Customer Experience Accelerates in 2011 Temkin Group

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Temkin Group Insight Report

Customer Experience

Accelerates In 2011Survey Highlights Success In 2010 And Strong

Ambitions For 2011

By Bruce TemkinCustomer Experience Transformist

& Managing PartnerTemkin Group

January 2011


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Temkin Group Insight Report www.temkingroup.com

Copyright 2010 Temkin Group. All rights reserved. Page 2

Executive Summary

To understand whats on the plate for customer experience in 2011, we surveyed morethan 170 large organizations about their 2010 activities and 2011 plans. Most respondents

are satisfied with their customer experience roles and have a strong outlook forimprovements at their company. More than eight out of 10 respondents think thatcustomer experience will be more important in 2011 than it was in 2010. Social media, theWeb, and customer-centric culture are set to receive the most increased attention this year.We also examined the anatomy of successful customer experience programs and found thatthey plan more and use customer feedback and insight more effectively than other firms.

Companies Plan To Increase Their Customer Experience Efforts In 2011

To find out how what to expect in 2011, we asked customer experience professionals from 172

companies with annual revenues of at least $1 billion about their 2010 customer experience effortsand their plans for 2011. These respondents are:

Mostly from customer experience organizations. More than three-quarters of the peoplewho answered the survey were from centralized customer experience groups, marketing, orcustomer service (see Figure 1).

Involved with voice of the customer programs. Eighty-three percent of respondents areinvolved with voice of the customer (VoC) programs (see Figure 2). Next on the list ofresponsibilities are customer insight analysis, change management and culture change.

Work on Websites and marketing. Respondents oversee a large array of responsibilities.The largest percentage work on Website experience and marketing efforts (see Figure 3).

Satisfied with their current position. When we asked the customer experienceprofessionals to rate their current job, 92% were either very satisfied or somewhat satisfied(see Figure 4).

Optimistic about the future. While only 7% of respondents think that their company is acustomer experience leader in their industry, 60% expect to be a leader within three years(see Figure 5). A full nine out of ten respondents expect to deliver above-average customerexperience.

Current State Of Customer Experience: Success With Room For Improvement

Heres what respondents said about their current customer experience efforts:

Executives are committed, but skills and resources are lacking. Three quarters ofrespondents agree that their executives are fully committed to achieving the companyscustomer experience goals (see Figure 6). Considerably fewer think that the companyunderstands the link between customer experience and business results or have the skillsand resources to achieve their customer experience goals.


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More ambitious. Across a number of areas, Successful Firms showed that they were moreambitious than other companies (see Figure 15). Ninety-eight percent of Successful Firmsexpect to see positive results from their customer experience efforts in 2011, comparedwith only 54% of other firms.

Better users of customer feedback and insight. We asked respondents to rate theireffectiveness across Temkin Groups four customer experience core competencies (seeFigure 16). Successful Firms got highest marks across all four areas, with the largest gapwhen it came to using customer feedback; 79% of Successful Firms are doing a good job inthis area compared with only 25% of other firms.

Better led. Across all of the areas of customer experience activities, Successful Firms gavethemselves better ratings for their efforts (see Figure 17). The largest gap was in the area ofleadership and executive scorecards/dashboards.

Putting more into Social Media, less on phone self-service. Successful Firms have moreaggressive plans for improving every customer experience interaction channels in 2011except phone self-service (see Figure 18). The largest gap is with social media where 85% ofSuccessful Firms expect to increase their focus in 2011 compared with only 71% of otherfirms.

Equally focused on VoC programs. Successful Firms plan to increase their effort across anumber of customer experience activities (see Figure 19). The largest gap is in customerinsights and analytics.

Recommendations: Assess Your Customer Experience Competency

During 2011, many companies will continue to make progress along their multi-year customerexperience journeys. To make sure you are on the right track in building a customer-centricorganization, take the Temkin Group Customer Experience Assessment (see Figure 20). Use theassessment to:

Identify strengths and weaknesses Companies are only as strong as their weakest link. Sothe results of this assessment can help identify areas of focus for 2011.

Compare answers across the organization. To make sure that all key stakeholders are inalignment around the customer experience capabilities of the organization, get them to takethe assessment. Use a comparison of the results to discuss and address any majordifferences across the answers.


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Figure 1: Make-Up Of Respondent Organizations


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Figure 2: Voice Of The Customer Tops List Of Responsibilities


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Figure 3: Website Experience Tops List Of Channels Covered


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Figure 4: Customer Experience Professionals Are Satisfied


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Figure 5: Customer Experience Ambitions Abound


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Figure 6: Companies Are Missing Skills And Resources


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Figure 7: Very Few Companies Have Mastered Customer Experience Management Efforts


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Figure 8: Human Contact Channels Rate The Highest


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Figure 9: Most Companies See Positive Business Results


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Figure 10: 2011 Planning Is Somewhat Effective


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Figure 11: Customer Experience Becomes Even More Important In 2011


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Figure 12: Social Media Experiences Will Become A Much Larger Focus In 2011


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Figure 13: Customer-Centric Culture Will Become A Much Larger Focus In 2011


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Figure 14: Successful Customer Experience Programs Do A Better Job Planning


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Figure 15: Successful Customer Experience Programs Have More Ambition For Future Success


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Figure 16: Successful Customer Experience Programs Are Much Better AtUsing Customer Feedback And Analysis


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Figure 17: Successful Customer Experience Programs Have More Effective Leadership


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Figure 18: Successful Customer Experience Programs Will Focus Less On Phone Self-Service In 2011


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Figure 19: Successful Customer Experience Programs Will Focus More

On Customer Insight And Analysis


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Figure 20: Customer Experience Competency Assessment


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About The Author, Bruce Temkin

Bruce Temkin is Customer Experience Transformist & Managing Partner of Temkin Group. He iswidely viewed as a leading expert in how organizations build differentiation with customerexperience. He has worked with hundreds of large organizations on the strategies, operational

processes, organizational structures, leadership, and culture required to sustain superior customerrelationships.

Bruce works with executive teams to define the right strategy and develop plans for acceleratingthe path to customer experience improvements.

Bruce is the author of the popular blog Customer Experience Matters(experiencematters.wordpress.com) where he regularly posts insights on topics such as customerexperience, branding, and leadership.

Prior to forming Temkin Group, Bruce was Vice President & Principal Analyst with ForresterResearch. During his 12 years with Forrester, he led the company's business-to-business, financialservices, eBusiness, and customer experience practices. Bruce was Forresters most-read analyst

for 13 consecutive quarters and was one of the most respected analysts in the industry.

Bruce authored several Forresters most popular research reports on customer experienceincluding Experience-Based Differentiation, The Customer Experience Journey, and Voice Of TheCustomer: The Next Generation. He created Forresters Customer Experience Index, which ratesmore than 100 firms on their overall customer experience. He also led the creation and updates ofmany of Forresters customer experience evaluation methodologies and training workshops.

Prior to Forrester, Bruce co-founded and ran a couple of Internet start-ups. He also heldmanagement positions with GE, Stratus Computers, and Fidelity Investments.

Bruce has been widely quoted in the press, including media outlets such as New York Times, WallStreet Journal, and Business Week.

Bruce is a highly demanded public speaker who combines deep expertise with an engaging,entertaining style. He has delivered keynote speeches at hundreds of industry and corporateevents; often recognized as the top speaker. At Forresters inaugural Customer Experience Forum in2009, for instance, his two sessions received the top ratings of the event.

Bruce holds a masters degree from the MIT Sloan School of Management, where he concentrated inbusiness strategy and operations. He also holds an undergraduate degree in mechanicalengineering from Union College.


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i h ki ll i h d

About Temkin Group

Temkin Group is a consulting and research firm that helps clients increase customer loyalty byimproving their customer experience. The company was founded based on four core beliefs:

Customer experience drives loyalty.Our research and work with clients has shownthat interactions with customers influences

how much business theyll do with you in thefuture and how often they recommend you

to friends and colleagues.

Its a journey, not a project.Building the capabilities to consistently delightcustomers doesnt happen overnight.

Companies need to plan for a multi-yearcorporate change program.

Improvement requires systemic change.Companies can improve isolated customer

interactions, but they cant gain competitiveadvantage until customer experience is

embedded in their operating fabric.

We can help you make a difference.Transformation isnt easy, but leading your

company to be more customer-centric is worth theeffort. We help our clients accelerate their results

and avoid many of the bumps along the way.

Temkin Group combines customer experience thought leadership witha deep understanding of the dynamics of large organizations

to accelerate results.

We and help companies build the four competencies requiredfor long-term success:

1. Purposeful Leadership. Does your executive teamoperate consistently from a clear, well-articulated

set of values?

2. Engaged Employees. Are employees fully committedto the goals of your organization?

3. Compelling Brand Values. Are your brand attributesdriving decisions about how you treat customers?

4. Customer-connectedness. Is customer feedback and insight deeplyintegrated throughout all of your internal processes?

Temkin Group provides a number of services that include:

Interactive workshops to instill a common mindset, vocabulary, and approach across anorganization.

Strategic reviews of customer experience plans and objectives to identify opportunities foraccelerating efforts and avoiding missteps along the way.

Assessments of customer experience competencies to identify and close critical gaps. Senior executive sessions to ensure appropriate levels of alignment and commitment. Executive coaching to help executives leading customer experience efforts. Speeches and webinars to teach customer experience concepts.

Documents

Customer Experience Accelerates in 2011 Temkin Group