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
Copyright © 2012 Temkin Group. All rights reserved.
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
Copyright © 2012 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
Copyright © 2012 Temkin Group. All rights reserved.
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
industry average (percentage points)
Temkin Loyalty Ratings versus industry average
(percentage points)
Temkin Experience Ratings versus
industry average (percentage points)
-20 +20 +20
+30 +30
-30
Correlation coefficient (R)
U.S. = .83 UK = .89
Source: Temkin Group report. The ROI of Customer Experience
Copyright © 2012 Temkin Group. All rights reserved.
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
Copyright © 2012 Temkin Group. All rights reserved.
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<:#
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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
Copyright © 2012 Temkin Group. All rights reserved.
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
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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
Copyright © 2012 Temkin Group. All rights reserved.
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
Copyright © 2012 Temkin Group. All rights reserved.
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
Copyright © 2012 Temkin Group. All rights reserved.
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
Copyright © 2012 Temkin Group. All rights reserved.
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
Explore
Ignore
Operationalize
Mobilize
Embed
Align
Copyright © 2012 Temkin Group. All rights reserved.
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
13%
28%
59%
Copyright © 2012 Temkin Group. All rights reserved.
Four CX core competencies
Customer-Centricity
Purposeful Leadership
Customer-Connectedness
Employee Engagement
Compelling Brand Values
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Does your leadership team operate consistently with a clear,
well-articulated set of values?
Why
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Are your brand attributes driving decisions about how you treat
customers?
Make Promises Embrace Promises
Keep Promises
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Is customer feedback and insight integrated throughout
your organization?
•!Customer feedback is cheap •!Actionable insight can be valuable •! Taking action on insight is precious
Copyright © 2012 Temkin Group. All rights reserved.
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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
Copyright © 2012 Temkin Group. All rights reserved.
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Copyright © 2012 Temkin Group. All rights reserved.
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
Copyright © 2012 Temkin Group. All rights reserved.
Thank you!
Bruce Temkin !"#$%&'()*%+,(-#G#H&'&I,'I#D&%-'2%#
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For more information, including these slides:
tinyurl.com/CXToronto