How to Leverage the Power of Customer Experience Analytics

HOW TO LEVERAGE

THE POWER OF CUSTOMER EXPERIENCE ANALYTICS

Want the slides? info.peoplemetrics.com/NJB

By Kate Feather

Five Important Questions We Will Answer Today

1. What is customer experience?

2. Can customer experience improvement really drive growth?

3. Is the banking customer experience getting better?

4. How to use customer experience analytics to drive improvement?

5. How can you begin to understand, measure and manage your own customer experience?

But first, a story…

William Henry Perkin (1838-1907)

August Wilhelm Von Hoffman (1838-1907)

Royal College of Chemistry

in London

Let’s cure malaria!

Don’t we all take work

home?

Chemical mauveine

Look familiar?

How about this?

Yards and yards of purple fabric goes on top

For Perkin, this stuff…

…became this stuff.

Honestly, why is purple mucus important

to my bank?

Open your mind.

Historical context is key to understanding.

Source: We Have Entered The Age of the Customer, Forrester

Source: We Have Entered The Age of the Customer, Forrester

We have entered a new age…

Question 1: What is customer experience?

Experiences are a distinct economic offering – as distinct from services as services are from goods. Experiences are memorable events that engage

each customer in an inherently personal way and thereby create a

memory as the hallmark of that experience.

-Joseph Pine II

The best strive towards the day they leave

behind the safety net

Business-to-Consumer • Auto Parts and Service (Retail) • Cable and Satellite TV • Insurance (Auto & Home and Health Insurance) • Internet TV • Restaurants • Retail Banking • Wireless Business-to-Business • Accounting and Tax • Telecommunications • Office and Business Supply Services

12 CX Disciplines

Practices requiring greater resources and a stronger commitment are lagging

Question 2: Can customer experience

improvement really drive growth?

71% 60% 63%

69%

29% 21%

29%

42%

Take individual action on customer feedback

Disciplined decision making around the

customer

Common understanding of Cx

Established goals for improvement

Growth Banks Non-Growth Banks

33 pts

42 pts 40

pts

27 pts

71% 60% 63%

69%

29% 21%

29%

42%

Take individual action on customer feedback

Disciplined decision making around the

customer

Common understanding of Cx

Established goals for improvement

Growth Banks Non-Growth Banks

33 pts

42 pts 40

pts

27 pts

Focus on these two

Question 3: Is the banking customer experience

getting better?

In the last 12 months, in your opinion, what has happened to the state of your bank’s

customer experience?

It has gotten worse

It has remained unchanged

We have made marginal improvements in Customer Experience

We have made great strides in improving our Customer Experience

I don’t know

A

B

C

D

E

of executives said the customer experience delivered by their bank has improved in the past 12 months

Source: PeopleMetrics Most Engaging Customer Experiences Study

of customers said the customer experience delivered by their bank has improved in the past 12 months

Source: PeopleMetrics Most Engaging Customer Experiences Study

TRUE OR FALSE?

CUSTOMERS ranked ONLINE AND

MOBILE TECHNOLOGY among their

top three priorities for improvement

from their bank.

FUTURE IMPROVEMENT PRIORITIES Ranked Importance

CUSTOMER PRIORITIES

EXECUTIVE PRIORITIES

PRODUCTS

ACTING ON FEEDBACK/ IMPROVE SERVICE

FIND AND KEEP TALENTED EMPLOYEES

CUSTOMER-FACING TECHNOLOGY (MOBILE, DIGITAL)

PUT CUSTOMER FIRST

VOC/ASKING FOR FEEDBACK

INTERNAL TECHNOLOGY/ CUSTOMER-FACING PROCESSES

PHYSICAL BRANCHES


CUSTOMER PRIORITIES


PRODUCTS




PUT CUSTOMER FIRST

VOC/ASKING FOR FEEDBACK


PHYSICAL BRANCHES

4 1

FALSE

IN ADDITION

CUSTOMERS ranked

PUTTING CUSTOMER FIRST

among their top three priorities for

improvement from their bank.


CUSTOMER PRIORITIES


PRODUCTS




PUT CUSTOMER FIRST

VoC/ ASKING FOR FEEDBACK


PHYSICAL BRANCHES

1

2

3 4

5

6 7 8

1

2

3

4

5

6 7

8

Question 4: How to use customer experience analytics to drive improvement?

Question 4: How to use customer experience analytics to drive improvement?

Introducing, the roadmap.

CUSTOMER UNDERSTANDING

REPAIR

INNOVATE


REPAIR

INNOVATE

Regional Bank 79 branches, online and

mobile banking

Building customer understanding through customer experience analytics

Deep dive “Wows and Woes” study to

segment customer base, gather a baseline measure of NPS and identify key drivers of a

customer intimate experience

We discovered clear segments that have distinct needs.

High Value Products

High Touch Long Tenure

Business Banking

Strategic Resource Seekers

Tech Savvy

Attentiveness Is Key

Self Sufficient

Transactors

Mobile Banking

Heavy Online Use

Younger Demographic

Low Touch Interactions

Young, Starting Out

Early Stage Financial Goals

34 Avg. Age

Low Touch Interactions

Meager Balance

Goal Oriented Beginners

High Touch Relationship

Seekers

Nearing Retirement

Then we discovered different experience drivers.

Drivers of Advocacy (All Items) Showing Rankings by Impact

High Touch Relationship Seekers

Strategic Resource Seekers

Self Sufficient Transactors

Goal Oriented Beginners

I can trust them to take care of problems, should they arise 1 2 1 1

Employees are attentive to my needs 2 1

Consistently excellent service, regardless of the location, type of interaction or people involved

3

Has competitive rates and fees 3

Makes it easy for me to take care of my banking needs how and when I want

3

Provides the right level of advice and guidance for my financial needs

3 2

Offers an online banking solution that is easy to use 2


REPAIR

INNOVATE

Source: Forrester Customer Experience Index

Enjoyable

Easy

Meets Needs

T R U S T

Regional Bank 120 branches, online and

mobile banking

Repairing the experience through daily feedback and action

Ongoing Voice of the Customer study – after every branch transaction – to identify issues,

intervene, and respond

Thinking about your overall relationship with ABC BANK, how likely are you to recommend the bank to family, friends and/or colleagues? Please use a scale of 0 to 10, with 0 being Not at All Likely and 10 being Extremely Likely.

Promoters (10 – 9 ) Detractors (6 - 0) Passives (8 - 7)

Net Promoter Score (NPS)

10 9 8 7 6 5 4 3 2 1 0

Promoters - Detractors = NPS

1. Call customer to schedule a time to review feedback and discuss solutions

2. Forward alert to department manager. 3. Share feedback for improvement purposes 4. Document actions in the Hub 5. Close alert

Company Name Recover Alert April 14, 2015

John Smith is a customer who is Passive and talked in their problem description about: ATM issue, customer service

Contact John Smith to thank them and resolve their problem.

Problem Details Please indicate the areas below that best describe the problem you experienced: Branch Location: No Knowledge: Yes Rates: No ATM Error: Yes Describe the problem: I had an issue with the ATM! It ate my card and wouldn’t give it back. I went to the branch, and they would not replace it without id! I’ve banked here for 13 years, same branch

Suggested Actions

http://www.peoplemetrics.com/


Customers who have a problem are 2.5x less likely to be satisfied.

1. Forward alert to Alfonso Helton 2. Include a personal thank you 3. Consider copying others 4. Share in group meeting 5. Document actions in Hub 6. Close alert

Company Name Recognize Alert April 14, 2015

John Smith is a customer who is a Promoter They experienced Above and Beyond service from these Employees: Alfonso White

Contact John Smith to thank them for their Feedback.

Above and Beyond Service Details Please provide the name of the banking associate(s) who provided Above and Beyond service. ABC Bank will personally follow up to share your feedback. Alfonso White Please describe what the banking associate(s) did to go above and beyond. Alfonso found better interest rates for my mortgage. He did everything he could to make sure I was happy.

Suggested Actions



Focusing on the problem resolution.

1. Have begun tracking more detailed problem disposition codes in the call center and at the branch to identify and more accurately quantify top problems and issues

2. Designing a consistent training program focused on responding to and resolving these most common customer problems and issues

3. Established an aggressive (24-hour) standard for contacting customers who reported a problem through their VOC program

4. Assigned members of the executive team two of the bottom ten performing branches to mentor and coach, requiring that these executives report on successes and lessons learned in quarterly meetings

5. They are finding and learning from their top performing Brand Ambassadors


REPAIR

INNOVATE

They have extended their experience to support life milestones.


REPAIR

INNOVATE

Question 5: How can you begin to understand,

measure and manage your own Customer Experience?

Understand with a deep dive.

Repair with alerts.

Innovate through feedback.

Focusing on CX improvement distinguishes growth from

non-growth banks.

Here’s how.

In Conclusion… 4 Disciplines Matter Most


Listening Listening to and taking action on individual customer feedback



Discipline Being disciplined about considering the customer when making decisions




Understanding Establishing a common understanding of your customers and the desired CX




Understanding Establishing a common understanding of your customers and the desired CX

Goal Setting Establishing clear goals for improvement

In Conclusion…

Step 1: Customer Understanding Wows and Woes Customer understanding and segmentation

3 Steps to Leveraging the Power of

Customer Experience Analytics

In Conclusion…


Step 2: Repair Ongoing Voice of the Customer to repair what’s broken (individual and systemic)



In Conclusion…


Step 2: Repair Ongoing Voice of the Customer to repair what’s broken (individual and systemic)

Step 3: Innovate At the right time, innovating around the experience



Take the survey, get a copy of the report. http://tinyurl.com/NJbanksurvey

http://tinyurl.com/NJbanksurvey

Q&A

Kate Feather

Executive Vice President

O: 215.979.8037 | M: 215.805.6801

[email protected]

www.peoplemetrics.com/blog

Want the slides? info.peoplemetrics.com/NJB

mailto:[email protected]

http://www.peoplemetrics.com/blog