trust is the killer app
TRANSCRIPT
Trust is the Killer App!
Stephen Coulter, Managing Director
©2001Emerging Thought
©2001 Emerging Thought
What Customers Want
Spend less time banking and changing banks…• A bank that knows/respects/manages their relationship• A bank that makes better offers to retain loyal
customers than it offers its new customers• A bank that makes it easier for them to deal with it than
another bank• A bank that doesn’t make “junk mail” offers unrelated to
customer need• A bank that provides customer contact staff with
information to manage customers better
A bank they can trust………
©2001 Emerging Thought
Trust has eroded as Service Improved • 35 years ago Banks were held in higher trust• Most transactions were across the counter with a real
local person• Human error happened but was mitigated by personal
relationships and touch• Customers trusted people and this reflected in their trust
of banks• As transactions moved from branches to ATM’s EFTPOS,
Phone & Internet problems were NOT mitigated by human relationships
• Increasing types and levels of fees further eroded trust• Customers do not recognise that service levels (24x7)
and channel access have never been better
©2001 Emerging Thought
Improving Customer Service Has Eroded Customer Relationships
1975 1980 1985 1990 1995 2000
PerceivedCustomer Service
XATM’s
XEFTPOS
XIVRU X
Fees XInternet X
2001 ?
Availability 24x7Over 150,000 Locations
Any BranchPlus Any Phone or PC
Error Rates Reduced DramaticallyLower Margins
Availability 10-3, Mon-Thurs & 4 FriLess than 2,000 Locations
Home Branch ConceptHuman ErrorsHigh Margins
©2001 Emerging Thought
Drivers of Trust
Customer Focused Framework+=
Customer Service
©2001 Emerging Thought
Trust & Customer Service Can Be Sustainable Competitive Advantages
• Bankers think product, customers don’t• Technology is allowing product features to be
imitated faster • Products are commoditising• Price differences will continue to narrow• Low costs/efficiency is a hygiene factor
©2001 Emerging Thought
Customer & Relationship Focus Are Needed to Win Trust & Deliver Customer Service
• Customer centric information is a prerequisite for good customer service
• Customers must trust an organisation to be prepared to provide information
• Customer convenience(time) is maximised if one organisation manages this information
©2001 Emerging Thought
Some Thought Starters
• Customer Service– Better use of email, SMS and formatted
attachments such as Outlook Calendar items and tasks
– SMS as the other pervasive communication link
• Trust Based Services– Identification, authentication– Bio Metric services, especially voice– True cash management– Payment services– Safe storage of information & valuables
©2001 Emerging Thought
Conclusion
• The internet has not changed fundamental customer needs, nor their financial resources
• Time is the currency of the new millennium• Customer focused organisations that provide
solutions to help customers save time and money will win
• Customers will consolidate for true convenience
Trust is the fundamental prerequisite for success
