Customer Data: Rich view but adds complexity, difficult to get single view of customer with a multi-channel execution, adds todata security risksChannels: efficient, effective, scalable, data capture, secureEmpowered Customer: informed, experience across industries, sharing, high expectationsRegulation: CFSB, FTC, other examples and $XXMM recent cases against AMEx, BofA, Discover,
INTRO: Albert Einstein Quote: “Everything should be made as simple as possible, but not simpler”Simplicity is hard but an attainable goal once you have mastered product complexity and customer need. Had the chance to see Ken Segall, auther of the book the simplicity principle and a key player with NEXT and then Apple to communicate the principle to wthe world. He laid out the concept with a simple comparison: how many verieties of laptops can you buy from apple vs HP? 3 vs 48.How do you know when its simple? What was once “can my mother understand it is now “can my 5 year old get it” ruleForm: credit card statements from Citibank are a hodgepodge of account information, offers, rewards, and alerts on a horizontal axis. More like information overload for the paper form factor. Compare this with the citibankipad app, a beautiful interface that is device specific and adds color and research to account info and investing – its perfect complement. FUNCTION: a Bank website if its laid out correctly, can provide almost all options. Compared with an SMS that has a 160 character limit and opt-in requirementsFLAVOR: Infusing the brand narrative and personality into your communications. ING has always done a great job of this, instilling a sense of Orange into everything it does. FREQUENCY: 95% of advertising goes unnoticed. That’s because we are creating as much content every year as we did for the first 2,000 years of civilized existence. How frequently a bank should communicate with its customers? It depends. Critical to this is the customer Opt-In. All it takes is one irrelevant or non-value add message to drive opt-out or the dreaded spam filter. IN the end, communication with the customer must be built on value generated.
INTRO: So lets see an example of complexity in the form of channel proliferation. Each channel has its own cost, ability to handle complex actions, customer adoption rates and intrinsic character. Dynamic capabilities of the newchannels and pace of change in terms of adoption. 5 years ago the choices to interact with your bank were phone, branch, email, and desktop web browser. But that is changing rapidly. So how do you choose the right message and channel for your needs? Look at each channel with the lens of “4 C’s”. Cost, Complexity, Convenience, and ComplianceEach message stream should be balanced between cost management and the need to support complex requests in a channel that is convenient to the customer and secure/compliant. Companies should take a look at the entire portfolio of their service and marketing communications and apply this logic to make sure they are promoting and supporting the best channels to get the job done and satisfy their customer needs. EXAMPLES of the wrong channel: SMS shortcode on a billboard. Servicing on Twitter. Statement Balance with a live rep. Supplemental Card offers through Direct Mail.
Learn Once Mentality: makes onboarding or “First 100 days” so important. Training your customer to use the right channels.Back of card examples: Story of Amex telephone vs www address for insurance sales. SMS shortcode not on back. What is Path of least resistance?: Itis a function of what they know, what channels you encourage / discourage. USBank includes a QR code in its web-based onboarding program. While it seems easy enough to just post the app name for a customer to look up, they create a call to action in the mobile device to ensure an easy and “mobile first” experience. Value can trump Habit: Paperless Statements (no value = no change) vs mobile app adoption or RDCA recent report from Alix Partners on mobile adoption suggests the mobile banking app features was a critical decision factor in choosing a bank for 40-60% of smartphone owners which is 50% of the US population. Manage Opt-In: There is so much to say on this topic. Basically Opt-in is permission to speak in the customer’s channel of choice and needs to be managed like a strategic asset.
Most people think of context as the WHO WHAT WHY WHEN WHERE & HOW. And they are right.But because of advances in analytics, channels, and customer expectations, these elements must be coordinated in a deliberate and focused mannerBest Next Action Concept: Jeff Nicholson, VP Global Marketing at Pitney Bowes Software
Relevant: AmEx: magazine sign upValue Add: Companion flight vouchersAppropriate: offers to change your electric company. Now deals. Conceivable SKU level dataTrust is built, not bought: Few “moments of truth”.Mostlynear flawless execution and competent communications w humanityFirst year free: office (retention) in HK & Sing.Former Dyson Designer and now head of branding for Facebook describes it this way. Many companies go in trying to design heavy experiences that will generate social shares. But relationships don’t normally work theat way. Relationships are built over time with many small interactions.
Paradox of customer expectations: want relevant & value add offers but afraid of big brotherRELEVANCE= PERSONAL, RIGHT TIME, RIGHT CHANNEL “This is my personal conduit - Was this meant for me”VALUE ADD: PERCEIVED VALUE – “is 5% off enough to interrupt me?”TRUST=TENURE,# PRODUCTS, TRANSACTIONS, OPT-IN – “How long have we known each other for you to offer deals related to my behavior?”APPROPRIATE=IT DEPENDS – TARGET PREGNANCYCustomer Centricity ChasmExpectationRealityWe understand them product centric campaignsWe value their business Operationally focusedWe deliver on our promises information and channel silosWe remember them Independent Business UnitsWe strive for Relevancy Customer Ad FatigueWe are connected Limited capacity for engagement
Communication principles for complex loyalty
Communication Principles for Complex Loyalty Derek F Martin www.derekfmartin.com Banking Loyalty Conference, February 6, 2013 All Rights Reserved
Loyalty continues to evolve GREAT SERVICE OFFERS REAL-TIME ENGAGEMENT LOYALTY MESSAGING PROGRAM SOCIAL / POINTS ANALYTICS 2
And Communication is Key to bringing it together GREAT SERVICE OFFERS MESSAGING REAL-TIME PROGRAM ENGAGEMENT / POINTS SOCIAL ANALYTICS LOYALTY 3
Customer Engagement Fundamentals are evolving,increasing complexity and risk CUSTOMER DATA & ANALYTICS CHANNELS EMPOWERED WANT IT CUSTOMER NOW FEES REGULATION 4
The Challenge:How to create an effective multi-channel communication strategyto drive loyalty and revenue? 5
Common Sense Communication Principles for aComplex World 1. KEEP IT SIMPLE 2. ALL CHANNELS ARE NOT EQUAL 3. CREATING A BEHAVIOR IS EASIER THAN CHANGING ONE 4. CONTEXT DEFINES THE MESSAGE 5. VALUE IS IN THE EYE OF THE BEHOLDER 6
PRINCIPLE #1: Keep it Simple1. FORM: Message, Format, Channel2. FUNCTION: How many things are you trying toaccomplish?3. FLAVOR: Brand Narrative4. FREQUENCY: Defined by the Customer 7
PRINCIPLE #2: All Channels Are Not Created Equal CHANNEL COST COMPLEXITY APPROX USAGE CHARACTERISTIC CAPACITY USAGE GROWTH Face2Face $26.00 95% Personal Voice $4 -12.00 75% Dynamic Chat $1.50 1% Unobtrusive Direct Mail $0.50 95% >0.2% open rate IVR $0.25 50% Natural language App $0.20 35% Requires download Social $0.15 12% Viral Web $0.12 65% Connectivity Email $0.10 85% <8.0% open rate SMS Text $0.01 3% 160 character limit Source: ABA 2012, MMA, PACE, Mashable, 8
PRINCIPLE #3: Creating a Behavior is Easier ThanChanging One1. “LEARN ONCE” MENTALITY2. PATH OF LEAST RESISTANCE3. VALUE (CAN) TRUMP HABIT4. MANAGE OPT-IN (as if your business depended on it) 9
Traditional Onboarding Experience Direct Mobile Branch Phone Social Web Email SMS Mail App Prospect Prospect New Customer Activate Card Acct SetupTime Statement Pay my Bill Offer Offer ATM Statement Searched Pay my Insurance Value Add Bill Message Deposit Statement Pay my Bill Survey 10
Digital Onboarding Direct Mobile Branch Phone Social Web Email SMS Mail App Prospect Prospect Prospect Prospect Activate Card Acct Setup Download Alerts StatementTime Offer Offer Offer Alerts ATM Statement Searched Insurance Insurance Insurance Offer Offer Alerts Statement Share Survey Experience 11