Expanding the Customer Experience Equation...Greenwich Associates 1Gartner: 10 Proof Points Why Customer Experience Is the Next Big Thing; 2Gartner 2015 Marketing Spending Survey –

Front Office + Back Office = CEM Expanding the Customer Experience Equation

October 8th, 2015

Greenwich Associates 2

Today’s Presenter

Ronald Balmer Managing Director, Customer Experience

Greenwich Associates


Agenda for Today’s Webinar

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The Importance of Customer Experience

How Operational Functions Impact the End Customer

Implementing a Back Office CE Program

About Greenwich Associates


We provide unique market information, insights and advice to help clients: •  Improve their business performance

•  Drive product strategy & development

•  Increase sales effectiveness

•  Gain a significant competitive advantage

•  Enhance operational performance

•  Optimize development initiatives

•  Transform their business to improve every aspect of customer experience

Firm Facts:

•  Founded in 1972

•  Privately held

•  Headquartered in Stamford, CT, with regional offices in Pleasanton, CA, Toronto, London, Singapore, and Tokyo

We are the leading provider of global market intelligence and advisory services to the financial services industry

About Greenwich Associates

4

By the numbers 260+ Sell-Side Clients in the financial services industry

350 Employees throughout the United States, Canada, Europe, Asia, and Japan

60,000 Annual Interviews with buyers of financial services

150 Executive Interviewers gather data in 70 countries in 14 languages

310,000 Universe of Experts unique buy side contacts

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The Importance of Customer Experience


1Gartner: 10 Proof Points Why Customer Experience Is the Next Big Thing; 2Gartner 2015 Marketing Spending Survey – Customer Experience Leads Investments; 3Forrester September 2014: The CMO’s Blueprint For Strategy In The Age Of The Customer: Four Imperatives To Establish New Competitive Advantage

Why best-in-class Customer Experience matters

Competing on Customer Experience

6

The Age of the Customer Demands a Strategic Shift: Customer obsession is not just a buzzword; it requires a strategic and budgetary discipline embraced across the enterprise3

89% of companies

plan to compete primarily on the

basis of the customer

experience by 20161

Fewer than

1/2 of companies

rate their customer

experience as exceptional

today, but two-thirds expect it

to be in two years1

65% of companies

have the equivalent of a chief customer officer — the CCO reports

equally to CEO and CMO1

#1 innovation

project for 2015 is customer experience2


What Do We Know About the Customer Experience

7

•  Customers tend to make negative assumptions about an entire organization based on a single,

isolated negative occurrence

•  Negative occurrences can be the result of both front and back-office issues

•  Customers experiencing multiple negative events create virtually unbreakable negative pre-dispositions toward the company that can become devastating over a period of time

•  Acquiring new customers can be 30 to 40 times more expensive than managing existing customers

•  In some industries a 5% increase in overall customer retention equates to a 25% to 55% increase in the profitability of a business


Most banks start at the most logical place—the front-line employees

Operations Impacts Customer Loyalty

8

Obvious Customer Experience (CE) Impact

Positive impact on scores Stronger internal culture

Shared overall CE

Task management, accountability,

communication all impact CE

Customer-facing employees deliver significant improvements, however banks that stop their efforts there are leaving additional big gains on the table

9

How Operational Functions Impact the End Customer


Customer-Facing vs. Customer-Impacting

Operations Impacts Customer Loyalty

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FRONT LINE •  Obvious CE Impact

OPERATIONS •  Task Management

•  Accountability •  Communication

•  Impacts CE

RESULTS •  Positive Impact on

Scores •  Stronger Internal

Culture •  Shared Overall CE

Experience

Expand your CE Program to the

Back-Office


8%

10%

11%

13%

14%

18%

20%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fraud/unauthorized activity

Problem resolution

ATM-related issues

Documents/account opening

Website availability/speed

Poor customer service

Processing/transaction errors

Fees/service charges/rates

Customer Experience is more than a friendly greeting

Operational Loyalty Drivers

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Source: Greenwich Associates, 2014 CEM North American bank averages – top 8 listed


What impressions are you leaving your customers?

Painful Onboarding Processes

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Research shows that our overall perception of a person or business is dominated by our first experience, otherwise known as “the persistence of first impressions”

When opening a new account, only 17% of customers industry-wide report receiving all four key indicators of the ideal onboarding process

73% 56% 48% 31%

of customers process took 30 minutes or less

of customers were greeted upon

entrance / called by name

Of customers product needs

were met

Of customers had their representative completely identify

financial needs Note: Based on approximately 2,00 respondents Source: Greenwich Associates Normative Benchmark Data, including Data from 7 CEM studies from 2011-2013


Why Does it Hurt?

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The operational black hole to look out for

Challenges with document creation and accuracy

•  Retail statements •  Loan documents

Lack of communication with

the front-line

Every account opening is an opportunity to solidify the client relationship


The “persistence of first impressions”

Operational Errors

14

Anything less than excellent problem resolution negatively affects client experience

Net

Pro

mot

er S

core

follo

win

g

prob

lem

reso

lutio

n

60

40

20

0

-20

-40

-60 Fair – Poor Resolution

(1-3)

Good Resolution

(4)

Excellent Resolution

(5)

Note: Based on 2,361 respondents Source: Greenwich Associates 2013 commercial Banking Study

NPS when no problem experienced


Problem Resolution

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Poor execution in problem resolution drives down NPS gains

Source: Greenwich Associates, 2014 CEM client study

47% 56% 62% 53%

-53% -44% -38% -47%

Satis

fied

with

reso

lutio

n

(rat

ing

of 4

or 5

) D

issa

tisfie

d w

ith re

solu

tion

(r

atin

g of

1, 2

or 3

)

NPS -38

NPS 30


Turning Problems into Solutions

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Adding value by creating a problem resolution solution

IMPROVE customer

experiences

CENTRALIZE customer feedback

INITIATE trend analysis

to predict customer response

Implement a problem resolution team that’s geared towards improving customer experiences.

This includes:

•  An escalation plan

•  A tracking and reporting process flow

•  A best-in-class communication plan

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Implementing a Back-Office CE Program


CO

MPE

NSA

TE ED

UC

ATE ID

ENTIFY

REC

OG

NIZ

E

How to focus on customer-impacting employees

Best Practices

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Recognize the influence back-office issues have on

the bank customer experience requires a

change in thinking

Identify customer-impacting employees wherever they exist in the organization -

Banks can do this by identifying and monitoring

the drivers of customer experience and incorporating

the functions and people responsible

Educate back-office employees about the direct

effect their jobs and performance have on the customer experience and,

therefore, on bank performance

Compensate back-office personnel by creating

compensation programs that will directly incentivize

operational professionals to prioritize the customer

experience (CE)

2 1

3 4


Resolving some of the most common and vexing customer problems

Here’s What We Recommend

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Don’t overestimate costs and difficulties

Create a problem resolution team

Focus resources on problem prevention

Make sure your CEM program is a true

omni-channel system

Banks with well-established front-line

CEM programs already have the data they require to extend their program to

their back-office

Banks need structure to allow them to respond

quickly and decisively on insights from their CEM

data

Banks can further reduce problematic error rates by

integrating analytic technologies, to quantify

and analyze customer commentary

Banks require a true 360o view of the customer experience and must

ensure that it is consistent from channel

to channel


Questions?

20

? ? ?

Ronald Balmer Managing Director, Customer Experience Greenwich Associates +1 203.625.5022 [email protected]

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Email [email protected]

or visit www.greenwich.com

© 2015 Greenwich Associates, LLC. Javelin Strategy & Research is a division of Greenwich Associates. All rights reserved. No portion of these materials may be copied, reproduced, distributed or transmitted, electronically or otherwise, to external parties or publicly without the permission of Greenwich Associates, LLC. Greenwich Associates®, Competitive Challenges®, Greenwich Quality Index®, Greenwich ACCESSTM, Greenwich AIMTM, and Greenwich Reports® are registered marks of Greenwich Associates, LLC. Greenwich Associates may also have rights in certain other marks used in these materials.

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Contact Information

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