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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 buy more from a company CX Leaders CX 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 million or 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 www.temkingroup.com Copyright c 2013 Temkin Group. All rights reserved IGNORE EXPLORE Percentage of Companies MOBILIZE OPERATIONALIZE ALIGN EMBED Stage 6 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1 CX Core Competencies 72% 38% 31% CX Management Maturity Level

The State of Customer Experience (Temkin Group)

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This infographic shows the connection between customer experience and loyalty, the benefits of customer experience, the value of promoters versus detractors, where companies are on their customer experience journeys, and the competencies that are required for customer experience success.

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Page 1: The State of Customer Experience (Temkin Group)

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 buy more 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 company5.2

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 million or 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 Experience2. Temkin Group Q3 2012 Consumer Benchmark Survey (6,000 U.S. Consumers)3. Temkin Group Insight Report: The State of CX Management, 20134. Temkin Group Insight Report: 2013 Temkin Experience Ratings

5. Customer Experience Matter blog post: 101K CX Professionals in North America6. Temkin Group Insight Report: Employee Engagement Benchmark Study, 20137. Temkin Group Insight Report: Prepare for Next Generation VoC Programs8. 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

4040%

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 mCopyright c 2013 Temkin Group. All rights reserved

IGNORE EXPLORE

Per

cent

age

of C

ompa

nies

MOBILIZE OPERATIONALIZE ALIGN EMBEDStage 6Stage 5Stage 4Stage 3Stage 2Stage 1

CX Core

Competencies

72%

38%

31%

CX Management Maturity Level