The Rising Importance of Customer Experience (CX) Programs in Financial Services

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Webinar

November 13, 2015

THE RISING IMPORTANCE OF CUSTOMER EXPERIENCE (CX) PROGRAMS IN FINANCIAL SERVICES

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• Who is Centerline? How we’re adapting and why we’re here

• External factors impacting the Financial Services industry

• Internal Environments Impacting the Financial Services Industry

• How World Class CX Programs are Developed

• How to Assess The Maturity Of Your CX Program

• Roadmap: 180 Day Action Plan

• Comprehensive Centerline Offering

Agenda

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WHO IS CENTERLINE HOW WE’RE ADAPTING

WHY WE’RE HERE

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Centerline is a Modern

Marketing Laboratory, creating

custom success formulas for

the world’s most progressive

enterprises. We work with

banks frequently.

The people speaking here today are from this team.

MCM =Marketing Change

Management

Our Company

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Centerline Marketing Change Management (MCM) is a team that enacts change within our client’s organizations, with specific focus on designing and implementing CX/CEM programs and initiatives.

Over the course of the past five years, Centerline has been adapting to help clients improve their internal organizational environments. This helps ensure the best strategies can be executed.Mostly, we help with agility, adaption and simplification. We help design more agile and effective teams, prioritization and process improvement and developing cultures of measurement and accountability.

Our Team

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By Centerline:

Collective Centerline Banking Experience:

How We Keep Busy

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EXTERNAL FACTORS IMPACTING THE FINANCIAL SERVICES

INDUSTRY

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There are three primary External pressures.

1. Financial Tech Start-ups 2. Regional Competition 3. Hyper-dynamic Customer Expectations

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1. Financial Tech Startups: “The Unbundling Effect”

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Consumer/retail bank customers are being

intercepted by products and services that are

changing the conventional customers’

relationship with their money.

People are being shown that they don’t really

need “banks,” they need “banking.”

As this FinTech wave crosses the Atlantic,

American banks will begin to experience

unbundling resulting in a loss of new

account-holders.

What this means:

The largest national banks are working to

improve their innovation “reflexes” by

investing in more adaptive innovation

management programs.

Many larger regional banks are the slowest

to react or are focusing heavily on CX

efforts for existing products.

How banks are reacting:

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1. Evaluate your future competitive landscape with Competitive Research.

2. Develop or enhance your org’s Innovation Management Program to consider impact of FinTech incursions.

3. Develop a modern CX Center of Excellence to enhance your org’s CX “reflex” speed and quality.

4. Explore integration of light-weight Business Intelligence capabilities to become more predictive.

Pro Tips:

Competitive Research

Innovation Management Program

CX Center of Excellence

Light-weight Business Intelligence


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Regional banks are feeling the pressure from both the larger national chains and their smaller regional competition.

What this means:

Many of the largest national banks are setting the curve, so to speak—forcing smaller regional players to “up their offering game” or lose out to stronger, more mobile application-based products.

Many regional banks are constricting their competitive efforts, focusing on Voice of Customer surveys and applying conventional CX to enhance “light touch” elements of the customer experience.


2. Regional Competition

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1. Evaluate your future competitive landscape with Competitive Research.

2. Develop or enhance your org’s Innovation Management Program to consider impact of FinTech incursions.

3. Develop a modern CX Center of Excellence to enhance your org’s CX “reflexes.”

4. Expand measurement beyond Voice of Customer to deepen understanding of customer needs and expectations.

Pro Tips:



CX Metrics Strategy


2. Regional Competition

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Customers are perpetually re-evaluating new paths of convenience and accessibility.

They’re also being taught through other industries (entertainment, hospitality, retail, travel) that their phones are how they want to manage more of their lives.

Banks and Financial Services companies have to find better ways to remain relevant as customers redefine their relationship with money—on mobile devices.

What this means:

Most banks are confident that their brand strength protects them and that most customers will be patient.

A smaller number of banks are adapting by increasing (up to 15%) their investments in innovation and more accountable customer experience programs.


3. Hyper-Dynamic Customer Expectations

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Discontent


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Discontent


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The following list represents a growing tally of mobile banking innovations customers are beginning to expect from their banks. The question is, where is par?

• Simple, instant, personal UI

• Integrated bill pay with alerts

• Photo bill pay

• Real-time/actionable alerts

• Untethered login/mobile only

• Voice/biometric authentication

• PIN login/2 factor payment

• Quick balance / text tie-in

• Network agnostic payments

• NFC/proximity payments

• A2A (real-time option)

• P2P (instant option)

• Social/connection

payments

• Proximity controls

• Social service hooks

• Services/merchant

discovery

• Multi-language support

• Cross-app service launches

• Email/personal info edits

• Basic account opening

• Insurance/other products

• Product calculators

• Contextual offers

• Click-to-call/calendar

appt

• Secure/contextual chat

• Video/Facetime support

• Virtual assistant

• Intra-FI transfers

• Debit/credit card off/on

toggle

• Card ordering

• Mobile RDC/check deposit

• Transaction gamification

• Mobile PFM/Aggregation

• Safe to spend/budget

• P2P and B2P invoicing

• Integrated statements


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1. Expand your awareness of the gaps between customer expectation and experience.

2. Develop or enhance your org’s Innovation Management Program to accelerate innovations to market.

3. Develop a modern CX Center of Excellence to enhance your org’s CX “reflexes.”

4. Expand measurement beyond Voice of Customer to deepen understanding of customer needs and expectations.

Pro Tips:

Comprehensive CX Programming


CX Metrics Strategy



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INTERNAL FACTORS IMPACTING THE FINANCIAL SERVICES

INDUSTRY

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There are three primary internal pressures.

1. How you're organized 2. The priorities and processes you follow 3. Your culture

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Key Internal Inhibitors of CX Success:

Organizational Friction Map

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IDIOSYNCRATIC COMMON

Different silos

Different CX methodology

Isolated BI teams, not focused on CX

Disconnected innovation methodology

Different levels of authority in play

Varying levels of IT involvement

Different budgets

The org not set up for success

No agile processes in place

The culture was totally disengaged


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IDIOSYNCRATIC COMMON

Different silos

Different CX methodology

Isolated BI teams, not focused on CX

Disconnected innovation methodology

Different levels of authority in play

Varying levels of IT involvement

Different budgets

The org not set up for success

No agile processes in place

The culture was totally disengaged

This is where we end up spending most of our time

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CUSTOMERS

PROSPECTS PROSPECTS

Environment

This white space represents your financial institution, surrounded by typical products and channels.

Current CX efforts tend to focus on the space between you and the market.

availablemarket

PRODUCTS checking

savingsinsurance

loans

line

of c

redi

t

billpa

y

money marketcredit

planning

advisory

money transfer

anal

ysis

retir

emen

t

financial

CHANNELS

mobile

bran

ch

phon

eonline

social

CX

CX

CX

CX

serviceable

market

MARKET

availablemarket

PRODUCTS checking

savingsinsurance

loans

line

of c

redi

t

billpa

y

money marketcredit

planning

advisory

money transfer

anal

ysis

retir

emen

t

financial

CHANNELS

mobile

bran

ch

phon

eonline

social

CX

CX

CX

CX

serviceable

market

MARKET

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ORG

Environment

Factor 1: Your Organizational Structure.

There are three key organizational segments that require holistic balance in order for CX initiatives to prove truly successful.

CUSTOMERS

PROSPECTS PROSPECTS

availablemarket

PRODUCTS checking

savingsinsurance

loans

line

of c

redi

t

billpa

y

money marketcredit

planning

advisory

money transfer

anal

ysis

retir

emen

t

financial

CHANNELS

mobile

bran

ch

phon

eonline

social

CX

CX

CX

CX

serviceable

market

MARKET

ORG

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PROCESS

priority

Environment

Factor 2: Your Organizational Process

By having a process aligned with structure, you begin to achieve a defined priority of operations and strategy.

CUSTOMERS

PROSPECTS PROSPECTS

availablemarket

PRODUCTS checking

savingsinsurance

loans

line

of c

redi

t

billpa

y

money marketcredit

planning

advisory

money transfer

anal

ysis

retir

emen

t

financial

CHANNELS

mobile

bran

ch

phon

eonline

social

CX

CX

CX

CX

serviceable

market

MARKET

ORG

PROCESS

priority

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CULTURE

effectiveness

capability

Environment

Factor 3: Your Culture

Aligning your culture with your structure and process reaps an effectiveness and capability crucial for CX. This in turn, leads you organizational quality.

= Quality

CUSTOMERS

PROSPECTS PROSPECTS

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1. Prototype a more effective organization.

2. Develop an CX-oriented operations strategy that redefines priority and process with customers at the center.

3. Develop a “canonized” CX Shift that refocuses key employees on CX-centricity. Embed it in a CX Center of Excellence.

4. Develop an employee engagement program

Pro Tips:

Organizational Prototyping

CX Operations Strategy

Employee Engagement Program

CX Shift, CX Center of Excellence

Have you experienced a misalignment with your org?Process & Culture connected but not connected to leadership (org)? Or Leadership (org) and process are connected but Culture is not engaged? These are examples of misalignments.

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HOW WORLD CLASS CX PROGRAMS ARE DEVELOPED

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HOW TO DIAGNOSE NEED FOR IT:

1. I am a new executive and know I want to make changes in Marketing but am not sure where we stand today.

2. We are not sure where we need to start the changes we feel are necessary. 3. What are the most modern/progressive marketers doing that may be

applicable to us? 4. How can we know what marketing approach is optimal for our company? 5. How do I justify significant marketing transformation (sponsoring/funding the

initiative) to the C suite? 6. We want to know what changes can free up some capital to fuel new growth

initiatives. 7. We want to know how to develop a business model and operating model to

increase our competitive advantage. 8. We want to plan a major re-alignment that of our investment in technology,

people and process and need to figure out how to roadmap it all.

How World Class CX Programs are Developed

OUTPUTS:• Audits/Analysis• Future State Vision & Planning • Marketing Maturity Modeling • Business Case Design

1. Organizational Audit

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1. Our employees aren’t owning responsibilities. They’re not clear on roles.

2. Departments are silo’d. Authority unclear when it comes to decisions.

3. Executive decisions made irrespective of other departments. 4. Employees morale is low. They feel that their voice is not

heard. They say they don't know what changes are happening. 5. Wrong talent and/or capabilities to perform the right task

necessary. 6. There's a lack of organizational accountability. 7. Need to be set up for sustainable high performance. 8. We need to establish the strategic direction for growth but

aren't sure how to get there?


OUTPUTS:• Organization Map• Roles/Responsibilities • Authority Matrix• Employee Engagement Programs

2. Organizational Prototype Design

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1. We need to make significant changes and ensure that they stick.

2. How can we centralize all the necessary leading practices, knowledge and planning?

3. We want to continuously improve. 4. We need to empower our people with change. 5. How can we manage the change? 6. How can we build in accountability of these

changes into our processes and structure?


OUTPUTS:• Centers of Excellence Design • Future Vision• Implementation/Integration Plans • Process/Prioritization Re-engineering• Governance

3. Centers of Excellence

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1. We have to shift to listening more to our customer but not sure what works. 2. What options, vendors, tools are there that can help me engage with my

customers better? 3. How can I build a program that will help us better capture customer

insights? 4. I want to take customers insights and fold that back into business

improvements. How do we do that?


OUTPUTS:• VOC Integration Strategy

• Vendor/Tool Selection

• Program Integration/Support

4. Voice of Customer Programs


1. It's not clear what specific things we need to do to remain aligned to our corporate strategy.

2. We're not planning our resources appropriately to accomplish all the things this company needs to do.

OUTPUTS:• Operations Maps• Strategic Operations

Alignment

5. Operations Strategy

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HOW TO ASSESS WHERE YOU ARE WITH YOUR CX EFFORTS

Where does your organization currently sit on a CX maturity scale? What are your current CX goals and are you doing all that is needed to achieve those goals? Where could you use additional help to achieve these goals?

The following CX Maturity Program will help to answer these questions. It will also provide a trajectory for your CX program.

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BUILD MOMENTUMESTABLISH CX FOUNDATION GETTING STARTED

CX Maturity Model

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ORG CX GOALS Action Needed To Achieve ORG CX GOALS

• CX need within the org defined

• The org’s CX benchmark

determined

• Start CX strategy

• CX leadership identified

•Establish CX initiative goals

•Create CX charter

•Obtain senior buy-in on funding

and charter

• Nominate CX leaders

• Identify BI desires - what you

wish you had (i.e. data,

visualizations, technologies, etc.)

• Prioritize BI desires

• Design coalition story

• Build business case for CX program

• Roadmap 180 journey

• Start of CX strategy (align strategy with

biz strategy)

• Review cultural landscape

• Review innovation management

methods

• Marketing/Sales/Ops financial

ecosystem

• Review customer segmentation/journeys

• Review competitive landscape

• Review operations strategy

• Conduct BI current state assessment

Your Organization Centerline

CX Maturity Model: Level One

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• CX team established • CX advisory board established • Measurement defined • Established system for CX data/

results capture and measuring • Governance established • Internal CX Comms strategy

established • Better understand audiences • Better understand and identify

customer behavior • Determined if any additional tools

are needed for CX program (i.e. VOC tool) - If yes, bring on a tool to capture data

• Design and assemble CX team

• Assemble CX advisory board

• Integrate CX with BI and IM

• Start to capture and review CX

data/results

• Kickoff CX internal

communications strategy

• Launch internal blog

• Assemble core CX team leadership mandate

• Perform a CX team skills/capabilities audit

• Create roles, responsibilities and range of

authority matrix for CX team

• Design centralized data environment

• Design data models

• Build initial data model within centralized

environment based on prioritized BI

• Build reporting and dashboards

• Define data governance plan

• Develop internal blog

• Develop internal communications plan

• Customer segmentation

• Customer Journey Mapping

• Audit tools/capabilities to capture data


CX Maturity Model: Level Two

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• CX team grows

• CX knowledge integrated into the

org culture

• CX integrated across more

channels/divisions

• CX, IM and BI fully integrated

• Expand CX tool(s) across all

channels and divisions

• Hire additional needed CX specialists

• Establish a CX coalition

• Employee Engagement Program • Employee CX Training programs

• Build out Journey maps across all channels

for all divisions

• Distribute Channel Matrix to all org divisions

• Establish KPI framework

• Continue to capture and review CX data/

results • Make business changes and IM updates

based on CX data/results (BI) • Continuous improvement of processes

• Progress internal communications

• Document process for external comms

• Conduct employee survey on CX

• Develop Employee Engagement Program

• Develop CX Training Program • Build comprehensive journey maps

• Build Channel Matrix • Establish core intake prioritization schema

• Co-establish KPI framework

• Prototype CX innovation management

method

• Prototype BI/data ETL approach/warehouse • Develop series of video content on the

changes • Tie CX to financial outcomes


CX Maturity Model: Level Three

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Once you know where you are then you can start your journey…

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HOW TO GET TO “CX-PERT” IN 180 DAYS

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Establish initiative goals

Build business case

Define CX Agenda

Roadmap 180 day Journey

Design CX team

Align CX strategy with business strategy

Build CX coalition

Design coalition story

Assemble core CX team leadership mandate

Perform a CX skills/ capabilities Audit

Perform an rapid BU collaboration audit

Interview leadership, BU heads

Develop CX internal blog

CEN

TER

LIN

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AN

KCX Roadmap: 180 Day Action Plan

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Establish CX funding

Co-present business case

Create CX Charter

Gather and review all CX data/results

Obtain Sr. buy in on funding and Charter

Review all customer and Market BI/data/analytics

Kickoff CX comms

Review innovation management methods

Marketing/Sales/Ops financial ecosystem

Review customer segmentation/journeys

Review competitive landscape

Review operations strategy

Review cultural landscape

Develop Comms Plan

Launch internal blog

CEN

TER

LIN

EYOU

R B

AN

K


Build business case

Define CX Agenda


Design CX team


Build CX coalition







CX Roadmap: 180 Day Action Plan

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Present Prototype Ecosystem

Establish core intake prioritization schema

Establish hardened measurement/reporting

Prototype CX innovation management method

Prototype X-channel data collection

Prototype BI/data ETL approach/warehouse

Prototype KPIs/metrics

Prototype CX process

Prototype org structure

Collaborate on prototypes

Co-establish KPI framework

Progress Communications

Establish Prototype Environment



Create CX Charter




Kickoff CX comms




Develop Comms Plan



Build business case

Define CX Agenda


Design CX team


Build CX coalition


Assemble core CXIMBI team leadership mandate








CEN

TER

LIN

EYOU

R B

AN

KCX Roadmap: 180 Day Action Plan

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Present CXIMBI ecosystem to leadership

Run two successive 2 week CX sprints

Develop series of video content on the changes

Tie CX to financial outcomes

Refine ETL for BI/data and metric outputs

Create CX governance

Refine CX processes

Design executive dashboards

Launch video content on CX blog

Collaborate on CXIMBI Sprints

Collaborate on ETL for BI/data

Co-create video content for blog

Collaborate on Executive Dashboards

Present Prototype Ecosystem

Establish core intake prioritization schema

Establish hardened measurement/reporting

Prototype CX innovation management method

Prototype X-channel data collection

Prototype BI/data ETL approach/warehouse

Prototype KPIs/metrics

Prototype CX process

Prototype org structure

Collaborate on prototypes

Co-establish KPI framework

Progress Communications

Establish Prototype Environment



Create CX Charter




Kickoff CX comms







Develop Comms Plan


YOU

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AN

KCEN

TER

LIN

E


Build business case

Define CX Agenda


Design CX team


Build CX coalition







CX Roadmap: 180 Day Action Plan

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CENTERLINE’S OFFERINGS

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Marketing Strategy Creative Content

& ExperiencesMarketing Change

Management Organizational Audit Future State Vision & Planning

Maturity Modeling

Business Case Design

Data-based Marketing Assessment

Organizational Design

Organizational Map

Roles, Responsibilities, and Authority Matrices

Employee Engagement Programs

Digital Transformation

Transformation Frameworks

Change Roadmaps

Change-Ops Planning

Implementation Planning/Support Training/Skills Development

Center of Excellence

Future Vision

Integration Plans

Process/Re-prioritization

Organizational Governance

Operations Strategy

Operations Map

Strategic Ops Alignment

Performance Management Programs

People/Teams Performance Metrics/KPI Strategy

Executive Dashboards

Content Performance Management

Customer Experience (CX) Programs

CX program design

CX Axis Shift Plans

CX Governance Program Design

Voice of Customer Programs

VOC Tools/Program Selection

VOC Integration Strategy

Program Integration/Support

Discovery & Consensus

Stakeholder interviews

Ignitor Sessions

Thought Leadership Workshops

Digital Ecosystem Mapping

Map Working Session

Map Development

Business Intelligence Programs

Full-Cycle BI/Analytics Programs

Data Warehouse

BI Conceptual Architecture

Data Models

Visualization

Reporting Analytics Dashboards

Data Governance

Measurement Goals

Governance Governance Workshops Governance Model & Plan

Content Auditing Content Inventory

Asset Inventory

Qualitative Assessment Quantitative Assessment

Audience Research

Rapid Persona Session

Customer Interviews

Persona Development Supplementary Research

Content Strategy

Content Types

Content Flow

Channel Matrix

Content Model Taxonomy & Metadata

Content Effectiveness Programs

User Experience

UX Evaluation & Plan

User Flows

Wireframes & Prototypes

Usability Testing

Information Architecture

Card Sorting — Logical Groupings

Information Architecture Development


Competitor Analysis

Social Monitoring/Reach

Technology Evaluation

Enterprise Content Management Marketing Automation

Social Monitoring/Automation

Social Media Activation

Audience and Influencer research

Activation Strategy

Media Relations

Social Monitoring and Reporting

Benchmarking / Share of Voice

Marketing Automation

Email Marketing

Retargeting

Newsletters

Brand Brand Identity

Visual System

Storytelling

Design

Style Guide

Template Designs

Social Tiles/Datagrams

Development CMS Configuration

Site Development QA/Testing

Technical Requirements

Content Creation

Websites

Interactives Mobile Apps

Sales Tools/Enablement Infographics/Data Visualization

eBooks/Whitepapers

Presentations

Blog/Vlog Video

Animations

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QUESTIONS?

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Thank youConnect with us:www.centerline.net/MCM

[email protected]

Steven KeithExec. Dir. Consulting

@stevenkeith

http://www.centerline.net/MCM