US Companies With the Best and Worst Customer Experience Ratings in 2016

TemkinGroup-Top-and-Bottom-Cos-Cust-Experience-Mar2016Supermarkets continue to lead the way in customer experience, while health plans are again among the worst-rated, according to the 6th annual customer experience ratings [download page] from the Temkin Group. Indeed, of the 294 companies measured across 20 industries, supermarkets occupied 5 of the top 8 positions this year, while health plans took 4 of the bottom 8.

Overall, supermarket chains scored the highest average ratings (74%) of the 20 industries. Along with fast food chains (71%), they were the only to achieve an overall “good” rating. These leading industries were followed by retailers (69%), parcel delivery services (67%) and banks (67%), the latter of which have been enjoying a resurgence in positive perception in recent years.

By contrast, 3 of the 20 industries averaged a “very poor” rating, each at an overall rating of just 47%: health plans; TV service providers; and internet service providers. Those results track with research from the American Customer Satisfaction Index, in which pay-TV providers and internet service providers emerge as the lowest-rated in customer satisfaction of 43 industries analyzed.

The Temkin Experience Ratings are determined via a survey of 10,000 US consumers, who are asked to rate their experiences with companies across 3 components: Functional, Accessible, and Emotional. Negative experiences (bottom-3 box on a 7-point scale) are subtracted from positive experiences (top-2 box) to arrive at a “net goodness” rating for each of the components, which are then averaged for an overall experience rating.

A rating of 80% and above is considered “excellent,” while a rating of 70-80% is considered “good.” On the other end of the spectrum, anything below 50% is determined to be “very poor.”

This year only one company – Publix (also last year’s leader) achieved an overall rating in the “excellent” category. Just 18% of the 294 companies measured scored in the “good” or “excellent” categories, about half the proportion (37%) from last year. At the same time, the proportion of companies with “poor” or “very poor” overall ratings grew from 28% to 46%. The average scores for all 20 industries declined.

Among the 271 companies that were measured in both 2015 and 2016, the largest improvements were for Coventry Health Care and Con Edison of NY. However, these companies were working from low scores to begin with, as Coventry was the lowest-rated company overall last year, and Con Ed was not much better.

The biggest ratings drops were experienced by Fairfield Inn and Volkswagen dealers. The impact of Volkswagen’s emissions scandal has now been seen in a couple of pieces of research. Recently, The Harris Poll’s Reputation Quotient (RQ) study showed that the Volkswagen Group shows the largest year-over-year decline in reputation by a huge margin, plummeting from a reputation quotient score of 75.21 (“very good”) to a score of just 54.75 (“very poor”). In fact, Volkswagen Group was the only company to fall into the “very poor” bucket.