Increasing Customer ENGAGEMENT

Transcription

1 Increasing Customer ENGAGEMENT Financial been using to to improve and and City National Bank have has been using consumer consumerdata data improve streamline their opportunities forfor some time.time. their cross-sell cross-selland andup-sell up-sell opportunities some Today, new new data data analytics analytics solutions solutionsare aremaking makingititpossible possiblefor forbanks financial and other to go deeper and really makeswhat, like City National Bank, tounderstand go deeper what and understand their tick. reallycustomers makes their customers tick Now financial services companies can draw on more insights from data about their to to help guide theirtheir day-to-day their customers customersthan thanever everbefore before help guide day-to-day business practices deliver more personalized products practicesand andproactively proactively deliver more personalized products and services. harnessing analytics, retailcity banks and other services.byby harnessing analytics, National Bank and other can create more engaging, programs that service that can create morecustomer-centric engaging, customer-centric programs consumers through through a varietyaofvariety channels. service consumers of channels. John Malo, Malo,research researchdirector director CEB TowerGroup s banking forfor CEB TowerGroup s retailretail banking practice, practice, delved these possibilities duringweb a recent webhosted seminar delved into theseinto possibilities during a recent seminar by the hosted by the American Banker andbysponsored American Banker and sponsored Envestnetby Envestnet Yodlee. Yodlee.

2 More than half of the retail bank IT executives surveyed by CEB TowerGroup indicate that improving customer service through digital channels is their top priority. A Revealing Survey Drawing on the results of CEB TowerGroup s annual survey of retail banking IT executives, Malo began by noting that retail banks are are placing placing a premium a premium on improving on improving service service through through their digital their digital channels, channels, and that and more that than more half than of the half executives of the executives surveyed surveyed indicated indicated that this is that their this top is priority their top right priority now. One right of now. their key One objectives, of their key according objectives, to the according survey, to is to the obtain survey, a single, is to obtain consistent a single, view consistent of their customers, view of their which customers, Malo called which a prerequisite Malo called for a improving prerequisite service for improving levels and service the customer levels and experience. the customer experience. Most of the bank IT execs surveyed, he noted, strongly believe that they can improve customer adoption rates through enhancements to their digital service channels. There is, however, a disconnect at most banks between their front, middle, and back offices. Another study cited by Malo, Capgemini s World Retail Banking Report, identifies improving the customer experience as the number one priority by far for most banks front office, but the lowest priority for their middle and back offices, which places much greater stress on simplifying operations and processes. WHO IS RESPONSIBLE FOR CUSTOMER EXPERIENCE? Organizations are realizing that and Process Simplification are common goals. Differences in Priorities Lie in Semantics Primary Drivers for Making Investments in Digital Transformation of Front-, Middle-, and Back-Offices of a Bank (%), 2015 Front-Office Middle-Office Back-Office 92.6% 78.8% 81.5% 83.3% 70.6% 77.8% 52.8% 64.7% 75.9% 51.9% 58.8% 50.9% 51.9% 53.8% 46.3% 60% of negative customer experiences emanates from back-office. - Capgemini Consulting, Most negative customer experiences, meanwhile, emanate from middle and back-office processes, according to the study. 2

3 Simplification Equals Satisfaction Simplification Equals Satisfaction when a bank tries to automate processes that have been traditionally performed by people, either Malo equates an improved customer satisfaction with process simplification. Problems emerge face-to-face or via the phone, he explained. In these situations, You can always pause and go when a bank tries to automate processes that have been traditionally performed by people, talk to manager. There are ways to handle exceptions. But when you start getting into digital, he either face-to-face or via the phone, he explained. In these situations, You can always pause said, the cracks are beginning to show. and go talk to a manager. There are ways to handle exceptions. But when you start getting into digital, he said, the cracks are beginning to show. Returning to the CEB TowerGroup survey results, Malo pointed out that regardless of customer s Returning to the CEB TowerGroup survey results, Malo pointed out that regardless of customer s age or generation, the most important considerations for them are convenience and ease of access to funds and security. Additionally, simplicity and ease of use also have a great impact on how customers view their financial. WHAT DO CUSTOMERS WANT? Consumers want transparency, simplicity and 24/7 secure access to their finances. Financial Service Provider Attributes Most Valued By Consumers Top 3 Attributes n~1600 Price (example: fees/rates) 48.7% Security and reliability of transactions Convenience of access and hours (example: branches, online) Safety of customer savings and investments Competence and helpfulness of employees Ease of products to understand and use Speed and effectiveness of problem resolution Simplicity and ease of purchase process Fit of products and services with my lifestyle Guidance on how to better manage my finances Unsure Guidance on how to best use my financial products or services Guidance on purchasing products or services 41.4% 39.4% % 11.8% 11.8% % 6. Security Ease of Use A UK study revealed that while 71 percent of consumers prefer accessing information online, 50 percent of them still want to purchase financial products in a branch. CEB TowerGroup Retail Banking With regard to customer preferences, The question of digital versus in-person experience is not standpoint of which channel they prefer, but in terms of what they are trying to do and how they a driving factor, Malo noted. For banks, this means looking at customer preferences not from would prefer to do it. the standpoint of which channel they prefer, but in terms of what they are trying to do and how they would prefer to do it. The CEB TowerGroup analyst said the survey data shows that the majority of consumers prefer accessing information online or using a mobile device. But when it comes to purchasing new The CEB TowerGroup analyst said the survey data shows that the majority of consumers prefer accessing information online or using a mobile device. But when it comes to purchasing new financial products or services, most people still prefer to do it in person. Citing a very recent UK study, Malo said that to keep tabs on their accounts and access information, 71 percent of the consumers surveyed prefer to go online daily. But when it comes time to make a Citing a very recent UK study, Malo said that to keep tabs on their accounts and access purchase, 50 percent of these respondents still prefer to do it in a branch. information, 71 percent of the consumers surveyed prefer to go online daily. But when it comes time to make a purchase, 50 percent of these respondents still prefer to do it in a branch. 2 3

4 Seamless Channel Switching The significance of this, Malo asserted, is that banks need to allow their customers to go back and forth forth seamlessly among among their their channels channels of choice. of choice. Customers do not selfselect into a single channel for all functions; instead, individual customers prefer different channels for different purposes. CUSTOMER SERVICE PREFERENCE ARE DRIVEN BY TRANSACTION COMPLEXITY Channel Preference for Product Life Cycle Activities Percentage of Banking Customers 9% 1 33% 7% 6% 30% 43% Unsure In Person Phone 9% 56% 8% 3% Mail Mobile Device Online 7% 3 40% 10% 50% 2 16% Learn about financial products and services Purchase new financial products or services Use or access financial products and services Problem resolution and customer support n = 3,581 Source: CEB TowerGroup research, CEB Financial Services Survey, Big data and analytics play a critical role because they provide consumers with contextual information. Originally, digital meant online plus mobile, Malo continued. But But the the way way the term the term is being is being used used now, it s now, really it s really about about organizing organizing information information such in a such way a that way data that in data context in context can be can passed be passed among all five channels (phone, , online, mobile and in-person) in a way that makes sense the people to the who people work who in that work channel in that as channel well as to as consumers. well as to consumers. This, he acknowledged, is going to be very difficult to do, given all the systems, processes, products and third-party and third-party suppliers suppliers involved. involved. Ultimately, he added, digitization is is going to be based around taking the semi-automated procedures that are still reliant on the intervention of loan officers and other bank managers and converting them into fully automated digital processes. This This will will increase banks banks productivity, but but beyond beyond that it that offers it the offers opportunity the opportunity to get closer to get to customers closer by customers providing by greater providing transparency greater transparency and showing them and showing the actual, them current the actual, status of current their loan status requests, of their credit loan card requests, applications credit card and applications other pending and business. other pending business. Big data and analytics play a critical role here, Malo said, because they provide consumers with contextual information. The next generation of self-service portals will be information-rich portals that provide customers with the information that they are looking for as it it relates to any given transaction. Context is key, Malo continued, because if the customer understands what they re looking at, they re much more likely to be satisfied. That s where analytics is going to be really powerful, he added, added, because it s it s about about providing data data analytics in context. in context. 4

5 The Envestnet Yodlee Financial Cloud is an open technology platform that underpins the digital financial solutions for over 900 companies. Summarizing his key points, the CEB TowerGroup analyst told the webinar attendees that Information is what s going to to be be important. important. We can We look can for look one for piece one of piece data in of a data large in database. a large database. But if all we But do if is all multiply we do the is multiply size of the database size of the and database we re still and looking we re still for looking the same for data the same point, data we re point, looking we re for a looking needle for in a haystack. needle in a haystack. Ultimately, he said, it s it s about about delivering the experience the experience to the to consumer the consumer in their in preferred their preferred channel channel for whatever for whatever they re trying they re to get trying done, to get and done, ensuring and that ensuring if they that move if they from move one channel from one to channel another, to the another, bank can the provide bank can continuity provide and continuity not just and replicate not just the replicate data. the data. king for as it relates to any given transaction. The Envestnet Yodlee Platform The Envestnet Yodlee Platform Envestnet innovation and Yodlee, provides the webinar s many of the sponsor, tools banks and its need cloud-based to build out Financial the sort Data of digital Platform customer drives digital experience financial described innovation by Malo. and provides The Envestnet many of Yodlee the tools Financial City National Cloud is Bank open needs technology to build out the sort of digital customer experience described by Malo. The Envestnet Yodlee Financial Cloud Envestnet is an Yodlee s open technology Senior Vice platform President that for underpins Product the Marketing digital financial and Alliances. solutions for over 950 companies, said John Bird, Envestnet Yodlee s Senior Vice President for Product Marketing and Ultimately, Alliances. Envestnet Yodlee can help banks provide their customers with a comprehensive Ultimately, said. In tandem Envestnet with Envestnet Yodlee can Yodlee s help suite City of National applications, Bank this provide allows their customers customers access, with a comprehensive view of all their financial data in real-time including data provided by other, Bird said. In tandem with Envestnet Yodlee s suite of applications, this allows customers to access, comprehend and interact more effectively with their finances. banks to deliver the right information to their customers at the right time, and transform the Key customer the experience Financial in Data the Platform process. is the data intelligence and analytics firepower that can enable City National Bank to deliver the right information to their customers at the right time, and An example transform of the this customer is Envestnet experience Yodlee s in Transaction the process. Data Enrichment (TDE) solution. This new product-set adds important attributes to the data generated by bank, credit card and debit card An transactions, example of making this is Envestnet it much more Yodlee s useful. Transaction The enhanced Data data Enrichment includes optimizations (TDE) solution. like This natural new product-set language descriptions adds important of the attributes transaction, to the geo-location data generated and other by bank, identifying credit characteristics card and debit of card the transactions, merchant, which making allows it much more useful. The and enhanced their customers data includes to easily optimizations identify and like assess natural the language nature of the descriptions transaction. of the transaction, geo-location and other identifying characteristics of the merchant, which allows City National Bank and their customers to easily identify and assess the Used nature in this of way, the transaction. the Yodlee TDE solution helps to reduce call center volumes and false fraud alerts, while also making it easier for both the and their customers to monitor spending Used habits in and this preferences. way, the Yodlee Since TDE understanding solution helps consumers to reduce is call the center basis for volumes building and a sustainable false fraud alerts, competitive while advantage also making banking, it easier Yodlee s for both TDE the gives banks the and ability their to customers improve their to offerings, monitor spending deepen their habits customer and preferences. relationships, Since improve understanding their customer consumers retention and is the more basis effectively for building acquire a sustainable new customers. competitive advantage in banking, Yodlee s TDE gives City National Bank the ability to improve their offerings, deepen their customer relationships, improve their customer retention and more effectively acquire new customers. 5