Why Customer Experience Matters?

1. 74%
53%
The State of
Customer Experience
(CX)
The Economics of CX are Compelling
Companies Have Strong CX Ambitions
Firms Are Still in Early Stages of their CX Journeys
Did You Know?
CX Excellence is Rare, But the Level is on the Rise
Amount of revenue generated
by a modest improvement
in customer experience
over 3 years for a
$1 billion firm.
(Percentage points above or below their industry average)
Customers willing to
purchase more
from company
64% not likely to repurchase
9% likely to repurchase
Large companies that rate
themselves as CX leaders today
86% likely to repurchase
3% not likely to repurchase
Very dissatisfied
with customer service
Very satisfied with
customer service
Customers likely to
recommend company
After
poor customer service, consumers are much
less likely to buymore from a company
CX LeadersCX Laggards
CX leaders
have more
loyal
customers
5.8 times more likely to forgive
a company if it makes a mistake
$380 million
PROMOTER
Promoters are extremely
valuable. Some companies
classify customers that are
likely to recommend as
promoters. Compared with
detractors, promoters are
5.2 times more likely to purchase
more from a company
5.2
5.8
9.9%
-9.6%
9.2%
-9.2%
Large companies with goals to
be CX leaders within three years
Companies in Temkin Experience Ratings with “good” or “excellent” ratings
(based on feedback from 10,000 U.S. consumers) has grown from
16% in 2011 to 37% in 2013
More than 200 large companies with revenues of $500 millionor more
completed Temkin Group's CX Maturity Assessment
CX Success Requires More Than a Veneer
There are more than
100,000
CX professionals in North America.
72% of companies think predictive analytics
and open-ended verbatims will become more
important sources of customer insight.
Consumers who earn $100K or more are 2.5X
as likely to tweet about a bad experience,
compared with those who earn less than $50K.
38% of consumers give feedback directly to companies
after a very bad experience and 31% give direct
feedback after a very good experience.
74% of CX leaders have a senior executive
in charge of customer experience compared
with only 53% of CX laggards.
$100K+
CX leaders are more than twice as likely as
CX laggards to focus on making their
company’s culture more customer-centric.
Highly engaged employees are 5.8x more committed to helping their companies succeed
and 4.7x more likely to recommend that someone apply for a job at their company
than are disengaged employees.
Do your leaders operate
consistently with a clear,
well-articulated set of values?
Is customer feedback and
insight integrated throughout
your organization?
Sources:
1. Temkin Group Insight Report: The ROI of Customer Experience
2. Temkin Group Q3 2012 Consumer Benchmark Survey (6,000 U.S. Consumers)
3. Temkin Group Insight Report: The State of CX Management, 2013
4. Temkin Group Insight Report: 2013 Temkin Experience Ratings
5. Customer Experience Matter blog post: 101K CX Professionals in North America
6. Temkin Group Insight Report: Employee Engagement Benchmark Study, 2013
7. Temkin Group Insight Report: Prepare for Next Generation VoC Programs
8. Temkin Group Insight Report: What Happens After A Good or Bad Experience?
Purposeful
Leadership
Customer
Connectedness
Compelling
Brand Values
Employee
Engagement
Are your brand attributes
driving decisions about
how you treat customers?
Are employees fully
committed to the goals
of your organization?
To build and sustain CX differentiation, companies must embed practices within their culture and operating processes,
building what Temkin Group calls the Four CX Core Competencies.
8%
62%
After 3 Years
2011 2012 2013
84%
15%
1%
72%
24%
4%
63%
33%
4%
Other Good Excellent
0
5
10
15
20
25
30
35
40
40%
21%
15%
18%
4%
2%
Only 6%
of large companies
have reached the
top two stages of
CX management maturity
w w w . t e m k i n g r o u p . c o m
Copyright c 2013 Temkin Group. All rights reserved
IGNORE EXPLORE
PercentageofCompanies
MOBILIZE OPERATIONALIZE ALIGN EMBED
Stage 6Stage 5Stage 4Stage 3Stage 2Stage 1
CX
Core
Competencies
72%
38%
31%
CX Management Maturity Level