Front Office + Back Office = CEM

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Front Office + Back Office = CEM

Expanding the Customer Experience Equation

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Today’s Presenter

Ronald Balmer

Managing Director, Customer Experience Greenwich Associates

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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

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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

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

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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

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

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Greenwich Associates

What Do We Know About the Customer Experience

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•  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

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

Operations Impacts Customer Loyalty

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

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Customer-Facing vs. Customer-Impacting

Operations Impacts Customer Loyalty

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

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Greenwich Associates 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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What impressions are you leaving your customers?

Painful Onboarding Processes

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

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Greenwich Associates

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

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The “persistence of first impressions”

Operational Errors

Anything less than excellent problem resolution negatively affects client experience

N et Pr o m o te r Sc o re fo llo w in g p ro b le m r es o lu ti o 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

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Greenwich Associates

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%

Sa ti sfi ed w ith r es o lu ti o n (r ati n g o f 4 o r 5) D is sa ti sfi ed w ith r es o lu ti o n (r ati n g o f 1, 2 o r 3) NPS -38 NPS 30

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Turning Problems into Solutions

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

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How to focus on customer-impacting employees

Best Practices

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)

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Greenwich Associates

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

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Questions?

?

?

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Ronald Balmer

Managing Director, Customer Experience Greenwich Associates

+1 203.625.5022

Ronald.Balmer@Greenwich.com

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Email ContactUs@greenwich.com

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, EUROPE

Greenwich Associates UK

90 Basinghall Street 1st Floor London, EC2V 5AY

United Kingdom Tel: +44.207.726.9400

ASIA

Greenwich Associates Singapore

137 Amoy Street #03-05 Far East Square

Singapore, 049965 Tel: +65.6236.0142 UNITED STATES Greenwich Associates

6 High Ridge Park Stamford, CT 06905

USA

Tel: +1 203.625.5038

Javelin Strategy & Research

4301 Hacienda Drive, Suite 550 Pleasanton, CA 94588 USA Tel: +1 925.225.9100 CANADA

Greenwich Associates Canada

14 Prince Arthur Avenue Suite 208

Toronto, Ontario Canada M5R 1A9 Tel: +1 416.925.0197 1220 Sheppard Avenue East,

Suite 201 Toronto, Ontario Canada M2K 2S5 Tel: +1 416.493.6111

JAPAN

Greenwich Associates Japan K.K.

8-6-9-414 Akasaka Minato-ku, Tokyo 107-0052

Japan Tel: +813.3475.5212

Contact Information

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Matt Dixon

Executive Director, Financial

Services and Customer Contact

Practices at CEB

The Challenger Customer:

Selling to the Hidden Influencer Who

Can Multiply Your Results

Figure

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References