Current State and Future Outlook for CX - WordPress.com · Customer experience correlates to loyalty CX Leaders CX Laggards Willing to buy more Unlikely to switch Likely to recommend

Current State and Future Outlook for CX CX Strategies Summit

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Copyright © 2012 Temkin Group. All rights reserved.

If you don’t focus on your customers’ experience,

then you’re doomed for failure


Rate the overall customer experience that your company delivers

7% What’s your goal in three years?

59%

Base: 255 companies with $500 million or more in annual revenues

12%

23%

30%

28%

6%

1%

Below our industry average

Average for our industry

Slightly above industry average

Considerably above industry average

The best in our industry

Better than all companies in any industry


The core insight…

“Do what you do so well that they will want to

see it again and bring their friends.”

- Walt Disney


Temkin Loyalty Ratings versus industry average

(percentage points)

Temkin Experience Ratings versus

industry average (percentage points)

-20 +20

+30

-30

Temkin versus industry average

(percentage points)

Experience Ratings versus


Temkin Loyalty Ratings versus industry average

(percentage points)

Temkin Experience Ratings versus


-20 +20 +20

+30 +30

-30

Correlation coefficient (R)

U.S. = .83 UK = .89

Source: Temkin Group report. The ROI of Customer Experience


Customer experience correlates to loyalty

CX Leaders

CX Laggards

Willing to buy more

Unlikely to switch

Likely to recommend

+9.2 -9.2

+9.1 -10.1 +9.9 -9.6

Loyal customers versus industry average

(Difference of percentage points) Source: Temkin Group report. The ROI of Customer Experience


Customer experience correlates to loyalty

CX Leaders

CX Laggards

Willing to buy more

Unlikely to switch

Likely to recommend

+9.2 -9.2

+9.1 -10.1 +9.9 -9.6

Loyal customers versus industry average

(Difference of percentage points) Source: Temkin Group report. The ROI of Customer Experience

6789:#

6;84:#

6;8<:#


Very Poor Poor Okay Good Excellent Grocery Chains

Banks

Health Plans

Car Rental Agencies

Retailers

Hotels Appliance Makers

Retailers Retailers Parcel Delivery Services

Car Rental Agencies Car Rental Agencies Investment Firms

Appliance Makers Appliance Makers Insurance Companies

Computer Makers

Fast Food Chains Grocery Chains Grocery Chains

Fast Food Chains Fast Food Chains

Credit Card Issuers Credit Card Issuers Credit Card Issuers Credit Card Issuers Airlines

Wireless Carriers

TV Service Providers TV Service Providers Internet Service Providers

Computer Makers Computer Makers

Wireless Carriers Wireless Carriers Auto Dealers

Computer Makers Computer Makers Computer Makers

Health Plans

TV Service Providers TV Service Providers TV Service Providers Internet Service Providers Internet Service Providers Internet Service Providers Internet Service Providers

Computer Makers Computer Makers Computer Makers

2102 Temkin Experience Ratings


2012 Temkin Experience Ratings

Base: 10,000 US consumers Source: Temkin Group Q1 2012 Consumer Benchmark Survey

Top Rated firms Rank Company

1 Sam's Club 2 Publix 3 Starbucks 3 Subway 3 Chick-fil-A 3 Aldi 3 Winn-Dixie 3 H.E.B. 3 Credit unions

10 ShopRite 10 Amazon.com

Rank Company 10 Kroger 10 Sonic Drive-In 14 Walgreens 14 Target 14 PNC 14 Pizza Hut 18 Hy-Vee 18 Lowe's 18 Whole Foods 18 BJ's Wholesale Club 18 Arby's

Rank Company 12

Sam's Club Publix Sam's Club

Copyright © 2012 Temkin Group. All rights reserved. Copyright © 2012 Temkin Group. All rights reserved.

Consistently deliver on brand messages that resonate with

customers


Customer experience efforts support business and brand strategy

Strategy and objectives for customer experience (by target customer segment)

Brand Strategy

Business Strategy

Goals for attitudes and behaviors for each target segment of customers

Source: Temkin Group report. The State of Customer Experience Metrics


The evolution of CX management

CX Intrigue (2005 to 2009)

CX Exuberance (2008 to 2012)

CX Professionalism (2011 to 2015)

CX Mastery (2014+)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Temkin Group report. The Future of Customer Experience


59% have a senior exec in charge of CX

65% have five or more full-time CX professionals

72% identify “other competing priorities” as a significant obstacle

19% of senior execs trade-off short-term financial results for longer-term customer loyalty

CX factoids on large firms (>$500 million)

Base: Companies with $500M+ in revenues Source: Temkin Group report. The State of CX Management, 2012


Your journey: Six stages of CX maturity

Embed

Explore

Align

Operationalize

Ignore

Mobilize

CX is integral part of company culture and not managed as a separate activity

Senior executive(s) recognizes that CX is important and appoints a temporary group

CX metrics are integrated into executive scorecards and business operational reviews

Clear CX governance in place and organization starts redesigning cross-functional processes

Organization does not view CX as core part of its value proposition

Full-time executive leads CX team and starts making incremental changes



Embed

Explore

Align

Operationalize

Ignore

Mobilize





Organization does not view CX as core part of its value proposition.


Explore

Ignore

Operationalize

Mobilize

Embed

Align



Embed

Explore

Align

Operationalize

Ignore

Mobilize





Organization does not view CX as core part of its value proposition.


13%

28%

59%


Four CX core competencies

Customer-Centricity

Purposeful Leadership

Customer-Connectedness

Employee Engagement

Compelling Brand Values


Does your leadership team operate consistently with a clear,

well-articulated set of values?

Why


Are your brand attributes driving decisions about how you treat

customers?

Make Promises Embrace Promises

Keep Promises


Is customer feedback and insight integrated throughout

your organization?

•!Customer feedback is cheap •!Actionable insight can be valuable •! Taking action on insight is precious


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75%

25% 30%

70%

Highly/moderately engaged employees

Less engaged employees

Companies with very good customer experience (CX)

Companies with mediocre and poor CX


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10 CX mistakes to avoid

1.! Faking Executive Commitment 2.! Over-Relying on Customer Surveys 3.! Neglecting Experience Design 4.! Treating All Customers the Same 5.! Un-Engaging New Customers 6.! Ignoring Employees 7.! Obsessing About Detractors 8.! Forgetting to Celebrate Success 9.! Falling in Love with a Metric 10.!Mapping Internal Touchpoints

Source: Temkin Group eBook, 10 CX Mistakes to Avoid


Thank you!

Bruce Temkin !"#$%&'()*%+,(-#G#H&'&I,'I#D&%-'2%#

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For more information, including these slides:

tinyurl.com/CXToronto

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Current State and Future Outlook for CX - WordPress.com · Customer experience correlates to loyalty CX Leaders CX Laggards Willing to buy more Unlikely to switch Likely to recommend