Where is Customer Experience Heading?
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1 Where is Customer Experience Heading? CXPA UK Networking Event Bruce Temkin Customer Experience Transformist & Managing Partner Temkin Group September 2012
2 Welcome!
3 What s up with CX? 13% Currently have a high level of CX maturity Base: 200+ large companies Source: Temkin Group report. The State of CX Management, 2012
4 What s up with CX? 59% 13% Currently have a high level of CX maturity Want to lead their industry in CX within three years Base: 200+ large companies Source: Temkin Group report. The State of CX Management, 2012
5 The core insight Do what you do so well that they will want to see it again and bring their friends. - Walt Disney
6 Temkin Loyalty Ratings versus industry average (percentage points) +30 Correlation coefficient (R) U.S. =.83 UK = Temkin Experience Ratings versus industry average (percentage points) -30 Source: Temkin Group report The ROI of Customer Experience
7 Customer experience correlates to loyalty for UK firms Customer Experience Leaders Customer Experience Laggards Willing to buy more Unlikely to switch Likely to recommend Source: Temkin Group report The ROI of Customer Experience Loyal customers versus industry average (Difference of percentage points)
8 Temkin Experience Ratings examines three areas of customer experience How did you feel about it? Emo%onal) Experience) Func%onal) Were you able to achieve your goals? Accessible) How easy was it?
9 2012 Temkin Experience Ratings UK 50% 60% 70% 80% Very Poor Poor Okay Good Excellent Grocery Retail Banks Credit Card Issuers Wireless Providers Computer Makers Insurers Low Score Industry Average High Score Base: 3,000 UK consumers, 66 companies Source: Temkin Group report 2012 Temkin Experience Ratings UK
10 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
11 The evolution of CX management CX Exuberance (2008 to 2012) CX Professionalism (2011 to 2015) CX Mastery (2014+) CX Intrigue (2005 to 2009) Source: Temkin Group report The Future of Customer Experience
12 CX factoids on large firms (>$500 million) 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
13 Six stages of CX maturity Ignore Explore Mobilize Operationalize Align Organization does not view CX as core part of its value proposition. Senior executive(s) recognizes that CX is important and appoints a temporary group Full-time executive leads CX team and starts making incremental changes Clear CX governance in place and organization starts redesigning cross-functional processes CX metrics are integrated into executive scorecards and business operational reviews Embed Source: Temkin Group report The Future of Customer Experience CX is integral part of company culture and not managed as a separate activity
14 Six stages of CX maturity 59% 28% Ignore Explore Mobilize Operationalize Organization does not view CX as core part of its value proposition. Senior executive(s) recognizes that CX is important and appoints a temporary group Full-time executive leads CX team and starts making incremental changes Clear CX governance in place and organization starts redesigning cross-functional processes 13% Align Embed Source: Temkin Group report The Future of Customer Experience CX metrics are integrated into executive scorecards and business operational reviews CX is integral part of company culture and not managed as a separate activity
15 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 Source: Temkin Group report The Future of Customer Experience
16 Thank you! Bruce Temkin Customer Experience Transformist & Managing Partner Temkin Group Chairman, CXPA For info from this presentation: tinyurl.com/tg-cxpa-uk
17 Join and be active!
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