temkin experience ratings of tech vendors (2012)

7/27/2019 Temkin Experience Ratings of Tech Vendors (2012)

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Temkin Group Insight Report

2012 Temkin Experience

Ratings of Tech VendorsMicrosoft, Cisco, and IBM SPSS Top Ratings

Based on Feedback from 800 IT ProfessionalsBy Bruce TemkinCustomer Experience Transformist

& Managing Partner

Temkin Group

January 2012


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Temkin Group Insight Report www.temkingroup.com

Copyright 2012 Temkin Group. All rights reserved. Page 2

Executive Summary

To understand the customer experience delivered by IT vendors, we surveyed 800 ITprofessionals from large companies. Using their feedback on the functional, accessible, and

emotional components of experiences with vendors, we created the 2012 TemkinExperience Ratings for Tech Vendors that rates 60 large IT suppliers by their customers.Microsoft business applications, Cisco, IBM SPSS, and Microsoft servers were at the top ofthe list with excellent ratings. At the other end of the spectrum, Compuware, Capgemini,and Fujitsu were at the bottom of nine companies with very poor ratings. Our researchalso looked at the 2012 purchase plans for these IT buyers. When we chart the TemkinExperience Ratings for Tech Vendors with thepurchase momentum for these 60 firms, itshows the clear connection between customer experience and revenues.

Microsoft, Cisco, and IBM SPSS Earn Top Spots in Temkin Experience Ratings

Most companies depend heavily on their IT capabilities. As such, they expect a lot from theirtechnology providers. But how good are these vendors at meeting the needs of their corporateclients? To answer this question, we surveyed 800 IT decision makers from companies with at least$500 million in annual revenues about their relationships with large tech vendors.1 We used thefeedback to create the 2012 Temkin Experience Ratings for Tech Vendors by:

Asking about three elements of the experience. IT professionals were asked to rateexperiences that they had during the previous six months. The questions, asked on a seven-point scale, covered the three components of experience:functional, accessible, andemotional(see Figure 1).

Analyzing data from companies with at least 60 respondents. While IT professionalsrated many companies, we limited our analysis to the 60 companies for which we hadresponses from at least 60 consumers.

Calculating component ratings. We developed ratings for each of the three components ofthe experience by taking the percentage of IT professionals that gave a company a goodscore and subtracting those that gave it a bad score.2

Calculating the overall ratings. The Temkin Experience Rating for Tech Vendors is anaverage of the ratings from each of the three experience components.

Microsoft and Cisco Tie For Top Rating

We examined the Temkin Experience Ratings for Tech Vendors and found that (see Figure 2):

1Data comes from the Temkin Group Q1 2012 IT Benchmark Survey, which was an online study of 800 ITprofessionals from companies with at least $500 million of annual revenues during January 2012.2The methodology for calculating the Temkin Experience Rating is described at the end of this document.


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Microsoft dominates the top. Microsoft business applications and Cisco are tied for thetop spot in the ratings. In addition, two other Microsoft business areas business serversand desktop software were in the top seven. Rounding out the top seven are IBM SPSS,IBM software (besides SPSS), and Intel.

Only four companies are excellent. When we examined the Temkin Experience Ratingscores, we found that only the top four companies had excellent customer experience (seeFigure 3). The next twenty companies on the list fell into the okay rating area.

Nine vendors are very poor. While Compuware received the lowest overall score, eightother tech vendors also earned very poor ratings: Capgemini, Fujitsu, Novell, ACS,Software AG, Hitachi, Alcatel-Lucent, and Open Text (see Figure 4).

Lowest scores are for the emotional experience. The average score for the emotionalexperience component is 54%, below the level of the other two components (see Figure 5).Microsoft and IBM are in the top five for all three components while CGI, Compuware, andACS are in the bottom five for two of the areas.

Customer Experience Correlates to the Top Line

We asked the IT professionals how much their company was planning to spend with the IT vendorsin 2012 compared with 2011. Their answers were used to develop apurchase momentum score,which we defined as the percentage of companies than plan to spend more with the vendor minusthe percentage of companies that plan to spend less. Using this information, we found that:

Customer experience leaders have higherpurchase momentum. We charted the TemkinExperience Ratings andpurchase momentum for all 60 companies (see Figure 6). Whilethere are a few outliers, the data is compelling: customer experience leaders have morecustomers buying more from them.

A few companies buck the trend. Three companies that seem to have higherpurchasemomentum than their customer experience would suggest are: Software AG (TemkinExperience Rating of 49% andpurchase momentum of 29%), Terradata (Temkin ExperienceRating of 57% andpurchase momentum of 36%), and SAS Institute (Temkin ExperienceRating of 59% andpurchase momentum of 42%). HPs products, on the other hand, have alowerpurchase momentum than their experience rating would suggest (Temkin ExperienceRating of 67% and purchase momentum of 18%).

SAS and Apple have the most purchase momentum. We have provided thepurchasemomentum data for all of the companies. Apple and SAS Institute tied for the highest levels,followed by Cisco and Microsoft with its business applications and servers (see Figure 7).

Compuware and Alcatel-Lucent have the least purchase momentum. At the bottom ofthe list forpurchase momentum are Compuware, Alcatel-Lucent, Sybase, and Symantec (see

Figure 8).


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Calculating the Temkin Experience Ratings

To calculate the Temkin Experience Ratings, we followed the following steps (see Figure 9):

For each of the three components of experience (functional, accessible, and emotional) wecalculate the percentage of companies that give the IT suppliers 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 goodscores. This results in three separate ratings.

The Temkin Experience Ratings for Tech Vendors is the average of the three individualcomponents.

The Path to Customer Experience Excellence

The Temkin Experience Ratings shows that most companies have a long way to go before theyvemastered customer experience. While any company can improve portions of its customer

experience, it takes more than ambition and superficial changes to create lasting differentiation. So,what are the ingredients for long-term success? Temkin Group has identified four competenciesthat companies must master in order to build and sustain customer experience leadership:

Purposeful Leadership: Operate consistently with a clear set of values. Employee Engagement: Align employees with the goals of the organization. Compelling Brand Values: Deliver on your brand promises to customers. Customer Connectedness: Infuse customer insight across the organization.

Companies are only as strong as their weakest competency, so its important to master all fourareas. To get started, use Temkin Groups customer experience competency assessment to identify

strengths and weaknesses (see Figure 10). Use this information to set priorities on a multi-yearjourney towards customer centricity.


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Figure 1


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Figure 2


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Figure 3


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Figure 4


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Figure 5


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Figure 6


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Figure 7


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Figure 8


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Figure 9


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Figure 10


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Author, Bruce Temkin

Bruce Temkin is Customer Experience Transformist & Managing Partner ofTemkin Group. He isalso the co-founder and Chair of the Customer Experience Professionals Association (cxpa.org).

Bruce is widely viewed as a leading expert in how organizations build differentiation with customerexperience. He has worked with hundreds of large organizations on the strategies, operationalprocesses, organizational structures, leadership, and culture required to sustain superior customerrelationships.

Bruce is the author of the popular blog Customer Experience Matters where he regularly postsinsights on topics such as customer experience, branding, leadership, and employee engagement.His eBookSix Laws of Customer Experiencethat is available for free on the blog has beendownloaded by tens of thousands of people around the world.

Prior to forming Temkin Group, Bruce was Vice President & Principal Analyst with ForresterResearch. 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 analystfor 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 OfThe Customer: The Next Generation. He created Forresters Customer Experience Index, whichrates more than 100 firms on their overall customer experience as well as Forresters Voice of theCustomer Award. He also led the creation and updates of many of Forresters customer experienceevaluation methodologies and training workshops.

Prior to Forrester, Bruce co-founded and ran a couple of Internet start-ups. He also heldmanagement positions with GE, Stratus Computers, and Fidelity Investments.

Bruce has been widely quoted in the press, including media outlets such as The 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 eventsand is often recognized as the top speaker. At Forresters inaugural Customer Experience Forum,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 inbusiness strategy and operations. He also holds an undergraduate degree in mechanicalengineering from Union College.


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About Temkin Group

Temkin Group is a consulting and research firm that helps clients increase customer loyalty byimproving their customer experience. The company was founded based on four core beliefs:

Customer experience drives loyalty.Our research and work with clients has shownthat interactions with customers influences

how much business theyll do with you in thefuture and how often they recommend you

to friends and colleagues.

Its a journey, not a project.Building the capabilities to consistently delightcustomers doesnt happen overnight.

Companies need to plan for a multi-yearcorporate change program.

Improvement requires systemic change.Companies can improve isolated customer

interactions, but they cant gain competitiveadvantage until customer experience is

embedded in their operating fabric.

We can help you make a difference.Transformation isnt easy, but leading your

company to be more customer-centric is worth theeffort. We help our clients accelerate their results

and avoid many of the bumps along the way.

Temkin Group combines customer experience thought leadership witha deep understanding of the dynamics of large organizations

to accelerate results.

We help companies build the four competencies required forlong-term success:

1. Purposeful Leadership. Does your leadership teamoperate consistently from a clear, well-articulated

set of values?

2. Engaged Employees. Are employees fully committedto the goals of your organization?

3. Compelling Brand Values. Are your brand attributesdriving decisions about how you treat customers?

4. Customer-connectedness. Is customer feedback and insight deeplyintegrated 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 anorganization.

Strategic reviews of customer experience plans and objectives to identify opportunities foraccelerating 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.

temkin experience ratings of tech vendors (2012)

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