered 6 or 7.  As you can see below, the average CSR is 63%, which is an increase from 61% last year.

1612_techvendorsuccessoverall2yrs

Which tech vendors are the best and the worst? We examined client responses for 62 tech vendors and found that IBM software, Google, IBM SPSS, VMware, and HPE outsourcing have the highest CSR. At the other end of the spectrum, Trend Micro, Accenture outsourcing, Sun Microsystems, and Satyam have the lowest CSR.

1612_techvendorsuccessblocked

You can purchase and download the dataset for $295.BuyDownloadThe dataset includes the detailed client success ratings for the 62 tech vendors listed in the graphic above, along with the results from 2015.

Report: Temkin Loyalty Index, 2016

1611_temkinloyaltyindex_coverWe published a Temkin Group report, Temkin Loyalty Index, 2016. This is the second year of this study that examines the loyalty of U.S. consumers to 294 companies across 20 industries. Here’s the executive summary:

The 2016 Temkin Loyalty Index (TLi) evaluates how loyal 10,000 U.S. consumers feel towards 294 companies across 20 industries. To determine companies’ TLi, we asked respondents to rate how likely they are to exhibit five loyalty-related behaviors: repurchasing from the company, recommending the company to others, forgiving the company if it makes a mistake, trusting the company, and trying the company’s new offerings. Our research shows that, of all the companies we looked at, customers feel the most loyal towards Publix, USAA, and H-E-B, and feel the least loyal towards Comcast, Motel 6, and Anthem. At the industry level, we found that supermarkets, hotels, and retailers inspire the highest levels of loyalty, while TV service providers and Internet service providers trigger the lowest levels. Meanwhile, USAA, Mercedes-Benz, and Alabama Power Company enjoy the highest levels of customer loyalty compared with their industry peers, whereas Motel 6, Citibank, and Compaq fall the furthest behind their industry peers. We also compared the results of this year’s Index with those from last year and found that the average TLi declined across all 20 industries. TV service providers declined the most, while banks declined the least. And when we narrowed in on each of the five loyalty behaviors, we found that the Trust component scores dropped most significantly. And while the vast majority of individual companies’ TLi decreased over the past year, both Con Edison of NY and Morgan Stanley Smith Barney saw their scores improve by more than nine points.

Here’s the 2015 Temkin Loyalty Index.

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Temkin Group’s TLi is based on evaluating consumers’ likelihood to do these five things (data for these items are included in the dataset):

  • Repurchase from the company
  • Recommend the company to others
  • Forgive the company if it makes a mistake
  • Trust the company
  • Try new offerings from the company

Here are the top and bottom rated companies:

1611_tli_topbottomcompanies

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Report: 2016 Temkin Experience Ratings of Tech Vendors

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

Here is the executive summary of the report:

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

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

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

1610_techvendortxr_companies

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Report: ROI of Customer Experience, 2016

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

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

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

1610_roirevsbyindustry

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

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

Report: State of Voice of the Customer Programs, 2016

1610_stateofvocprograms2016_coverWe published a Temkin Group report, State of Voice of the Customer Programs, 2016. This is the sixth year that we’ve benchmarked the competency & maturity of voice of the customer programs within large organization. Here’s the executive summary:

For the sixth straight year, Temkin Group has benchmarked the competency and maturity levels of voice of the customer (VoC) programs within large organizations. We found that while most companies think that their VoC efforts are successful, less than one-third of companies actually consider themselves good at reviewing implications that cut across the organization. Respondents think that in the future, the most important source of insights will be customer interaction history and the least important source will be multiple-choice questions. And although respondents believe that technology will play an increasingly important role in their VoC efforts, they also cite “integration across systems” as the biggest obstacle to their VoC success, and this concern has only grown in the past year. In addition to asking questions about their VoC program, we also had respondents complete Temkin Group’s VoC Competency and Maturity Assessment, which examines capabilities across what we call the “Six Ds”: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. Only 16% of companies have reached the two highest levels of VoC maturity, while 43% remain in the bottom two levels. When we compared higher-scoring VoC programs with lower-scoring programs, we found that companies with mature programs are more successful, they focus more on analytics, and they have more full-time staff, more strongly coordinated efforts, and more involved senior executives.

See the State of VoC reports from 2010201120132014, and 2015.

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

1610_vocmaturity

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Report: Net Promoter Score Benchmark Study, 2016

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

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

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

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

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Here are the NPS scores across 20 industries:
1610_rangeofindustrynps

Here are some other highlights of the research:

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

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

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

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.

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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: Translating Brand Promises into Employee Behaviors

1608_translatingpromisesintobehaviors_coverWe just published a Temkin Group report, Translating Brand Promises into Employee Behaviors. Here’s the executive summary:

Temkin Group has found that the companies that deliver great customer experience use their brand as a blueprint for how they treat customers, which is why Compelling Brand Values is one of our four customer experience core competencies. Too often organizations put a lot of energy into communicating the brand externally, only to fall short on connecting employees to their role in keeping brand promises. And when employees aren’t connected to these promises, they tend to be less proactive, to act inconsistently, and to care less about their work. In this report, we describe three steps that companies can use to translate their brand promises into employee behaviors: Make promises, Embrace promises, and Keep promises. To illustrate this approach, we share over 20 examples of best practices from companies including Anthem, A&W Food Services of Canada, the city of Centennial, Oklahoma City Thunder, and Quest Diagnostics. To evaluate how well your organization follows this approach, use Temkin Group’s Compelling Brand Promises Assessment.

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Here’s are two of the 15 graphics in the report:

1609_bestpracticemakeembracekeeppromises 1609_promisesmissionvalues

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Data Snapshot: Channel Preferences Benchmark, 2016

1609_ds_channelpreferences2016_coverWe just published a Temkin Group data snapshot, Channel Preferences and Cross-Channel Activity Benchmark, 2016. The research examines consumer preferences for using different channels for completing common tasks as well as the frequency of several cross-channel interactions.

Here’s the executive summary:

In Q3 2016, we surveyed 10,000 U.S. consumers about their channel preferences for performing 11 different activities—such as selecting a life insurance policy or applying for a new credit card—and compared them to the results of a similar study conducted in 2015. This data snapshot examines how channel preferences vary across age groups, how these preferences have changed over the past year, and how channel preferences differ across multiple activities. (See last year’s data snapshot).

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A key component of the research examines how consumers would like to complete 11 different interactions with companies: Apply for a new credit card, change the beneficiary on a life insurance account, check the balance on a savings or checking account, check the delivery status of a purchase you made, investigate a mistake in your monthly cell phone bill, open a new investment account, purchase a new auto insurance policy, resolve a technical problem with your computer, select a life insurance policy,  and update your address on an account after you move.

The report has 13 data-filled charts, covering the 11 activities with details of preferences by age. Here’s one of the graphics (without the numbers) showing that consumers most prefer using their computers…

1609_channelpreferences

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2016 Temkin Emotion Ratings (Publix, Chick-fil-A, and Residence Inn Are the Leaders)

For the previous five years, we’ve measured emotion as part of the Temkin Experience Ratings (TxR). This year, we examined 294 companies across 20 industries based on a survey of 10,000 U.S. consumers (see methodology section below). The TxR examines the three elements of customer experience: success, effort, and emotion. In this post, I examine the results for the Temkin Emotion Ratings.

Emotion is the component of customer experience that is the most significant driver of customer loyalty. And we showed the connection between emotion and loyalty in a recent post. To find out more about how you can tap into the power of customer emotions, visit the Intensify Emotion Movement.

Publix, Chick-fil-A, and Residence Inn earned the only “good” scores for delivering the most positive emotional experiences, followed closely by H-E-B, True Value, Kroger, Save-a-Lot, Wawa Food Market, QVC, and Amazon.

At the other end of the emotional spectrum, the companies with the lowest Ratings are Comcast (for both Internet service and TV service), Fujitsu, Health Net, Blue Shield of CA, Anthem, Time Warner Cable, Commonwealth Edison, Medicaid, Charter Communications, and AT&T.

1609_temotr_leaderslaggards

Do you want to the data from the 2016 Temkin Effort Ratings? It’s included in the Temkin Experience Ratings spreadsheet that you can purchase for $395.
Here’s a sample of the spreadsheet (.xls)

Here are some additional insights from the 2016 Temkin Emotion Ratings:

  • The supermarket and fast food industries earned the highest average Temkin Emotion Ratings (at “okay” level), while health plans, TV service providers, and Internet providers were at the bottom with “very poor” ratings.
  • The following companies earned ratings that are the most above their industry averages: Amazon, Residence Inn, Florida Power & Light, TXU Energy, National Car Rental, and Alabama Power Company.
  • The following companies earned ratings that are the farthest below their industry averages: Fujitsu, Motel 6, Super 8, Chrysler, Volkswagen, Commonwealth Edison, and Citibank.
  • The following companies earned the largest improvement between the 2015 and 2016 Ratings: Coventry Health Care, True Value, Con Edison of NY, Consumers Energy Company, Dominion Virginia Power, and Fox Rent A Car.
  • The following companies declined the most between 2015 and 2016: Volkswagen, Fujitsu, Commonwealth Edison, BMW, GM, Health Net, and JetBlue.

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