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Online Relationship ManagersPeter Fletcher-Dobson, Head of Online2013 Community & Iwi Engagement Conference

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Changing world

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Global Internet Device SalesWorlds best credit card experience initiativeHouse Hunter + Top Ups; Overpayments; Paying offPayment confirmation receipts; Sweep;

We are here

Mobilisation smartphones and tablets3

300% growth in mobile

Mobile sessionsDesktop sessions

Mobilisation smartphones and tablets4

Online relationships

Personal relationships online will be become even more key..Next gen customers (Gen Y & Z) are digital natives and main bank customers by 2020. Highly efficient communicators who want it all now and expect you to manage all their affairs.

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Word of mouth replaces experts

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Amazon

Identifying value begins by thinking of an important unserved or underserved job that customers want done and then coming up with a well-defined value proposition to address that job, however foreign to your current offerings that may be.

Dont stop at what youre good at

The customer experience has never been more important than it is online.

Word of mouth spreads quickly on social networks and your competitors are always just one click away. If you want your brand to thrive online, focus like a laser on customer satisfaction.

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Society needs banking

Society needs banking, banks Im not so sure about. Bill Gates

What does Kiwibank do Dad?

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A relationship of trust

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I bet that flash Mustang in the car park is hisIs that hair for real?

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Customer researchBanks are large, faceless, self-serving and not people orientated

I want the convenience of online

Dont treat me like a number

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mobile-centric - conveniencetime-poor delegate issues via emailOnline expectations driven from non-financial online experiences

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Piecing together the opportunity

Desire to delegateMobile explosionSocial Media impact

Engaged online customers vital

Kiwibank mobile usage grown 300% in last year

Social media accelerated one-on-one interaction online

Dont treat me like a numberI dont always need an instant replyI want to just hand off my problemsI dont want to have to continually repeat myself

The opportunity is to move online communication from an impersonal, order-taking desktop environment to an experience where customers get a convenient, personalised online service leveraging the benefits of mobile.

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Our values

Crucial element is the projection of our values through an environment thats usually completely free of people. Unlike a conventional technical project a big focus was on how the service would imbue Kiwibanks culture and our values: Raise the Bar; Make it Easy, One Team for the customer and Do Whats Right.

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First design concepts

Hi, my name is Sarah. Im your online Kiwibank personal account manager.

Hi, my name is Sarah. Im your personal online banking assistant.

Hi, Im Paul Brock, CEO of Kiwibank. Im writing to you as you are a valued online banking customer and Id like to offer you a special service

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Customer champion with the qualities of a good friend who helps you get ahead

Fixes your problems simply and quickly without fuss

Always does the right thing, by you not by the bank

Where you are whenever, wherever you chooseValue proposition

Unlike, other banks weve innovated the traditional relationship model so we can provide all of our online customers with a relationship manager - not just the selected few.

The status quo approach is to think about how to take people (cost) out of banking, on the surface our ORM approach is something that our competitors might try to copy but they cant imitate our values and culture

Our mission is not to just deliver fancy technology.

Our mission is a combination of people, systems and processes but we feel that the crucial element is the projection of our values through an environment thats usually completely free of people. Through ORM we can amplify our projection of values and culture.17

The challengeImbue Kiwibank values

Multi platform

Operating model

Real people

We needed to change how our contact centre operated away from product centric to customer centric.

Customers can access their Online Relationship Manager on desktop, tablet or smartphone app. They can ask them anything and they will respond within 24 hours.

The selected staff members who become Online Relationship Managers have to imbue the values and culture of Kiwibank and have the mandate to go as high as the CEO if necessary on behalf of their customers. While they may need to introduce other experts to assist a customer they will remain in the background to ensure the best possible experience and outcome. All via the convenience of a mobile app or computer.They have to be genuine

What is unique about the service is that whereas most online innovations are about removing real people interactions this is about putting place real customer champions to create a truly 21st Century relationship model using the latest online technology.

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Meet Becks

The ORMs are real people infused with Kiwibanks values and culture in a digital environment where most other banks are replacing humans with order-takers. They use a 21st Century messaging and CRM platform built in-house to manage to scale, but are there for the key moments when a human decision or action is required. The service updates and improves the traditional banking relationship manager model. The relationship managers might also offer suggestions or special offers tailored for the customer theyre constantly looking for ways to save customers time and money. If they cant answer a question directly, theyll set the customer up with a person who can. They are also active in social media.ORMs respond to customer queries and refer to specific product experts if necessary; Customer-driven analytics feed into the communications cycle to ensure a relevant and timely customer conversations; ORMs constantly monitor results to feed back into the programme and to deliver proactive messages and surprise and delight communications.19

John, I have a problem

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Meet John

Kiwibank is the first bank in the world to offer a relationship manager via online to its entire customer base. With the Online Relationship Manager service we feel we have not merely taken the traditional bricks and mortar relationship model and digitised it. Rather we have purposefully designed and built a new digital service to allow 24-hour issue delegation across mobile, tablet and desktop. We have integrated our core values into the service proposition and empowered a select group to act as customer champions to deliver a 21st Century online relationship experience that delights customers and delivers great service while lowering cost.

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Results50% greater interaction

Reduced churn

Greater propensity of sales

Customer satisfaction

ORM customers have 50% more interaction with Kiwibank than other online customers. ORM customers make 6% fewer calls to the contact centre and 11% fewer visits to branches which has reduced cost to serve. The business cased 20% cost-reduction benefits of implementing the messaging platform for the service have also been met.

Customers with an ORM are less likely to churn in the past month the team has retained millions in home loans where customers were considering rival offers. As an indication of the sales opportunity, the vast majority of messages is around lending (secured and unsecured); followed by responses to bank initiated messages and thirdly by account maintenance messages.

Customer feedback has been hugely positive with customers remarking that they feel part of a family and that they appreciate not only the banking help and reminder messages but also the birthday greetings and other everyday contact. One ORM has received two marriage proposals (so far) and customers have also sent invites for coffee and dinner to others.Sentiment analysis tracking of customer messages to the ORM shows a steady increase in positive messages since the service has been launched.

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Recognition

A simply outstanding example of customer driven innovation.

Canstar Kiwibank...brought to life a simple online proposition: providing all their internet banking customers with an online relationship manager. 23

What do customers say?Good evening John. How lovely to have an online relationship manager and if you dont me saying, not a half bad looking one either. I am not sure what purpose you would serve or what you can offer me online. Although if you were Christchurch based I would be thinking along the lines of a nice dinner and a few drinks! Thank you, its not every day I am greeted with such a handsome face in my bank of all places, LOL. Regards, Olivia

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Customer responses

Customer responsesHi Becks. I know this has nothing to do with my banking but thought you would like to know that my daughter in law has beaten the cancer.

After nearly a year, she has won the battle. So we are going to have the happiest Xmas ever.

Once again, thank you for that advance on my account to help them with the travelling to hospital.

I hope you have a Merry Xmas and a Happy New Year.

Customer responsesThis morning I received a message to say thanks for 10 years of being a customer.

And I would like to return the favour to say thanks for 10 years of excellent services, including low cost credit card, the fairness with which you have helped with our leaky homes, the Heaps service and the overall excellence of your web banking services.

Thanks JW

Key take outsAuthenticity

Values

Creating simplicity is complex

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The future? ;-)

Thank you

Kia ora koutou katoaPeter Fletcher-Dobson, Head of Online2013 Community & Iwi Engagement Conference

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