2011TemkinExperienceRatings v5

Temkin Group Insight Report
2011 Temkin Experience Ratings

Amazon.com, Kohls and Costco Top Ratings Of 143 Large US Companies
By Bruce Temkin Customer Experience Transformist & Managing Partner
Temkin Group March 2011

Licensed to: Rahul Arya - Dubai Media City Dubai, NY 11001 - +17122124560 - rarya@1to1.com
www.temkingroup.com
Executive Summary
Amazon.com, Kohls, Costco, Lowes, and Sams Club took the top five spots in the 2011 Temkin Experience Ratings. We asked 6,000 US consumers to rate their recent interactions with companies across three dimensions of their experience: functional, accessible, and emotional. This data allowed us to rate 143 companies across 12 industries. Only 16% of those companies received an excellent or good rating. The results show that retailers deliver the best experience while TV service providers and health plans deliver the worst.
Amazon.com Takes Top Spot In 2011 Temkin Experience Ratings

How good are companies when it comes to customer experience? To answer this question, we surveyed 6,000 US consumers about their recent interactions with companies. 1 We used this consumer feedback to create the 2011 Temkin Experience Ratings by: Asking about three elements of the experience. Consumers were asked to rate experiences that they had during the previous 60 days. The questions, asked on a seven- point scale, covered the three components of experience: functional, accessible, and emotional (see Figure 1). Analyzing data from companies with at least 100 respondents. While consumers rated many companies, we limited our analysis to the 143 companies for which we had responses from at least 100 consumers (see Figure 2). Calculating component ratings. We developed ratings for each of the three components of experience by taking the percentage of consumers that gave a company good scores and subtracting those that gave it a bad score. 2 Calculating the overall ratings. The Temkin Experience Rating is an average of the ratings from each of the three experience components.
Amazon.com, Kohls, and Costco Receive The Highest Ratings

We examined the Temkin Experience Ratings for 143 companies and found that: Amazon.com leads pack of retailers at the top. Amazon.com earned the top rating, followed by 10 other retailers (see Figure 3). Kohls, Costco, Lowes, and Sams Club rounded out the top five. The only five non-retailers represented in the top 20 are three hotel chains (Marriot, Hyatt, and Courtyard By Marriott), one bank (Regions), and an insurance company (USAA).
1 Data comes from the Temkin Group Q1 2011 Consumer Experience Survey, which was an online study of
6,000 US consumers during January 2011. Survey respondents were representative of the US population; respondent quotas were based on US census data for age, income, ethnicity, and geographic region. 2 The methodology for calculating the Temkin Experience Rating is described at the end of this document.
Copyright 2011 Temkin Group. All rights reserved.

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Anthem falls to the bottom with other health plans. In the last spot, 143rd on the list, is Anthem (see Figure 4). But its not alone; seven of the bottom 13 companies are health plans. Comcast and Charter Communications each show-up twice in the bottom six spots - receiving poor scores for both their Internet and TV service offerings. There are a handful of good experiences. Of the 143 companies included in the ratings, only 24 ended up with either an excellent or good rating (see Figure 5). Nearly half of the companies (48%) received poor or very poor ratings. USAA leads in two industries. USAA came out in first place for both credit cards and insurance (see Figure 6). Even the best computer maker (Apple) and TV service provider (Cox Communications) ended up with poor ratings. Tri-Care and USAA standout relative to their industries. We compared the scores of the individudal companies to their industry averages and found 28 firms that were at least five points above their peers (see Figure 7). Four companies had double-digit leads over their industry: TriCare, USAA (for insurance and credit cards) and Regions. Radio Shack and Motel 6 look bad by comparison. Led by RadioShack and Motel 6, 32 companies scored at least five points below their industry-average Temkin Experience Rating (see Figure 8).
Retail Is Top Industry, While Health Plans And TV Service Providers Disappoint
We examined the Temkin Experience Ratings of the 12 industries and found that: Retailers lead; TV service providers and health plans lag. While the scores for retailers spanned from poor to excellent, the average retail score landed in the good well above hotels, the next industry on the list (seee Figure 9). The average for both TV service providers and health plans fall on the cusp between poor and very poor. Retailers shine across all experience components. To examine the difference across industries, we charted the industry average scores for all of the three experience components (see Figure 10 and Figure 11). Retailers were at the top for all three areas. Banks were strong in the functional component while hotels were strong in accessible and emotional components. TV service providers and health plans were the weakest across all three components.
Examining Functional, Accessible, And Emotional Experience Ratings

We examined the three components of the Temkin Experience Ratings for all 143 companies and found that: Costco and Amazon.com offer the top functional experience. Led by Costco and Amazon.com, nine companies had excellent ratings (80% or more) for the functional component (see Figure 12). At the other end of the spectrum, 21st Century was the only firm with a very poor rating (below 50%). Kohls and Costco provide the most accessible experience. Kohls and Costco led 10 companies that had excellent ratings for the accessible component (see Figure 13).

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Anthem and Charter Communications (for both its TV service and Internet service business) were at the bottom of the list along of 10 companies very poor ratings. Amazon.com, Marriott and Kohls are the best emotional experience. While no companies received an excellent rating for their emotional components, Amazon.com, Marriott, Kohls and BJs Wholesale Club topped the list with good ratings (see Figure 14). Anthem and Comcast along with 14 other companies fell below the 40% mark.
Calculating The Temkin Ratings

To calculate the Temkin Experience Rating, we followed the following steps (see Figure 15): For each of the three component of experience (functional, accessible, and emotional) we calculate the percentage of consumers that give companies a good score (6 or 7) and those that give it a bad score (1 or 2 or 3). For each component, we subtract the percentage of bad scores from the percentage of good scores. This results in three separate ratings. The Temkin Experience Rating is the average of the three individual components.

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Figure 1: Three Components Of The Temkin Experience Ratings

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Figure 2: Companies Included In The 2011 Temkin Experience Ratings

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Figure 3: Top Firms In The 2011 Temkin Experience Ratings

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Figure 4: Bottom Firms In The 2011 Temkin Experience Rating

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Figure 5: Overall Results From The 2011 Temkin Experience Ratings

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Figure 6: Industry Leaders In The 2011 Temkin Experience Ratings

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Figure 7: Companies That Outperform Their Industries

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Figure 8: Companies The Under-Performed Their Industries

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Figure 9: Range Of Scores For Each Industry

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Figure 10: Average Scores For Each Industry

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Figure 11: Average Industry Results Across Components

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Figure 12: Companies With High And Low Functional Experience Ratings

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Figure 13: Companies With High And Low Accessible Experience Ratings

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Figure 14: Companies With High And Low Emotional Experience Ratings

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Figure 15: Calculating The Temkin Experience Ratings

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About The Author, Bruce Temkin

Bruce Temkin is Customer Experience Transformist & Managing Partner of Temkin Group. He is widely viewed as a leading expert in how organizations build differentiation with customer experience. He has worked with hundreds of large organizations on the strategies, operational processes, organizational structures, leadership, and culture required to sustain superior customer relationships. Bruce is the author of the popular blog Customer Experience Matters where he regularly posts insights on topics such as customer experience, branding, leadership, and employee engagement. Prior to forming Temkin Group, Bruce was Vice President & Principal Analyst with Forrester Research. During his 12 years with Forrester, he led the company's business-to-business, financial services, eBusiness, and customer experience practices. Bruce was Forresters most-read analyst for 13 consecutive quarters and remains one of the most respected analysts in the industry. Bruce authored several Forresters most popular research reports on customer experience including Experience-Based Differentiation, The Customer Experience Journey, and Voice Of The Customer: The Next Generation. He created Forresters Customer Experience Index, which rates more than 100 firms on their overall customer experience. He also led the creation and updates of many of Forresters customer experience evaluation methodologies and training workshops. Prior to Forrester, Bruce co-founded and ran a couple of Internet start-ups. He also held management positions with GE, Stratus Computers, and Fidelity Investments. Bruce has been widely quoted in the press, including media outlets such as New York Times, Wall Street Journal, and Business Week. Bruce is a highly demanded public speaker who combines deep expertise with an engaging, entertaining style. He has delivered keynote speeches at hundreds of industry and corporate events; often recognized as the top speaker. At Forresters inaugural Customer Experience Forum in 2009, for instance, his two sessions received the top ratings of the event. Bruce holds a masters 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.

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About Temkin Group

Temkin Group is a consulting and research firm that helps clients increase customer loyalty by improving their customer experience. The company was founded based on four core beliefs: Customer experience drives loyalty. Our research and work with clients has shown that interactions with customers influences how much business theyll do with you in the future and how often they recommend you to friends and colleagues. Improvement requires systemic change.
Companies can improve isolated customer interactions, but they cant gain competitive advantage until customer experience is embedded in their operating fabric.

Its a journey, not a project. Building the capabilities to consistently delight customers doesnt happen overnight. Companies need to plan for a multi-year corporate change program. We can help you make a difference. Transformation isnt easy, but leading your company to be more customer-centric is worth the effort. We help our clients accelerate their results and avoid many of the bumps along the way.
Temkin Group combines customer experience thought leadership with a deep understanding of the dynamics of large organizations to accelerate results. We help companies build the four competencies required for long-term success: 1. Purposeful Leadership. Does your executive team operate consistently from a clear, well-articulated set of values? 2. Engaged Employees. Are employees fully committed to the goals of your organization? 3. Compelling Brand Values. Are your brand attributes driving decisions about how you treat customers? 4. Customer-connectedness. Is customer feedback and insight deeply integrated throughout all of your internal processes?

Temkin Group provides a number of services that include: Interactive workshops to instill a common mindset, vocabulary, and approach across an organization. Strategic reviews of customer experience plans and objectives to identify opportunities for accelerating efforts and avoiding missteps along the way. Assessments of customer experience competencies to identify and close critical gaps. Senior executive sessions to ensure appropriate levels of alignment and commitment. Executive coaching to help executives leading customer experience efforts. Speeches and webinars to teach customer experience concepts. Temkin Ratings that provides quantitative data on customer experience and loyalty

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2011TemkinExperienceRatings v5

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Temkin Group Insight Report