Trust, Millennials, and CX Spending Plans

April 2015

Before we dive into the content for this month's journal, I would just like to say a big thank you! On April 28th, Temkin Group will be celebrating our 5th anniversary. It's been a wonderful five years and we are incredibly grateful to all of you who are clients, who read our content, and who participate in our research.

We will be celebrating this milestone with numerous activities, including making a donation to charity on your behalf. Keep an eye on my blog for more information.

This month we released our fifth annual Temkin Trust Ratings of 293 companies across 20 industries.

Congratulations to the most trusted companies: HEB, credit unions, USAA (for banking, insurance, and credit cards), Publix, Chick-fil-A, Trader Joe's, and Costco. See the top and bottom companies below.

We would also like to congratulate the winners of Temkin Group's 2015 Customer Experience Vendor Excellence Awards:

Confirmit
Clarabridge
NICE Systems
Qualtrics
Rant & Rave
ResponseTek
Walker

This journal also includes highlights from three other recently published research reports:

Engaging Millennials in the Workplace identifies strategies to engage the growing number of workers born between 1980 and 2000.
Customer Experience Expectations and Plans for 2015 shows where large companies expect to spend their time and money this year.
State of the CX Profession, 2015 shares insights from 270 CX professionals regarding their work and also includes a compensation study.

Don't forget to register for our upcoming workshops:

Engaging Employees In Your CX Journey which takes place in Boston on April 14th & 15th
Driving Customer Experience Transformation which takes place in San Diego on June 2nd & 3rd.

In Case You Missed It...

Last month we released the 2015 Temkin Experience Ratings (a free report):

We also shared this video on People-Centric Experience Design:

Here are some other reports we discussed in recent journals:

Employee Engagement Benchmark Study analyzes the engagement levels of more than 5,000 U.S. employees.
What Happens After a Good or Bad Experience shows how consumers change their spending habits and how they talk about their experiences after interacting with companies.
Lessons in CX Excellence, 2015 provides insights from the eight finalists in Temkin Group's 2014 CX Excellence Awards.
The Future of Customer Experience Insights highlights five trends that every VoC, market research, and customer insights professional should expect to see.
The Secret to B2B2C Customer Experience Success
shares best practices for companies that reach their end-customers through partners.

2015 Temkin Trust Ratings

2015 marks the fifth year of the Temkin Trust Ratings. To calculate these ratings, we asked 10,000 U.S. consumers how much they trust 293 companies across 20 industries.

As you cans see in the chart below, H-E-B, credit unions, USAA, Publix, Chick-fil-A, Trader Joe's, and Costco are the most trusted companies. At the other end of the spectrum, Comcast earned the two lowest trust scores, followed by Charter Communications, Coventry Health Care, Time Warner, Consolidated Edison of NY, and Cox Communications.

Engaging Millennials in the Workforce

Most estimates predict that the Millennial generation-those born between 1980 and 2000-will make up 60% of the workforce by 2020, and thus engaging them should be a priority for every company. However, Temkin Group found that only 52% of Millennials are either moderately or highly engaged, lower than any other generation.

In the Temkin Group report, Engaging Millennials in the Workplace, we identify five strategies for engaging these younger employees:

Expand job description: Clearly define performance expectations and create a variety of opportunities for Millennials to expand their knowledge and skills.
Create connections: Foster network-building within and across generational lines, organizational levels, and functional roles.
Make work matter: Help Millennials connect to the company's brand values, its culture, and the causes they care about.
Allow for flexibility: Demonstrate adaptability in when, where, and how the company communicates, trains, and expects work to be done.
Develop Millennial leaders: Help non-Millennials understand and effectively engage this generation.

CX Expectations and Plans for 2015

In our annual Customer Experience Expectations and Plans analysis, we surveyed 207 respondents from companies with $500 million or more in annual revenues about their CX efforts over the past year and their plans for 2015 and beyond.

Here are some highlights from the research:

Forty-two percent of respondents think their CX efforts had a moderately or significantly positive impact on the business in 2014 and 78% expect it to have a positive impact in 2015.
Eighty-two percent of respondents think that CX will be more important to their organization this year than it was last year.
Thirty-one percent of respondents expect to spend more on voice of the customer software vendors in 2015 than they did in 2014, while only 2% expect to spend less.
Eighty-eight percent of respondents expect to put more focus on Web experiences in 2015, a jump from the 79% who expected to increase focus on this channel last year. Social media and phone self-service interactions were the only areas that did not gain momentum.
Eighty-one percent of respondents expect to put more focus on customer insights and analytics. The percentage of respondents who think that employee communications and engagement will get more attention in the upcoming year experienced in the biggest increase since 2014.

State of the CX Profession, 2015

In our 5th annual State of the CX Profession, we surveyed 270 CX professionals and then compared their responses to similar studies we conducted over the previous four years.

As we've done in previous years, Temkin Group is offering this report for free to members of the Customer Experience Professionals Association (CXPA.org).

As we find every year, just about every CX professional believes that CX is a great profession to work in. However, the percentage of respondents who agree with the statement, "My company appreciates CX professionals like me," on the other hand, has dropped from 83% in last year's study to 78% this year, the lowest level in five years.

Many respondents participated in our compensation study, which analyzed five CX job levels in large organizations. Their compensation ranges from an average of about $92,000 for a mid-level individual contributor to about $340,000 for an executive. Direct CX experience ranges from 4.4 years for mid-level individual contributors to more than 10 years for leaders of large groups.

Customer Experience Matters Blog

Here are some recent posts from the CX Matters blog:

What is Culture? How People Think, Believe, and Act describes what it takes for companies to drive a customer-centric culture.
Celebrate Temkin Group's 5th Anniversary With Charity gives you the opportunity to increase the donation we make to a worthy cause.
CX for Smarties, A Beginner's Guide to Customer Experience is a great resource for understanding the foundations of customer experience.
Examining Five Years of Temkin Trust Ratings looks at how these scores have changed over the years.
Temkin Experience Ratings Overview and FAQs explains details about this annual, large-scale benchmark of customer experience.

Temkin Group Research Plans and Updates

We have quite a few exciting new reports underway, including CX Metrics Best Practices, 2015 Temkin Forgiveness Ratings, The State of CX Management, Extracting Customer Insights from the Contact Center, and Mobilizing Middle Managers.

Here are some ways that Temkin Group can help accelerate your CX success:

Research & Advisory subscriptions. Get access to leading-edge best practices, assessments, and benchmark data, in addition to ongoing advice from our CX Transformists to help keep your efforts on track.
CX training. We deliver leading-edge CX practices through in-house workshops, open-enrollment workshops, or customized training programs.
CX assessments. We identify gaps and opportunities in your CX plans and competencies.
Speeches and webinars. We will inform and inspire your internal or client audiences.

If you're interested in Temkin Group's research or services, then drop me a line at bruce@temkingroup.com, visit our website at www.temkingroup.com, or give us a call at (617) 916-2075.

Sincerely,

Bruce Temkin, CCXP
Customer Experience Transformist
& Managing Partner
Temkin Group

Chair, Customer Experience Professionals Association

Customer Experience Matters is a registered trademark of Temkin Group.

NPS is a trademark of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld

In This Issue

> In Case You Missed It

> Temkin Trust Ratings

> Engaging Millennials

> CX Expectations and Plans

> State of the CX Profession

> CX Matters Blog

> Temkin Group Update

Temkin Group is a leading CX research and consulting firm. We help the world's largest brands accelerate their transformational journeys towards customer-centricity and build loyalty by engaging the hearts and minds of customers, employees, and partners.

Temkin Group Calendar:

April 7:

Bruce Temkin speaking in Las Vegas MaritzCX event, CXFusion

April 14 & 15:

Temkin Group Workshop in Boston: Engaging Employees In Your CX Journey

April 23:

Temkin Group webinar with Aimee Lucas at 1:00 ET: The State of Employee Engagement, 2015

April 28:

Temkin Group webinar at 1:00 ET: Temkin Group's 5th Anniversary Chat: CX Past, Present, and Future

April 29:

Temkin Group webinar with Jen Rodstrom at 1:00 ET: Voice of the Customer Best Practices

May 5: