RETAIL BANKING. Customer Experience Management

Transcription

1 RETAIL BANKING Customer Experience Management Thomas K. Hershberger President/CEO Cross Financial Group Lincoln, NE August 6, 2018

2 Customer Experience Management (CXM) TOM HERSHBERGER president/ceo 6940 O Street Suite 310 Lincoln, Nebraska tom@crossfinancial.com

3 Customer Experience Management Enhancing Customer Retention and Profitability TOM HERSHBERGER president/ceo Focus on customers. 1

4 The probability of selling to an existing customer is 60% 70%. The probably of selling to a new prospect is 5% 20%. Marketing Metrics $ % 80% of your company s future revenue will come from just 20% of your existing customers. Gartner Group 2

5 78% of surveyed customers say that competent customer service reps are most responsible for a happy customer experience. Genesys Global Most likely to prompt you to leave the bank... Bad service or a serious issue with my accounts Monthly fees go up Charged unexpected or difficult to explain fees Primary bank starts charging higher service fees, such as for overdrafts Other banks start paying more interest, but my bank doesn't Stricter requirement to avoid a monthly fee Primary bank has a substandard online/mobile banking Primary bank remove the ATMS I use most Primary bank closes the branch I use most Primary bank closes the nearest branch Primary bank reduces the hours or days it branches are open A friend recommends another bank 23% 20% 20% 15% 11% 10% 9% 7% 2% 38% 43% 41% 0% 10% 20% 30% 40% 50% 3

6 70% of buying experiences are based on how the customers feel they are being treated. McKinsey 55% of consumers would pay more for a better customer experience. Defaqto Research 4

7 75% 5% A 5% increase in customer retention can increase a company s profitability by 75%. Bain & Company 83% of complaints that received a reply on social media liked or loved the fact that the company responded. Bain & Company 5

8 atm online mobile call center branch kiosk 9 out of 10 consumers expect to receive a consistent experience over multiple contact channels. Synthetix 65% of customers are frustrated by inconsistent experiences across channels. Accenture 6

9 Percent of customers that go to a company s website for information. Percent of customers that leave or go to a competitor because of website issues. 83% 56% Gartner Customer Service CX UX 7

10 Bank Customer Experiences Meet Expectations Don t Meet Expectations Customer Needs Save Borrow Manage Protect Short-term Mid-term Long-term Major purchase Ongoing financing Move money Make payments Income Assets Retirement Savings Loans Checking Insurance CDs IRAs Annuities LOC ODP Leases Online banking Bill Pay Debit card Trust Services FDIC 8

11 Traditionalist Boomer Gen X Millennial Expectations List one thing that needs to happen at your bank to ensure the best customer experience is achieved consistently over time? 9

12 Customer Expectations Remember me. Give me the the facts. Update me. Be available to me. Give me suggestions. Be consistent. Customer Expectations Personalized Accurate Proactive Deliver Anywhere Suggest Solutions Omni-Channel 10

13 Desired Customer Experience Behaviors What should employees do? How should employees do it? What does the customer expect you to do? What does the customer want you to do? Outcomes What customer expectation must be met? What should the experience feel like? How did the customer react to the experience? Customer Experiences Filters Staff Branches Technology Branding Advertising Social Media Education 11

14 CX Influences What influences the customer experience at your bank? Employee product knowledge Product features and pricing Availability of staff/answers Speed and accuracy Decision making Employee empowerment Technology Atmosphere Service interactions New relationship contacts Community involvement Communications Employee relationships Financial solutions Problem solving Bank holidays Delivering and sustaining exceptional customer experiences requires a culture of trust and consistency. 12

15 A patterned way in which people do things together. CX Culture patterned way systems, operations, forms, procedures do things together teamwork, shared vision and commitment, common goals We see our customers as invited guests to a party, and we are the hosts. It s our job every day to make every important aspect of the customer experience a little bit better. Jeff Bezos 13

16 Your CX Practices The major goal of customer experience management is to foster customer loyalty through high-quality interactions. 14

17 In today s environment, relying on growth from a single channel is unsustainable. Commercial Bank Locations 14,000 12,000 Unit Institutions Institutions with Branches 10,000 8,000 6,000 4,000 2, Source: FDIC

18 Phygital Channel priorities change with needs. Manage the entire experience, company-wide. 0% 20% 40% 60% 80% 100% Balance Inquiry Bill Payments/Transfers Report A Problem/Obtain Status Make Deposit Advice Branch Call Center ATM Online Mobile Other Ernst & Young Global Consumer Banker Survey 16

19 Omni-Channel Delivery a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store. Open Branch 78% Digital 14% Checking Accounts Open Digital 20% Neither 9% Branch 11% Digital and branch 25% Digital 55% Shop Open Branch 72% Branch 44% Digital 46% Source: Novantas 17

20 Customer Experience WHAT Satisfaction Loyalty Advocacy WHERE Interactions Touchpoints Journey Journey Mapping Customer Employee Website Advertising POS Referral Phone call Core system Training Forms Advertising Compliance Coaching 18

21 Today s consumer journey averages 22 touchpoints. Branding Strategy Insider Customer Activities Awarenes s Pre- Purchase Purchase Post- Purchase Research Selection Service Customer Questions Delivery Channel Options Feelings and Emotions Customer Journey Map Customer Outcomes 19

22 CXM the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle. 20

23 CXM Define Measure Evaluate Reinforce Define Your Desired CX 21

24 Clarify Desired Experiences Minimum performance standards In-person Telephone Electronic/digital Additional standards by interaction Transactions Account service Relationship inquiries Prospecting/business development Community service Minimum Standards Transactions/Account Service Available Friendly Knowledgeable Offer assistance Name usage Accurate Responsive Informed Website Available Fast Functional Easy navigation Rich content Accurate Responsive 22

25 Relationship Inquiry Minimum Available Friendly Knowledgeable Offer assistance Name usage Accurate Responsive Informed Additional Trusted Experienced Consultative Personal Caring Empathy Supportive Your CX Requirements 23

26 Measure Your Desired CX CX Measurements 1. Customer service 2. Accuracy 3. Responsiveness 4. Satisfaction 5. Loyalty 6. Future utilization 7. Relationship growth 8. Product possession and utilization 24

27 Measurement Resources Bank Performance Customer Perceptions Employee Perceptions Referrals Branch growth Transaction volumes New relationships Households per branch Market share Relationship longevity Attrition/retention Bank Performance 25

28 Bank Performance Product utilization Possession Usage Relationship depth Balance increases Services per household Complaint management Error tracking transaction accuracy Performance Layers 4. Relationships 3. Customers 2. Accounts 1. Transactions 26

29 Measurements Branch usage changes Lobby, drive-in, telephone Online and mobile utilization ratio Bill pay volume changes Transfers to competitors Relationship balance changes Account tenure Declines in account utilization Website Analytics Heat or frequency mapping Common hardware Common browser utilization Web traffic sequences Page views Keywords Navigation assessments 27

30 Customer Perceptions Exit interviews Focus groups Advisory panels Customer satisfaction surveys Satisfaction Loyalty Net Promoter Scores (NPS) New and closed account surveys Post-transaction surveys Mystery shopping Traditional Data Collection Telephone Mail In-Person Online 28

31 Migrate from Mail to Online New and Closed Account Surveys Strengths Inexpensive Assessment of activities customers have experienced Weaknesses Non-response bias Limited control of response group 29

32 Reason to Close Reason to Open Experience with financial service providers Rates or fees More convenient to have everything in one place Branch or office location Access to branches and banking services Information from friend or relative Ernst & Young Global Consumer Banker Survey Customer Surveys Strengths Easy to administrate Can mail or to households Customer response rates are acceptable Weaknesses Slow data gathering 6 to 8 weeks 30

33 Customer Survey Simple ratings Ease-to-complete 31

34 The Ultimate Question Fred Reichheld Harvard Business School Press How likely is it that you would recommend ABC Bank to a friend, family member or colleague? Not At All Likely Extremely Likely Detractor Passive Promoter Focus Groups Strengths In-depth information Observe reactions Investigate concepts that generate strong feelings Weaknesses Small sample size Results not projectable 32

35 Post-Contact Survey 1. Rate your satisfaction with Representative Representative s knowledge Representative s helpfulness and responsiveness 2. Likelihood to recommend 3. Satisfactory solution for your inquiry Mystery Customer Program Strengths Customer s perspective Support behavior modification Results are employee specific Identifies training opportunities Weaknesses Limited number of evaluations 33

36 Banking School History 100% 90% 80% 70% 60% 75% 72% 67% 71% 75% 67% 65% 50% 40% 30% 20% 10% 0% Emerging Methodologies In-office tablet surveys Interactive online surveys Conditional questions Online focus groups Social media surveys Data-driven surveys 34

37 Employee Perceptions Focus groups Employee surveys Service quality teams Process improvement panels Employee Survey 35

38 Internal Service Customer Service Investments and Insurance Trust Department Compliance Marketing Human Resources Operations Information Technology Loan Operations Evaluate Your Desired CX 36

39 The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge. Stephen Hawking Investigate trends and statistics that help improve your customer experience. 37

40 Ask Why And Set Goals 100% 95% 90% 85% 80% 75% Merger Announcement Merger Terminated Computer Conversion 70% 65% 60% 55% Average Customer Service Scores 50% Reinforce Your Desired CX 38

41 Capture and Share Stories Clarify expectations vision for CX Bring your CX culture to life tell stories Share measurements Celebrate success Encourage development Communicate often Give employees a reason to engage Resources Internal communications Managers, coaches and mentors Social media Staff meetings Workgroup discussions Process improvement teams Employee newsletters 39

42 Accountability Develop journey maps Assess critical steps Conduct research Create measurements Establish desired outcomes Measureable goals For every customer complaint there are 25 other unhappy customers who have remained silent. Lee Resource 40

43 Every contact we have with a customer influences whether or not they ll come back. We have to be great every time or we ll lose them. Kevin Stirtz CXM Retention Satisfaction Loyalty Advocacy Profitability 41