Six Challenges Facing Banks Presented by: Amir Hameed IP Telephony Practice Leader.
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Transcript of Six Challenges Facing Banks Presented by: Amir Hameed IP Telephony Practice Leader.
Six Challenges Six Challenges Facing BanksFacing Banks
Six Challenges Six Challenges Facing BanksFacing Banks
Presented by:
Amir Hameed IP Telephony Practice Leader
2© 2005 Avaya Inc. All rights reserved.
Financial Services IndustryWhat is Everyone After?
Increase Revenue
Reduce Cost
Enhance the Franchise
Enablement
Mitigate Risk
3© 2005 Avaya Inc. All rights reserved.
Focus on FS Avaya’s Financial Services Practice
Understand the Vertical• What are key industry trends?• What are perceived opportunities & risks?• What are ‘hot’ issues in the vertical market?
Facilitate Communication Internally• Aggregate customer requests
• Prioritize vertical requirements
• Help drive the concept-to-market process
Enhance the Portfolio• What do FS customers need
to be successful?
• Are there opportunities to adjust or expand Avaya’s portfolio of solutions?
Facilitate Communication Externally
• Frame Avaya solutions in business terms
• Help customers achieve their business goals
• Help Avaya earn the right to be a ’trusted partner’
4© 2005 Avaya Inc. All rights reserved.
As Ranked by Fortune Magazine* Avaya Presence in Top US Bank Call Centers
* www.fortune.com/fortune/subs/fortune500/customranking Categorized by Fortune as ‘commercial banks’ - Apr-2005
Rank in Industry Company
Revenue ($ millions)
Call Center Provider
1 Citigroup $108,276 Avaya2 Bank of America Corp. $63,324 Avaya3 J.P. Morgan Chase & Co. $56,931 Avaya4 Well Fargo $33,876 Avaya5 Wachovia Corp. $28,0676 U.S. Bancorp $14,706 Avaya7 MBNA $12,327 Avaya8 Capital One Financial $10,6959 National City Corp. $10,560 Avaya
10 SunTrust Banks $7,823 Avaya
5© 2005 Avaya Inc. All rights reserved.
As Ranked by Fortune Magazine* Avaya Presence in Top US P&C Insurance Call Centers
* www.fortune.com/fortune/subs/fortune500/customranking Categorized by Fortune as ‘insurance: P&C (mutual) and “insurance: P&C (stock) - Apr-2005
Rank in Industry Company
Revenue ($ millions)
Call Center Provider
1 AIG $98,610 Avaya2 Berkshire Hathaway - Geico $74,3823 State Farm $58,819 Avaya4 Allstate $33,936 Avaya5 St Paul Travelers $22,934 Avaya6 Hartford Financial Services $22,693 Avaya7 Nationwide $20,558 Avaya8 Liberty Mutual $19,754 Avaya9 Loews - CNA $14,584
10 Progressive $13,782 Avaya
6© 2005 Avaya Inc. All rights reserved.
Business Goals Global Banks
Business Trends• Channel Optimization
• Channel integration
• Differentiation Strategies
• Up-sell, cross-sell
• Customer retention
“Avaya focused on the business problem, and then on full delivery fromsolution design to deployment”
7© 2005 Avaya Inc. All rights reserved.
Business Goals Global Banks
IT Hot Buttons• Efficiency
• Drive down complexity
• Effectiveness
• Innovation
• Building block strategy
“Avaya focused on the business problem, and then on full delivery fromsolution design to deployment”
8© 2005 Avaya Inc. All rights reserved.
TrendsSix Challenges Facing Banks
123456
Become a Distribution Expert
Optimize your Distribution Channels
Integrate your Distribution Channels
Embrace a Differentiation Strategy
Measure & Analyze Progress
Delight Your Customer
9© 2005 Avaya Inc. All rights reserved.
Channel Strategy Cross-Selling: “The Holy Grail”
“Wells Fargo reckons that the average American household has 16 different financial products. The bank supplies just 4.3 to its average customer. "On a scale of 1 to 100," says Mr Kovacevich, "we're only at 20-25." Only 11% of banking customers buy insurance from the company. Even though Wells Fargo issues more mortgages than anyone else in the United States, only 16% of its customers have a mortgage with the bank.
On the other hand, Wells Fargo sees its own customers as a great growth opportunity--better than opening new branches or buying other big banks, as its rivals are doing. Mr Kovacevich says that 80% of the bank's growth comes from selling additional products to existing customers. The cost of selling to someone already on the books, he says, is one-tenth that of attracting a new customer .”
“Trust Me, I’m a Banker”April-2004
10© 2005 Avaya Inc. All rights reserved.
Vertical Solutions A Crazy Idea – Right?
Interactionmanagement
converged network
On Demand Branch-based Agents
Inbound customer contacts can be routed to branch-based personnel
according to skill set, availability or prior contact history
self-service
proactive contact
web
voice
On DemandResident Expert
Personnel at other locations can be leveraged as expert resources
On Demand Contact Center AgentContact Center-based agents can provide expertise and overflow for branch-based customer service personnel
11© 2005 Avaya Inc. All rights reserved.
Business Goals Global Banks
Goals• Originally... Automate routine inquiries
• Ultimately... Front-end all calls and route them using IVR technology
• Return dollars to the business after 15 months
• Estimated savings for 2006: $8m
• Benefits: end-to-end tracking of calls
12© 2005 Avaya Inc. All rights reserved.
Business Goals Global Banks
13© 2005 Avaya Inc. All rights reserved.
Best PracticesShrink Attrition, Grow Retention
Profile
US regional bank with 1200 branches in seven states.
Goals
‘Get better faster’
Eliminate the ‘I never hear from my banker’ complaint
Identify ‘at risk’ customers
Focus on ‘on-boarding’ of customers
14© 2005 Avaya Inc. All rights reserved.
Best PracticesShrink Attrition, Grow Retention
Philosophy
Focus on….
Improved service & customer satisfactionwhich leads to
Retention of customerswhich leads to
The right to ask for additional businesswhich leads to
Deepening of our relations with themwhich leads to
Increase in Revenues
15© 2005 Avaya Inc. All rights reserved.
Best PracticesShrink Attrition, Grow Retention
Source: Gartner Group
17© 2005 Avaya Inc. All rights reserved.
Sales Management Enabling Your Workforce Segments
Mo
bil
ity
Transaction Margins
Mobile/Remote
High
Fixed
Low
“Mobile Revenue Generators”
Bank Executives
Branch ManagersTellers
In-BranchConsultants
RegionalManagers
18© 2005 Avaya Inc. All rights reserved.
Best Practice #1
The Extended Contact Center
Breaking down infrastructure barriers and more tightly integrating the contact center
with the rest of your business
19© 2005 Avaya Inc. All rights reserved.
Inconsistent Customer ExperiencesInconsistent Customer ExperiencesHigher Total Cost of OwnershipHigher Total Cost of Ownership
Lower Business ProductivityLower Business Productivity
Inconsistent Customer ExperiencesInconsistent Customer ExperiencesHigher Total Cost of OwnershipHigher Total Cost of Ownership
Lower Business ProductivityLower Business Productivity
InboundVoice
Quality Monitoring and
Recording
Management andAdministration
CRM Applications
Reporting
OutboundDialer
Quality Monitoring and
Recording
Management andAdministration
CRM Applications
Reporting
IVR & SpeechApplications
Quality Monitoring and
Recording
Management andAdministration
CRM Applications
Reporting
Quality Monitoring and
Recording
Management andAdministration
CRM Applications
Reporting
Web
Quality Monitoring and
Recording
Management andAdministration
CRM Applications
Reporting
Messaging
Management andAdministration
Reporting
Conferencing
Recording
Management andAdministration
Reporting
Yesterday’s Call CentersIsolated and fragmented applications
20© 2005 Avaya Inc. All rights reserved.
The New Operating ModelConverged Networks, Consolidated Servers, and Extended Operations
Media Gateway
Media GatewayMedia Gateway
IVR
CTI
Messaging
Call Accounting Contact Center Reporting
Multi-Media
Systems Management
PSTNPSTNPSTNPSTN
8700 Media
Media Gateway
IP WANIP WANIP WANIP WAN
Regional Offices/Contact
Center
Offshore/Nearshore Offices and/orCall Centers
RemoteOffices
Small Office,Home Office,
TelecommuterAgents
PSTNPSTNPSTNPSTN
PSTNPSTNPSTNPSTN
PSTNPSTNPSTNPSTN
ISPISPISPISP
PSTNPSTNPSTNPSTN
21© 2005 Avaya Inc. All rights reserved.
Value Created• Tens of $millions identified as
cost of “not answering”• Consistent company brand image• Efficient blending of contact
center to support local offices• Increased agent productivity• Teamwork across offices & HQ• Lower TCO, Enhanced network
“Avaya focused on the business problem, and then on full delivery fromsolution design to deployment”
Case StudyThe Case of the Empty Office
Large US Insurance Company
22© 2005 Avaya Inc. All rights reserved.
Best Practice #2
Creating the customer moment of truth
Contact center matchmaking: right customer, right action, every time
23© 2005 Avaya Inc. All rights reserved.
Riding the Contact Center Waves
1970 1980 1990 2000 2010
Eff
icie
ncy
Fo
cus
Cu
sto
mer
s A
s T
ran
sact
ion
s
Eff
ecti
ven
ess
Fo
cus
Cu
sto
mer
s A
s A
sse
ts
Early Call CenterCustomer satisfactionEarly Call CenterCustomer satisfaction
Efficient Call CenterSkills, CTI, Agent productivityEfficient Call Center
Skills, CTI, Agent productivity
Help DeskHandle calls quicker
Help DeskHandle calls quicker
Internet BoomOne-to-one, multimedia
Internet BoomOne-to-one, multimedia
Post-Internet TroughCost savings, fewer agents, outsourcing
Post-Internet TroughCost savings, fewer agents, outsourcing
Best PracticeContact Centers
Balance efficiency/effectivenessLeverage skills everywhere
Enhance customer experiences
Best PracticeContact Centers
Balance efficiency/effectivenessLeverage skills everywhere
Enhance customer experiences
24© 2005 Avaya Inc. All rights reserved.
AGENT SKILLS REQURIEDNEW HIRE HIGHLY SKILLED
CU
ST
OM
ER
VA
LU
EL
OW
HIG
H
Least ProfitableCustomers
Efficient Service
Automation
Most ValuableCustomers
“Growth Potential”Customers
Customer Segmentation StrategyLeveraging different resources for different customers
Provide Each Customer with the Appropriate Service
AUTOMATION POTENTIALEFFICIENCY PROACTIVE CONTACT
Cross-sell, up-sell
Skilled Agents
Automate for customer
convenience
Loyalty programs
Personal Account Managers
Skilled Sales Agents
Automate Transactions and Proactive Contact
Six Sigma
25© 2005 Avaya Inc. All rights reserved.
Differentiate DifferentiateDifferentiate
Six SigmaGetting to Differentiation
Flatten-Consolidate-Extend Systemize-Globalize Differentiate
Business Impact:
Savings
Revenue
Retention
Loyalty
Technology Continuum
Business as Usual
COMMUNICATIONS INFRASTRUCTURE
AGENT UTILIZATION
CUSTOMER STRATEGIES
ImpactImpact
Impact
Flatten – Consolidate - Extend
Systemize - Globalize Systemize - Globalize Systemize - Globalize
Flatten – Consolidate - ExtendFlatten – Consolidate - Extend
26© 2005 Avaya Inc. All rights reserved.
Channel Strategy Differentiating
27© 2005 Avaya Inc. All rights reserved.
Best Practice #3
Building your brand through effectiveself-service
Striking the balance of self service with live service to improve the customer experience
equation
28© 2005 Avaya Inc. All rights reserved.
Speech Self Service BenefitsIncreased Capabilities, Lower Cost, Higher Satisfaction
cost per call
Touch-tone System
$0.25-$0.5
Touch-tone System
$0.25-$0.5
Offshore Agents$2-$3
Offshore Agents$2-$3
Agents$5-$6
Agents$5-$6
SpeechApplications
$0.5-$0.9
SpeechApplications
$0.5-$0.9
serv
ice
com
ple
xity
29© 2005 Avaya Inc. All rights reserved.
The Expanding Role of Speech
Replaces live agent support – Extends service support to 24x7x365– More responsive and personalized service
Automates simple, repetitive requests– Account balances, Order or claim status
Automation of more complex transactions– Change of address, IT help desk password resets– Alpha/numeric structures, stock symbols– Secure voice print identification– Natural language call routing
Automation of internal business processes– Employee self service, trouble ticket reporting
Automation of demand chain / distribution– Inventory, availability and price checks, regular re-orders
Automation of proactive outbound contact– Product recalls– Purchases ready for pickup– Payment verification
Interactive Response
30© 2005 Avaya Inc. All rights reserved.
“(Agents) are more fulfilled and helping people that need to be helped instead of dealing with things like address changes or membership renewals. And we are able to provide a better level of service."
Joe Alessi, vice president of marketing and IT
Value Created• Speech enablement of 15-20% of
incoming calls
• 20% improvement in self service call completion rate
• Over $469,300 annual savings
• Increased up-sell, cross-sell
• Improved agent retention
Case Study Driving Revenues & Improving Customer Responsiveness
31© 2005 Avaya Inc. All rights reserved.
Intelligent CommunicationsWhat is Your Strategy to Delight Your Customers?
Speed of Transactions?
Personalized Service?
Pro-Active Contact?
Price?
Product Depth & Breadth?
Some of the Above
All of the Above
None of the Above
Regardless…. Banks seek a high velocity business with productive employees
32© 2005 Avaya Inc. All rights reserved.
Intelligent CommunicationsEnhanced Customer Interactions
Self-Service “Kiosks”
Customer can look for specific bank-related products or services via a web-enabled IP phone.
“Click-to-call” capability can be configured to connect the customer with bank associates in a contact center.
Direct Frequently Asked Questions to a speech enabled IVR for virtual agent response.
Reduce time devoted by branch staff to routine Q&A.
Enable introduction of new products and services.
Request a callback or email for more information.
33© 2005 Avaya Inc. All rights reserved.
Self-Service Kiosk with Video Softphone Click to video conference with an “expert”
Example• Customer browses Mortgage page, clicks on icon for a video conference, Avaya finds appropriate and available resource • Expert could be in the Contact Center or in another branch• Other service examples: loan originations, investment services, credit card applications.
34© 2005 Avaya Inc. All rights reserved.
PBX
Answers the call
Transfers the call
Laura Jones, please!
1
2
3Can be transferred to ANY number
Internal
– Office extension
– Pilot number
External: Local, Long distance, Cell, Pager, Overseas
Increasing Revenues, Improving ResponsivenessIncreasing Revenues, Improving ResponsivenessYou want them to be pleased they called…….
35© 2005 Avaya Inc. All rights reserved.
Managing Complexity
Instant Messaging
Voice Messaging
Unified Communication
Telephony
Contact Centers
Mobility & Softphone
Conferencing
Collaboration
36© 2005 Avaya Inc. All rights reserved.
Managing ComplexityComm. Applications: A Collaborative Framework
VideoVideo
Video BridgeVideo Bridge
StreamingStreaming
WebCamWebCam
Room Systems
PresencePresence
IMIM
Ad-hocAudio Conf
Ad-hocAudio Conf
Converged
Collaboration
Converged
Collaboration
MessagingMessaging
AvailabilityAvailability Instant
Conf
InstantConf
Social Networking
Social Networking
MultimodalSessions
MultimodalSessions
Aud
ioA
udio
Ad-hocAudio Conf
OperatorManaged
Audio Conf
Electronic
MailElectro
nic
fax
Voice Mail
Phone Book
Team Team
Portals
Workflow
DistributedApps
Document Mgt
Calendars
WebConference
WebConference
Directory
App Sharing
Whiteboard
Chat
Business Process
Converged Communications-EnabledEnterprise Collaboration
CRMCRM ERPERPSSASSASCMSCM
Web Services Services-orientedArchitecture
Migration to IP as underlying network
37© 2005 Avaya Inc. All rights reserved.
Presentation Title:Six Challenges Facing BanksSix Challenges Facing Banks
Presented By:
Amir Hameed IP Telephony Practice Leader