1 Entire contents © 2007 Forrester Research, Inc. All rights reserved. BANKING CUSTOMER EXPERIENCE Document #1: The State Of Banking Customer Experience

1Entire contents © 2007 Forrester Research, Inc. All rights reserved.

BANKING CUSTOMER EXPERIENCEDocument #1: The State Of Banking Customer Experience


Figure 1: Most Banks View Customer Experience As Critical

1%

2%

21%

76%

Notimportant

Moderatelyimportant

Veryimportant

Critical

What role will customer experience -- how your company interacts with customers -- play in your company’s

competitiveness over the next three years?

Base: 190 North American Banking ExecutivesSource: Forrester Research Survey On Customer Experience, A Joint Project With American Banker


Figure 2: Banks Want To Sell More products To Customers

2%

3%

4%

4%

10%

16%

24%

37%

Cut the costs of servicingcustomers

Increase adoption of onlinechannels

Other

Introduce new or improvedproducts and services

Improve the quality ofcustomer service

Improve overall customersatisfaction

Acquire new customers

Sell more products toexisting customers

Which of the following is the most important component of your company’s customer-facing strategy?



Figure 3: Banks Don’t Think They’re Meeting Customer Expectations

How often do you think that your company meets or exceeds customer expectations during the following types of interactions?


5%

7%

14%

25%

35%

48%

Online

Over thephone

In thebranch

Always Almost always

Selecting new products Getting service help

8%

22%

27%

23%

43%

47%

Online

Over thephone

In thebranch

Always Almost always

Changed from previous version: charts were under the wrong labels.


Figure 4: Problems Hamper Customer Experiences

Which of the following are significant obstacles to improving the customer experience that your company delivers?


9%

16%

27%

30%

37%

43%

48%

49%

None of the above

Lack of executive involvement

Lack of urgency

Lack of understanding aboutcustomers

Lack of budget

Lack of cooperation acrossorganizations

Lack of customer experiencemanagement processes

Lack of a clear customerexperience strategy

(multiple responses accepted)


Figure 5: Most Banks Are Not Very Disciplined With Customer Experience

3%

7%

21%

55%

13%

Don’t know

Veryundisciplined

Somewhatundisciplined

Somewhatdisciplined

Verydisciplined

How would you describe your company’s overall approach to customer experience management?



Figure 6: Bank-wide Customer Experience Efforts

46%

39%

37%

18%

15%

8%

22%

13%

22%

12%

25%

24%

3%

7%

9%

Company-wideprogram focused onimproving customerexperience across

channels

An executive incharge of improvingcustomer experienceacross products and

channels

A single set ofcustomer feedback

scores (e.g.,satisfaction) that are

used across thecompany

Been doing for 6 months or more Been doing for less than 6 months

Not doing, but actively considering Not doing

Don’t know

To what extent has your company put in place the following items?



Figure 7: Size Doesn’t Matter when It Comes To The Importance Of Customer Experience

1%

1%

23%

75%

1%

2%

19%

78%

Notimportant

Moderatelyimportant

Veryimportant

Critical

>$30 billion

<30 Billion

What role will customer experience -- how your company interacts with customers -- play in your company’s

competitiveness over the next three years?



Figure 8: Large Banks Are More Interested In Customer Acquisition

2%

3%

5%

5%

10%

17%

18%

40%

4%

1%

3%

2%

9%

32%

14%

34%

Increaseadoption of

online channels

Cut the costs ofservicing

customers

Introduce newor improvedproducts and

services

Other

Improve thequality ofcustomerservice

Acquire newcustomers

Improve overallcustomer

satisfaction

Sell moreproducts to

existingcustomers

<$30 billion

$30 Billion+

Which of the following is the most important component of your company’s customer-facing strategy?


Changed from previous version: the data labels were flipped.


Figure 9: Large Banks Lag In The Branch Experience

18%

37%

65%

40%

49%

59%

Online

Over thephone

In thebranch

<$30B $30B+

How often do you think that your company meets or exceeds customer expectations during the following types of interactions?

(Percentage of firms that answered “always” or “almost always”)


Selecting new products Getting service help

27%

70%

88%

36%

59%

62%

Online

Over thephone

In thebranch

<$30B $30B+

Changed from previous version: Getting service help/$30B+/In the branch was changed from 65% to 62%.


Figure 10: Large Banks Lack Cooperation

9%

20%

33%

26%

36%

52%

52%

27%

8%

14%

21%

33%

38%

46%

47%

59%

None of the above

Lack of executive involvement

Lack of urgency

Lack of understanding aboutcustomers

Lack of budget

Lack of customer experiencemanagement processes

Lack of a clear customerexperience strategy

Lack of cooperation acrossorganizations

>$30 billion

<30 Billion

Which of the following are significant obstacles to improving the customer experience that your company delivers?



Figure 11: Large Banks Have More Enterprise Customer Experience Efforts

55%

47%

42%

75%

61%

49%

Company-wide program focused onimproving customer experience across

channels

An executive in charge of improvingcustomer experience across products

and channels

A single set of customer feedbackscores (e.g., satisfaction) that are used

across the company

$30B+

<$30B

To what extent has your company put in place the following items?(percentage of firms that are currently doing the activity)



BANKING CUSTOMER EXPERIENCEDocument #2: Banks Lack Experience Based Differentiation Skills


Figure 3: Three Principles Of Experience-Based Differentiation


Figure 2: Performance on EBD Principle No.1: Focus On Customer Needs

24%

27%

29%

48%

22%

36%

40%

57%

Employees across the company sharea consistent and vivid image of target

customers.

Decision making processessystematically incorporate the needs of

target customers.

Primary research is used to fullyunderstand the needs and behaviors of

target customers.

Our company has a clearly defined setof target customer segments.

$30B+

<$30B

How well do the following statements describe your company?(percentage that selected either “4” or “5” on a scale from

[1] Does not describe my company at all to [5] Describes my company perfectly)



Figure 3: Performance on EBD Principle No.2: Reinforce Brand With Every Interaction

38%

47%

44%

52%

30%

35%

38%

45%

Employees fully understand the keyattributes of our brand.

Our company translates brand attributesinto specific promises that we make to

customers.

Our company’s brand drives how wedesign customer experiences.

The attributes of our company’s brandare well-defined.

$30B+

<$30B





Figure 4: Performance on EBD Principle No.3: Make Customer Experience A Competence

36%

29%

42%

37%

26%

38%

49%

54%

Senior executives regularly interact withtarget customers.

The quality of interactions with targetcustomers is closely monitored.

Employees across the company arerecognized and rewarded for improving

the experience of target customers.

Senior executives consistentlycommunicate the importance of serving

target customers.

$30B+

<$30B




Documents

1 Entire contents © 2007 Forrester Research, Inc. All rights reserved. BANKING CUSTOMER EXPERIENCE Document #1: The State Of Banking Customer Experience