Greetings!
Walt Disney once said, "Do what you do so well that they want to see it again and bring their friends." He clearly saw the connection between customer experience and loyalty. Our large-scale consumer research in the US and UK confirms the correlation in one of the reports highlighted in this journal, The ROI of Customer Experience. We also published the 2012 Temkin Loyalty Ratings, which ranks 206 companies across 18 industries based on a survey of 10,000 US consumers. We'll share some of the findings from that research which placed Sam's Club, Aldi, and USAA at the top of the list. The loyalty theme continues with our list of popular posts from Customer Experience Matters that includes comparisons of loyalty levels across genders and ethnic groups. You'll also find updates on the Customer Experience Professionals Association (CXPA.org) and Temkin Group. |
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The ROI of Customer Experience
Companies should only invest in customer experience to the extent that it will help their business, so we tested one of the key value of customer experience, its connection to loyalty, in the report The ROI of Customer Experience.
Our study compared the Temkin Experience Ratings and Temkin Loyalty Ratings of 206 US companies and 66 UK companies to their industry averages. As you can see in the chart below, the research uncovered a high degree of correlation between customer experience and loyalty.
The report also examines the business impact from this correlation and finds that:
- A modest increase in customer experience can result in a $382 million gain over three years for a $1 billion business.
- US companies that are customer experience leaders have 19.5% more customers willing to recommend them than do laggards (19.1% in the UK)
- US customer experience leaders have 18.4% more customers willing to buy more from them compared with laggards (16.5% in the UK)
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2012 Temkin Loyalty Ratings
The 2012 Temkin Loyalty Ratings evaluates three areas of consumer loyalty: willingness to buy more from the company, reluctance to switch business away from the company, and likelihood to recommend the company to friends and colleagues.
We evaluated 206 companies across 18 industries based on feedback from 10,000 US consumers. Here are the companies at the top of the rankings:
1. Sam's Club
2. Aldi
3. USAA (bank)
4. Publix
5. Amazon
6. Credit unions
7. H.E.B.
8. (tie) Chick-fil-A
8. (tie) Starbucks
8. (tie) Target
8. (tie) USAA (insurance)
At the other end of the rankings with the lowest loyalty scores are Charter Communications, Citibank, Bank of America, HSBC, and EarthLink.
As you can see in the industry spreads below, our research found that grocery chains, retailers, and fast food chains have the most loyal customers while very few consumers are loyal to their Internet service providers and TV service providers.
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Customer Experience Matters Blog
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CXPA Update
- The CXPA Members Insight Exchange will be a great event on June 19 & 20 in San Diego at the Hotel del Coronado. We'll have valuable content sharing, networking, and some CX awards. SIgn-up today before it sells out.
- There are several excellent webinars scheduled for April: Harness the Power of Unstructured Data to Enhance Customer Experience, Secret Culture Weapon of the Customer Experience Officer: The Customer Room, and Transforming Customer Experience through Behavioral Analytics.
- Many local networking events are being scheduled, so keep an eye on the CXPA event calendar. I'm speaking at one in Toronto on April 10th and another one in Boston on May 1st.
The CXPA is a non-profit organization that's dedicated to the success of customer experience professionals. If you're not yet a member, then I highly urge you to join! |
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Temkin Group Update
We have a lot of research underway including the Temkin Trust Ratings and Temkin Forgiveness Ratings. We are also working on The State of CX Management which examines trends over the last three years.
Do you want access to all Temkin Group research? Consider a
corporate subscription whch includes access to our research for your entire organization, answers to questions about the research or your CX efforts, and a strategy session to discuss the CX topic of your choice. Send us a note if you'd like more information.
If you're looking to accelerate your customer experience 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
Temkin Group is still looking to add a Customer Experience (CX) Analyst to the team. Who's the right person? Someone who combines a strong passion and proven expertise in helping large organizations improve their customer experience.
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Sincerely,
Bruce Temkin
Customer Experience Transformist
& Managing Partner
Temkin Group
Chair, Customer Experience Professionals Association
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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 |
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