RETAIL BANKING - gsb
Transcript of RETAIL BANKING - gsb
RETAIL BANKING
“Customer Experience Management”
Thomas K. Hershberger President/CEO
Cross Financial Group Lincoln, NE
[email protected] 402-441-3131
August 6, 2018
TOM HERSHBERGERpresident/ceo6940 O StreetSuite 310Lincoln, Nebraska [email protected]
Customer Experience Management (CXM)
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Customer Experience
ManagementEnhancing Customer Retention and Profitability
TOM HERSHBERGERpresident/ceo
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Focus on customers.
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The probability of selling to an existing customer is 60% – 70%. The probably of selling to a new prospect is 5% – 20%.
Marketing Metrics
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80% of your company’s future revenue will come from just 20% of your existing customers.
Gartner Group
$%
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78% of surveyed customers say that competent customer service reps are most responsible for a happy customer experience.
Genesys Global
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43%
41%
38%
23%
20%
20%
15%
11%
10%
9%
7%
2%
0% 10% 20% 30% 40% 50%
Bad service or a serious issue with myaccounts
Monthly fees go upCharged unexpected or difficult to explain
feesPrimary bank starts charging higherservice fees, such as for overdrafts
Other banks start paying more interest,but my bank doesn't
Stricter requirement to avoid a monthly feePrimary bank has a substandard
online/mobile bankingPrimary bank remove the ATMS I use most
Primary bank closes the branch I use most
Primary bank closes the nearest branchPrimary bank reduces the hours or days it
branches are openA friend recommends another bank
Most likely to prompt you to leave the bank...
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70% of buying experiences are based on how the customers feel they are being treated.
McKinsey
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55% of consumers would pay more for a better customer experience.
Defaqto Research
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A 5% increase in customer retention can increase a company’s profitability by 75%.
Bain & Company
5%
75%
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83% of complaints that received a reply on social media liked or loved the fact that the company responded.
Bain & Company
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9 out of 10 consumers expect to receive a consistent experience over multiple contact channels.
Synthetix
online
mobile
atmbranch
kiosk
call center
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65% of customers are frustrated by inconsistent experiences across channels.
Accenture
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Gartner
Percent of customers that go to a company’s website for information.
83%
Percent of customers that leave or go to a competitor because of website issues.
56%
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CX UXCustomer Service
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Bank Customer ExperiencesMeet Expectations Don’t Meet Expectations
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Customer Needs
Save
• Short-term• Mid-term• Long-term
Borrow
• Major purchase
• Ongoing financing
Manage
• Move money
• Make payments
Protect
• Income• Assets• Retirement
SavingsCDsIRAs
Annuities
LoansLOCODP
Leases
CheckingOnline
bankingBill Pay
Debit card
InsuranceTrust
ServicesFDIC
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Traditionalist Boomer Gen X Millennial
Expectations
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List one thing that needs to happen at your bank to ensure the best customer experience is achieved…consistently over time?
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Customer Expectations
Remember me.
Update me.
Give me suggestions.
Be consistent.
Be available to me.
Give me the the facts.
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Customer Expectations
Personalized
Proactive
SuggestSolutions
Omni-Channel
DeliverAnywhere
Accurate
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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?
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Customer Experiences
FiltersStaff
BranchesTechnologyBranding
AdvertisingSocial Media
Education
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CX Influences
Employee product knowledgeProduct features and pricingAvailability of staff/answersSpeed and accuracyDecision makingEmployee empowermentTechnologyAtmosphere
Service interactionsNew relationship contactsCommunity involvementCommunicationsEmployee relationshipsFinancial solutionsProblem solvingBank holidays
What influences the customer experience at your bank?
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Delivering and sustaining exceptional customer experiences requires a culture of trust and consistency.
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CX Culture
A patterned way in which people do things together.
patterned way • systems, operations, forms, procedures
do things together • teamwork, shared vision and commitment,
common goals
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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
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Your
CXPractices
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The major goal of customer experience management is to foster customer loyalty through high-quality interactions.
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In today’s environment, relying on growth from a single channel is unsustainable.
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2017
2014
2011
2008
2005
2002
1999
1996
1993
1990
1987
1984
1981
1978
1975
1972
1969
1966
1963
1960
1957
1954
1951
1948
1945
1942
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Unit Institutions
Institutions with Branches
Commercial Bank Locations
Source: FDIC
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Phygital
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Channel priorities change with needs. Manage the entire experience, company-wide.
Ernst & Young Global Consumer Banker Survey
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20
40
52
54
50
55
20
14
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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
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…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.
Omni-Channel Delivery
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Digital55%
Digital and
branch25%
Branch11%
Neither9%
ShopChecking Accounts
Digital46%
Branch44%
Open
Source: Novantas
Digital20%
Branch72%
Open
Digital14%
Branch78%
Open
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Customer Experience
Interactions – Touchpoints – Journey
Satisfaction – Loyalty – Advocacy
WHAT
WHERE
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Journey Mapping
Customer Employee
WebsiteAdvertising
POS Referral
Phone call
Core systemTrainingFormsAdvertisingComplianceCoaching
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Today’s consumer journey averages 22 touchpoints.
Branding Strategy Insider
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Awareness
Research Selection Service
Pre-Purchase
Post-PurchasePurchase
CustomerActivities
CustomerQuestions
Delivery ChannelOptionsFeelings andEmotions
CustomerOutcomes
Customer Journey Map
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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.
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CXM
Define Measure Evaluate Reinforce
01 02 03 04
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Define Your Desired CX
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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
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Minimum Standards
Transactions/Account ServiceAvailableFriendly
KnowledgeableOffer assistance
Name usageAccurate
ResponsiveInformed
Website
AvailableFast
FunctionalEasy navigation
Rich contentAccurate
Responsive
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Relationship Inquiry
TrustedExperiencedConsultativePersonalCaringEmpathySupportive
AvailableFriendlyKnowledgeableOffer assistanceName usageAccurateResponsiveInformed
Min
imum
Add
ition
al
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Your
CXRequirements
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MeasureYour Desired CX
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CX Measurements
1. Customer service2. Accuracy3. Responsiveness4. Satisfaction5. Loyalty6. Future utilization7. Relationship growth8. Product possession and utilization
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Bank Performance
Measurement Resources
Customer Perceptions
Employee Perceptions
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ReferralsBranch growth• Transaction volumes• New relationships
Households per branchMarket shareRelationship longevityAttrition/retention
Bank Performance
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Product utilization• Possession• Usage
Relationship depth• Balance increases• Services per household
Complaint managementError tracking – transaction accuracy
Bank Performance
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Performance Layers
1. Transactions2. Accounts3. Customers4. Relationships
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Measurements
Branch usage changes• Lobby, drive-in, telephone
Online and mobile utilization ratioBill pay volume changesTransfers to competitorsRelationship balance changes Account tenureDeclines in account utilization
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Website Analytics
Heat or frequency mappingCommon hardwareCommon browser utilizationWeb traffic sequencesPage viewsKeywordsNavigation assessments
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Exit interviewsFocus groupsAdvisory panelsCustomer satisfaction surveys• Satisfaction• Loyalty• Net Promoter Scores (NPS)
New and closed account surveysPost-transaction surveysMystery shopping
Customer Perceptions
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Traditional Data Collection
TelephoneMailIn-PersonOnline
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Migrate from Mail to Online
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New and Closed Account Surveys
Strengths• Inexpensive• Assessment of activities customers have
experienced
Weaknesses• Non-response bias• Limited control of response group
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Ernst & Young Global Consumer Banker Survey
0 10 20 30 40 50
Experience with financial serviceproviders
Rates or fees
More convenient to have everything inone place
Branch or office location
Access to branches and bankingservices
Information from friend or relative
Reason to Close Reason to Open
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Customer Surveys
Strengths• Easy to administrate• Can mail or email to households• Customer response rates are acceptable
Weaknesses• Slow data gathering– 6 to 8 weeks
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Customer Survey• Simple ratings• Ease-to-complete
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The Ultimate QuestionFred ReichheldHarvard Business School Press
0 1 2 3 4 5 6 7 8 9 10Not At All Likely Extremely Likely
How likely is it that you would recommend ABC Bank to a friend, family member or colleague?
Detractor PromoterPassive
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Focus Groups
Strengths• In-depth information• Observe reactions• Investigate concepts that generate strong
feelings
Weaknesses• Small sample size• Results not projectable
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Post-Contact Survey
1. Rate your satisfaction with… • Representative• Representative’s knowledge• Representative’s helpfulness and
responsiveness2. Likelihood to recommend3. Satisfactory solution for your
inquiry
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Mystery Customer Program
Strengths• Customer’s perspective• Support behavior modification• Results are employee specific • Identifies training opportunities
Weaknesses• Limited number of evaluations
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Banking School History
65%67%75%71%67%
72%75%
0%
10%
20%30%
40%
50%
60%70%
80%
90%
100%
2017201620152014201320122011
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Emerging Methodologies
In-office tablet surveysInteractive online surveys• Conditional questions
Online focus groupsSocial media surveys
Data-driven surveys
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Focus groupsEmployee surveysService quality teamsProcess improvement panels
Employee Perceptions
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Employee Survey
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Internal Service
-2.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00
Loan OperationsInformation Technology
OperationsHuman Resources
MarketingCompliance
Trust DepartmentInvestments and Insurance
Customer Service
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EvaluateYour Desired CX
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The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.
Stephen Hawking
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Investigate trends and statistics that help improve your customer experience.
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50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Average Customer Service Scores
MergerAnnouncement
MergerTerminated
ComputerConversion
Ask Why And Set Goals
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ReinforceYour Desired CX
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Capture and Share Stories
Clarify expectations – vision for CX
Bring your CX culture to life – tell stories
Share measurementsCelebrate successEncourage developmentCommunicate oftenGive employees a reason to engage
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Resources
Internal communicationsManagers, coaches and mentorsSocial mediaStaff meetingsWorkgroup discussionsProcess improvement teamsEmployee newsletters
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Accountability
Develop journey maps• Assess critical steps
Conduct researchCreate measurementsEstablish desired outcomes• Measureable goals
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For every customer complaint there are 25 other unhappy customers who have remained silent.
Lee Resource
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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
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CXMRetentionSatisfactionLoyaltyAdvocacyProfitability