customer experience maturity in banking martin dowson

Complete Customer Experience Management- Is your organisation really ready?

Customer Experience Management

Why is Customer Experience important to Banking?

What is Customer Experience Maturity?

What are the critical factors for success?


-6

0

6

11

17

23

29

34

40

-0.2 -2

14

36

North EuroWest Euro

Cent/East EuroRussia/CIS

Source: Efma Retail Banking Trends 2009

Revenue Growth per Customer 2006-2008


People’s attitudes towards banks have significantly shifted over the last 2 years

Source: Ernst & Young 2010Understanding Customer Behaviour in Retail Banking

- The Impact of the Credit Crisis across Europe.


56%

of UK customers say trust has decreased





People’s attitudes towards banks have significantly shifted over the last 2 years c.33%

Personal relationship is highly important




74%

Have each product with a separate bank





Customers ARE switching

24% have switched at some point

10% switched in the last two years

11% intend to switch soon





There is another way...


Customer Experience is

Sum total of customer’s interactions with company

Concerned with how the customer values these interactions

Trust is

Built through personal relationships

Will lead to increased Share of Wallet

My Bank

I

Customer Experience MaturityThe extent to which an organisation is able to build and operate customer experiences that are meaningful to their customers and profitable/valuable to the business

RyanAir - Do they do CEM?

They deliver what they promise...

... but no more than they promise

They deliver what they promise

These are the essential hygiene factors of running an airline and these seal the deal for people chasing low-fares

“It WAS cheap, they got me and my bags there... I can hardly complain”

Hygiene Factors

Lowest fares for their routes, no frills and

No. 1 for Punctuality

No. 1 for Fewest lost bags

No. 1 for Flight completions

No. 1 for Fewest complaints

Lowest fares for their routes, no frills andNo. 1 for PunctualityNo. 1 for Fewest lost bagsNo. 1 for Flight completionsNo. 1 for Fewest complaints

They only deliver what they promise

It LOOKS like people don’t complain about their service....

★ RyanAir deals with 99% of their complaints within 7 days

★ only counts for those customers who follow the exact procedures (Letter or fax only)

They only report what they measure

Profits Up but where from?

Yield per available seat mile down

22% of revenues from subsidies

56% from bookings

Meeting targets for subsidies forces price of tickets down

If prices are already rock bottom... operational efficiencies have been the focus of the company their whole existence...

where is the sustainable source of profit growth that markets will demand?

Why Maturity Models?Easy benchmarking

Articulates clearly what will be different when improvements have been made

Highlights critical success factors

Encourages you to pace yourself

Makes it more understandable/palatable to executives to invest in

Bruce Temkin

The Experience BankerLevel of engagement with & focus on customer. Underpinned by

Pillar 1: Insight (read good data)

Pillar 2: Culture (read active values)

Pillar 3: Experience Design (read capability)

Overall commitment to differentiating through CX

Stage 0 not present (37% of companies)

Supported by a planned journey towards CX maturity across core competencies similar to Experience Banker

Stage/Level Customer Company Org Design/

Capabilities

1

2

3

4

5

Ignored Interested Disparate

Heard Investing Silos

Understood Committed Coordination

Engaged Engaged Strategic

Passionate Embedded Fundamental

5 Levels of CX Maturity

CX Maturity - Stage 1Insight: Data is collected but root cause not addressed. Probably tracking basic metrics through 3rd party research

Culture: Pockets, mostly around call centres, of customer focus with some execs ‘getting it’. No coordinated top-down influence

Design: Fix problems reactively, no end-to-end design or coordination of fixes

Source: experiencebanker.com Feb 2011Three Pillars of Customer Experience: Insight, Culture and Design

Customers feel ignored

Company is ‘interested’ in customer experience

CXM - Stage 2


Insight: Customer base is segmented, CSat scores and drivers understood, VOC programmes emerging.

Culture: Insights convince some execs of importance but still no enterprise wide culture embedded

Design: Multiple improvement programmes based on insights across business but not yet coordinated across enterprise

Customers are heard

Company is ‘investing’ in their customers

Stage/Level Customer Company Org Design/

Capabilities

1

2

3

4

5

Ignored Interested Disparate

Heard Investing Silos

Understood Committed Coordination

Engaged Engaged Strategic

Passionate Embedded Fundamental

Culture: Key metrics make it to the C-Suite (NPS), customer insights shared across the organisation. People are evidently thinking more about the customer.

5 Levels of CX Maturity

CXM - Stage 3


Insight: Core met and unmet needs understood driving business opportunities - insight based actions/plans

Culture: Key metrics make it to the C-Suite (NPS), customer insights shared across the organisation. People are evidently thinking more about the customer

Design: Business actively manages customer experience and most units within the organisation have objectives for this

Customers feel understood

Company is ‘committed’ to its customers

Virgin MediaOrganisational Design critical to surpassing Stage 3

Journey Stage“Fault Experience”

First Time Fault Resolution

NPS Score - 0

Customer 20x more likely to leave in next 90 days

Single Most Important element of the Customer Journey

Call Centre

In The Field...

C-Level :- ConsumerAHTResolve or pass on..

C-Level :- Access (Engineering)Truck RollsOne Visit Fix

From disparate... to ALIGNED...

CXM - Stage 4


Insight: Organisation can express the value of customer experience. Feedback collected at all touch-points and available in the business immediately

Culture: All employees fully understand and evaluated on their part in delivering positive customer experiences.

Design: Enterprise wide customer focussed design process and consistent delivery/management of end to end customer journeys

Customers are engaged by company

Company is ‘engaged’ incustomer-centricity

CXM - Stage 5


Insight: Reporting on all touch-points and predictions made about future interactions. CRM data is augmented by real time feedback. Extremely rich customer pictures.

Culture: Passionate customers involved in development of new products/services. Org Model structured around key customer segments

Design: Services/products can be developed tailored to individual customers not just segments. Even failures can be turned into opportunities

Customersare passionate

Company culture of the customer is ‘embedded’

How mature do we NEED to be?There are two breakthrough levels...

Reaching Level 3

Reaching Level 5

The journey to these may take you 3-5 years each

Most companies will not reach Level 5

Most companies are not at Level 3

What are the critical factors for success?

Monitor your interactions with customers

Share analysis throughout the organisation

Align strategy and customer segments

Action based on customer input not senior management ‘thoughts’

Executive buy-in from the outset

An organisation aligned to both the customer and business strategy

What are your next stepsReview CX Maturity Models

Be honest about where you are

Early stages focus on core CX skills gathering as much Insight as possible and mapping customer journeys

Middle stages focus on demonstrating value of acting on insights as a way to garner key executive sponsorship & Investment

Later stages - cultural change programmes are critical as well as total engagement at C-Level

Martin DowsonCustomer Experience CoachMartin holds a passionate belief in the profitability of meaningful customer experiences. A commercially focussed senior CX professional his experience across a range of industries and challenges helps him to create customer centred organisations and teams.

“I believe that putting the customer at the heart of your organisation will deliver both immediate improvements and sustainable long-term benefits. I have seen throughout my career that you can not silo CX work into one ‘creative corner’ of your company or think of it as a bolt on to the latest new project your are delivering.”

His experience combines a strong background in User Centred Design methodologies with organisational design and capability building experience.

Martin works with management teams who are (or want to become) passionate about

• Creating meaningful and profitable customer experiences• The journey towards a customer centred organisation• Understanding and measuring their customer experience

Barclays BankTesco BankTietoEnatorVirgin MediaGCap MediaSainsburys

Virgin WinesCentrica

BTArgos

AmazonE-Bay

GexTechSingapore Airlines

British AirwaysInfineon (Siemens)MorrisonBowmore

Accenture

http://www.linkedin.com/in/[email protected]

http://www.linkedin.com/in/martindowson




customer experience maturity in banking martin dowson

Business

customer experienceimportant

customer experience

customer focuscompanywith

customer experiences

customer values

customer experience

pillars of customer

experience design