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Customer Experience, Web Experience, and Whatever

BC E-Commerce Class

Bruce  Temkin  Customer  Experience  Transformist  &  Managing  Partner  Temkin  Group  

March  24,  2012  

Copyright © 2011 Temkin Group. All rights reserved.

Who’s Bruce?

•  Customer Experience Transformist •  Author of popular blog, Customer Experience Matters •  Managing Partner of Temkin Group •  Chairman and co-founder of the Customer Experience Professionals

Association (CXPA.org) •  VP at Forrester Research for 12 years, led B2B, eBusiness, CRM,

financial services, and customer experience groups •  Executive officer of two start-ups •  Management positions at GE, Stratus Computers, Fidelity Research •  BSME Union College and SM MIT Sloan School

Copyright © 2011 Temkin Group. All rights reserved.

A bit about Temkin Group

•  Research and consulting company that helps organizations transform their customer experience

•  Publish Temkin Ratings at www.temkinratings.com and www.temkinratings.co.uk

•  Our clients are some of the largest brands in the world

Copyright © 2011 Temkin Group. All rights reserved.

Copyright © 2011 Temkin Group. All rights reserved.

Customer Experience Is Everyone’s Business

Copyright © 2012 Temkin Group. All rights reserved.

What is customer experience?

Func%onal)Emo%onal)Experience)

Accessible)

The perception that customers have of their interactions with an organization

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

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Customer experience correlates to loyalty

Amount above or below industry average for

Temkin Experience Rating

Amount above or below industry average for

Temkin Loyalty Rating

-­‐30%  

-­‐20%  

-­‐10%  

0%  

10%  

20%  

30%  

-­‐20%   -­‐15%   -­‐10%   -­‐5%   0%   5%   10%   15%   20%  

Report: The Customer Experience-Loyalty Connection

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Customer experience correlates to loyalty

Customer Experience Leaders

Customer Experience Laggards

Willing to buy more

Unlikely to switch

Likely to recommend

+6.6 -6.1

+7.4 -6.7 +5.5 -5.3

Loyal customers versus industry average

(Difference of percentage points) Report: The Customer Experience-Loyalty Connection

Copyright © 2012 Temkin Group. All rights reserved.

Rank Company Industry 1 Amazon.com Retailer 2 Regions Bank 3 USAA Insurance Carrier 4 Discover Credit Cards 4 USAA Bank 6 Vanguard Investment Firm 7 Southwest Airlines Airline 7 eBay Retailer 9 A credit union Bank

10 Fidelity Investments Investment Firm 10 Kohl's Retailer 10 TD Bank Bank 13 JetBlue Airlines Airline 13 ING Direct Bank 15 Chase Credit Cards

Rank Company Industry 15 ING Direct Investment Firm 17 Wells Fargo Credit Cards 17 Charles Schwab Investment Firm

19 Courtyard By Marriott Hotel Chain

19 Continental Airlines Airline 19 Chase Bank 19 SunTrust Bank Bank 19 Wells Fargo Bank 24 American Express Credit Cards 24 Bank of America Bank 24 PNC Bank 24 US Bancorp Bank 28 Hampton Inn Hotel Chain 28 TD Ameritrade Investment Firm 28 JCPenney Retailer

Top 30 companies in 2011 Temkin Web Experience Ratings

Base: 6,000 U.S. consumers Source: Temkin Group Q1 2011 Consumer Experience Survey

Copyright © 2012 Temkin Group. All rights reserved.

65% 45% 55% 75% 85%

Very Poor Poor Okay Good Very Good

5%

Retailers

Investment Firms

Credit Card Issuers

Banks

Airlines

Insurers

Wireless Carriers

PC Makers

Health Plans

Industry Average Low Score High Score

Hotels

Internet Service Providers

TV Service Providers

Copyright © 2012 Temkin Group. All rights reserved.

Why is the experience so bad?

The 6 Laws Of Customer Experience:

The Fundamental Truths That Define How

Organizations Treat Customers

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The 6 Laws Of Customer Experience

Law #1: Every interaction creates a personal reaction.

Law #2: People are instinctively self-centered.

Law #3: Customer familiarity breeds alignment.

Law #4: Unengaged employees don't create engaged customers.

Law #5: Employees do what is measured, incented, and celebrated.

Law #6: You can't fake it.

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Law #1: Every interaction creates

a personal reaction

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The Five As of customer responses

Ambivalent  

AppreciaEve  

Adoring  

Agitated  

Angry  

Loyalty

Abandonment

Which  way  are  your  customer  interacEons  heading?  

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“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

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

notre dame.”

- SVP of Sales And Service

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Law #2: People are instinctively

self-centered

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Companies are from Venus and customers are from Mars

Companies Customers

• High interest • High knowledge • Mixed understanding of customers

• Politics & egos

• Needs • Desires • Interests • Knowledge

Copyright © 2012 Temkin Group. All rights reserved.

Law #3: Customer familiarity

breeds alignment

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4%  

11%  

20%  

34%  

63%  

3%  

7%  

13%  

21%  

51%  

Wrote something about it on Twitter

Put a comment or rating about the company on a 3rd

party site

Wrote something about it on Facebook

Sent feedback directly to the company

Told friends about it via email, phone, or in-person

After a VERY GOOD experience

After a VERY BAD experience

Source: Temkin Group Q1 2011 Consumer Experience Survey

Customers are willing to give feedback

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Maturity of voice of the customer programs

Base: 192 companies with $500M+ in revenues Source: Temkin Group Q2 2011 CEM Survey

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My voice of the customer mantra…

Feedback is cheap

Actionable insights may be valuable

Taking action on insights is precious

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Law #4: Unengaged employees don’t create engaged

customers

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"If you create an environment where the people truly participate, you don't need control. They know what needs to be done and they do it. And the more that people will devote themselves to your cause

on a voluntary basis, a willing basis, the fewer hierarchies and control mechanisms you need."

-- Herb Kelleher, Founder of Southwest Airlines

Copyright © 2012 Temkin Group. All rights reserved.

Employee engagement virtuous cycle

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Customer experience leaders have more engaged employees

Base: 2,435 U.S. employees Source: Temkin Group Q4 2011 Consumer Benchmark Survey

Copyright © 2012 Temkin Group. All rights reserved.

Law #5: Employees do what is measured, incented

and celebrated

“Don’t blame the playa, blame the game”

Copyright © 2012 Temkin Group. All rights reserved.

Law #6: You can’t fake it

Copyright © 2012 Temkin Group. All rights reserved.

“My mom used to say that who you are speaks so loudly that I

can’t hear what you say.” - Mayor Corey Booker

Copyright © 2012 Temkin Group. All rights reserved.

The 6 Laws Of Customer Experience

Law #1: Every interaction creates a personal reaction.

Law #2: People are instinctively self-centered.

Law #3: Customer familiarity breeds alignment.

Law #4: Unengaged employees don't create engaged customers.

Law #5: Employees do what is measured, incented, and celebrated.

Law #6: You can't fake it.

Copyright © 2012 Temkin Group. All rights reserved.

Customer Experience Expert Review…

1.  Describe the target user 2.  Describe that person’s goal

for the interaction 3.  Describe the key brand

attributes of the company 4.  Attempt to achieve the goal,

trying to emulate the path of the target user

5.  Grade the experience along 12 SLICE-B criteria from the point of view of the target user trying to achieve the specific goal.

Copyright © 2012 Temkin Group. All rights reserved.

Questions?

Bruce Temkin Customer  Experience  Transformist  &  Managing  Partner  

Temkin  Group  www.temkingroup.com  

Chairman,  Customer  Experience    Professionals  AssociaEon