The use of Artificial Intelligence (AI) – often in the form of chatbots and intelligent virtual assistants – is becoming more widespread in customer experience. However, despite its prevalence, few companies are employing AI in the right scenarios or using it to its fullest potential. In this report, Temkin Group creates a model and shares best practices for AI-Driven Interfaces (AIDI), which we define as digital interactions with customers that are being directly manipulated by machine learning algorithms.
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To successfully deploy customer-centric AI, companies need to:
Integrate the elements of the Human Conversational Model into the design of AIDI.
Bring together Five Ingredients: Conversational Design, Targeted Use Cases, Optimized Data Aggregation, Responsive AI Engine, and Continuous Tuning.
Determine Organizational AI Readiness before deployment by tying AI to business strategy, auditing data sources, assessing employee skills, and planning for agent/AIDI interactions.
For seven years in a row, Temkin Group has tracked U.S. consumers’ preferences for watching professional sports on TV. This year, we also examined their experience when attending a live sporting event. Here are some highlights from this research:
NFL is the most dominate sport on TV, but MLB has the highest percentage of fans who attend its games.
Almost all sports lost TV viewers over the last seven years, with NFL dropping the most. Viewership has declined most dramatically for young adult males.
NASCAR has the highest level of promoters for its live sporting events, while the NFL has the lowest.
We evaluated consumer satisfaction across the nine steps that make up a live sporting event journey. Of these steps, parking received the lowest average satisfaction, and ticketing correlated most strongly with fans’ likelihood of recommending attending an event to their friends and relatives.
We include live event scorecards for MLB, MLS, NASCAR, NBA, NFL, NHL, and WNBA
Sports teams that want to improve fan experience need to build four competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.
Every organization makes some mistakes, so an important area of loyalty is the willingness of customers to forgive them. That’s why Temkin Group has been measuring forgiveness for eight years.
This product is the dataset, in excel, for the 2018 Temkin Forgiveness Ratings (TFR).It uses feedback from 10,000 U.S. consumers to rate how likely consumers are to forgive 318 organizations across 20 industries after they make a mistake. It includes the TFR for 318 companies and 20 industries, the changes in TFR between 2017 and 2018, and the difference in TFR across age groups for each industry.
For more information, including a sortable table with all of the high level results, visit the Temkin Ratings website.
Additional highlights of the 2018 Temkin Forgiveness Ratings:
Between 2017 and 2018, 14 of the 20 industries experienced declines in their average TFR. Wireless and supermarkets (+2.1 %-points) improved the most (+2.3 %-points), while utilities (-5.) and hotels & rooms dropped the most (-4.2 %-points).
Of the 308 companies that were in both the 2017 and 2018 TFR, 272 companies experienced a drop in their scores. The five companies to improve the most are Starz, MetroPCS, Fifth Third, Domino’s, and Dairy Queen. The five companies to decline the most are Bosch, Appalachian Power Company, HSBC, AmazonFresh, and Motel 6.
Although customer experience (CX) management has become a relatively common activity within large organizations, companies still struggle to deliver consistently positive experiences to their customers. One major issue impeding companies’ current CX efforts is that few organizations design customer interactions in a purposeful and deliberate manner. This report explores how companies can use Experience Design – which we define as a repeatable, human-centric approach for creating emotionally resonant interactions – to craft consistently excellent interactions and how they can share and spread these capabilities across the entire organization.
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Here are some highlights from this report:
The Experience Design process is made up of three generic phases (Clarification, Generation, Realization), each of which contains two stages (empathize and synthesize, conceptualize and materialize, scrutinize and actualize).
To help propel Experience Design capabilities across the organization, we developed The Federated Experience Design Model, which is made up of three tiers of employees – Experts, Boosters, and Dabblers.
We share over 30 examples of best practices from companies that are spreading and sharing Experience Design capabilities throughout their entire organization.
We also provide some tools that employees can use across the six stages of the Experience Design process.
Temkin Group has evaluated the state of Customer Experience (CX) management at large companies for nine years in a row. This year, the benchmark is based on a survey of 171 companies with at least $500 million in annual revenues. Respondents not only answered questions about CX management, they also completed our CX Competency and Maturity Assessment. When we analyzed organizations’ CX efforts and progress towards maturity, we found that:
While only 7% of companies view themselves as industry leaders in CX today, 54% aspire to be leaders within three years.
Only 13% of companies have reached the top two (out of six) levels of CX maturity.
Of the four CX Core Competencies, Compelling Brand Values continues to be the most problematic for companies.
Twenty-two percent of firms have at least 21 FTEs in their centralized CX groups.
Companies rate themselves highest for customer insights & analysis and weakest for ambassador programs.
Voice of the customer software and market research vendors are the most valuable CX tools and services.
Two-thirds of companies think that their phone agents typical deliver a good experience, while only 11% feel that way about chat bots.
The top obstacle that companies face is other competing priorities, which has been at the top of the list for several years.
When we compared CX leaders with CX laggards, we discovered that the leaders enjoy stronger financial results, are more likely to have senior executives leading company-wide CX efforts, employ more full-time CX employees, use more experience design agencies, and feel more supported by senior leaders.
CX leaders are more likely to describe their culture as being Customer- or Mission-Centric, while CX laggards are more likely to describe theirs as Sales- or Profit-Centric.
This report also includes an assessment that companies can use to benchmark their CX efforts and capabilities.
We just published a Temkin Group report, State of the CX Profession, 2018. This is the fifth year that we’ve examined the roles of CX professionals and the third year that we’ve done a compensation study. Here’s the executive summary:
To understand the mindset and roles of customer experience professionals today, we surveyed 221 CX professionals and then compared their responses to similar studies we’ve conducted over the previous six years. We asked respondents about how their CX efforts impacted their organization last year and what their company plans to do during the coming year. This report also includes a compensation study, which is based on the 158 respondents who agreed to participate. Here are some highlights from the research:
Eighty-seven percent of respondents say that their customer experience efforts have had a positive business impact in 2017.
Ninety-six percent think that customer experience is a great profession to be in.
Eighty percent think that customer experience will be more important for their companies in 2018 than it was in 2017, compared to the 5% who think it will be less important.
Forty-eight percent expect to see an increase in their customer experience staffing levels this year, compared with only 6% that expect a decline.
Respondents plan to increase their spending most on voice of the customer software.
Respondents plan to increase their focus most on Web experiences and customer insights and analysis.
The total amount of compensation in our study ranges from $104,000 for mid-level individual contributors to $296,000 for CX executives.
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Here’s some data showing some of the results from the compensation study:
2018 marks the eighth 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 318 companies across 20 industries and then evaluated their experiences across three dimensions: success, effort, and emotion. Here are some highlights:
Wegmans, H-E-B, Citizens, credit unions, Publix, and Subway earned the highest overall ratings, while CarMax, Spirit Airlines, Optimum, Medicaid, and Comcast received the lowest.
When we compared individual company’s ratings with their industry averages, we found that Southwest Airlines and Georgia Power most outperformed their peers, while CarMax and Spirit Airlines fell farthest behind their competitors.
The Ratings declined slightly this year, driven mostly by a drop in the emotion component scores.
To improve customer experience, companies need to master four competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.
During Q3 of 2017, 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 58 different tech vendors. Google, Oracle outsourcing, and Microsoft servers earned the top overall scores, while Autodesk, ADP outsourcing, and Fujitsu 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 four years and found that both product/service and relationship satisfaction have dropped to their lowest levels since the study began.
This research has a report (.pdf) and a dataset (excel). The dataset has the details of Product/Service and Relationship satisfaction for the 58 tech vendors as well as for 31 other tech vendors with sample sizes too small to be included in the published report. Here is a sample of the dataset.
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Product & Relationship Satisfaction Component Scores, 2014 to 2017
Report details: When you purchase this research, you will receive a written data snapshot and an excel spreadsheet with more data. The dataset has the details of Product/Service and Relationship satisfaction for the 58 tech vendors as well as for 31 tech vendors with sample sizes too small to be included in the published report. If you want to know more about the data file, download this SAMPLE SPREADSHEET without the data (.xls).
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In December 2017, Temkin Group surveyed 145 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 2018 and beyond. We compared the results of this survey to the results of similar surveys we’ve conducted over the previous seven years. This year’s results show that companies plan on increasing the amount of money and effort they dedicate to improving a variety of customer experience activities.
86% of companies have seen a positive impact from their CX efforts in 2017.
81% of companies expect CX to be more important in 2018 than it was in 2017.
62% of companies expect to spend more on CX in 2018 than they did in 2017.
The companies that expect to increase their CX staffing in more than five times the percentage that expect to decrease it.
Companies plan to increase their spending the most for VoC software and chat bot vendors.
Companies plan to increase their focus the most on online self-service experiences, and the least on phone self-service.
Companies plan to increase their focus the most on solving customer service issues, and the least on understanding bills and statement.
Companies plan to increase their effort the most on customer insights and analytics.
21% of companies plan to compensate front-line employees based on CX metrics.
Compared with other companies, companies with more successful CX efforts in 2017 are employing more CX professionals, focusing more on online chat and new product experiences, and plan to spend more on speech/voice analytics vendors.
Here are the data charts in this data snapshot:
Business Impact of CX
Changes in the Importance of Customer Experience
Changes in Spending on Customer Experience
Changes in CX Staffing Levels
Plans for Spending with CX Vendors
Focus on CX Across Interaction Channels in 2018
Plans to Increase Focus on the CX of Different Channels
Focus on Customer Journeys in 2018
Focus on CX Activities in 2018
Plans to Increase Focus on Different CX Activities
Compensation Based on CX Metrics
Key Differences Between Companies With More Successful And Less Successful CX Programs
In Q3 2017, we surveyed 10,000 U.S. consumers about their channel preferences when performing 12 different activities – such as selecting a life insurance policy or applying for a new credit card – and compared their responses to the results of a similar study we conducted in Q3 2016. 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.
We just published a Temkin Group report, Lessons in CX Excellence, 2018. The report provides insights from six winners in the Temkin Group’s 2017 CX Excellence Awards. The report, which has more than 70 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 past November, we named six organizations the winners of Temkin Group’s 2017 Customer Experience Excellence Award – AARP, Allianz Worldwide Partners, Century Support Services, Nurse Next Door Home Care Services, Reliant, and Sage. 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.
Includes all of the winners’ detailed nomination forms to help you collect examples and ideas to apply to your own CX efforts.
Temkin Group surveyed 169 companies to learn about how they use customer experience (CX) metrics and then compared their answers with similar studies we’ve conducted annually since 2011. We also had them complete our CX Metrics Program Assessment that evaluates the degree to which these efforts are Consistent, Impactful, Integrated, and Continuous.
Here are some of the highlights:
Only 11% of CX metrics programs received “strong” or “very strong” ratings, while 64% of companies received “weak” or “very weak” ratings. Only one out of five companies earned at least a moderate rating for being Integrated.
Sixty-five percent of companies are good at collecting and calculating metrics, but less than 20% are good at using analytics to predict future changes in the CX metric.
Satisfaction and likelihood to recommend remain the most popular CX metrics, with satisfaction at a transactional level delivering the most positive impact.
Only 10% of companies always or almost always make explicit tradeoffs between CX metrics and financial results.
Companies identified the lack of taking action based on CX metrics as a top obstacle to their programs. The identification of this as a top problem increased the most between 2016 (54%) and 2017 (62%).
We asked companies about their effectiveness at measuring 19 different elements of customer experience. They are most effective at measuring customer service, phone interactions, and customers who are using their products and services. They are least effective at measuring the experiences of prospects, customers who have defected, and multi-channel interactions.
When we compared companies with stronger CX metrics programs with those with weaker efforts, we found that the stronger firms have better overall CX results, more frequently use and get value from likelihood to recommend metrics, and report fewer obstacles.
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Here are the results from Temkin Group’s CX Metrics Program Assessment:
In our Q1 2017 UK consumer benchmark study, we asked 5,000 UK consumers to rate their loyalty with the companies that they had interacted with during the previous 90 days. The analysis examined four areas of loyalty: Likelihood to repurchase, likelihood to recommend, likelihood to forgive, and likelihood to trust. Then we combined those components to calculate the Temkin Loyalty Index for 157 companies across 16 industries.
You can purchase and download the dataset, which includes companies that had at least 85 respondents. The excel spreadsheet includes the four areas of loyalty and the overall TLi for 157 companies. along with the industry averages.
The 2017 Temkin Experience Ratings of Tech Vendors evaluates the customer experience of 58 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. Here are some of the highlights:
Out of all the vendors we looked at, VMware, IBM software & IBM SPSS, and Google earned the highest ratings, while ADP outsourcing, Unisys, Autodesk, and Fujitsu received the lowest.
When we compared this year’s results with data from the previous five Temkin Experience Ratings of Tech Vendors, we found that the average rating dropped over the past year, down from 58% in 2016 to 54% in 2017.
Compared with companies in the bottom quartile of the Temkin Experience Ratings, those in the upper quartile have customers who are 1.3 times more likely to repurchase from them, 2.5 times more likely to try new offerings, and 2.1 times more likely to forgive the company if it makes a mistake.
Companies in this upper quartile of ratings have a Net Promoter Score that’s an average of 28 points higher than their bottom quartile counterparts.
To improve customer experience, tech vendors will need to master Four CX Core Competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness.
Download for $695, includes report (.pdf) and data file (.xls) [Download sample of data file (.xls)]
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:
A robust customer experience (CX) metrics program allows an organization to systematically measure the quality of the experience it delivers to customers and provides insights that help companies spot improvement opportunities, prioritize investments, track CX progress, and unify the organization around a common goal. Despite these benefits, few organizations have actually built a strong metrics program. In this report, we provide a blueprint that organizations can follow to create an actionable CX metrics program. Here are some highlights:
Temkin Group has identified five steps an organization must go through to create a strong CX metrics program: 1) Determine a Core CX Metric, 2) Set Achievable Goals, 3) Identify Key Drivers, 4) Establish Key Driver Metrics, and 5) Make the Suite of Metrics Actionable.
To illustrate what these steps should look like, we share nearly 30 best practices from companies including Brainshark, Caesars Entertainment, Ciena, Cisco, Horizon BCBSNJ, Oxford Properties, and Wyndham Worldwide.
We provide an assessment companies can use to both evaluate the effectiveness of their CX metrics program and identify where to focus improvement efforts.
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Here are the best practices highlighted in the report: