Restoring Loyalty & Trust in Financial Services

Jamie Anderson, Global Marketing Director, Web Channel & eCommerce SolutionsSAP AG

Restoring Loyalty & Trust in Financial ServicesDo Digital Channels hold the key?

© 2011 SAP AG. All rights reserved. 2

Agenda

Restoring Customer Trust

The Evolution of Customer Interaction

The Loyalty Conundrum: Forrester / SAP

Recommendations & Proof points


Reputation recognised as key to restoring customer confidence and trust in Banking back in 2008.

“Reputation has always been important. Now it is the difference between riches and ruin. At times like these, peoples desire for security, trust and feeling their money will be safe will dominate consumer behavior”

Alastair Campbell, Director Project Finance at

Standard Chartered Bank Economist Intelligence Unit 2008

Financial Services strategies for growth – Focus on the Customer

amidst market turmoil

“


Satisfying customer needs identified as another key focus

Satisfied customers buy more products and services and are willing to pay more for them. If we have the right products, the right tools and the right customer-service experience, we will have a very sticky relationship with our customers. They will value us and come back to us to buy their next product”

Jim Smith, Executive VP at Wells Fargo

Economist Intelligence Unit 2008 Financial Services strategies for

growth – Focus on the Customer amidst market turmoil

“


Further industry data analysis confirms executive focus on customer satisfaction

Financial services firms are more than twice as likely to cite customer service as a core strength than operational excellence or product innovation…

…52% say that customers see their products more as commodities than five years ago.”

“

Source: Economist Intelligence Unit: 2009 Beyond Transactions Creating Value Through Partnerships in banking and insurance


Urgency for action: Banks score at the bottom of Forrester’s ranking for Customer Advocacy

Loyal customers are willing to buy more, borrow more, invest more, and stay longer with the firms they already use. … Customers who rate their firms high on customer advocacy are most likely to consider those firms for future purchase.

But … a majority of customers still don’t feel that their firms have their best interests at heart.

Forrester Research, Inc., Customer Advocacy 2011: How Customers Rate US Banks, Investment Firms, And Insurers, March 2011

“

Customer Advocacy

The perception on the part of customers that the firm does what’s best for them, not just what’s best for the firm’s own bottom line.


Edelman’s 2011 Trust Barometer places Banks and Insurers firmly at the bottom of the Industry stack


Today’s customers are empowered like never before…

Democratizationof information

Transparency

Social networking and communities

Customer

Shift in negotiation power from Vendors to Customers

Evolution from ‘Relationship Management’ to ‘Total Experience Management’

New communications and interaction channels to manage on top of traditional ones

Greater needs for adaptability and responsiveness

Shift in negotiation power from Vendors to Customers

Evolution from ‘Relationship Management’ to ‘Total Experience Management’

New communications and interaction channels to manage on top of traditional ones

Greater needs for adaptability and responsiveness

Implications

Variety of touch points

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…while ‘traditional’ online is becoming a thing of the past.

“By 2013, mobile phones will overtake PCs as the most common Web access device worldwide...

“…they will overtake the PC as the most common primary device for Web access sometime in 2015.”

Gartner Top End User Predictions for 2010: Coping with the New Balance of Power


Enter the world of the new ‘Digital’ Customer

SOCIAL

“Touch” replaces the “Click”

MOBILITY APPSRICH CONTENT


Social Media integration can ‘enrich’ customer relationships & improve customer experience

500 million user accounts on Facebook, that is approximately 7% of the worlds total population (Source: Various –TMCNet, BBC, Inside Facebook)

200 million accounts on microblogging service Twitter (Source: Twitter)

49.4 billion minutes were spent on Facebook in December 2010, a 79% increase over December 2009 (Source: comScore)

70% of retailers use Facebook to promote their business, up from 50% last year (Source: MerchantCircle)

78% of small businesses use Twitter to market themselves while 75% use Facebook and 30% use LinkedIn (Source: Postling)

32% of businesses are promoting themselves through Facebook Places, with another 12 % planning to do so in the coming months (Source: Financial Times) (AllFacebook.com)

http://www.socialtimes.com/2011/02/200-million-twitter-accounts-but-how-many-are-active/

http://techcrunch.com/2011/02/07/comscore-facebook-keeps-gobbling-peoples-time/

http://www.merchantcircle.com/corporate/press/2011-01-15-social-marketing-continues-meteoric-rise-among-local-businesses.html

http://www.socialtimes.com/2011/02/posting-smallbusiness-socialmedia/

http://blogs.ft.com/fttechhub/2011/02/facebook-places-eats-foursquares-discount-lunch/

http://blogs.ft.com/fttechhub/2011/02/facebook-places-eats-foursquares-discount-lunch/


Forrester / SAP Research“The Customer Loyalty Conundrum”

Uncovering the loyalty illusion: Companies are turning to customer loyalty more than ever, but loyalty marketers overstate their ability to deliver an innovative solution

“


“Loyalty marketers are overconfident in their ability to execute loyalty programs. While survey respondents expressed confidence in the depth and breadth of their loyalty strategies, Forrester uncovered holes in their story around data, integration, and customer insight.”

Key Find #1:

Source: “The Customer Loyalty Conundrum” by Forrester Consulting on behalf of SAP, September 2011


“Loyalty decision-makers can’t escape the ghost of ROI. Loyalty decision-makers have long struggled to quantify the returns from their marketing efforts. This challenge persists for loyalty decision-makers as well, especiallywhen proving returns across multiple customer touchpoints.”

Key Find #2:



“Integrated loyalty program management is a strategic imperative. With consumer mobile and social adoption rapidly increasing, loyalty programs must be able to reach consumers in the right place at the right time.”

Key Find #3:



The good news is that technology CAN help

“Having a robust loyalty technology platform will help manage the complete loyalty process and effectively integrate data sources, channels, and systems in real time.”

“


Do Digital Channels hold the key?


#1 Know your Customer / Know your Audience

4M Loyalty Members

37% Revenue


From Social Media to Loyalty Management:SAP CRM with Facebook Integration


#2 Be Transparent, Be Engaging, Be Social


Social Metrics

Twitter, SAP CRM & SAP BusinessObjects Text AnalysisMine social media, turning unstructured data into insight

Dynamic Tag Cloud based on the key topics being discussed in Social Media

Sentiment of the conversation addressed to the company


#3: Think – Mobile First

Driving improved customer engagement. Delivering convenient and superior customer service, one experience at a time

Solution Highlights

Key Benefits

Customer Examples

Comprehensive self-service offerings

Convenient and personalized alerts & notifications

Innovative new transactional capabilities, such as remote check deposit, person-to-person payments, card activation/cancellation

Greater customer satisfaction through convenient self-service

Improved operational efficiency

Embedded Loyalty drives retention and greater cross-sell capabilities


#4: Consistency is key

Solution: The right business strategy is put in effect based on Enterprise wide customer information

Solution: Sales, Service and Marketing have the same single view of a customers including operational data

Solution: Marketing & Loyalty Campaigns are executed with current customer information, in real-time, to create Real-Time Offers

Solution: Sales channels operate with a current view of the customer relationship

Solution: The customer experience spans multiple channels but retains consistency and context at every touch point

ContactJamie AndersonGlobal Marketing DirectorCRM Web Channel & eCommerce Solutions

E: [email protected]: @collsdad

mailto:[email protected]


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Restoring Loyalty & Trust in Financial Services

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