The Journey to Digital Maturity
Transcript of The Journey to Digital Maturity
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A WBR Digital Industry Benchmark WhitepaperPresented in Conjuction with Adobe
The Journey to Digital Maturity:How Financial Institutions AreLeveraging the New Age ofDigital Solutions
June 2014
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Table of Contents
The expansion and evolution of the digital world has had a profound impact on theway people bank, narrowing the gap between consumers and nancial institutionsin ways never before possible. In an age where you can transfer your rent with theclick of a mouse and instantaneously deposit a check by simply taking a picture,banking branches are becoming obsolete. In this brave new world of omnichannel
banking, touch points have multiplied, marketing channels have become morediffuse, and the analytics required for campaign tracking have become highlycomplex. With consumers increasingly controlling how, when, and where theyconnect with their banks, nancial institutions are working to uncover newopportunities to improve their omnichannel capabilities and enhance the customerexperience. In other words, digital banking has become a top priority.
Financial services companies are adapting to this paradigm by adopting powerfulnew digital solutions. Tools for customer relationship management, media listening,marketing automation, and analytics have become essential to nancial institutionsliving in an omnichannel world. When embedded into business goals and processes,these solutions form the core of a company’s digital maturity.
Despite the proliferation of these dynamic digital tools, many nancial servicescompanies lack the structures and strategies to drive their businesses’ digitalmaturation. In fact, this report will show that organizational alignment is just asimportant to a company’s digital development. Furthermore, many marketers arestruggling to engage customers and prospects in more relevant channels like mobileand authenticated sites, thereby missing high-quality opportunities.
The present study evaluates the digital maturity of nancial services companies,assessing the obstacles that are inhibiting their digital development, as well as thesolutions and capabilities that are enabling it. The study also evaluates how nancialinstitutions are impacting the customer experience and how they are leveragingmobile. Although the majority of nancial institutions surveyed indicated that theyare investing in their digital capabilities, only 3% of respondents believed that theyhave reached full digital maturity. This underlines the fact that digital maturity is auid process that often involves the transformation of organizational structures andtechnology platforms. This study reects data gathered at NetFinance 2014, thepremier digital conference for nancial services.
Executive Summary ..............2
Key Findings ........................3
Research Findings
The Journey toDigital Maturity ................4
Inuencing theCustomer Experience ........7
The Next Generationof Technologiesand Solutions ...................9
Digital Payments &the Future of theMobile Wallet ............... ..12
Conclusions &Recommendations .............14
Appendices ........................15
About NetFinance .............. 15
About Adobe .............. ....... 16
About WBR/WBR Digital ....16
Register for Next Year’sNetFinance Conference ...... 17
Executive Summary
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3 Financial services are lagging in their pursuit ofdigital maturity, with 85% saying that they arehalfway there or further behind.
Reaching digital maturity takes more than just powerful new technologies. Infact, 43% of respondents indicated that organizational alignment or executivesponsorship are the most important factors to their advancement towarddigital maturity.
3 The digital maturation of many nancialinstitutions is being impeded by the competitionfor IT resources and fragmented data sources.65% of respondents agreed that heavy reliance on IT resources is the mainchallenge inhibiting their companies’ digital maturation. Fragmented datasources and compliance requirements were also common obstacles.
3 Many nancial services companies are missingout on signicant opportunities for conversionand engagement in the mobile space.Marketers have enhanced their ability to target, analyze, and convert publicsite trafc. But with web site trafc moving rapidly to mobile, very fewinstitutions have succeeded in extending their core capabilities to mobileapplications and mobile sites. Case in point, only 38% of survey respondentsare leveraging analytics on their mobile sites, while a mere 25% are applyinganalytics to their mobile apps.
3 Technology plays a critical role in digitalmarketing. However, the proliferation ofsolutions providers has made nding andimplementing the proper capabilities moreimportant than ever.Faced with an abundance of choice, many companies are choosing to buydigital marketing solutions or build them in partnership with a 3rd-party,rather than build the solution in-house. Financial institutions are prioritizingcross-channel campaign management and responsive design in the shortrun, although 43% of respondents already describe their digital marketingprograms as excellent.
3 Although the mobile wallet presents atremendous opportunity to better serveconsumers, most nancial institutions are notyet comfortable with the technology.As a result, the majority of nancial services companies only offer bill payment.While many companies agree that a clear leading technology and improvedretailer support are necessary to make mobile wallet offerings more feasible,82% believe that there is enough consumer interest to justify these investments.
Key Findings
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The Journey To Digital Maturity
Financial institutions are lagging behind intheir pursuit of digital maturity
1% Haven’t left the gate
31% Just getting started 53% Halfway there
of respondentsare halfway todigital maturity
85%of respondentsare halfway to
digital maturity, or further behind.
“[I’m] surprised to see half of respondents say they arehalfway there since the space changes weekly/monthly interms of new ways to interact and engage with customersthrough digital (even what we mean when we say digitalchanges so frequently).”
- Brad Leimer, VP Digital Strategy Mechanics Bank
Where is your company in its journey to digital maturity?
12% We can see the nish line
3% We are at our end stage
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65% Signicant reliance on IT resources
60% Fragmented data sources
48% Compliance
37% Inability to personalizecustomer experiences
43% Organizational alignmentand/or executive sponsorship
20% Single view of the customer /unied customer prole
16% Multichannel analytics –combine online and ofine data
8% Cross- channel campaignmanagement
6% Efcient content managementand deployment
5% Personalization / 1- to-1 targetedmessaging on web and mobilesites
1% Solution functionality likePersonal Financial Management
Despite thegrowing emphasison analyticsand solutions,organizationalalignment remainsthe dominantdriver of digitalmaturity.
What are the obstaclesslowing down your ability
to mature digitally?
Technology and data constraints are inhibitingdigital development
Digital development requires organizationaltransformation
28% Privacy and data security
25% Lack of organizational comfortwith cloud- based solutions
12% Incompatible marketing solutions
5% No obstacles
The reliance on ITresources (65%)and fragmenteddata (60%) were
clearly the twomost signicantbarriers to digitalmaturity cited byrespondents.
said organizationalalignment and executivesponsorship
43%Which of the
following has thebiggest impact onthe advancementof your company’sdigital maturity?
There is little doubt that digital strategy has become a central goal for nancialinstitutions, but the corporate structures and technologies required for this paradigmshift are often disruptive. The ndings of this study suggest that organizationalalignment and company culture are just as important to digital transformation as newtechnology platforms. Organizational enhancements, such as the consolidation ofdigital functions under a single leader and the improved alignment of digital objectivesand performance metrics, will form the core of a digitally enabled business.
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These results
contrast with lastyear’s study, inwhich respondentscited new accountacquisition as theirtop marketingpriority.
An important shift is taking place from marketing as a pure direct response acquisitionengine to a more experiential tool aimed at deepening relationships with customersand driving retention. More than half of those surveyed will be focusing their digitalmarketing on increasing customer retention (55%) and increasing new account
volume (53%). Conversely, less than a third of respondents reported that theirbusinesses would be focusing their digital activities on increasing new account quality(31%) or increasing assets or deposits (30%).
55% Increase customer retention
53% Increase new account volume
47% Increase product penetration
Where will your company be focusingits digital marketing activities in the
next 12 to 18 months?
40% Increase lead generation
31% Increase new account quality
30% Increase assets or deposits
Digital marketers are focusing on retention andaccount volume
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42% Control over the end- to-end customer experience
23% Control over the digital,but not direct, customerexperience
18% Control over all directexperiences (e.g. email,direct mail, etc.)
9% None
8% Control over the prospectexperience only
of respondentsstated that their
companies havefull control
Only 42% ofrespondentsstated that theircompanies havefull control overthe end-to-end customerexperience.
What level ofcontrol does
your companycurrently have
over the customerexperience?
Inuencing the CustomerExperience
Most respondents feel that their companies donot have full control over end-to-end customerexperiences
42%
Despite the fact that creating consistent, high-quality customer experiences is aprime objective for the nancial services industry, the majority of respondents reportthey only have limited control over the customer experience. The fact that only 42%of respondents stated that their companies have full control over the end-to-endcustomer experience clearly indicates that the nancial services sector must accelerateits digital development.
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88% Public site
77% Email and/or direct mail
68% Mobile sites and applications
58% Social
Which marketing channelsdo you rely on to impactthe customer experience?
Marketers relying on a multitude of channels toimpact customer experience
56% Search
56% Outbound and inbound calls to call center
55% Private or authenticated sites
35% Third-party display ads
More than halfor respondentsutilize at least
7 differentchannels toimpact customerexperiences
Given the plethora of channels through which people can interact withtheir banks, marketers must understand where customers and prospects arespending the most time. Many existing customers (especially of retail banks) areprimarily interacting with their banks through mobile applications or private orauthenticated sites. This in turn means that marketers and digital channel ownersshould be emphasizing these channels, perhaps even more so than the public site.
Just like in lastyear’s report,company websiteswere citedas customers’primary source ofinformation.
Company websites continue to be thedominant source of information for customers
54% Visiting our website
32% Email
6% Web search
What is the primary channelthrough which customers are
receiving information from you?
4% Direct mail
1% Social media
1% Webinars
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As in last year’sreport, CRMsystems were themost commonsolution. Emailservice providers
jumped from thirdin 2013 to thesecond this year.
The Next Generation ofMarketing Technologies &SolutionsFinancial services companies are utilizing a wide varietyof digital solutions
65% CRM
65% Email service provider
54% Paid analysis (not Google)
51% Marketing database
What types of solutions andpartners are you currently using?
49% Free Google analytics
47% Social and media listening software
40% Sales/transactional database
34% Marketing automation
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1 Highest priority
2
38% Buy
29% Build via 3rd-party
20% Build in-house
12% Not looking to add solutions
88% ofrespondents arelooking to adddigital solutions,with 38% planningto buy them.
What are your technology priorities for marketing capabilities?
1 2 3 4 5
Cross-channel campaign management isbecoming a priority
Most companies are looking to add digitalsolutions, with many planning to buy thosesolutions
Cross-channelcampaignmanagementtopped the listof marketingtechnologypriorities.
Cross-channel campaignmanagement including EM,DM, Phone, Web and Social
Content management andresponsive design
Integrating data for a singleview of the customer
Personalization via1-to-1 targeting acrossdigital channels
Multichannel analytics forattribution
3
4
5 Lowest priority
plan tobuy digitalmarketingsolutions
38%If your companyis looking to add
solutions to supportyour digital marketing,
are you looking tobuild or buy those
solutions?
As this report has shown, consumers are interacting with nancial institutionsacross channels almost at will. Thus, it is no surprise that marketers’ top priority iscross-channel campaign management, which enables them to engage consumersconsistently and relevantly across channels.
29%
26%
22%
15%
10%
19%
21%
11%
24%
24%
18%
20%
23%
13%
27%
19%
8%
27%
24%
21%
15%
25%
17%
24%
18%
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Most nancialinstitutions aremissing signicantopportunities todrive conversionand engagementon mobile, wheremore customers arespending their time.
Financial services must accelerate theiroptimization of mobile and authenticated channels
Authenticated Site
Content Management Targeting Segments Testing/Optimization Analytics
Which public web / desktop capabilities are your companyable to extend to mobile platforms or the authenticated space?
44%
35%
20% 24%
21% 25%
31%
36% 38%
44% 43%
37%
Mobile Site Mobile App
In recent years, nancial services marketers have been enhancing their capabilitieson desktop public websites, rening their ability to target, analyze, and convertpublic site trafc. Unfortunately, this trafc has been shrinking, thanks primarilyto the ascension of mobile; prospects and customers are increasingly turning tomobile sites and applications to research products and services, look up balances,and pay bills. Since they are not extending their core digital capabilities to theseareas, most nancial services marketers are missing the opportunity to convert andengage customers where they are spending the majority of their time.
“As a consumer facing organization and brand, weneed to be where consumers are. So we need to deliver
scenarios on devices which have become the mostfrequently used items in our lives. Simple as that.”
- Michal Panowicz, mBank, from The Financial Brand, June 9, 2014
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56% Bill pay only
22% Person 2 person payments
12% Other mobile payments(NFC, BT, QR, etc.)
10% Digital wallet
32% Lack of a clear industry-leading technology
20% Risk in adopting too early
18% Lack of consumer interest
17% Too many solutionsavailable
13% Not enough retailersupport
of respondentscurrently offer billpay as their onlydigital paymentcapability
agreed thatthe biggestimpediment hasbeen the lack ofa clear industry-leading technology
Bill pay is theonly digital walletservice offered
by most nancialinstitutions - only10% have a fulldigital wallet.
Most banksbelieve there isenough consumerinterest in mobilepayments, butno clear leadingtechnology.
Where is yourinstitution on the
road to digitalpayments?
What do you thinkis the biggest hurdlein mobile payments
adoption?
Digital Payments & theFuture of the Mobile Wallet
Bill pay is the most popular mobile walletfeature
Lack of a clear industry-leading technology isimpeding mobile wallet adoption
56%
32%
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Conclusions &Recommendations
While the challenges associated with digital maturity may be great, the benetsare unmistakable. According to a 2014 Adobe survey of U.S. marketers, digital/ social marketers and data analysts are the top two roles that companies shouldinvest in over the next twelve months. Additionally, 76% of marketers believe thatthey need to be more data-focused in order to succeed. These ndings reinforcethe results of this study: the enhancement of digital programs is key to a company’ssuccess both in the future and right now. Unfortunately, many nancial servicesrms trail behind in their journeys to digital maturity, impeded not only by theirneed for advanced digital solutions, but also (and more signicantly) by a lack oforganizational alignment and executive sponsorship. Although digital maturityrequires organizational transformation and the deployment of new technologies, itwill enable nancial institutions to uncover new product offerings and novel ways ofimproving the customer experience.
As consumers increasingly turn to mobile for their banking needs, the possibility forfull mobile wallet services will continue to grow. Financial institutions seem to agreethat there is great potential in digital payments, although many see the lack of aclear industry-leading technology as the major challenge facing adoption of mobilewallets. As those technologies are improved upon and consumer condence inmobile payments grows, nancial institutions should be ready to embrace this nextbanking frontier.
As customers continue to shift their attention away from public sites, mobile andauthenticated sites and apps are becoming central to the customer experience.Unfortunately, many nancial services companies are not extending core digital
capabilities like content management, segment targeting, and analytics into mobileand authenticated spaces. Without those capabilities, those companies are missingout on critical conversion opportunities in high-trafc channels.
Financial services must accelerate their digitalmaturation
Investment should shift toward digitalpayments as condence in mobile wallettechnology grows
Mobile spaces represent the next frontier fordigital conversions
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Appendices
About NetFinance
For this study, Worldwide Business Research conducted in-person and onlinesurveys of 101 digital professionals in the nancial services eld. Survey participantsincluded decision makers and executives with responsibility for their rms’multichannel marketing capabilities and strategies. Professionals from companiesincluding JP Morgan Chase, BBVA Compass, Lincoln Financial Group, Accenture,TD Bank contributed to the survey’s results. In-person surveys and interviews wereconducted on-site at the 2014 NetFinance Conference in Miami, Fl. Responses werecollected in April and May of 2014.
Since its launch in 2007, NetFinance has become the industry’s #1 multi-channelmarketing conference specially-designed for nancial institutions. Featuring morethan 70 speakers and 350 attendees, NetFinance brings together the most senior-level speaking faculty, enabling attendees to hear from the people making realdecisions. In fact, 85% of speakers are at a VP level or above.
The conference has proven to be a rich industry resource for networking, strategy,
and cutting-edge information, with 93% of past attendees agreeing that theywould recommend the event to a colleague. In just three days, attendees will learn,engage and discuss all aspects of mobile, tablets, responsive design, big data, multi-channel restructuring, cross-selling, customer engagement and creating the branchof the future. The complete agenda, list of speakers and registration details areavailable at www.netnanceus.com.
“2013 Marketing Automation Trends: Marketing Executives at Major FinancialInstitutions Weigh In On Evolving Technologies and Strategies,” WBR Digital, July2013.
“Digital Roadblock: Marketers Struggle to Reinvent Themselves,” Adobe Systems,Incorporated, March 2014.
Appendix A: Methodology
Appendix B: Related Research
http://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttp://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttps://www.linkedin.com/groups?home=&gid=820107&trk=anet_ug_hmhttps://twitter.com/net_financehttp://netfinance.wbresearch.com/http://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttp://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttp://www.adobe.com/solutions/digital-marketing.html
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About Adobe
About WBR/WBR Digital
Adobe is changing the world through digital experiences. We help our customersdevelop and deliver high-impact experiences that differentiate brands, buildloyalty, and drive revenue across every screen, including smartphones, computers,tablets and TVs. Adobe content solutions are used daily by millions of companiesworldwide—from publishers and broadcasters, to enterprises, marketing agenciesand household-name brands. Building on our established design leadership, weenable customers not only to make great content, but to manage, measure andmonetize it for maximum impact. For more information, visit adobe.com.
Contact Adobe345 Park AvenueSan Jose, CA 95110-2704Tel: 408-536-6000Adobe Marketing Cloud support: 877-722-7088
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