Report: The State of CX Metrics, 2017

Purchase and download report: State of Customer Experience MetricsWe published a Temkin Group report, The State of CX Metrics, 2017.

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:

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Report: Five Steps For Building A Strong CX Metrics Program

Five steps for building a customer experience metrics programWe published a Temkin Group report, Five Steps For Building A Strong CX Metrics Program.

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:

Examples of 5 Steps for An Actionable CX Metrics Program

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Report: Temkin Loyalty Index, 2017

We published a Temkin Group report, Temkin Loyalty Index, 2017. This is the third year of this study that examines the loyalty of 10,000 U.S. consumers to 329 companies across 20 industries.

To determine companies’ Temkin Loyalty Index (TLi), we asked respondents to rate how likely they are to exhibit five loyalty-related behaviors: repurchasing from the company, recommending the company to others, forgiving the company if it makes a mistake, trusting the company, and trying the company’s new offerings.

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

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

Here are some highlights of the research:

  • ACE Rent A Car and Advantage Rent-A-Car earned the highest TLi, while Time Warner Cable earned the lowest.
  • Supermarkets engender the strongest loyalty in their customers, while TV/Internet service providers engender the least.
  • NFCU and ACE Rent a Car most outpace their industries, while Spirit Airlines and Avis lag the farthest behind.
  • Customers are most likely to recommend ACE Rent a Car, AmazonFresh, and NFCU and least likely to recommend Time Warner Cable, Comcast, and Cox Communications.
  • Customers are most likely to repurchase from Publix, H-E-B, and Trader Joe’s and least likely to repurchase from Time Warner Cable, Comcast, and Cox Communications.
  • Customers are most likely to forgive Advantage Rent-A-Car, ACE Rent A Car, Fujitsu and NFCU and least likely to forgive Comcast, Time Warner Cable, and Cox Communications.
  • Customers are most likely to try a new offering from ACE Rent A Car, Advantage Rent-A-Car, and Siemens and least likely to show product loyalty to Fifth Third, Citizens, and Time Warner Cable.
  • USAA and NFCU are the most trusted companies, while Time Warner Cable, Comcast, and Cox Communications are the least. All of the industries saw an increase in loyalty over last year, though utilities saw the most dramatic improvement.

Here are the top and bottom rated companies:

Here are the overall industry average TLi:

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Here are the 2016 Temkin Loyalty Index and the 2015 Temkin Loyalty Index.

Methodology

We report on companies that have feedback form at least 100 consumers who have interacted with the company over the previous 90 days. This ends up in 329 companies across 20 industries. The TLi is the average of five different measures of loyalty for each of those companies:

1611_tli_methodology

Report: Capturing Insights from Online Customer Communities

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

Companies across a range of industries use online customer communities to augment their customer support, marketing, and product innovation efforts. However, when used thoughtfully, these online communities can provide value far beyond their original purpose. Because these communities signify an ongoing relationship between the company and participating customers, customer insights teams will find that these forums contain a treasure trove of insights. As a result of these deeper relationships, online communities offer unique advantages to voice of the customer (VoC) programs, including Always-on Feedback, Broad and Diverse Insights, Continuous Dialogue, Peer-to-Peer Dynamics, and Employee-to-Community Interactivity. These unique advantages can help companies adapt to the five Customer Insight Trends that are changing the face of VoC programs: 1) Deep empathy, not stacks of metrics, 2) Continuous insights, not periodic studies, 3) Customer journeys, not isolated interactions, 4) Useful prescriptions, not past descriptions, and 5) Enterprise intelligence, not customer feedback. To help organizations get the most value from their communities, Temkin Group has highlighted best practices for capturing and using insights from customer communities across these five trends. Companies also must plan for the entire community lifecycle to be successful; this includes Determine Strategy, Structure Community, Recruit Members, Grow and Maintain, and Close Down.

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

1612_attributesofonlinecommmunities

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Report: Temkin Loyalty Index, 2016

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

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

Here’s the 2015 Temkin Loyalty Index.

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

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

Here are the top and bottom rated companies:

1611_tli_topbottomcompanies

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