Customer Experience and Listening Best Practices...Customer Experience and Listening Best Practices Adobe Bruce Temkin Customer Experience Transformist & Managing Partner Temkin Group

Customer Experience and Listening Best Practices

Adobe

Bruce TemkinCustomer Experience Transformist& Managing PartnerTemkin Group

April 2012

Copyright © 2011 Temkin Group. All rights reserved.

The core insight…

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

again and bring their friends.”- Walt Disney


Customer experience efforts must support business and brand strategy

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

Brand StrategyBusiness Strategy

Goals for attitudes and behaviors for each target segment of customers

Page 3


Temkin Loyalty Ratings versus industry average

(percentage points)

Temkin Experience Ratings versus

industry average(percentage points)

Correlation Between CX and Loyalty

(U.S. consumers)

Correlation coefficient (R) = .83

Source: Temkin Group report “The ROI of Customer Experience”


Correlation between CX and IT purchases (B2B)

5

Purchase momentum

(% increasing spending in 2012 minus

% decreasing spending)

Temkin Experience Ratings-10%

0%

10%

20%

30%

40%

50%

40% 50% 60% 70% 80%

Correlation coefficient (R) = .74

Source: Temkin Group report “2012 Temkin Experience Ratings for Tech Vendors”


Customer experience correlates to loyalty

CXLeaders

CXLaggards

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”


Rate the overall customer experience that your company delivers

2%

11%

23%

30%

28%

6%

1%

Considerably below average in …

Slightly below average in our …

Average for our industry

Slightly above average in our …

Considerably above average in …

The best in our industry

Better than all companies in … 7%What’s your goal in three years?

59%

Base: Companies with $500 million or more in annual revenuesSource: Temkin Group Report, State of CX Management, 2012


Temkin Experience Ratings measures three components of experience


Temkin Experience Ratings for Tech VendorsRank Company

1 Microsoft business applications1 Cisco3 IBM SPSS3 Microsoft servers5 Microsoft desktop software5 IBM software other than SPSS5 Intel Corporation8 Oracle business applications9 HP products9 Google9 VMware9 Apple9 Oracle database software14 IBM IT services15 Convergys15 Dell IT services15 EMC18 Citrix18 Dell products18 HP IT services21 BMC21 Sun Microsystems23 Red Hat23 SAP analytics25 Intuit25 Salesforce.com27 SAS Institute27 McAfee

29 Adobe29 Symantec

Rank Company

29 SAP business process apps32 Teradata32 Check Point32 Nokia Siemens Networks32 Qualcomm36 Trend Micro36 Ericsson36 Siemens39 Accenture40 CA40 SunGard42 Unisys42 Autodesk44 Cognizant45 Infosys45 NetApp47 Pitney Bowes47 Sybase47 CGI47 Wipro47 Tata Consulting Services52 Open Text52 Alcatel-Lucent52 Hitachi52 Software AG52 ACS52 Novell58 Fujitsu58 Capgemini60 Compuware


Adobe: 29th out of 60 Tech Vendors

• Functional experience: 22nd (tied)

• Accessible experience: 40th

• Emotional experience: 26th (tied)

Base: 800 IT decision makers from companies with annual revenues of $500 million or more

Source: Temkin Group Q1 2012 IT Benchmark Survey


2012 Temkin Experience Ratings

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

Top Rated firmsRank Company

1 Sam's Club2 Publix3 Starbucks3 Subway3 Chick-fil-A3 Aldi3 Winn-Dixie3 H.E.B.3 Credit unions10 ShopRite10 Amazon.com

Rank Company10 Kroger10 Sonic Drive-In14 Walgreens14 Target14 PNC14 Pizza Hut18 Hy-Vee18 Lowe's18 Whole Foods18 BJ's Wholesale Club18 Arby's



Companies just don’t know what customers think of them

Ambivalent

Appreciative

Adoring

Agitated

Angry

Loyalty

Abandonment

Which way are your customer

interactions heading?


“It’s like looking in the mirror. When I looked at our organization based

on our internal data, I saw Brad Pitt…”

- SVP of Sales and Service


“.. But when I looked at the customer feedback data we looked more like the hunchback of

Notre Dame.”

- SVP of Sales and Service


Using social media

Coordinating the effort across different organizations

Analyzing unstructured data sources

Getting the organization to use customer feedback data

Collecting the right feedback from customers

Taking immediate action with specific customers

Identifying key areas of improvement in the business

How would you rate your voice of the customer program in these areas?

11%

29%

25%

36%

40%

39%

37%

4%

14%

11%

12%

24%

25%

26%

Very good Good


Maturity of VoC Programs

Novices

Collectors

AnalyzersCollaborators

Transformers

14%

32%30%

23%

2%

Source: Self-test completed by 192 large firms in June 2011


Market research


Obsolete market research beliefs

•Data and insights provide value•Companies have limited access to information about customers

•There’s no easy way to analyze unstructured data

•Meaningful insights require deep analysis


A missing link: Contextual insights

Statistical analysisHypotheses about the

business created from an analysis of significant variations in the data

Contextual insightsObservations drawn from

data that resonates with an understanding of the

business


Voice of the customer mantra…

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


Continuousfactory of actionable insights

Detect

Disseminate

Diagnose

Discuss

Design

Deploy

Six Ds of great VoC programs



• Be strategic about sampling• Tap into unstructured, unsolicited

feedback

DetectMonitor the right feedback at the right time from the right customers and combine it with other key data sources.



• Create alerts for key pieces of feedback

• Allow tailored, role-based views of the information

DisseminatePut information in the hands of the right people at the right time in the right form so they can act on it.



• Don’t expect standard surveys to have all of the answers

• Establish capacity for “digging” into hypotheses

DiagnoseGain a deeper understanding of problems or opportunities that are uncovered.



• Create cross-functional teams to attack cross-functional problems and opportunities

DiscussGet the right people from the right organizations reviewing the right information to understand what’s impacting customers.



• Use good design principles for options

• Allow for testing and learning of different solutions

DesignFollow user-centric approaches for identifying changes that will improve the customer experience.


Six Ds of a closed-loop VoC program

• Prepare for ongoing changes in front-line interactions and operational processes

Deploy Make ongoing changes to the experiences and the monitoring of those changes.


VoC programs are useless unless you act on the insights…

Quality metrics and training

Longer-term problem resolution

Coaching/training feedback

Immediate problem fixing

Immediate service recovery

Strategic/operational planning


To get it right…

• Get the right insight…• …to the right person…• …at the right time…• …in the right format…• …so that they can make the right…

• Customer Insightful Decisions







Rating CX metrics programs

Base: 228 firms with annual revenues of $500 million or more Source: Temkin Group report, State of CX Metrics, 2011 (November 2011)


How effective is your company at measuring these customer experiences?


8%

10%

17%

20%

30%

11%

14%

29%

29%

26%

On a wireless device

Across multiple channels

Online

In the store/branch

Over the phone

Very good Good


Rate your company's effectiveness in the following activities related to CX metrics

4%

13%

7%

9%

11%

15%

15%

19%

26%

25%

28%

26%

Making trade-offs between financial and CX metrics

Coaching front-line employees with CX metrics

Making strategic decisions based on CX metrics

Using executive dashboard with CX metrics to run the business

Reviewing CX metrics on a regular basis with cross-functional teams

Sharing CX metrics across the entire organization

Very good Good



Four archetypes of CX metrics users

CX MetricsReviewers

16%

CX Decision Makers

25%

CX Metrics Ignorers

45%

CX Metrics Toe Dippers

14%

Not at all orslightly

Moderately, mostly or fully

Quarterly or less frequently

More frequently than quarterly

Frequency that leadership team reviews CX metrics

Degree that CX metrics are integrated into decision making





Thank you!

Bruce TemkinCustomer Experience Transformist& Managing Partner

Temkin Groupwww.temkingroup.com

Chairman, Customer Experience Professionals Association

Documents

Customer Experience and Listening Best Practices...Customer Experience and Listening Best Practices Adobe Bruce Temkin Customer Experience Transformist & Managing Partner Temkin Group