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Are Two Calls Too Many
in the Eyes of the Customer?
Financial Institution Customer Complaint Management
INSPIRED TO HELP Y...
Summary of Findings

KEY QUESTIONS

 Company culture drives great
customer service

 Customer experience is defined by
t...
Research Snapshot
Household Income

Age Distribution

Overall mix of respondents reflects a
higher income base

4%
17%

18...
Customer Expectations Shaped by Experiences Outside of
Financial Services

Our research highlights

Four New Cultural Norm...
Top 10 Financial Institutions Aspire to Become Great Customer
Service Firms
Banks are investing in improving their custome...
Banks Are On a Journey to Become Great Customer Service Firms

Quality of Service Compared to
Great Service Companies
% of...
One out of Three Customers Experienced a Problem that was Not
Completely Resolved
Two or more interactions were required t...
Banks’ Core Products are Missing the Service Mark
Topped by erroneous fees and missing or misapplied payments
Key Problem ...
Poor Complaint Management Yields Bad Experiences for
Customers
Future relationships depend on the customer experience

Res...
Banks Aren’t Learning from Customer Problems
Customers provided ideas for resolution, but banks didn’t listen
Customer Sug...
Banks Treating Customers Like a Friend or Foe
Impact of Bank’s response on customer satisfaction

I have
higher
confidence...
Challenges Remain
Identifying challenges as heard from financial institutions and consumers

Customer demands
continue to ...
CG Recommendations
Solving customer complaint management in today’s world of instant gratification

Manage customer expect...
Contact Us

212 South Tryon Street, Suite 800
Charlotte, North Carolina 28281
704.936.1600 | @InspiredbyCG | www.carlislea...
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Are Two Calls Too Many in the Eyes of the Customer? Financial Institution Customer Complaint Management | Carlisle & Gallagher Consulting Group

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Carlisle & Gallagher Consulting Group (CG) study finds 1 out of 3 consumers experienced a problem at their bank that was not completely resolved. CG surveyed 1,002 U.S. consumers online, conducted qualitative phone interviews with 20 financial services executives at the top 10 U.S. financial institutions, and evaluated best-in-breed customer service organizations, including Zappos, Amazon, Apple, Disney and Southwest Airlines, to uncover the important drivers for financial institutions to be successful in managing customer complaints.

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Are Two Calls Too Many in the Eyes of the Customer? Financial Institution Customer Complaint Management | Carlisle & Gallagher Consulting Group

  1. 1. Are Two Calls Too Many in the Eyes of the Customer? Financial Institution Customer Complaint Management INSPIRED TO HELP YOU SUCCEED www.carlisleandgallagher.com @InspiredByCG
  2. 2. Summary of Findings KEY QUESTIONS  Company culture drives great customer service  Customer experience is defined by the first problem interaction  Most complaints are about core banking products: checking, debit card, credit card and mortgage  Banks are not listening close enough to customer suggestions 1. What is the customer’s current view toward customer service? 2. What products are frustrating customers most? 3. How do customers want to resolve issues with their financial institutions?  Complaints remain private between customers and their banks  Even loyal customers will bolt if a bank can’t fix problems 2 INSPIRED TO HELP YOU SUCCEED 4. Can excellent complaint resolution overcome the most severe issues and strengthen the relationship between the customer and the financial institution? ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  3. 3. Research Snapshot Household Income Age Distribution Overall mix of respondents reflects a higher income base 4% 17% 18-34 Less than $49,999 35% $50,000 to $99,999 46% 33% SURVEY METHODOLOGY Segmentation is a slightly older demographic $100,000 to $249,999 24% 35-54 Over 55 responses  All respondents live in the U.S.  18 years of age or 41% $250,000 or more  1,002 survey older  Online survey  Participants were Primary Financial Institution 62% use a National or Large Regional Bank as their primary financial institution recruited from an online research panel  Required to have a 43% Top Five National Bank 19% 31% Smaller Bank Large Regional Bank 7% Other 3 INSPIRED TO HELP YOU SUCCEED  Targeted 50% of respondents to have $100K+ household income Cross-Industry Research Analyzed five best-in-breed customer service organizations including: Zappos, Amazon, Southwest Airlines, Disney and Apple problem with a financial institution in the last three years Conducted interviews with 20 financial services executives at the top 10 financial institutions in the United States ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  4. 4. Customer Expectations Shaped by Experiences Outside of Financial Services Our research highlights Four New Cultural Norms of Excellent Customer Service Positive Peer Pressure 4 INSPIRED TO HELP YOU SUCCEED Anticipatory Customer Service Culture of Advocacy ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential. Employee Enablement
  5. 5. Top 10 Financial Institutions Aspire to Become Great Customer Service Firms Banks are investing in improving their customer experience W H AT F I N A N C I A L I N S T I T U T I O N S TOLD US… Our CEO said we need to build a real social media approach and we’ve set about to do it; we’re chipping away at the silos. We can’t always give them the answer they want. We’ve built a pretty good engine to address executive or escalated complaints but the average complaint by a walk-in at the branch… those get lost in the system or are never reported. Customers want products to be simple and right now FI products are not very simple. The world we live in is our biggest obstacle. Consumers today expect instant gratification. 5 INSPIRED TO HELP YOU SUCCEED The regulatory environment does not always allow us to help our customers. We know we are being compared to Amazon and Zappos so we have to get better. ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  6. 6. Banks Are On a Journey to Become Great Customer Service Firms Quality of Service Compared to Great Service Companies % of Total Respondents As Good 35% Not as Good Much Weaker 47% 18% Q18: Thinking about great customer service companies across all areas of business, how would you compare the customer service quality of your primary financial institution. The bar is high, and good isn’t good enough. Banks need to exceed expectations to be considered great at customer service 65% said that their primary bank is not as good or weaker than great customer service companies 6 INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  7. 7. One out of Three Customers Experienced a Problem that was Not Completely Resolved Two or more interactions were required to resolve most customer problems 62% of problems were completely resolved ... 18% “PROBLEM” DEFINED IN SURVEY Problem Resolved 20% Problem Not Resolved Problem Partially Resolved 62% An instance where you must contact your financial institution in order to address:  Inaccuracy  Fee you do not agree with  Concern with the … of those resolved, 72% of problems required two or more interactions 7% 28% 5 or more interactions 3-4 interactions 2 interactions 7 INSPIRED TO HELP YOU SUCCEED  Mishandled funds  Other concern Is Not: 22% 43% speed of a loan application 1 interaction ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.  An inquiry to question a transaction  To gather information on a product (e.g. mortgage, domestic wire)
  8. 8. Banks’ Core Products are Missing the Service Mark Topped by erroneous fees and missing or misapplied payments Key Problem Areas Q22. What type of product was involved with your problem? 38% 14% 12% 12% Checking Credit Card Mortgage Debit Card Investing in core products Top Service Problems Across Product Lines Erroneous Fees Missing or Misapplied Payments 14% Fraud 8 15% 12% INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential. will reduce customer problems
  9. 9. Poor Complaint Management Yields Bad Experiences for Customers Future relationships depend on the customer experience Resolved in 1 Interaction Resolved in 2 or More Interactions Not Resolved First call resolution can lead to more business Inquiries requiring additional interactions have a negative impact Not addressing customer concerns can lead to less business and terminated relationships 22% 4% 10% 1% 24% 36% 63% 74% More Business 9 INSPIRED TO HELP YOU SUCCEED 66% No Impact Less Business or Ended Relationship ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  10. 10. Banks Aren’t Learning from Customer Problems Customers provided ideas for resolution, but banks didn’t listen Customer Suggestions Ignored by Banks (when problems were not resolved) Q45. Did you provide recommendations on how the problem could be solved? Listen: Checking 60% Credit Card 68% Mortgage customer complaints hold hidden value 63% Debit Card 10 75% INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  11. 11. Banks Treating Customers Like a Friend or Foe Impact of Bank’s response on customer satisfaction I have higher confidence in my bank since I know the problem will be resolved quickly I feel like a valued customer I implicitly trust the bank and my relationship with it is now stronger 38% 51% 22% Resolved in 1 Interaction Resolved in 1 Interaction Resolved in 1 Interaction Banks have ONE SHOT to earn customer trust and confidence 17% in 24% in 10% in Resolved Resolved Resolved 2+ Interactions 2+ Interactions 2+ Interactions Q47: How many interactions did you have with the financial institution to resolve the problem? Q56: How has this problem and the financial institution’s response impacted your overall satisfaction with it? 11 INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  12. 12. Challenges Remain Identifying challenges as heard from financial institutions and consumers Customer demands continue to increase Regulatory requirements will become more intrusive Banks struggle with a comprehensive view of the customer 12 INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  13. 13. CG Recommendations Solving customer complaint management in today’s world of instant gratification Manage customer expectations The Bar is High Core Products Reign You Get One Shot Listen & Act 13 • Cultivate behavioral and attitudinal customer insight • Communicate the type of service level that customers can expect • Share problems and solutions with transparency Invest in core products • Deliver customer lifetime value through core products • Evaluate people, process and technology in the retail bank • Find the things that drive the most pain; spend time and money to fix them Create the feel of first touch resolution for the customer • Implement a rapid resolution team • Anticipate your complaints • Drive a culture of customer advocacy Learn from your customers • Develop an active and robust listening program • Value your complaints over your compliments • Enable employees to take quick action INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  14. 14. Contact Us 212 South Tryon Street, Suite 800 Charlotte, North Carolina 28281 704.936.1600 | @InspiredbyCG | www.carlisleandgallagher.com Patricia A. Sahm, Ph.D. Customer Experience & Channels Practice Lead patricia.sahm@cgcginc.com 516.238.6275 14 INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

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