RETAIL BANKING - gsb

RETAIL BANKING

“Customer Experience Management”

Thomas K. Hershberger President/CEO

Cross Financial Group Lincoln, NE

[email protected] 402-441-3131

August 6, 2018

TOM HERSHBERGERpresident/ceo6940 O StreetSuite 310Lincoln, Nebraska [email protected]

Customer Experience Management (CXM)

1

www.gsb.org Educating Professionals, Creating Leaders

Customer Experience

ManagementEnhancing Customer Retention and Profitability

TOM HERSHBERGERpresident/ceo


Focus on customers.

2


The probability of selling to an existing customer is 60% – 70%. The probably of selling to a new prospect is 5% – 20%.

Marketing Metrics


80% of your company’s future revenue will come from just 20% of your existing customers.

Gartner Group

$%

3


78% of surveyed customers say that competent customer service reps are most responsible for a happy customer experience.

Genesys Global


43%

41%

38%

23%

20%

20%

15%

11%

10%

9%

7%

2%

0% 10% 20% 30% 40% 50%

Bad service or a serious issue with myaccounts

Monthly fees go upCharged unexpected or difficult to explain

feesPrimary bank starts charging higherservice fees, such as for overdrafts

Other banks start paying more interest,but my bank doesn't

Stricter requirement to avoid a monthly feePrimary bank has a substandard

online/mobile bankingPrimary bank remove the ATMS I use most

Primary bank closes the branch I use most

Primary bank closes the nearest branchPrimary bank reduces the hours or days it

branches are openA friend recommends another bank

Most likely to prompt you to leave the bank...

4


70% of buying experiences are based on how the customers feel they are being treated.

McKinsey


55% of consumers would pay more for a better customer experience.

Defaqto Research

5


A 5% increase in customer retention can increase a company’s profitability by 75%.

Bain & Company

5%

75%


83% of complaints that received a reply on social media liked or loved the fact that the company responded.

Bain & Company

6


9 out of 10 consumers expect to receive a consistent experience over multiple contact channels.

Synthetix

online

mobile

atmbranch

kiosk

call center


65% of customers are frustrated by inconsistent experiences across channels.

Accenture

7


Gartner

Percent of customers that go to a company’s website for information.

83%

Percent of customers that leave or go to a competitor because of website issues.

56%


CX UXCustomer Service

8


Bank Customer ExperiencesMeet Expectations Don’t Meet Expectations


Customer Needs

Save

• Short-term• Mid-term• Long-term

Borrow

• Major purchase

• Ongoing financing

Manage

• Move money

• Make payments

Protect

• Income• Assets• Retirement

SavingsCDsIRAs

Annuities

LoansLOCODP

Leases

CheckingOnline

bankingBill Pay

Debit card

InsuranceTrust

ServicesFDIC

9


Traditionalist Boomer Gen X Millennial

Expectations


List one thing that needs to happen at your bank to ensure the best customer experience is achieved…consistently over time?

10


Customer Expectations

Remember me.

Update me.

Give me suggestions.

Be consistent.

Be available to me.

Give me the the facts.


Customer Expectations

Personalized

Proactive

SuggestSolutions

Omni-Channel

DeliverAnywhere

Accurate

11


Desired Customer Experience

Behaviors• What should employees do?• How should employees do it?• What does the customer expect you to do?• What does the customer want you to do?

Outcomes• What customer expectation must be met?• What should the experience feel like?• How did the customer react to the

experience?


Customer Experiences

FiltersStaff

BranchesTechnologyBranding

AdvertisingSocial Media

Education

12


CX Influences

Employee product knowledgeProduct features and pricingAvailability of staff/answersSpeed and accuracyDecision makingEmployee empowermentTechnologyAtmosphere

Service interactionsNew relationship contactsCommunity involvementCommunicationsEmployee relationshipsFinancial solutionsProblem solvingBank holidays

What influences the customer experience at your bank?


Delivering and sustaining exceptional customer experiences requires a culture of trust and consistency.

13


CX Culture

A patterned way in which people do things together.

patterned way • systems, operations, forms, procedures

do things together • teamwork, shared vision and commitment,

common goals


We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better. Jeff Bezos

14


Your

CXPractices


The major goal of customer experience management is to foster customer loyalty through high-quality interactions.

15


In today’s environment, relying on growth from a single channel is unsustainable.


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2017

2014

2011

2008

2005

2002

1999

1996

1993

1990

1987

1984

1981

1978

1975

1972

1969

1966

1963

1960

1957

1954

1951

1948

1945

1942

1939

1936

Unit Institutions

Institutions with Branches

Commercial Bank Locations

Source: FDIC

16


Phygital


Channel priorities change with needs. Manage the entire experience, company-wide.

Ernst & Young Global Consumer Banker Survey

12

20

40

52

54

50

55

20

14

14

0% 20% 40% 60% 80% 100%

Balance Inquiry

Bill Payments/Transfers

Report A Problem/Obtain Status

Make Deposit

Advice

Branch Call Center ATM Online Mobile Other

17


…a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.

Omni-Channel Delivery


Digital55%

Digital and

branch25%

Branch11%

Neither9%

ShopChecking Accounts

Digital46%

Branch44%

Open

Source: Novantas

Digital20%

Branch72%

Open

Digital14%

Branch78%

Open

18


Customer Experience

Interactions – Touchpoints – Journey

Satisfaction – Loyalty – Advocacy

WHAT

WHERE


Journey Mapping

Customer Employee

WebsiteAdvertising

POS Referral

Phone call

Core systemTrainingFormsAdvertisingComplianceCoaching

19


Today’s consumer journey averages 22 touchpoints.

Branding Strategy Insider


Awareness

Research Selection Service

Pre-Purchase

Post-PurchasePurchase

CustomerActivities

CustomerQuestions

Delivery ChannelOptionsFeelings andEmotions

CustomerOutcomes

Customer Journey Map

20



CXM…the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle.

21


CXM

Define Measure Evaluate Reinforce

01 02 03 04


Define Your Desired CX

22


Clarify Desired Experiences

Minimum performance standards• In-person• Telephone• Electronic/digital

Additional standards by interaction• Transactions• Account service• Relationship inquiries• Prospecting/business development• Community service


Minimum Standards

Transactions/Account ServiceAvailableFriendly

KnowledgeableOffer assistance

Name usageAccurate

ResponsiveInformed

Website

AvailableFast

FunctionalEasy navigation

Rich contentAccurate

Responsive

23


Relationship Inquiry

TrustedExperiencedConsultativePersonalCaringEmpathySupportive

AvailableFriendlyKnowledgeableOffer assistanceName usageAccurateResponsiveInformed

Min

imum

Add

ition

al


Your

CXRequirements

24


MeasureYour Desired CX


CX Measurements

1. Customer service2. Accuracy3. Responsiveness4. Satisfaction5. Loyalty6. Future utilization7. Relationship growth8. Product possession and utilization

25


Bank Performance

Measurement Resources

Customer Perceptions

Employee Perceptions


ReferralsBranch growth• Transaction volumes• New relationships

Households per branchMarket shareRelationship longevityAttrition/retention

Bank Performance

26


Product utilization• Possession• Usage

Relationship depth• Balance increases• Services per household

Complaint managementError tracking – transaction accuracy

Bank Performance


Performance Layers

1. Transactions2. Accounts3. Customers4. Relationships

27


Measurements

Branch usage changes• Lobby, drive-in, telephone

Online and mobile utilization ratioBill pay volume changesTransfers to competitorsRelationship balance changes Account tenureDeclines in account utilization


Website Analytics

Heat or frequency mappingCommon hardwareCommon browser utilizationWeb traffic sequencesPage viewsKeywordsNavigation assessments

28


Exit interviewsFocus groupsAdvisory panelsCustomer satisfaction surveys• Satisfaction• Loyalty• Net Promoter Scores (NPS)

New and closed account surveysPost-transaction surveysMystery shopping

Customer Perceptions


Traditional Data Collection

TelephoneMailIn-PersonOnline

29


Migrate from Mail to Online


New and Closed Account Surveys

Strengths• Inexpensive• Assessment of activities customers have

experienced

Weaknesses• Non-response bias• Limited control of response group

30


Ernst & Young Global Consumer Banker Survey

0 10 20 30 40 50

Experience with financial serviceproviders

Rates or fees

More convenient to have everything inone place

Branch or office location

Access to branches and bankingservices

Information from friend or relative

Reason to Close Reason to Open


Customer Surveys

Strengths• Easy to administrate• Can mail or email to households• Customer response rates are acceptable

Weaknesses• Slow data gathering– 6 to 8 weeks

31


Customer Survey• Simple ratings• Ease-to-complete


32


The Ultimate QuestionFred ReichheldHarvard Business School Press

0 1 2 3 4 5 6 7 8 9 10Not At All Likely Extremely Likely

How likely is it that you would recommend ABC Bank to a friend, family member or colleague?

Detractor PromoterPassive


Focus Groups

Strengths• In-depth information• Observe reactions• Investigate concepts that generate strong

feelings

Weaknesses• Small sample size• Results not projectable

33


Post-Contact Survey

1. Rate your satisfaction with… • Representative• Representative’s knowledge• Representative’s helpfulness and

responsiveness2. Likelihood to recommend3. Satisfactory solution for your

inquiry


Mystery Customer Program

Strengths• Customer’s perspective• Support behavior modification• Results are employee specific • Identifies training opportunities

Weaknesses• Limited number of evaluations

34


Banking School History

65%67%75%71%67%

72%75%

0%

10%

20%30%

40%

50%

60%70%

80%

90%

100%

2017201620152014201320122011


Emerging Methodologies

In-office tablet surveysInteractive online surveys• Conditional questions

Online focus groupsSocial media surveys

Data-driven surveys

35


Focus groupsEmployee surveysService quality teamsProcess improvement panels

Employee Perceptions


Employee Survey

36


Internal Service

-2.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00

Loan OperationsInformation Technology

OperationsHuman Resources

MarketingCompliance

Trust DepartmentInvestments and Insurance

Customer Service


EvaluateYour Desired CX

37


The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.

Stephen Hawking


Investigate trends and statistics that help improve your customer experience.

38


50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Average Customer Service Scores

MergerAnnouncement

MergerTerminated

ComputerConversion

Ask Why And Set Goals


ReinforceYour Desired CX

39


Capture and Share Stories

Clarify expectations – vision for CX

Bring your CX culture to life – tell stories

Share measurementsCelebrate successEncourage developmentCommunicate oftenGive employees a reason to engage


Resources

Internal communicationsManagers, coaches and mentorsSocial mediaStaff meetingsWorkgroup discussionsProcess improvement teamsEmployee newsletters

40


Accountability

Develop journey maps• Assess critical steps

Conduct researchCreate measurementsEstablish desired outcomes• Measureable goals


For every customer complaint there are 25 other unhappy customers who have remained silent.

Lee Resource

41


Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time or we’ll lose them. Kevin Stirtz


CXMRetentionSatisfactionLoyaltyAdvocacyProfitability

Documents

RETAIL BANKING - gsb