digital cx in 2020: cracking the code on data

© 2017 NTT DATA, Inc. All rights reserved. 1

Digital CX in 2020: Cracking the Code on Data

Lisa Woodley, Vice President, Customer Experience, FSI Business Consulting

December 5, 2017


12 What do consumers want from their digital

customer experience in the future?

34

Key Questions

Are consumers happy with the digital

customer experience offered by financial

services institutions?

Is the digital customer experience a priority

for financial services institutions?

What challenges do financial services

institutions need to overcome to improve the

digital customer experience?

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Consumer:• 1,102 consumer survey

responses

• Online survey

• U.S. based

• Required to be 18+

Financial Firms:• 102 FSI surveys conducted with

executives involved in decision-

making, budgeting, strategy or

execution

• Director level employees

and above

• Total assets of financial firms

ranged from $10 billion to $500

billion or more

Household Income Age Distribution

Overall mix of respondents reflects a

higher income base

Even distribution of respondents

across age segments

Financial Services Institutions Interview Summary

102 surveys were conducted with executives involved in decision-making, budgeting, strategy or execution of

customer experience and customer-related data

9%

18%

33%

40%Banks

45%

33%

18%

5%

Less than $49,999

$50,000 to $99,999

$100,000 to $199,999

$200,000 or more

23%

42%

36%

18-34

35-54

Over 55

Survey

Snapshots

Insurance Company

Brokerage Firms

Other

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Totally disagree2%

Totally agree16%

Disagree2%

Agree52%

Neutral28%

of respondents are totally satisfied with

their digital CX

Only 16%

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Customers Satisfaction of

FSI Digital CX is Lukewarm

Q18: Do you agree or disagree with the following statement?

Overall, I'm satisfied with my digital CX with FSIs.


Check balances Pay bills Monitor savings

FSI’s Handle the Easy Tasks Well

Excellent Digital CX

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Open a credit card

• Basic tasks involving transactions monitoring and applications are

considered straight forward

– They are also the most common activities conducted on mobile

devices

• Small and online banks have the highest percentage of

respondents providing and “excellent” rating

Q20. Generally, how would you rate your digital CX with each of the following interactions with this institution? Ranking based on Excellent rating for Top 5 Banks


What’s Annoying

Customers the

Most …

Top 5 Most Annoying Customer Experiences

Not being able to accomplish what I wanted to do

There are a number of

areas that remain a

challenge with CX

1

Options provided are not relevant to me2

Having time being wasted by tasks that take too

long to complete3

Having to enter the same information multiple times in a

single transaction4

When too many options make completing the

task difficult5

Q21. Which of these customer experiences make you most annoyed?

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Explorers27% of Survey

Settlers73% of Survey

Fast & Simple CX

Occasional mobile user

Get it done quickly

Values an intuitive user interface

and minimal effort to complete

transactions

More Loyal

Digital CX needs to improve

Prefer or would consider using

Alexa or Siri

Would leave FSI for a better

digital CX

18%

12%

0%

73%

41%

86%

Know me and guide me CX

Habitual mobile user

Looking for customized and

intelligent support

Value tools, advice and reminders

Less Loyal

Survey Consumer

Profile:

Some consumers just

want to complete the

task while others view

digital CX as a lifestyle

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Settlers: Older: 81% of all respondents over 55

Technology Laggards: More likely to use the desktop and to

conduct online banking on the web

Loyalty: Prefer to work with fewer FSIs

Value Relationships: Not all digital. Prefer access to a

local storefront

Security: More concerned about security when it comes to

devices such as Alexa or Siri

CX Preferences: Stroger CX preferences for responsiveness

and keeping it simple

Transaction users are

less likely to change

FSIs and prefer to

keep it simple and

responsive

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Explorers:Younger: This small segments represents 41% of all

respondents between 18 and 34

Technology Early Adopter: Much more willing to consider

using artificial intelligence agents such as Alexa and Siri

Lack of Commitment: Doesn't mind managing multiple

FSI relationships

Value Cost-savings: Higher preference to spend less on

products and services

Data Sharing: A much higher willingness to provide

household purchase information if it helps with financial goals

CX Preferences: Stronger preferences for honesty,

respect and trust

Digital Lifestyle users

are less loyal to their

FSI and willing to share

data to make an

experience more

customized

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Guidance.

• Provides tools and recommendations

• Predict my needs

• Uses innovative technology

Personalization.

• Easy to identify products

• Knows who I am

• Customize my preferences

Ease of Use.

• Intuitive navigation

• Able to complete tasks quickly

• Minimal errors

3

2

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Evolution of the Digital CX

1

Settlers73% of Survey

Explorers27% of Survey


Mobile Banking Continues to Accelerate

36% accessing their accounts habitually,

4+ times a week

67% access their mobile banking more

than 2-3 times per week

access their mobile

banking weekly

accessing their

accounts habitually,

4+ times a week

Mobile Banking

Continues to

Accelerate

The most positive

customer experiences

are the ones that are

fast and easy.

36% 67%

40%growth in daily use of mobile

devices over the past

three years

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Q16. How frequently do you use your mobile device for banking?Q11: How frequently do you use one of your online or mobile devices to support your FSI needs?


Settlers Explorers

Explorers Seek More

Personalization and Guidance to

Reach their Financial Goals

Advise me on my options in insurance

Connect the dots between my income, expenses, and savings

– recommending to save that bonus instead of buying a new car

Proactively send me reminders on upcoming major payments

Intervene and prevent major purchases

Act as a voice of reason on major overall spending decisions –

recommending against purchases to help stay within budget

45% 77%

40% 75%

52% 75%

32% 66%

22% 61%

Q24: I would like my FSI to provide the option to: (% of respondents who agree with the statement)

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Explorers

are Willing to

Share Personal

Data for an

Improved DCX

Providing FSIs with

access to a wide range

of data if it enables

them to provide advice

to meet their

financial goals.

ExplorersSettlers

In-store retail purchase information

Geo location information

Information at other FIs (excluding credit cards)

Airline Programs (frequent flyer information)

Credit card information (from other banks)

Online retail purchase information

Uber/Lyft/ OpenTable information

Facebook and Twitter information

Willing to share …

81%

80%

77%

76%

75%

74%

64%

62%

64%

55%

56%

52%

58%

51%

44%

35%

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Data

Mining

Data

Quality

Data

Access

Data

Analytics

Data Strategy

How to Start

Thinking About

Data Differently

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Treat data as an

asset

Create a vision for

how to leverage data

Focus on the 5

essential elements

of a good data

framework

Retention

Loyalty

Advocacy

Wallet Share

LoremGreater Lifetime Customer Value


Conclusion

• FSIs recognize the importance of

Digital CX

• There is a distinct group of consumers – who

represent the future customer base – that are

less loyal to their FSI and willing to share

data for more personalization and guidance

• Major data challenges exist for FSIs to

improve the Digital CX

• Data makes the difference in Digital CX

• FSIs must focus on four essential elements of

a good data framework in order to elevate the

Digital CX and future proof their business

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digital cx in 2020: cracking the code on data

Data & Analytics