The Customer Experience Journal
Customer Experience Correlates To Loyalty
June 2011

It's been a difficult month for many people caught up in some terrible weather throughout the US. I hope that it did not affect you and that you and your families are doing well.


In this edition, we discuss three new research reports: 

We also showcase some popular blog posts such as Enterprise Feedback Management (EFM) Is Dead and provide an update on the launch of the Customer Experience Professionals Association.


The Temkin Group update includes results from our $1,000 charity challenge and some upcoming research.


Before getting to all of that great content, I invite you to take our Q2 survey about voice of the customer programs: 

Q2 2011 Temkin Group Survey  

If you take the survey, then you will receive a free report
and a chance to win a $100 gift certificate 

CorrelationThe Customer Experience-Loyalty Connection

In our new report, The Customer Experience-Loyalty Connection, we analyzed how consumers rated the customer experience of 143 large companies and their loyalty to those companies. The data was compelling, as you can see in this graphic; customer experience correlates to loyalty.


Customer Expeirence And Loyalty Scatter  

The analysis also shows that customer experience leaders enjoy a double-digit advantage in customers that are willing to buy more from them, reluctant to switch business away from them, and likely to recommend them. 


We built a model to estimate the revenue affect of improving customer experience across 12 industries: airlines, banks, credit card issuers, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, computer makers, retailers, TV service providers, and wireless carriers. A modest improvement in customer experience can drive between $179 million (for health plans) and $308 million (for hotel chains) over three years for every $1 billion in annual sales. 

StateOfCxPState Of Customer Experience Management, 2011

We recently published The State Of Customer Experience Management, 2011 , that examines the customer experience efforts and progress of more than 200 large companies.


Here are some findings in this report:
  • Almost six out of ten companies have a senior executive in charge of their customer experience efforts
  • Thirty-percent of the companies have 20 or more full-time employees in their customer experience organization
  • Nearly two-thirds of companies highlighted "other competing priorities" as a key issue
  • Eighty-four percent of companies have already seen positive business results from voice of the customer efforts
  • Nearly half of the respondents already use Net Promoter Score (NPS)
  • Only 3% of companies reached the highest level of customer experience maturity, which we call a Customer-Centric Organization

In addition, we examined results from companies that completed the Temkin Group Competency Assessment; comparing results with last year for North American companies. As you can see, companies have made progress across all four competencies!  

Customer Expeirence Competencies Are Improving   

ForgivenessThe 2011 Temkin Forgiveness Ratings
All companies make mistakes, so they need customers to give them a second chance. But companies have built-up considerably different levels of goodwill. In The 2011 Temkin Forgiveness Ratings, we examined how willing consumers are to forgive 143 companies.

Here are the companies that consumers are most willing to forgive:
  • USAA
  • Costco
  • TriCare
  • Sam's Club
  • target
  • Walgreens
  • Southwest Airlines
  • Lowe's
You can dig deeper into the data at the Temkin Ratings Website.
BlogCustomer Experience Matters Blog

Here are some recent posts from Customer Experience Matters:
CXPACustomer Experience Professionals Association

In the last newsletter, we announced the formation of the Customer Experience Professionals Association (

Customer Experience Professionals Association

We already have more than 30 organizations signed up as Founding Corporate Members, showing their commitment to leadership in customer experience. Other companies can also become founding members if they sign-up by the end of July. Individuals are also welcome to sign-up, so I urge you to consider joining!


If you want more information, join our informational Webinar about the CXPA on June 14th. 

TemkinGroupTemkin Group Update

In last month's edition, we celebrated Temkin Group's 1st anniversary. To honor this milestone, we let you select a non-profit organization to receive a donation. Based on the results, we donated $1,000 to the American Cancer Society.

We have exciting research coming out over the next month which includes the 2011 Temkin Trust Ratings, the 2011 Temkin Web Experience Ratings and the Impact Of Social Media On Purchase Decisions.

If you want to know more about Temkin Group, check out a new video that we posted on our YouTube channel.

If you're looking to accelerate your organization's customer experience transformation efforts, here are a number of ways that
Temkin Group can help:
  • Assessments of customer experience efforts, to identify gaps and opportunities to accelerate your transformation efforts
  • Speeches and webinars on a wide range of customer experience and leadership topics
  • Interactive workshops for executive teams or other groups to gain alignment around key customer experience principles and priorities or to develop plans in areas such as voice of the customer programs
  • Educational curriculum to establish and reinforce an understanding of proven customer experience principles across an organization
  • Strategy reviews of marketing and product plans for vendors who want to help companies transform their customer experience
Please consider taking the Temkin Group survey. And don't forget to check out the Customer Experience Professionals Association; we created it for you!

Drop me a line at, visit our Website at, or give us a call at (617)916-2075.

Bruce Temkin
Customer Experience Transformist
& Managing Partner
Temkin Group

Follow me on Twitter  
In This Issue
> Customer Experience-Loyalty Connection
> State Of Customer Experience Management
> 2011 Temkin Forgiveness Ratings
> Customer Experience Matters Blog
> The Customer Experience Professionals Association
> Temkin Group Update
Temkin Group
We are a research and consulting firm that combines thought leadership with a deep understanding of the dynamics of large organizations to help senior executives accelerate their customer experience transformational efforts
Customer Experience


> Only  16% of companies  were "good" or "excellent" in the Temkin Experience Ratings

> Only 18% of companies were "good" or "excellent" in the Temkin Forgiveness Ratings

> 20% of consumers wrote about their bad experiences on Facebook

> 6 Ds of Voice of the Customer programs: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy

> 92% of US customer experience professionals in the US are satisfied with their job, compared with 81% of Europeans
Quick Links
Temkin Ratings Website

Temkin Group Website

Customer Experience Matters Blog

Temkin Group Research
Four Customer Experience Competencies

Purposeful Leadership

Compelling Brand Values

Employee Engagement

Customer Connectedness


Check out our new video 

Join Our Mailing List