Where is Customer Experience Heading?

Where is Customer Experience Heading?

CXPA UK Networking Event

Bruce Temkin Customer Experience Transformist & Managing Partner Temkin Group

September 2012

Copyright © 2012 Temkin Group. All rights reserved.

Welcome!


What’s up with CX?

Currently have a high level of CX

maturity

13%

Base: 200+ large companies Source: Temkin Group report. The State of CX Management, 2012


What’s up with CX?

Want to lead their industry in CX

within three years

Currently have a high level of CX

maturity

13%

59%

Base: 200+ large companies Source: Temkin Group report. The State of CX Management, 2012


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

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

Correlation coefficient (R)

U.S. = .83 UK = .89


Customer experience correlates to loyalty for UK firms

Customer Experience Leaders

Customer Experience Laggards

Willing to buy more

Unlikely to switch

Likely to recommend

+9.4 -7.1

+12.4 -7.4 +10.4 -8.7

Loyal customers versus industry average

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


Temkin Experience Ratings examines three areas of customer experience

Func%onal)Emo%onal)

Experience)

Accessible)

Were you able to achieve your goals?

How did you feel about it?

How easy was it?


70% 50% 60% 80%

Very Poor Poor Okay Good Excellent

Retail

Banks

Credit Card Issuers

Grocery

Computer Makers

Wireless Providers

Insurers

Industry Average Low Score High Score

2012 Temkin Experience Ratings UK

Base: 3,000 UK consumers, 66 companies Source: Temkin Group report “2012 Temkin Experience Ratings UK”


2102 Temkin Experience Ratings UK: Companies outpacing their industry Company Industry Above Industry John Lewis Retail +13 Tesco Bank Credit cards +12 Amazon.com Retail +11 Nationwide Building Society Bank +10 Co-operative Bank Bank +9 Hewlett-Packard Computer maker +8 Tesco Mobile Wireless +8 Waitrose Grocery +8 Apple Computer maker +7 O2 Wireless +7 Post Office Bank +7 Acer Computer maker +7 AXA Insurance +6 Aviva Insurance +6

Base: 3,000 UK consumers, 66 companies Source: Temkin Group report “2012 Temkin Experience Ratings UK”


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

Source: Temkin Group report “The State of CX Management, 2012”

CX factoids on large firms (>$500 million)


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



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%



Eight emerging CX skills

•  Journey-centric alignment

•  Mobile-infused experiences

•  Predictive personalization

•  Distributed contextual insights

•  Federated CX capabilities

•  Business rhythm integration

•  Rejuvenated purposefulness

•  Promoter activation



For info from this presentation: tinyurl.com/TG-CXPA-UK

Thank you!

Bruce Temkin Customer Experience Transformist & Managing Partner

Temkin Group www.temkingroup.com

Chairman, CXPA


Join and be active!

www.CXPA.org

Where is Customer Experience Heading?

Documents

Transcript of Where is Customer Experience Heading?