Data Snapshot: Media Use Benchmark, 2017

We just published a Temkin Group data snapshot, Media Use Benchmark, 2017. This is our annual analysis of how much time consumers spend using different media channels (see last year’s data snapshot).

Here’s the data snapshot description:

In January 2017, we surveyed 10,000 U.S. consumers about their media usage patterns and compared the results to similar data we collected in January 2016, January 2015, January 2014, January 2013, and January 2012. Our analysis examines the amount of time consumers spend every day watching television, browsing the Internet (for both work and leisure), reading books (both print and electronic), reading newspapers (both print and electronic), listening to the radio, reading a print magazine, and using a mobile phone. This data snapshot breaks down the results by income level, education level, and, most expansively, by age.

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Here’s a portion of the first figure from the data snapshot that contains 13 data-rich charts. As you can see:

  • Time spent over the last six years with mobile web/apps has increased the most, followed by using the Internet at work and reading a book online.
  • Across all of the media activities we track except for using the Internet at work, consumers spent more time doing them in 2017 than in 2016.
  • Consumers increased their time reading paper books and magazines by 30% over last year, the largest increase of any activities.
  • While consumers increased their reading of newspapers, they also had a jump of 27% in the amount of time they spent reading the news online.

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Report: 2017 Temkin Experience Ratings (U.S.)

1703_temkinexperienceratingsus_coverTemkin Ratings websiteWe published the 2017 Temkin Experience Ratings, the seventh annual release of this comprehensive customer experience benchmark. Here’s the executive summary:

2017 is the seventh straight year that we’ve published the Temkin Experience Ratings, a cross-industry, open standard benchmark of customer experience. To generate these Ratings, we asked 10,000 U.S. consumers to rate their recent interactions with 331 companies across 20 industries and then evaluated their experiences across three dimensions: success, effort, and emotion. Here are some highlights from this benchmark:

  • Publix, Chick-fil-A, and H-E-B earned the highest overall ratings, while Health Net, Blue Shield of CA, and Comcast earned the lowest scores.
  • When we compared company ratings with their industry averages, we found that Kaiser Permanente, Georgia Power, Advantage Rent-A-Car, and Regions most outperformed their peers, while Spirit Airlines and Days Inn feel farthest behind their competitors.
  • The Ratings saw its first general decline in 2015 and then dropped considerably in 2016. This year, however, the Ratings significantly increased, with only seven companies’ scores declining. Fujitsu, Volkswagen, Fairfield Inn, Columbia Natural Gas, and Advantage Rent-A-Car improved the most since last year.
  • To improve customer experience, companies need to master four competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.

Industry Changes in the 2017 Temkin Experience Ratings

We used the same methodology for the Temkin Experience Ratings this year that we’ve used for all of the prior years. Every year, the companies in the Temkin Experience Ratings shift a bit, but this year we made some more substantive changes. Specifically, we:

  • Combined TV service and Internet service. While we have historically provided separate ratings for TV service providers and Internet service providers, we decided to combine those categories this year. It turns out that many of the companies are in both categories and many consumers purchase those services as a bundle.
  • Added streaming media. Given the rise of services such as NetFlix and Hulu, we added a new category that focuses on the customer experience of those streaming media companies.
  • Expanded some industries. We enlarged a number of categories to increase the number of relevant companies. We changed the appliance category to TV and appliances to include a larger group of consumer electronics providers. We also included some newer companies into existing categories. We updated rental cars to rental cars & transport so that we could include firms like Uber, and we changed hotels to hotels & rooms to include companies like Airbnb.

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See our FAQs about the Temkin Experience Ratings.

Here’s a recording of a webinar where we discuss the 2017 Temkin Experience Ratings:

 

The Temkin Experience Ratings are based on evaluating three elements of experience:

  1. Success: How well do experiences meet customers’ needs?
  2. Effort: How easy is it for customers to do what they want to do?
  3. Emotion: How do customers feel about the experiences?

Here are the top and bottom companies in the ratings:1703_2017txrtopbottom

***See how your company can reference these results or
display a badge for top 10% and industry leaders***

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Report: State of the CX Profession, 2017

1702_stateofcx-profession2017_coverWe just published a Temkin Group report, State of the CX Profession, 2017. This is the fifth year that we’ve examined the roles of CX professionals and the third year that we’ve done a compensation study. Here’s the executive summary:

To understand the mindset and roles of customer experience professionals today, we surveyed 237 CX professionals and then compared their responses to similar studies we’ve conducted over the previous five years. We asked them how their CX efforts impacted their organization last year and about their plans for the coming year. This report also includes a compensation study, which is based on the 158 respondents who agreed to participate. Here are some highlights from the research:

  • Eighty-four percent of respondents say that their customer experience efforts have had a positive business impact in 2016.
  • Ninety-nine percent think that customer experience is a great profession to be in, the highest level we’ve seen in the six years we’ve been doing the study.
  • Eighty percent think that customer experience will be more important for their companies in 2017 than it was in 2016, compared to the 3% who think it will be less important.
  • Forty-nine percent expect to see an increase in their customer experience staffing levels this year – a higher percentage than we’ve seen in previous years.
  • Respondents plan to increase their spending most on voice of the customer software and text analytics.
  • Respondents plan to increase their focus most on Web experiences and customer insights and analysis.
  • The total amount of compensation in our study ranges from $93,000 for mid-level individual contributors to $239,000 for CX executives.

1602_DontBuyReportJoinCXPA

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Here’s some data that combines pieces of two graphic, showing that CX continues to be a great profession….

1702_cxprofessionalssummary

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The bottom line: The CX profession is thriving.

Data Snapshot: CX Expectations and Plans for 2017

1702_ds_cxplansfor2017_coverTemkin Group just published a data snapshot, Customer Experience Expectations and Plans for 2017. This annual research effort shows an increase in focus, effort, and spending on customer experience in 2017. Here’s a description of the data snapshot:

In December 2016, Temkin Group surveyed 165 respondents – each from a company with $500 million or more in annual revenues – about their customer experience efforts over the past year and their plans for 2017 and beyond. We compared the results of this survey to the results of similar surveys we’ve conducted over the previous six years. This year’s results show that companies plan on dedicating more money and effort to improving a variety of customer experience activities.

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The data snapshot has 12 graphics with data about CX plans and expectations for 2017. Here’s an excerpt from two of the graphics:

1702_cximpactandimportance

Here are some highlights from the research:

  • The percentage of respondents who report at least moderately positive results from their previous year’s CX efforts grew from 44% in Q4 2015 to 52% in Q4 2016.
  • Sixty-four percent of companies that report at least moderately positive results from their 2016 CX efforts had better financial performance than their peers, compared with only 44% of other firms.
  • The percentage of respondents who looked ahead and said that CX will be significantly more important in the following year grew from 40% in Q4 2015 to 45% in Q4 2016.
  • The percentage of respondents who expect CX spending to increase in the following year grew from 57% in Q4 2015 to 67% in Q4 2016.
  • The percentage of respondents who expect to increase their full-time CX staff in the following year grew from 37% in Q4 2015 to 44% in Q4 2016 (only 5% expect to cut back their staffing this year).
  • Spending growth is expected to be strongest for VoC software, predictive analytics, and experience design agencies.
  • Web and mobile will remain the most important channels of focus in 2017, while social media experiences decline in importance.
  • Customer insights and analytics remains the most important CX activity.
  • Companies are planning to increase their use of CX metrics to drive compensation across all types of employees.
  • More than half of respondents expect to increase CX training with customer-facing employees.

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Report: Engaging A Tethered Workforce

1701_engagingatetheredworkforce_coverWe just published a Temkin Group report, Engaging A Tethered Workforce.  Here’s the executive summary:

Companies across a number of industries create and deliver customer experiences (CX) through a combination of traditional employees and other workers who they do not directly control – such as contractors or employees of channel partners or outsourcing partners. Despite not being directly employed by the company, these other workers – who make up what Temkin Group calls a “tethered workforce” – still play a critical role in delivering experiences that represent the company’s brand. However, tethered workers differ from typical full-time, corporate employees in ways that pose challenges to brands’ efforts to align these workers with their customer experience goals and objectives. In this report, we examine how brands are tapping into these tethered employees. Here are some highlights:

  • Companies must manage three connections: 1) Between themselves and their partners that employ the tethered workers, 2) Between their partners and the tethered employees, and 3) Between themselves and the tethered workers.
  • We share over 30 examples of best practices from across Temkin Group’s Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.
  • We offer brands a blueprint for engaging tethered workers with key things to think about across the three connections of tethered workforces.

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Here are the 17 best practices described in the report:

1701_bestpracticesforengagingtetheredworkers

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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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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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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: 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

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