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The financial services customer experience: Understanding the impact of simplicity April 2, 2014

The financial services customer experience: Understanding the impact of simplicity

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Few would argue that customers crave simplicity. But from a business perspective, does it really matter? +Gain insights into the findings of our Global Brand Simplicity Index — a report that evaluates the simplicity of 400+ global brands, including top national financial services providers +Learn which interactions matter most and how simplifying the customer experience can create lasting brand relationships + Understand how innovative companies have made simplicity pay, and consider how to get started creating simpler, high-impact brand experiences Siegel+Gale is a global strategic branding firm committed to building world-class brands through elegantly simple, unexpectedly fresh strategies, stories and experiences. We deliver comprehensive services in brand development, simplification, research and digital media. Since our founding by brand sage and simplification pioneer Alan Siegel in 1969, Siegel+Gale's mantra has been "Simple is Smart."

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Page 1: The financial services customer experience: Understanding the impact of simplicity

The financial services customer experience:Understanding the impact of simplicity

April 2, 2014

Page 2: The financial services customer experience: Understanding the impact of simplicity

2

Let’s talk

Simplicity paysWhy are things so complicated?Achieving simplicity

Page 3: The financial services customer experience: Understanding the impact of simplicity

3

Page 4: The financial services customer experience: Understanding the impact of simplicity

4

GBSI 2013

consumers

10,000+

countries

7in

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52009 2010 2011 2012 2013

through Aug 2nd

-50%

0%

50%

100%

150%

200%

Since 2009, the Simplicity Portfolio has beaten the average global stock index by

+167% Simplicity

Portfolio

+83% S&P

+72% Dow+69% DAX

+45% FTSE100%

Percentage of growth of index/portfolio

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75%of consumers are more likely to recommend a brand because it provides simpler experiences

Simplicity increases loyalty

6

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For simpler experiences, customers would pay:

Banks/RetailShipping/MailGeneral insuranceUtilitiesMediaTelecom/Cable

Social mediaTravel/HotelsTelecom/Cell phoneInternet retailTravel/BookingTravel/AirTravel/TrainTravel/Car rental

AppliancesAutomotiveRetail/Health and beautyInternet searchHealth insuranceRetail/GeneralRestaurants

Retail/GroceryElectronicsRetail/FashionFitness

5.4% and more4.8–

5.3% more

4.5–4.7% more

up to

4.4% more

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For simpler experiences, customers would pay:

Banks/RetailShipping/MailGeneral insuranceUtilitiesMediaTelecom/Cable

Social mediaTravel/HotelsTelecom/Cell phoneInternet retailTravel/BookingTravel/AirTravel/TrainTravel/Car rental

AppliancesAutomotiveRetail/Health and beautyInternet searchHealth insuranceRetail/GeneralRestaurants

Retail/GroceryElectronicsRetail/FashionFitness

5.4% and more4.8–

5.3% more

4.5–4.7% more

up to

4.4% more

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Industry rankings—Global Simplicity Score

1. Internet search950

736

734

723

719

711

663

657

625

602

595

574

565

2. Electronics

3. Restaurants

4. Internet retail

6. Retail/Grocery

5. Appliances

13. Telecom/ Cell phone

7. Media

8. Retail/General

9. Travel/Hotels

10. Retail/Fashion

11. Travel/Booking

12. Travel/Air

14. Shipping/Mail

15. Retail/Health and beauty16. Social media

17. Automotive

19. Banks/Retail

18. Fitness

20. Travel/Train

21. Telecom/Cable

22. Utilities

23. Travel/Car rental24. Health insurance25. General insurance

565

564

530

529

524

517

501

484

473

445

329

258

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Industry rankings—Global Simplicity Score

1. Internet search950

736

734

723

719

711

663

657

625

602

595

574

565

2. Electronics

3. Restaurants

4. Internet retail

6. Retail/Grocery

5. Appliances

13. Telecom/ Cell phone

7. Media

8. Retail/General

9. Travel/Hotels

10. Retail/Fashion

11. Travel/Booking

12. Travel/Air

14. Shipping/Mail

15. Retail/Health and beauty16. Social media

17. Automotive

19. Banks/Retail

18. Fitness

20. Travel/Train

21. Telecom/Cable

22. Utilities

23. Travel/Car rental24. Health insurance25. General insurance

565

564

530

529

524

517

501

484

473

445

329

258

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Let’s talk

Simplicity paysWhy are things so complicated?Achieving simplicity

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Why simplicity mattersThe brand that customers know is the one they interact with every day

Online interfaces

Call center

Statements

Mobile self-

service

Correspondence

Applications and welcome

kits

Loyalty programs

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The all-too-frequent experience

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For questions about your

existing account, press 1.

For information on opening

a new account, press 2.

For questions about your bill,

press 3. For questions about the

status of your order, press 4.

For questions about our products

and services, please visit our

website at www...

14

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For any breach or default by IBM under the provisions of Section 11 above or otherwise in connection with this Agreement, even for breach or default entitling you to rescind or be discharged as aforesaid and whether in the nature of a breach of a condition or a fundamental term or a fundamental breach or breaches, your exclusive remedy, in addition to electing if so entitled to rescind or be discharged as aforesaid, shall be to receive payment from IBM for damages to a maximum amount equal to, and IBM shall in no event be liable in excess of, the greater of $100,000 or the purchase price stated in the applicable Supplement for the specific machine or machines that caused the damages or that are the subject matter of or that are directly related to the breach or default. In no event shall such damages include, nor shall IBM be liable for: 1) any special, indirect or consequential damages even if IBM has been advised of the possibility thereof including but not limited to lost profits, lost business revenue, or failure to realize expected savings, or 2) any damages claimed against you by any other party. 15

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Why are things so complicated?

Average number of 401k options

8

191997

2012

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“Large 401(k) menus result in lower participation rates, overly conservative allocations, inferior investment options and other adverse effects that, collectively, cost workers billions of dollars every year.”

Mercer Bullard17

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+ Business silos create a fractured customer experience

+ Mergers and acquisitions create redundant and incompatible systems

+ Adhering to the letter of the law does not meet the spirit of disclosure

+ Lack of expertise in true best practices allows the same old stuff to proliferate

+ Senior executives have the attention span of gnats

Why are things so complicated?

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Let’s talk

Simplicity paysWhy are things so complicated?Achieving simplicity

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HAPIfork: helps you lose weight by notifying you if you’re eating too fast

20

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Nike+ FuelBand: a personal coach tracks and inspires progress

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Lifestraw: simplicity in problem-solving saves lives

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But what about those everyday touchpoints?

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A loyalty program that rewards you for your actions—and doesn’t make you take extra steps to redeem

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A statement that really answers, “How am I doing?”

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Prototype of a one-page

consumer credit card agreement

A credit card agreement that complies with regulations in a single page…

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…followed by statements that actually clarify required information

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An online application that balances clear explanations with simple steps

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Simplified patient reporting that makes data actionable…

Before

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Simplified patient reporting that makes data actionable…

After

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…in any channel the patient prefers

3131

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The solution:The Simplification Blueprint

32

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What, when and how should you communicate with members to drive engagement and satisfaction?

33

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The Simplification Blueprint

Define customer and business needs

Map the current customer experience

Envision the optimized experience that will meet customer and business needs more effectively

Identify and prioritize specific work plans to implement the optimized experience

Test and refine prototypes of the highest-priority touchpoints and plan for long-term implementation

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Mileage Plus

35

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The situation

Although United’s Mileage Plus loyalty program was intended to enhance customer relationships and drive customer engagement, the reality was a fragmented customer experience with uninspired and disengaged members.

Website

Email

IVR and call center

Membership application

Direct mail

Airport CSR Airport kiosk

Statement

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Getting to the root of low engagementMember research revealed three distinct segments within the member base—yet none felt well-served by the loyalty program.

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The solution

Our audit of all member touchpoints revealed an airline-centric mentality as the root of the problem. We outlined an engagement strategy to transform every communication or interaction into a member-centric experience. No matter what the specific functional purpose of any touchpoint, it’s an opportunity United should seize to “show, encourage, help and recognize” the member.

Communications pillars

Member need fulfilled

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Defining a new contact strategy

Before

After

We began by outlining a new contact strategy that increases the number of touchpoints and integrates messaging across them to reinforce the member relationship across the entire life cycle.

39

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Delivering the right information

at the right time

Elite benefits and

more

Benefits by status level

My Upgrades landing page

My Upgrades tab

My Upgrades

detail pages

Terms and conditions

Summary Detail

Each touchpoint consistently reinforces key messaging, but the level of detail modulates based on the primary purpose and delivery channel of the communication.

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Speaking with a unique brand voiceVoice guidelines ensure that all member communications reflect a common tone and support the brand attributes.

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Removing airline jargon

More detailed writing guidelines specify how to replace numerous “insider” terms with simple program architecture that employs descriptive language.

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Reaching members when and how they preferThe most frequent point of interaction is Mileageplus.com. Our redesign is simple, appealing and built around the tasks users most frequently want to do.

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Carrying the themes and content through email…

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…and onto the mobile experience

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+ Truly simple, customer-focused products and services

+ Systems investment in a central customer database

+ Commitment to derive and act on true insights from consumer research

+ Disclosure that is truly commensurate with risk or exposure

+ Decision-making at the right level with the right information

+ Fewer initiatives undertaken at the same time with the right skills and unrelenting support

Key factors for success

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Q+A

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Page 48: The financial services customer experience: Understanding the impact of simplicity

Thank you.

Today’s presenters:Maria Boos, Group Director, Simplification – [email protected] Stella, Senior Marketing Director – [email protected]

Related Links

Global Brand Simplicity Indexhttp://simplicity.siegelgale.com/

For questions or more information on Siegel+Gale and our Simplification practice, please email [email protected]