Front Office + Back Office = CEM
Expanding the Customer Experience Equation
Today’s Presenter
Ronald Balmer
Managing Director, Customer Experience Greenwich Associates
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
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 than1/2
of companies rate their customer experience as exceptional today, but two-thirds expect it to be in two years165%
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 experience2Greenwich 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
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 ImpactOPERATIONS
• Task Management • Accountability • Communication • Impacts CERESULTS
• Positive Impact on Scores • Stronger Internal Culture • Shared Overall CE Experience Expand your CE Program to the Back-OfficeGreenwich 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 respondentsGreenwich 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
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
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 30Turning 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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1
3
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
Questions?
?
?
Ronald Balmer
Managing Director, Customer Experience Greenwich Associates
+1 203.625.5022
Ronald.Balmer@Greenwich.com
Email ContactUs@greenwich.com
or visit www.greenwich.com
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