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
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
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
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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
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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
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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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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 the profitability of a business
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Most banks start at the most logical place—the front-line employees
Operations Impacts Customer Loyalty
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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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How Operational Functions Impact the End Customer
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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
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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
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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
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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
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The “persistence of first impressions”
Operational Errors
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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
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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
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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
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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
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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
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Questions?
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? ? ?
Ronald Balmer Managing Director, Customer Experience Greenwich Associates +1 203.625.5022 [email protected]
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Greenwich Associates
Email [email protected]
or visit www.greenwich.com
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