ROI of Customer, 2014 CX Highly Correlates to Loyalty Across 19 Industries, Delivers Up To $460M Over 3 Years By Bruce Customer Transformist & Managing Partner Group September 2014 Group info@temkingroup.com (617) 916-2075
Executive Summary To understand how customer experience corresponds to loyalty, we examined feedback from 10,000 U.S. consumers describing their experiences with and their loyalty to 268 companies. Our analysis shows a strong correlation between customer experience and loyalty factors such as repurchasing, trying new offerings, forgiving mistakes, and recommending the company to friends and s. We compared the consumers who gave companies a very good customer experience rating to those who gave companies a very bad customer experience rating, and we found that the percentage of customers who plan on repurchasing products is 18 percentage- points higher at organizations with excellent CX ratings. Additionally, the Net Promoter Scores of companies with very good CX ratings average 22 points higher than the scores of companies with poor CX. We built a model to evaluate how customer experience impacts a $1 billion business s revenue over three years in each of the 19 industries, and this model shows that CX has the largest impact on hotels ($461 million), fast food chains ($437 million), and retailers ($428 million). This report also includes a five- step approach for building a model that estimates the value of CX for your organization. Customer Is Highly Correlated With Loyalty In a recent Group study, nearly six out of ten large companies reported having the ambition to provide the best customer experience (CX) in their industry. 1 Why do so many companies aspire to deliver first- class customer experience? Beyond simply being a good service to provide, many CEOs likely emphasize the importance of delivering excellent CX because they recognize the clear link between CX and loyalty. To determine how customer experience affects loyalty, we asked 10,000 U.S. consumers about their experiences with and their loyalty to 268 U.S. companies and then analyzed their responses 2 The results show that CX:! Correlates with repurchasing. We looked at how likely consumers are to repurchase products from each of the 268 U.S. companies and then compared those numbers to each firm s 2014 score. We found a strong connection between the two datasets, with a correlation coefficient of.83 (see Figure 1). 3! Affects many aspects of loyalty. We split the companies into quintiles based on where their scores landed them in relation to their industry averages (see Figure 2). When we compared the companies with the highest CX rating to the 1 See the Group report The State of CX Management, 2014 (April 2014). 2 For the CX ratings we used the 2014, which evaluates three areas of experiences: functional, accessible, and emotional. We compared the and loyalty data with industry averages for all of the companies. See the Group report, 2014 (March 2014). 3 For the repurchase data, we looked at consumers responses to the question: How likely are you to consider purchasing more products or services from these companies in the future? We included the percentage of consumers who selected either 6 or 7 on a scale from 1 (extremely unlikely) to 7 (extremely likely). Page 2
companies with the lowest CX ratings, we found an 18.1 point difference in the percentage of consumers who are likely to repurchase, a 13.3 point difference in the percentage of consumers who are likely to forgive a company if it makes a mistake, and an 8.1 point difference in the percentage of consumers who are likely to immediately try a new offering from the company.! Also links to word of mouth. We also found that CX strongly correlates to Net Promoter Score (NPS ) (see Figure 3). 4 The average NPS for companies with the highest CX ratings is 11 points above their industry NPS, while the average NPS for those with the poorest CX ratings falls 11.5 points below their industry average.! Plays an important role across many industries. In addition to comparing general CX with general loyalty, we also broke both of these areas down into their component parts and examined how they correlated on a more specific level (see Figure 4). We evaluated the connection between the three elements of the functional, accessible, and emotional and the two areas of loyalty the likelihood to recommend and the likelihood to purchase more for companies across the 19 industries. We found a strong correlation between every combination we examined for every industry. 5 Intriguingly, the emotional element of experience has the highest correlation to loyalty in almost every industry. CX Improvement Results: Up to $461M In Revenue Over Three Years To help translate the connection between CX and loyalty into tangible bottom line numbers, we built a model that identifies how a modest increase in CX will result in additional revenues for each of the 19 industries over a three- year period (see Figure 5). 6 Our analysis evaluates how loyalty differs between the consumers who gave companies a modest CX rating and those who gave companies a good CX rating (see Figure 6). The results show that (see Figures 7 and 8):! Revenues increase the most for hotels, the least for health pans. Hotels have the most to gain from improving CX ($460.7 million), while health plans gain the least ($271.8 million).! Auto dealers have the most revenue to retain. Auto dealers retain the most business from existing customers ($183.5 million), whereas investment firms retain the least business ($93.7 million).! Hotels have the most additional purchases to gain. The amount of new business from existing customers ranges from $193.5 million at the top for hotels down to $55.5 million at the bottom for health plans. 4 See the Group report Net Promoter Score Benchmark Study, 2013 (November 2013). Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld. 5 Correlations are usually considered strong if they are above 0.5 and very strong if they are above 0.7. 6 In order to show a high- level analysis of revenue impact, we make many assumptions at an industry- level. We highly recommend that companies use the raw data to better understand how CX improvements will affect their specific business. The model assumes a company size of $1 billion and adds the additional revenue gains over three years. Page 3
! Word of mouth most affects supermarkets. Supermarkets see the highest impact of good and bad comments on their volume of business ($107.8 million), while comments affect auto dealers the least ($73.5 million). CX and Loyalty Across 19 Industries As part of our analysis, we examined the how loyal consumers felt to companies in 19 industries based on how they rated their experiences with those companies (see Figures 9 through 28). When we looked at the averages across all of the industries, we discovered that CX influences the customer s:! Likelihood to repurchase. While 92% of the consumers who gave a company a very good CX rating report being very likely to repurchase from that company, only 9% of those who gave a company a very poor CX rating say the same.! Likelihood to recommend company. The percentage of consumers who are very likely to recommend a company to their friends or s ranges from a high of 8 of consumers who rate a company s CX as very good, down to a low of 4% of those who give a company a very poor CX rating. 7! Likelihood to forgive a company if it makes a mistake. Sixty- seven percent of consumers are very likely to forgive a company for a mistake if they think it has very good CX, whereas only 9% of consumers are very likely to forgive a company with very poor CX. 8! Likelihood to try a new offering right away. Of the consumers who gave a company a very good CX rating, 57% of them report being very likely to try that company s new product or service immediately after it s introduced. Meanwhile, only of consumers who gave a company a very poor CX rating report the same. 9 Build Your Own CX ROI Model Remember, as with all industry- wide research, any single company s results may vary considerably from these results. As such, we recommend that companies build their own models for tying loyalty (and revenues) to customer experience measures (see Figure 29). Here s some advice to consider as you undertake this effort:! Enlist your CFO. Even if you have the brightest business analysts in the world on your team, if you do not involve the CFO s team, the finance leader will always question your financial models and assumptions. 7 We looked at consumers responses to the question: How likely are you to recommend the company to a friend or? We included the percentage of consumers who selected either 9 or 10 on a scale from 0 (very unlikely) to 10 (very likely). 8 We looked at consumers responses to the question: How likely are forgive these companies if they deliver a bad experience? We included the percentage of consumers who selected either 6 or 7 on a scale from 1 (extremely unlikely) to 7 (extremely likely). 9 We looked at consumers responses to the question: If these companies announced a new product or service, how likely would you be try it right away? We included the percentage of consumers who selected either 6 or 7 on a scale from 1 (extremely unlikely) to 7 (extremely likely). Page 4
! Use existing metrics. Try to make your case based on the business metrics that your company already uses it will make it easier for people to understand and will help you earn their buy- in.! Be conservative. Resist the temptation to use the high end of estimates for potential benefits. While the results may seem more compelling, they will also be harder to defend.! Create a simple story. People tend to remember very simple story lines, so make sure that you organize your results in a way that is easy for people to understand. Page 5
Correlates To Future Purchase Intentions 268 Organizations Across 19 Industries Consumers who are very likely to repurchase minus industry average (%-points) 2014 minus industry average (%-points) 25.0 15.0 5.0-25.0-20.0-15.0-10.0-5.0 0.0 5.0 10.0 15.0-5.0-15.0 Pearson correlation coefficient (R) =.83-25.0-35.0 Figure 1 Page 6
Companies With Higher Have More Loyal Customers Percentage of customers (above and below industry average) who are loyal in three areas (%-points). Companies are sorted based on how their 2014 score compares with their industry averages Very likely to purchase more 7.4 Very likely to forgive company if it makes a mistake 6.9 Very likely to try a new product or service immediately after it has 5.0 2.2 1.6 0.5 0.8-0.5-0.1-3.8-3.6-3.1-2.2-6.4-10.7 Bottom Quintile 4th Quintile 3rd Quintile 2nd Quintile Top Quintile 2014 of companies compared with their industry averages Figure 2 Page 7
Correlates To Net Promoter Scores (NPS ) 268 Organizations Across 19 Industries 2014 minus industry average (%-points) Company NPS minus industry average NPS (%-points) 40.0 30.0 20.0 10.0-25.0-20.0-15.0-10.0-5.0 0.0 5.0 10.0 15.0 0.0-10.0-20.0-30.0 Pearson correlation coefficient (R) =.77-40.0 NPS Versus Industry Average Based on Difference between company NPS and industry average NPS -0.2 3.3 11.0 Bottom Quintile 4th Quintile 3rd Quintile 2nd Quintile Top Quintile -11.5-6.2 2014 compared with their industry averages Figure 3 Page 8
Correlations Between Loyalty and Three Components of Customer for 19 Industries Pearson correlations between loyalty and CX area Loyalty: Likely to Recommend Likely to Buy More CX area: Functional Accessible Emotional Functional Accessible Emotional Airlines 0.58 0.64 0.72 0.59 0.64 0.65 Auto Dealers 0.60 0.64 0.71 0.57 0.60 0.65 Banks 0.56 0.61 0.69 0.54 0.59 0.62 Computers 0.58 0.64 0.68 0.55 0.60 0.63 Credit Card Issuers 0.52 0.56 0.67 0.50 0.54 0.61 Fast Food Chains 0.51 0.53 0.66 0.56 0.56 0.58 Grocery Chains 0.51 0.56 0.66 0.55 0.59 0.56 Health Plans 0.55 0.62 0.69 0.52 0.56 0.59 Hotel Chains 0.60 0.61 0.70 0.59 0.59 0.64 Insurance Carriers 0.60 0.63 0.69 0.58 0.59 0.63 Internet Service Providers 0.58 0.66 0.75 0.56 0.63 0.69 Investment Firms 0.60 0.63 0.70 0.58 0.61 0.63 Major Applicances 0.59 0.63 0.70 0.54 0.57 0.64 Parcel Delivey Services Rental Car Agencies 0.55 0.60 0.70 0.57 0.58 0.61 0.59 0.68 0.76 0.61 0.66 0.71 Retailers 0.53 0.57 0.66 0.56 0.60 0.60 Software Firms 0.58 0.64 0.71 0.57 0.61 0.64 TV Service providers 0.60 0.67 0.75 0.58 0.63 0.67 Wireless Carriers 0.56 0.61 0.70 0.54 0.55 0.62 Average across all industries 0.57 0.62 0.70 0.56 0.60 0.63 Bold numbers are above cross-industry averages Figure 4 Page 9
Elements Used in Model to Derive Revenue Impact Based on Improvement in Customer Basic assumptions in model: Companies have $1 billion in annual revenues Examines revenue impact over three years Revenue impact will differ across industries for each year based on factors such as ease of switching providers Inputs to model include data from Group s Q3 2013 and Q1 2014 Consumer Benchmark Studies (10,000 U.S. consumers in each) along with estimates based on Group's judgment Revenue Area Description Retain existing business Save business after a very bad experience Sell additional products and services Sell new offerings Areas of Revenue that Increase Due to Improvement in CX The amount of existing business that customers will continue to do with company. Influenced industry-level data on consumers likelihood to repurchase. Business that companies are able to save after delivering a bad experience. Influenced by industry-level data on percentage of consumers that experience a very bad experience, the willingness of consumers to forgive companies after a bad experience, and their change in spending after those experiences. Additional purchases that consumers will make above their basic relationships. Influenced by industry-level data on consumers likelihood to repurchase and estimate of how much add-on business is typical across industries. Purchases that consumers make of new products and services offered by companies. Influenced by industry-level data on consumers likelihood to try new offerings from companies and estimate of how much business comes form new business that is typical across industries. Word of mouth Purchases that result from consumers telling other people about their experiences. Combines additional purchases from positive word of mouth along with lost purchases from negative word of mouth. Influenced by industry-level data on consumers likelihood to recommend and estimates of how many people they tell about the experience and the influence that those comments have on decisions of other consumers. Figure 5 Page 10
Improvements in Customer Loyalty From Modest Improvements in Customer Difference in loyalty between customers who rate a company as delivering good customer experience and those who rate a company as delivering mediocre customer experience (%-points) Industries Repurchase Recommend Forgive Try Airlines 48 44 30 29 Auto Dealers 44 40 28 29 Banks 48 37 25 15 Computer Makers 45 46 32 27 Credit Card Issuers 43 39 27 21 Fast Food Chains 50 36 26 20 Grocery Chains 48 40 31 26 Health Plans 44 43 30 29 Hotel Chains 54 46 24 29 Insurance Carriers 48 46 29 27 Internet Service Providers 43 40 25 21 Investment Firms 51 50 32 28 Major Appliances 42 48 36 36 Parcel Delivery Services 46 42 24 15 Rental Car Agencies 47 43 36 31 Retailers 48 42 28 26 Software Companies 51 48 41 36 TV Service Providers 47 39 27 18 Wireless Carriers 48 44 30 29 Highest loyalty difference Repurchase: Customers who are likely to buy again in the future Recommend: Customers who are likely to recommend a Forgive: Customers who are likely to forgive company Try: Customers who are likely to try a new product or service from a company immediately after it is announced Figure 6 Page 11
Revenue Increases From Moderate Improvement in CX for Companies With Annual Revenues of $1 Billion Additional revenues over 3 years ($ million) Retaining existing business Additional purchases New business from word of mouth Hotels $164.2 $193.5 $102.9 Fast food chains $160.6 $172.5 $104.4 Retailers $155.1 $171.9 $101.2 Supermarkets $143.3 $174.3 $107.8 Airlines $149.1 $177.5 $95.1 Rental car agencies $147.2 $175.6 $97.5 Software companies $183.9 $111.5 $98.6 Computer makers $142.9 $159.6 $87.7 Credit card issuers $148.3 $125.4 $97.1 Banks $148.3 $137.7 $83.3 Major appliances $166.5 $106.9 $89.8 Parcel delivery services $100.7 $152.5 $103.2 TV service providers $125.9 $142.8 $77.6 Auto dealers $183.5 $82.5 $73.5 Investment firms $92.3 $147.0 $91.0 Internet service providers $112.5 $121.1 $79.1 Insurance carriers $153.0 $68.2 $81.9 Wireless carriers $140.1 $72.4 $76.0 Health plans $142.3 $55.5 $74.0 Figure 7 Page 12
Revenue Increases From Moderate Improvement in CX for Companies With Annual Revenues of $1 Billion Additional revenues over 3 years ($ million) Industries Retain existing business Save business after a very bad experience Sell additional products and services Sell new offerings Word of mouth Total Hotels $141.2 $23.0 $161.4 $32.2 $102.9 $460.7 Fast food chains $131.8 $28.8 $150.6 $22.0 $104.4 $437.5 Retailers $125.2 $29.9 $143.1 $28.8 $101.2 $428.1 Supermarkets $127.0 $16.3 $145.1 $29.1 $107.8 $425.5 Airlines $127.2 $22.0 $145.3 $32.2 $95.1 $421.8 Rental car agencies Software companies $122.9 $24.2 $140.5 $35.1 $97.5 $420.3 $152.9 $31.1 $49.7 $61.8 $98.6 $394.0 Computer makers $100.1 $42.7 $108.5 $51.1 $87.7 $390.1 Credit card issuers $97.7 $50.7 $105.8 $19.5 $97.1 $370.8 Banks $107.2 $41.0 $116.2 $21.5 $83.3 $369.2 Major appliances $150.4 $16.1 $50.1 $56.7 $89.8 $363.2 Parcel delivery services TV service providers $85.9 $14.8 $137.5 $15.0 $103.2 $356.4 $70.3 $55.6 $114.2 $28.6 $77.6 $346.3 Auto dealers $156.9 $26.7 $52.3 $30.3 $73.5 $339.6 Investment firms $76.8 $15.6 $124.7 $22.3 $91.0 $330.3 Internet service providers $64.5 $47.9 $104.8 $16.3 $79.1 $312.6 Insurance carriers $116.3 $36.7 $47.2 $20.9 $81.9 $303.0 Wireless carriers $101.6 $38.5 $41.3 $31.1 $76.0 $288.5 Health plans $119.5 $22.8 $21.6 $33.9 $74.0 $271.8 Figure 8 Page 13
Consumers Are More Loyal To Companies That Provide a Better Customer (Average Across 19 Industries) 92% 7 from company 30% 5 13% 9% 8 54% company to a friend or 27% 12% 4% if it makes a mistake 4 30% 17% 9% 67% 9% or service immediately after it's been announced 40% 29% 1 57% Figure 9 Page 14
Airlines: Consumer Loyalty Based on Level of 94% 82% 34% 61% 14% 10% 8 12% 7% 3% 32% 5 50% 69% 20% 10% 9% 35% 65% 20% 11% 49% 37% 9% Figure 10 Page 15
Auto Dealers: Consumer Loyalty Based on Level of 94% 7 33% 59% 1 9% 92% 19% 11% 37% 59% 51% 72% 10% 11% 35% 23% 64% 11% 23% 37% 52% 7% Figure 11 Page 16
Banks: Consumer Loyalty Based on Level of 8 6 21% 44% 5% 83% 1 9% 5% 2% 4 39% 6 20% 14% 44% 2 13% 10% 2% 2% Figure 12 Page 17
Computer Makers: Consumer Loyalty Based on Level of 92% 79% 34% 61% 14% 11% 89% 1 35% 62% 51% 71% 19% 13% 12% 33% 64% 1 11% 45% 35% Figure 13 Page 18
Credit Card Issuers: Consumer Loyalty Based on Level of 87% 6 24% 49% 9% 3% 82% 10% 3% 4% 23% 49% 40% 63% 13% 7% 27% 34% 23% 13% 7% 4% 50% Figure 14 Page 19
Fast Food Chains: Consumer Loyalty Based on Level of 95% 79% 29% 5 14% 1 83% 9% 5% 5% 19% 45% 39% 64% 25% 14% 1 3 25% 1 7% 1 57% Figure 15 Page 20
Grocery Chains: Consumer Loyalty Based on Level of 9 83% 35% 65% 17% 12% 8 22% 11% 0% 51% 47% 69% 2 1 7% 17% 60% 25% 12% 3 10% Figure 16 Page 21
Health Plans: Consumer Loyalty Based on Level of 90% 75% 31% 5 15% 13% 85% 13% 3% 30% 5 4 67% 1 10% 37% 5 14% 2 43% 7% Figure 17 Page 22
Hotel Chains: Consumer Loyalty Based on Level of 95% 81% 27% 57% 14% 1 89% 1 7% 30% 61% 51% 6 11% 32% 27% 6 10% 23% 39% 52% 5% Figure 18 Page 23
Insurance Carriers: Consumer Loyalty Based on Level of 91% 77% 29% 54% 10% 89% 11% 2% 29% 57% 4 70% 17% 31% 55% 11% 7% 37% 29% Figure 19 Page 24
Internet Service Providers: Consumer Loyalty Based on Level of 8 67% 24% 4 83% 9% 3% 3% 22% 49% 3 63% 13% 7% 2 32% 23% 12% 5% 3% 53% Figure 20 Page 25
Investment Firms: Consumer Loyalty Based on Level of 92% 83% 32% 5 13% 4% 89% 12% 4% 2% 30% 62% 51% 67% 29% 19% 12% 5% 17% 3% 5 45% 34% Figure 21 Page 26
Major Appliances: Consumer Loyalty Based on Level of 93% 75% 33% 55% 17% 17% 91% 17% 7% 35% 65% 5 71% 22% 14% 11% 37% 74% 23% 12% 44% 59% 12% Figure 22 Page 27
Parcel Delivery Services: Consumer Loyalty Based on Level of 93% 7 32% 60% 17% 85% 7% 5% 0% 23% 49% 41% 6 25% 17% 9% 13% 49% 2 17% 11% 5% Figure 23 Page 28
Rental Car Agencies: Consumer Loyalty Based on Level of 95% 79% 32% 49% 13% 90% 2% 30% 1 61% 5 70% 20% 12% 7% 40% 69% 14% 27% 41% 5 Figure 24 Page 29
Retailers: Consumer Loyalty Based on Level of 95% 82% 34% 61% 1 15% 87% 12% 7% 7% 2 54% 47% 69% 31% 1 10% 14% 5 29% 17% 7% 42% 9% Figure 25 Page 30
Software Companies: Consumer Loyalty Based on Level of 93% 79% 2 5 14% 1 90% 14% 10% 32% 62% 5 72% 15% 10% 1 3 72% 20% 10% 3 5 14% Figure 26 Page 31
TV Service Providers: Consumer Loyalty Based on Level of 87% 67% 20% 4 9% 4% 83% 9% 3% 1% 24% 4 39% 62% 12% 2 30% 22% 11% 2% 51% Figure 27 Page 32
Wireless Carriers: Consumer Loyalty Based on Level of 89% 71% 29% 52% 15% 9% 84% 11% 4% 25% 50% 39% 64% 11% 12% 2 32% 23% 12% 53% Figure 28 Page 33
Steps for Calculating the Value Of Customer You should be able to communicate something like this: A W% change in <CX Metric> for this customer group will result in a X% change in <Loyalty Metric>, which will drive an increase of $Y in revenues and/or a reduction of $Z in costs. 1" Establish core customer experience (CX) metric(s) Agree on one or more metrics (which can be single metrics like Net Promoter Score or satisfaction or a blended index) that is representative of customer experience Make sure you can measure it by customer 2" Establish loyalty objectives Agree on the things that represent loyal behavior and have a financial impact on your business. For example: Additional purchases, churn rate, share of wallet, making recommendations to friends, etc. Make sure you can measure it by customer 3" Group customers based on their CX metrics Establish groupings, from low to high, of customers based on their CX scores. Separate results for key customer segments. 4a" Analyze relationship between CX and loyalty (option 1) Calculate average loyalty levels for each CX level. This will show how much increased loyalty you can get from each group if you move their CX ratings 4b" Analyze relationship between CX and loyalty (option 2) Run regression analysis to see how the CX metric correlates to the loyalty metrics. Use results to decide on the CX metric you want to use and to see the impact that the CX metrics has on loyalty metrics 5" Calculate value of loyalty change For each customer segment, translate a 1% increase in CX metric to some resulting change in the loyalty metric(s) Calculate the dollar value for a 1% change in CX metrics by translating the change in loyalty metrics into a dollar value Figure 29 Page 34
About the Author, Bruce Bruce is a Customer Transformist & the Managing Partner of Group. He is also the co- founder and Chair of the Customer Professionals Association (cxpa.org). Bruce is widely viewed as a leading expert in how organizations can distinguish themselves by providing outstanding customer experience. He has honed this expertise by working with hundreds of large organizations on the strategies, operational processes, organizational structures, leadership qualities, and culture environment required to sustain superior customer relationships. Bruce s research focuses on identifying current and emerging best practices. He has published several seminal reports, including The ROI of Customer, The Future of Customer, and The Four Customer Core Competencies. He uses insights from his pioneering research to advise companies on their customer experience journeys, identifying opportunities for a sustainable breakthrough performance. Bruce is the author of the popular blog Customer Matters, where he regularly shares his insights on topics like customer experience, branding, leadership, and employee engagement. His ebook Six Laws of Customer has been downloaded by tens of thousands of people around the world and is available for free on his blog. 10 Prior to forming Group, Bruce served as Vice President & Principal Analyst at Forrester Research. During his 12 years with Forrester, he led the company's business- to- business, financial services, e- business, and customer experience practices. Bruce was Forrester s most- read analyst for 13 consecutive quarters and remains one of the most respected analysts in the industry. Bruce authored several of Forrester s most popular research reports, including -Based Differentiation, The Customer Journey, and Voice Of The Customer: The Next Generation. Additionally, he created Forrester s Customer Index and Voice of the Customer Award, and he spearheaded the creation and expansion of many of Forrester s experience evaluation methodologies and training workshops. Before joining Forrester, Bruce co- founded and led several Internet start- ups. He also held management positions with GE, Stratus Computers, and Fidelity Investments. Bruce has been widely quoted in the press, including such esteemed media outlets as The New York Times, Wall Street Journal, and Business Week. Bruce is also a highly in- demand public speaker, combining his deep area expertise with an engaging, entertaining style. He has delivered keynote speeches at hundreds of industry and corporate events and often attains recognition as one of the top speakers. Bruce holds a master s degree from the MIT Sloan School of Management, where he concentrated in business strategy and operations. He also holds an undergraduate degree in mechanical engineering from Union College. 10 Customer Matters is a registered trademark of Group. Page 35
T E M K I N G R O U P O V E R V I E W Group is a leading customer experience (CX) research and consulting firm. We help many of the world s largest brands lead their transformational journeys towards customer-centricity and build loyalty by engaging the hearts and minds of their customers, employees, and partners. TEMKIN GROUP IS BASED ON FOUR CORE BELIEFS: CX drives loyalty. Our research and work with clients demonstrates that interactions with customers influence both how much business they ll do with you in the future and how often they recommend you to others. CX is a journey, not a project. Building the capabilities to consistently delight customers doesn t happen overnight. Companies need to plan for a multi-year change program. Improvement requires systemic change. Companies can improve isolated customer interactions, but they can t gain a competitive advantage until customer experience is embedded into their operational processes and culture. We can help you make a difference. Transformation isn t easy, but becoming more customer-centric is worth the effort. We help our clients accelerate their results and avoid many of the stumbling blocks along the way. HOW WE ARE DIFFERENT: Group combines thought leadership and benchmark data with a deep understanding of the dynamics of organizations, which enables us to accelerate customer experience results and help companies build the four competencies that are required to sustain long-term success. Purposeful Leadership Do your leaders consistently operate with a clear, well-articulated set of values? Customer Connectedness Is customer feedback and insight deeply integrated throughout your internal processes? CX CORE COMPETENCIES Compelling Brand Values Are your brand attributes driving decisions about how you treat customers and other stakeholders? Employee Engagement Are employees fully committed to the goals of your organization? HOW WE CAN HELP: Group provides a number of different services including: Research and Advisory Subscriptions. Access to all of our research on trends, best practices, and benchmark data as well as the option to ask questions or seek feedback on your efforts. 48 White Oak Road Waban, MA 02468 617/916-2075 tel 617/663-6124 fax CX Planning and Innovating. We ll examine your organization s goals and make sure that you have the right plans and priorities for CX, whether you re just starting the journey or looking to take your CX efforts to a much higher level. Engaging Workshops and Training. We deliver interactive workshops to help your organization understand the importance of CX and what it takes to achieve long-term success. We run workshops for executive teams, extended leadership groups, CX organizations, and broader sets of employees. Compelling Speeches. If you re planning a meeting or an offsite event, we ll infuse compelling CX content into the event. We can engage your audience on a wide range of topics related to customer experience, focusing on elements of our four customer experience competencies.