CX Trends, Metrics, and Actionable Insights
(January 2016)
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Greetings!
Happy New Year from all of us at Temkin Group! We hope that 2016 is a happy, healthy, and prosperous year for you and your family.
We expect 2016 to be a busy year for customer experience as many different CX activities are continuing to increase in maturity. To kick off the new year, we published our annual listing of CX trends (which you can read below) and have labeled 2016 as " The Year of Emotion."
Historically, emotion has been an underserved area-as you can see in our new infographic, Customer Experience Needs More Emotion. However, this year we expect companies to start explicitly considering emotions as part of their customer experience efforts.
In this month's journal, I highlight three new pieces of research:
- The State of CX Metrics, 2015. In our fifth annual benchmark of how large organizations use CX metrics, we found that the percentage of companies with strong CX metrics efforts grew from 11% in 2014 to 14% in 2015.
- Make Your VoC Action-Oriented. Our research shows that in order for voice of the customer programs to become more actionable, they must be simplified. This report identifies five strategies for simplifying VoC programs: Stakeholder Empathy, Tailored Insights, Feedback Rationalization, Loop-Closing, and Customer Journey Alignment.
- Tech Vendor Client Success Ratings. Based on a survey of 800 IT decision-makers, we developed client success ratings for 82 companies. Sitting at the top of the list are IBM software, Intel, Pitney Bowes, and IBM SPSS.
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Temkin Group is a leading CX research, advisory, and training 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. Our team combines CX thought leadership with a deep understanding of the dynamics of organizations to accelerate results.
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Temkin Group Can Accelerate Your 2016 CX Results
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In Case You Missed It...
Here is some content we discussed in recent journals:
- Temkin Loyalty Index. We evaluated five different areas of consumer loyalty for 293 companies, and USAA, H-E-B, Publix, and Trader Joe's earned the highest loyalty ratings.
- B2B CX Best Practices: Our research uncovered 20 best practices for customer experience across five key business-to-business (B2B) processes.
- Temkin Experience Ratings of Tech Vendors: We had 800 IT decision-makers evaluate their experiences with tech vendors, and of the 62 tech vendors we looked at, IBM, IBM SPSS, and Intel earned the highest ratings.
- ROI of Customer Experience, 2015. Our research shows a strong correlation between CX and several areas of loyalty across 20 different industries. Our model found that a modest improvement in CX can generate more than $800 million in additional revenue over three years.
- Net Promoter® Score Benchmark Study, 2015. We surveyed 10,000 U.S consumers and used their feedback to calculate the NPS® of 291 large organizations across 20 industries. USAA earned the highest score, while Comcast earned the lowest.
- State of Voice of the Customer Programs, 2015. For the fifth straight year, we benchmarked voice of the customer (VoC) programs. While nearly 200 large companies completed our VoC Competency & Maturity Assessment, only 16% scored in the top two levels of maturity.
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11 CX Trends for 2016 (The Year of Emotion)
Every year we review our research and examine leading-edge customer experience practices to develop our list of CX Trends for the upcoming year. As part of this process, we also identify an overarching theme for the year, and the theme for 2016 is "The Year of Emotion."
A customer's experience with a company is comprised of three components-success, effort, and emotion. Our research shows that, of the three, emotion has the largest impact on loyalty; however, it is also the area where companies are least adept-often seeming to ignore it entirely. In 2016, we expect to see a major jump in the number of companies that discuss, measure, and design specifically for emotion. It will also become a hot topic at CX conferences.
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The State of CX Metrics, 2015
Last month we published our fifth annual report on The State of CX Metrics, which is based on a survey of large organizations.
The most commonly used metrics continue to be likelihood-to-recommend and satisfaction, while the most successful metric is interaction satisfaction. Seven out of 10 companies have compensation tied to CX metrics for some of their employees. Net Promoter® Score is the most common metric used and customer service is the most common group to have its compensation tied to CX metrics.
As you can see below, companies improved across all four key areas of a successful CX metrics program: Continuous, Consistent, Impactful, and Integrated. |
Make Your VoC Action-Oriented
In the report Make Your VoC Action-Oriented, we found that most respondents within large organizations believe that their voice of the customer programs have been successful. Despite this positivity, an overwhelming number of VoC programs are still in the very early stages of maturity. These immature programs tend to overly focus on collecting feedback and don't focus enough on driving action based on insights from the feedback.
Our research shows that simplification is a key path to VoC maturity. This report identifies five strategies for simplifying VoC programs: Stakeholder Empathy, Tailored Insights, Feedback Rationalization, Loop-Closing, and Customer Journey Alignment.
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Tech Vendor Client Success Ratings
The Tech Vendor Client Success Ratings examines the percentage of IT decision-makers within large companies who feel that their tech vendors are " helping to make sure that their organization successfully achieves its desired value from the products and services that they have purchased."
The average Client Success Rating is 61%. As you can see below, the scores range from a high of 77% for IBM software down to a low of 37% for BMC. |
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Temkin Group Research Plans and Updates
We have quite a few exciting new reports underway, including CX Plans and Priories for 2016, Tech Vendor Products and Relationship Satisfaction, Experience Review: Mobile Gift Cards and Lessons in CX Excellence. 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, and 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.
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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
Co-founder, Customer Experience Professionals Association
Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.
Customer Experience Matters is a registered trademark of Temkin Group.
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