The Digital ShiftImproving the Customer

Experience (CX) in Banking

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Your Speakers

Jim Marous• Co‐Publisher, The Financial Brand• Owner, Digital Banking Report

Rich Walker• Executive Director, Strategy and Advisory Services, Deluxe Corp

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Ignore Customer Experience at Your Peril

TOP TRENDS AND PREDICTIONS FOR FINANCIAL INSTITUTIONS IN 2017What do you think will be the (3) three most important trends for the retail banking industry in the upcoming year (2017)?

Source: DBR Research © December 2016 Digital Banking Report 3

29%

29%

32%

45%

53%

54%Removing friction fromthe customer journey

Use of big data, AI, analytics and cognitive computing

Improvements in integratedmultichannel delivery

Open APIs

Building partnerships between banking & fintech

Expansion of digital payments

Customer Satisfaction and Digitalization

Source: J.D. Power & Associates © February 2016 4

Online and Mobile Satisfaction

Source: J.D. Power & Associates © February 2016 5

Customer Experience is a Priority

CUSTOMER EXPERIENCE IS A SIGNIFICANT PRIORITYWhere does improving the customer experience rank in terms of your organizations priorities for the next two years

35%

62%

3%

Top Priority Top 3 Priority Not a Priority

Source: DBR Research © January 2017 Digital Banking Report 6

CX is Top Priority at Largest Organizations

CUSTOMER EXPERIENCE IS A SIGNIFICANT PRIORITY BY ASSET SIZEWhere does improving the customer experience rank in terms of you organization’s priorities for the next two years?  35%

31%

30%

31%

54%

62%

66%

65%

64%

46%

3%

3%

5%

5%

Overall

Less than $1 billion

$1 billion to $10 billion

$10 billion to $50 billion

More than $50 billion

Top priority Top 3 priority Not a priority

Source: DBR Research © January 2017 Digital Banking Report 7

Source: Authentic100. © Cohn & Wolfe 2016 8

Your traditional competition

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Your new competition

Your traditional competition

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Key Lessons for Bankers

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Start in a well-defined nicheOwn it, expand

from there

WE DO THIS

Grow through targeted

marketing

Customer Experience

mattersDigital, mobile, customer-back

processes

Obsess over risk and

underwriting

Diversify marketing operations

Are CX Efforts Misdirected?

CROSS‐SALES, DIFFERENTIATION AND ACQUISITION ARE TOP 3 CX OBJECTIVESWhat are the top business objectives behind your company’s desire to improve the customer experience? (Choose up to three)

Source: DBR Research © January 2017 Digital Banking Report 12

22%

36%

37%

41%

48%

48%

52%To increase sales from existing customers

To differentiate our brand from our competitors

To convert more prospects/ visitors into customersTo be more efficient, 

produce more with less effort, or reduce cost

To increase the number of advocates of our brand

To retain existing customers

To maintain our competitive position

Formal Customer Experience Plans Missing

MOST ORGANIZATIONS DO NOT HAVE A FORMAL CUSTOMER EXPERIENCE PROGRAMDo you have formalized Customer Experience (CX) program/plan?

Source: DBR Research © January 2017 Digital Banking Report 13

9%

54%

37% UnsureNoYes

Top 10 CX Initiatives

MOBILE & SOCIAL MEDIA SUPPORT ARE TOP 2 CX INITIATIVES AT FIs TODAYWhich of the following initiatives do you have in place or are putting in place in the next 3 years

Source: DBR Research © January 2017 Digital Banking Report 14

42%43%46%48%50%51%57%60%

72%82%

33%25%

38%42%37%39%28%

33%22%

17%

25%32%

16%10%13%10%15%

7%6%

Implemented Planning to Implement No Plans

Mobile applications

Social media marketing

Self service on website

Regular customer surveys

Multichannel customer service

Training on CX for employees

Customer analytics

A CRM platformSocial media for 

customer supportCustomer loyalty program

35%

33%

48%

45%

54%

42%

20%

13%

10%

Implemented Planning to Implement No Plans

Emerging Customer Experience Initiatives

PERSONALIZATION IS AN EMERGING CX INITIATIVE FOR MARKETERSWhich of the following initiatives do you have in place or are putting in place in the next 3 years

Source: DBR Research © January 2017 Digital Banking Report 15

Customer analytics

Personalized communications

Mapping out the customer journey

Enhance CX with Signals

Event‐based

Behavior‐based

Predictive

A specific thing a person does• Credit inquiries• Search engine• Change of address

A specific thing that happens to a person• College‐bound child• Lease expiration• Rate resetting

The profile your data builds for you• Monthly savings of $X• Debt consolidation• Mortgage refi

High FidelityLow Coverage

Low FidelityHigh Coverage

Mid FidelityMid Coverage

Source: Deluxe Enterprise Operations, LLC. All rights reserved. 16

Source: Deluxe Enterprise Operations, LLC. All rights reserved. 17

Source: Deluxe Enterprise Operations, LLC. All rights reserved. 18

Top 10 CX Challenges

ANALYTICS IS THE CX INITIATIVE THAT IS CHALLENGING MOST FINANCIAL ORGANIZATIONSWhat has been your most challenging CX project?

Source: DBR Research © January 2017 Digital Banking Report 19

4%

5%

6%

6%

7%

7%

9%

10%

14%

19%

Mobile applications

Personalized communications

Integrated multi‐channel customer view

Cultural change initiatives

Multichannel customer service

Training on CX for employees

Customer analytics

A CRM platform

Customer loyalty program

Mapping out the customer journey

Top 10 CX Obstacles

LEGACY SYSTEMS & SILOS PRESENT BIGGEST OBSTACLES FOR IMPROVED CXWhat are the biggest obstacles your organization faces in delivering the best possible CX? 

Source: DBR Research © January 2017 Digital Banking Report 20

13%

15%

16%

17%

20%

22%

32%

42%

48%

49%

Inability to transfer feedback into actionable intelligence

Competition from other initiatives

Siloed systems

Lack of clear CX strategy

No consolidated, 360 customer view

Lack of data to deliver personalized experience

Inflexible or outdated technology

Siloed org or conflicting KPIs

Lack of funding for CX initiatives

Difficulty tracking performance & customer feedback

Success of Customer Experience Efforts

DESPITE FOCUS, MOST CX INITIATIVES ARE STILL NOT HIGHLY EFFECTIVE IN BANKINGHow effective are the following CX initiatives you currently have in place?

Source: DBR Research © January 2017 Digital Banking Report 21

9%

10%

10%

12%

21%

22%

27%

29%

24%

34%

30%

25%

22%

29%

25%

8%

11%

8%

9%

7%7%

21%

21%

21%

18%

9%

8%

4%

7%

5%

3%

Very effective EffectiveSomewhat effective Somewhat ineffectiveVery ineffective Not currently implementedUnsure

Self service on website

Regular customer surveys

Training on CX for employees

Customer analytics

Customer loyalty program

TO BECOME A MARKETING SUPERHEROYOU MUST DO THINGS DIFFERENTLY

IN TODAY’S WORLD …THE EXPERIENCE ISTHE BRAND.

STATISTICS ARE MERELY INDICATORS.NO SINGLE READING IS ENOUGH.

LISTEN – And React to What You Hear

LISTEN ANALYZE

REPORTACT

Gather customer feedback from multiple sources across 

all interactions

Details, insights about the root cause

of customer dissatisfaction or advocacy

Creates accountability and prioritize actions 

to enhance the customerexperience and

drive business benefit

Communicates customer insights to relevant staff 

members organization‐wide to illustrate problem and opportunity areasVOICE OF THE 

CUSTOMER PROGRAM

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FORMALIZE – And Continuously Improve

Design Journey 1

VOICE OF THE CUSTOMER

CHANGEMANAGEMENT

UNDERSTAND WHAT MATTERS TO WHOM

BUILD AND SUSTAIN MOMENTUM

Quick wins

Journeys

Test and learn

Scale improvement capabilities

Design Journey 2

Test and learn

Scale improvement capabilities

Design Journey 3

Test and learn

Scale improvement capabilities

SET UP LEARNING TAB

Q3 Q4 Q1 Q2 Q3 Q4

Source: McKinsey & Company 26

USE DATA – And Let It Lead You

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COMMUNICATE – Success Must Be Communicated

START SMALL – And Grow With Success

CAPTURE CUSTOMERS AND PROSPECTS WHILE THEY ARE ACTIVELY SHOPPING

Market through multiple channels

Upload Your Data

Find shoppers using three

bureaus

Pre-screened using your criteria

Qualified shoppers delivered daily

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OUTSOURCE – Focus On What You Do Best

OutsourcePartner with a best‐in‐class provider to execute the parts of the value chain they excel at

In‐HouseUse internal resources to 

execute parts of the value chain while 

proving out the case and determining the optimal 

operating model

InsourceYour internal processes 

are best‐in‐class.  

Litmus test: You can get others to pay you for your part of the value chain

If you don’t excel at the process, consider outsourcing to someone who does

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OFFER – Get a FREE Comparative Analysis

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Set up a call to compare your answers to the overall survey population of this Digital Banking Report

Deluxe Blog• Stay on top of the latest industry trends and learn from Deluxe and third party experts how to be more effective and efficient.

• http://fi.deluxe.com/community‐blog/

Deluxe Resource Center• Download analyst research, white papers, and infographics as well as listen to on demand webinars that feature top industry analysts and bankers. 

• http://fi.deluxe.com/resources/

Learn New Skills & Keep Up With the Industry

Learn More About Our Solutions

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Visit us here: www.deluxemarketingsolutions.com 

In-depth Insights on the Banking Industry

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Visit us here: www.digitalbankingreport.com

THANK YOU

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Jim MarousThe Digital Banking Report The Financial Brand

Rich WalkerDeluxe Marketing Solutions