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

The Employee Engagement Virtuous Cycle (Video)

Why should you care about Employee Engagement? Because it fuels a virtuous cycle that drive customer experience and business success. Take a look…

Video Script:

Did you know that engaged employees are really, really valuable? Temkin Group’s research shows that when employees are highly engaged, they are much more likely to behave in ways that help your organization:

  • They stay late at work if something needs to be done
  • They help other people
  • Do good things for the company, even when it’s not expected of them
  • And they make recommendations about improvements

Don’t you want employees like that on your team?

Our research also shows that companies with more engaged employees deliver better customer experience.

That’s the first connection in what we call the Employee Engagement Virtuous Cycle.

Employee Engagement Virtuous Cycle (Temkin Group)

Here’s how it works:

Engaged employees create great customer experiences, which in turn create more loyal customers. This leads to stronger financial results for the organization.

With happy customers, employees are prouder of their work, which lowers turnover rates. Collectively, this improves financial results and provides more resources for investing in employees.

Are you doing enough to fuel the front end of this virtuous cycle?

To raise employee engagement in your organization, visit Temkin Group, the employee engagement experts at StartWithEmployees.com.

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:

Introducing The Temkin Customer Success Index

Over the last few years, many B2B organizations have created customer success organizations that focus on ensuring that their clients are happy. These companies are realizing that customers aren’t just buying their products, they’re making purchases with the expectation that they will achieve some value from the provider’s products and services.

As I discussed in a previous post, many customer success organizations still look a lot like old-fashioned account management teams. We think that to be successful customer success teams must blend account management with a strong CX mindset.

To help these efforts move forward,  we’re defining customer success as:

A set of activities focused on ensuring that B2B customers achieve the value and outcomes they desire.

As you can see from the definition, these efforts are not the domain of a single group or department, but are the responsibility of the entire organization. They can, and often should, be facilitated by a formal customer success team.

While there are many changes that need to be made to create a successful customer success organization, one of the things that it should do is to commit on keeping these five promises to customers:

  • Understand My Business: Know how your products/services will help your clients business succeed.
  • Find & Share Relevant Best Practices: Expose clients to meaningful opportunities for them to create new value with your products and/or services
  • Prevent Issues & Obstacles: Make recommendations that will avoid problems in the future based on insights across your organization and client base.
  • Orchestrate Value Across Functions: Provide seamless access to appropriate resources across your organization.
  • Don’t Surprise Me: Anticipate client’s upcoming needs and let them know what to expect during their entire lifecycle.

Temkin Customer Success Index

As a result, we’ve created the Temkin Customer Success Index (TCSi), which is a measure of an organization’s effectiveness delivering value above and beyond its products and services.

The TCSi is based on asking business clients how well their providers live up to each of the five customer promises, with answers on a seven point scale (as you an see below).

To calculate the index, we first create a net score for each promise by taking the percentage of 6s and 7s and subtracting the percentage of 1s, 2s, and 3s. The overall TCSi is an average of the net scores for all five promises.

We will be including the TCSi in our upcoming B2B tech vendor research, and expect to publish the results before the end of the year.

Feel free to use the TCSi to measure your organization’s customer success!

Report: The Customer Journeys That Matter The Most

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

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

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Purchase and download Temkin Group report: The Customer Journeys That Matter The Most

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

Most Problematic Customer Journeys Across Industries

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Purchase and download Temkin Group report: The Customer Journeys That Matter The Most


Report Outline:

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

 

Figures in the Report:

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

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Purchase and download Temkin Group report: The Customer Journeys That Matter The Most

Starbucks Training Should Focus on Broken Brand Promises

Last week, Starbucks closed all of its stores for racial sensitivity training after an incident in April when two black men were arrested at a Philadelphia store.

My Take: Starbucks training was well intentioned, but misguided.

As I said in my previous post, it’s great that Starbucks’ leaders took such swift and decisive action to condemn the incident. So what’s wrong with Starbucks doing sensitivity training? Nothing. It doesn’t hurt, but it also doesn’t address the right long-term problem.

Employees don’t change who they are when they go to work. They’re the same people before and after their shift as they are when they’re wearing green aprons. Rather than trying to change who employees are as people (which has little chance of lasting success), Starbucks needs to focus on how those employees view their role when they are at work.

That’s why Starbucks should focus its training on its brand values, not on racial sensitivity.

One of our Four CX Core Competencies is Compelling Brand Values. Companies need to use their brand as a blueprint for how they treat customers. To do that, they must focus on the promises that they make to customers through three steps:

  1. Make Promises. Ensure promises are clearly and explicitly defined.
  2. Embrace Promises: Help employees understand their critical role in delivering on the promises.
  3. Keep Promises: Hold the organization accountable to fulfilling the promises.

Temkin Group hasn’t worked directly with Starbucks, but if we did, we would have encouraged the leadership to create a set of customer promises that looked something like this:

We (Starbucks) promise to act in a way that our customers consistently:

  • Feel Welcomed. We will treat everyone who comes into one of our stores as our guest, whether they’re buying food or just hanging out.
  • Feel Sustained. We will provide wholesome food and beverages that are made with the freshest, healthiest ingredients.
  • Feel Inspired. We will provide an environment where our customers can comfortably meet and talk to others, dream big thoughts, or just relax.
  • Feel Heard: We will relish feedback from our customers, and view it as an opportunity to celebrate or improve.
  • Feel Valued. We will show our appreciate for every customer.

The training should have been about embracing & keeping these type of customer promises. Employees should have gone over multiple scenarios (including the one that happened in Philadelphia) and discussed how employees had either kept or broken those promises. Employees should also have discussed things that they can do to better keep the promises.

In other words, even racially insensitive employees should understand that the incident was unacceptable because it breaks one of Starbucks’ brand promises.

Starbucks leaders can’t treat this as a training issue, it’s a cultural issue. As we’ve discussed, culture is how people think, believe, and act. Starbucks leaders must do more than deploy a bunch of training if they expect to see any lasting change.

This is not just an issue at Starbucks. Very few companies actively help their employees embrace their brand values, as you can see in this data from the State of CX Management, 2018.

Organizations shouldn’t hire people who are racially insensitive and try to train them not to be. They should train employees as part of an overall approach that helps them embrace and keep their customer promises.

The bottom line: Don’t undo employees’ upbringing, get them to embrace your brand values.

P.S. Racial insensitivity is clearly a problem in our society. This is part of why we have made 2018, The Year of Humanity. Please join Temkin Group in our efforts to try and improve humanity!

 

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

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

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Purchase and download Temkin Group report: What Happens After a Good or Bad Experience, 2018

Here are some highlights:

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

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Here is one of the 12 graphics in the report:


Report Outline:

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

 

Figures in the Report:

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

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Mastering Customer Experience Metrics (Infographic)

As an organization’s customer experience efforts mature, CX metrics become a critical guidepost for all of its activities. You can see different ways to download this infographic below.

Mastering Customer Experience (CX) Metrics Infographic

Here are links to download different versions of the infographic:

Here are links to the research referenced in the infographic:

Making AI Customer-Centric

Making AI Customer-Centric (Temkin Group Report)Temkin Group just published a new report, Making AI Customer-Centric. Here’s the executive summary:

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.

Five Ingredients of Customer-Centric AI

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Report Outline:

  • Current AI Efforts Miss the Mark
  • Five Ingredients For Customer-Centric AI
    • Ingredient #1: Conversational Design
    • Ingredient #2: Targeted Use Cases
    • Ingredient #3: Optimized Data Aggregation
    • Ingredient #4: Responsive AI Engine
    • Ingredient #5: Continuous Tuning
  • Determine Organizational AI Readiness

 

Figures in the Report:

  1. Artificial Intelligence Terminology
  2. Five Ingredients for Customer-Centric AI
  3. The HumanConversational Model
  4. American Express Platinum: Handoff to live agent
  5. Organizational Personality
  6. Organizational Personality: U.S. Army’s SGT STAR
  7. Attributes of Good Initial AI Use Cases
  8. How AI Supports Contact Center Agents
  9. NorthFace: Identify Intent in the Moment
  10. Questions For Determining Organizational AI Readiness
  11. Changing Responsibilities for AI Development

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Purchase and download Temkin Group report: Making AI Customer-Centric