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CX Metrics & Innovation Equity
December 2011

Greetings!

I can't believe that 2011 is almost over; the year flew by so quickly. Since this is our last newsletter of the year, I want to wish you and your family a wonderful holiday season and a happy, healthy and prosperous 2012!

 

Given the time of year, we're launching research that looks back at 2011 and ahead to 2012. It would be great if you'd take our Q4 2011 survey. If you complete the survey, then you'll get a free copy of the research and have a chance to win a $50 Amazon.com gift certificate.

 

   

 

This journal highlights two new Temkn Group research reports. The first examines how companies use (and in many cases misuse) customer experience metrics. The second report rates the "Innovation Equity" of 50 of the world's largest brands. Innovation equity examines the willingness of consumers to try something new. 

 

The blog posts include leadership lessons from Colin Powell and Duke's Coach K, insights from Disney, social media and mobile adoption rates, and great ROI data from JetBlue.

 

In the Temkin Group update, I discuss our research plans for 2012

State of CX Metrics, 2011  

 

Companies know that it's important to use customer experience (CX) metrics and many are already getting value from those efforts. But very few companies have fully integrated CX metrics into their business operations. That's part of what we learned when we surveyed more than 200 large organizations for the Temkin Group report, State of CX Metrics, 2011.

 

Here are some of the specific findings: 

  • Less than one quarter of companies measure the emotional reaction of customers after interacting with their company.
  • Less than one fifth of companies effectively measure wireless interactions and less than one quarter effectively measure customer interactions that cross multiple channels.
  • Only 19% of companies think they do a good job making trade-offs between financial and CX metrics.
  • In only 41% of companies do executives review CX metrics more frequently than once every three months.
  • More than six out of ten companies think they do a good job measuring customer service interactions, but only 30% feel they do a good job measuring when a customer is researching a product.

As part of the research, we created a simple assessment that examines four components of a CX metrics program: Consistent, Impactful, Integrated and Continuous. Only 10% of the companies that completed the assessment received a good or very good rating. Here's how companies did in those four areas:  

 

 

 

Companies need to stop trying to measure everything about every customer. While that's a great concept, it's impractical. Companies will drive the most customer-centric behaviors when they deeply understand the key moments of truth for key customer segments. Using the BAPI model below, organizations should identify the interactions that have the largest impact on customer perceptions and drive the most changes in their attitudes that generate the behaviors that support the business and brand strategy.

 

 

Innovation Equity Quotient 

 

Most companies understand that innovation is a key driver to their future success. But even if a company develops the "greatest new thing," there's no guarantee that customers will buy it.  

 

In the new report, Innovation Equity Quotient, we test how much consumers are willing to try something new. The analysis is based on a simple question: "How likely are you to try a new product or service right away if these companies announced one?" We asked 5,000 US consumers; here are the top 20 in our study of Fortune's 50 largest brands:  

 

      

The report examines the data across consumer age groups, ethnicity, income, and gender. Here are the companies with the largest innovation equity gaps across consumer segments: 

  • Age gaps: Nintendo, Google, Apple, Sony and Starbucks
  • Gender gaps (biased towards females): Revlon, L'Oreal, Clorox, Kraft Foods and Johnson & Johnson
  • Gender gaps (biased towards males): Intel, Microsoft, Google, Unilever and Sony
  • Income gaps: Apple, Costco, Marriott, Honda and Southwest Airlines
  • Ethnicity gaps: Nike, Dell, Samsung, Sony and Marriott
Customer Experience Matters Blog
 
Here are some recent posts from Customer Experience Matters:
  • Leadership Thoughts from Colin Powell provides some great insights on leadership that I heard during a speech by General Powell. One of my favorites is: "If you want to win the battle, then you need to get inside of the decision cycle of your enemy."
  • Coach K Demonstrates Winning Leadership celebrates Mike Krzyzewski's milestone of winning the most basketball games in NCAA history. The post includes several quotes from Coach K including "Communication does not always occur naturally, even among a tight-knit group of individuals. Communication must be taught and practiced in order to bring everyone together as one."
  • At Disney, Someone Always Owns the Moment discusses some of the great things that Disney is doing with analytics. I loved this quote from Scott Hudgins, VP, Customer Managed Relationships: "No one owns the customer, but someone always owns the moment."
  • Some Data Magic in Orlando reviews comments from the president of the Orlando Magic about how the NBA team uses SAS analytics to do things like price tickets based on the opponent. Makes sense that some games start at $10 per ticket while others start at $110.
  • People are Key to Predictive Analytics includes interesting items from author Jim Collins and executives at Michael's Stores, Belk, SAS, AXA Equitable, and State Farm.
  • Which Channels Do Consumers Prefer? shows that phone and Web self-service are the favored channels for many types of interactions.
  • Social Media and Mobile Adoption Rates shows how many consumers are doing things in social media and via mobile phones. Also shows the higher rate of adoption for young adults, 18 to 25.
  • CX Insights from Marriott and JetBlue gives insights from two great firms. According to Scott Allison, VP of Marriott's Canadian Operations: something goes wrong, even if it's a small thing, during about one-quarter of stays - so hotels need to be good at recovery. That's why the Ritz Carlton empowers associates to spend up to $1,000 per day per guest to improve a guest's stay. Vicky Stennes, VP of Inflight Experience at JetBlue provides  great data on ROI, including: Every five promoters leads to two new customers and every 16 detractors leads to the loss of one customer.  
CXPA Update 

The Customer Experience Professionals Association (CXPA.org) community has well over 1,000 members. Are you a member yet?!?! If you're a customer experience professional, then I highly urge you to joinI

We're working on the 2012 agenda and it looks like there's a lot of exciting things for next year. 

Temkin Group Update

As we wind down 2011, we're planning ahead to 2012. We're excitied about our research that's in store. Here are some of the research reports we plan to publish next year: 
  • Making the Case for Employee Engagement will analyze data from more than 2,400 U.S. employees that links employee engagement with customer experience and employee productivity.
  • 2012 Temkin Ratings will provide us the opportunity to analyze trends as we compare results with 2011. We are also increasing the number of industries this year.
  • 2012 Temkin Ratings UK will rate some of the largest companies in the UK.
  • State of Customer Experience Management, 2012 will be the third year for this report that tracks how companies progress in mastering the four CX competencies.
  • Social Media and Mobile Benchmark will provide data on how consumers are using these important and growing channels. 
As you put together your 2012 budget, don't forget to include a subscription to Temkin Group Research. Our research bundles include access to all of our research for your entire organization, answers to questions that you have about the research or your CX efforts, and a strategy session to discuss the topic of your choice. Send us a note at [email protected] if you'd like to get a quote. Take a look at our previous research.

 

If you're looking to accelerate your 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 curricula 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
Don't forget to take our Q4 2011 survey... thanks!

Drop me a line at
[email protected], visit our Website at

www.temkingroup.com, or give us a call at (617) 916-2075.

 

Sincerely, 

 

Bruce Temkin
Customer Experience Transformist
& Managing Partner
Temkin Group

Chair, Customer Experience Professionals Association

Follow me on Twitter  

In This Issue
> State of CX Metrics
> Innovation Equity Quotient
> Customer Experience Matters Blog
> CXPA Update
> 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
CX Tidbits 

> Only 2% of firms have reached full maturity in their voice of the customer programs

 

> Lack of a clear CX strategy is an obstacle for 49% of B2B firms and 33% of B2C firms

 

> Consumers only recommend companies that they trust, per our study of 6,000 consumers  

 

> USAA, Amazon.com, Costco, Edward Jones, Hyatt, Sam's Club and TriCare are at the top of the 2011 Temkin Trust Ratings 

 

> 30% of consumers who have customer service issues with a TV service provider aren't happy and won't forgive the company    

 

> CX requires both the right and left brain, and other lessons from CXPA event 

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