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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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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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)

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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.

Humanity And Customer Experience Go Hand In Hand

Hopefully you know by now that Temkin Group has labelled 2018, The Year of Humanity. We’ve been trying to propel people to embrace diversity, extend compassion, and express appreciation.

Temkin Group's "Year of Humanity." Embrace diversity, extend compassion, and express appreciation.We’ve been doing research as part of that effort. In our latest consumer benchmark study of 10,0000 U.S. consumers, we added questions about how often people demonstrate those three behaviors. We then analyzed their responses based on how they rated the customer experience (CX) that their organization delivers. As you can see in the graphic below:

  • When the level of CX improves, so does the prevalence of the three behaviors.
  • For companies with above average CX, at least 70% of them have employees who mostly demonstrate the behaviors.
  • For companies with below average CX, no more than 33% of them have employees who mostly demonstrate the behaviors.

Positive Humanity And Customer Experience Go Hand In Hand

The bottom line: Improving humanity is great for employees and customers.

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.

The Six Laws Of Customer Experience (Video)

This video explains The Six Laws of Customer Experience. By understanding these fundamental truths about how people and organizations behave, companies can make smarter decisions about what they do, and how they do it. You can download the free eBook and see our infographic.


Did you know that the CX institute offers eLearning courses to train your entire organization on the Six Laws of CX?


Video Script:

Just like the laws that govern physics, there are a set of fundamental truths that explain how organizations treat their customers. We call these “The Six Laws of Customer Experience:”

Anyone looking to improve customer experience must both understand and comply with these underlying realities.

<<NOTE: Here’s an infographic that lays out all of the laws>>

The Six Laws of Customer Experience (CX) Infographic

The first law is Every Action Creates A Personal Reaction. Simply put, the quality of an experience is entirely in the eyes of the beholder. An experience that is delightful for one person may be terrible for another person. When it comes to customer experience, one size does not fit all.

Law #2 is People Are Instinctively Self-Centered. Everyone looks at the world through their own frame of reference, and these unique perspectives heavily influence what they do and how they do it. Customers, for instance, care about their own needs, desires, and goals. Employees, on the other hand, have a deep understanding of their company’s products, organizational structure, and processes.

The third law is Customer Familiarity Breeds Alignment. A clear vision of what customers need, want, and dislike can align decisions and actions across an organization. When employees share a common view of who the target customer is, and they have easy access to customer feedback, there will be fewer disagreements about the best ways to serve these customers.

Law #4 is Unengaged Employees Don’t Create Engaged Customers. Walt Disney once said “You can design and create, and build the most wonderful place in the world. But it takes people to make the dream a reality.” He understood the importance of focusing on employees. The data supports that view. Companies with great customer experience tend to have significantly more engaged employees than do their peers.

Law #5 is Employees Do What Is Measured, Incented, and Celebrated. Some executives struggle to understand why their employees don’t treat customers better. But it isn’t a mystery. Employee behaviors can almost always be explained by the environment they’re in. What creates that environment? The metrics the company tracks, the activities it rewards, and the actions it celebrates. Collectively, these three factors shape how employees behave.

The final law is You Can’t Fake It. While it is possible to fool some people some of the time, most people will eventually discern what’s real and what’s not. In the case of customer experience, this means that employees will sense when customer experience is not actually a top priority, and customers will not be convinced that you are more committed to customer experience than you really are – no matter how much you spend on advertising.

The Six Laws of Customer Experience are meant to empower highly effective customer experience efforts. If you understand and follow these laws, you will be able to help your organization deliver great customer experience.

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.

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.

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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

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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:

The Six Key Traits of Human Beings (Video)

One of the most important – but often forgotten – elements of customer experience is that it’s all about human beings. Customers are human beings, employees are human beings, and executives are human beings. This video identifies six key characteristics to keep in mind whenever you’re dealing with all types of people.


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:

One of the most important – but often forgotten – elements of customer experience is that it’s all about human beings. Customers are human beings, employees are human beings, and executives are human beings.

So if you want to improve customer experience, you need to understand and embrace how human beings actually think and behave.

But human beings are complex and can be difficult to fully understand. That’s why Temkin Group has identified Six Key Traits of Human Beings, which you will need to keep in mind at all times.

Six Key Traits Of Human Beings

First of all, human beings are INTUITIVE. People have two different modes of decision making. One mode is rational, which is slow, logical, and deliberate. The second mode is intuitive, which is fast, automatic, and based on biases and a set of heuristics, or rules of thumb.

Human beings make almost all of their decisions using the intuitive mode, but organizations focus most of their attention on customers’ rational behavior. You can better meet customers‘ needs by catering to their intuitive mode.

Human beings are also SELF-CENTERED. We look at the world through our own personal perspective, which, because of our unique life experiences, is totally different than anyone else’s.  This individual perspective often separates employees and customers, as employees are more familiar with their company than customers are. This knowledge gap frequently causes miscommunications and a lack of empathy. Once we recognize our self-centeredness, we can take steps to mitigate the issues it creates.

Human beings are EMOTIONAL. We remember experiences based on how they make us feel. Our memories are not like video cameras, they’re more like an Instagram account where we take pictures whenever we feel strong emotions, and then we judge that experience in the future based on reviewing those pictures. That’s why it’s critical to proactively think about which emotions an experience is likely to generate.

Human beings are MOTIVATED. We all strive to fulfill our four intrinsic needs: a sense of meaning, control, progress, and competence. So when we think about the people who work for us and with us, we need to spend less time focusing on their compensation and more time helping them fulfill their intrinsic needs.

Human beings are also SOCIAL. We want to connect with other people who are “like us,” and we tend to trust those people more than we trust other people or institutions. So to create good experiences, we should not only recognize that people’s social groups are an important area of influence, we should also help employees and customers build meaningful connections between themselves and each other

And finally, human beings are HOPEFUL. We flourish when we envision a positive future. So you can motivate employees, leaders, customers, and partners by painting a picture of future success that addresses their needs and aspirations.

Make sure to focus on these Six Key Traits of Human Beings whenever you are thinking about customers, employees, leaders, or partners. It will allow you to better influence their behaviors and fulfill their needs.

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.

Collage of 2018 Customer Experience Infographics (So Far)

We’re always looking for ways to share interesting data and concepts, so we regularly publish parts of our content in infographics. In case you’ve missed any of them, here’s a collage of the infographics that we’ve already published this year.

Collage Of Temkin Group's Customer Experience (CX) InfographicsHere are the individual infographics:

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

Six Laws of Customer Experience (Infographic)

The most dowloaded content that I’ve published is our free eBook, The Six Laws of Customer Experience. It’s been translated into many languages and read by 10’s of 1,000s of people. It continues to be very popular because it uses simple language and concepts to describe what we call “the fundamental truths about how organizations treat customers.”

We’ve developed an updated infographic that brings the laws to life. If you like the content, then we even have a CX Institute eLearning module that you can use to train everyone in your organization on this important concept!

Six Laws of Customer Experience

Here are links to download different versions of the infographic: