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Engaging Customers in FSI - Do Digital Channels hold the key


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Engaging Customers in FSI - Do Digital Channels hold the key

  1. 1. Customer Advocacy in Financial ServicesDo Digital Channels hold the key?Jamie Anderson, Global Marketing Director, Web Channel & eCommerce SolutionsSAP AG
  2. 2. Reputation recognised as key to restoring customer confidence and trust in FSI back in 2008.“ “Reputation has always been important. Now it is the difference between riches and ruin. At times like these, peoples desire for security, trust and feeling their money will be safe will dominate consumer behavior” Alastair Campbell, Director Project Finance at Standard Chartered Bank Economist Intelligence Unit 2008 Financial Services strategies for growth – Focus on the Customer amidst market turmoil © 2012 SAP AG. All rights reserved. 2
  3. 3. “Satisfying customer needs is a key priority”“ Satisfied customers buy more products and services and are willing to pay more for them. If we have the right products, the right tools and the right customer-service experience, we will have a very sticky relationship with our customers. They will value us and come back to us to buy their next product” Jim Smith, Executive VP at Wells Fargo Economist Intelligence Unit 2008 Financial Services strategies for growth – Focus on the Customer amidst market turmoil © 2012 SAP AG. All rights reserved. 3
  4. 4. Further industry data analysis confirms executive focus on customer satisfaction“ Financial services firms are more than twice as likely to cite customer service as a core strength than operational excellence or product innovation… …52% say that customers see their products more as commodities than five years ago.” Source: Economist Intelligence Unit: 2009 Beyond Transactions Creating Value Through Partnerships in banking and insurance © 2012 SAP AG. All rights reserved. 4
  5. 5. Urgency for action: Banks score at the bottom of Forrester‟s ranking for Customer Advocacy Customer Advocacy The perception on the part of customers that the firm does what‟s best for them, not just what‟s best for the firm‟s own bottom line.“ Loyal customers are willing to buy more, borrow more, invest more, and stay longer with the firms they already use. … Customers who rate their firms high on customer advocacy are most likely to consider those firms for future purchase. But … a majority of customers still don‟t feel that their firms have their best interests at heart. Forrester Research, Inc., Customer Advocacy 2011: How Customers Rate US Banks, Investment Firms, And Insurers, March 2011 © 2012 SAP AG. All rights reserved. 5
  6. 6. Edelman‟s 2012 Industry Trust Barometer showsTrust in Financial Services continues to decline© 2012 SAP AG. All rights reserved. 6
  7. 7. Today‟s customers are empowered like never before… Transparency Democratization of information Variety of Social networkingtouch points and communities Customer Implications  Shift in negotiation power from Vendors to Customers  Evolution from „Relationship Management‟ to „Total Experience Management‟  New communications and interaction channels to manage on top of traditional ones  Greater needs for adaptability and responsiveness© 2012 SAP AG. All rights reserved. 7
  8. 8. The Good Old Days© 2012 SAP AG. All rights reserved. 8
  9. 9. Now
  10. 10. Social Networks are eating the World 1.3B 1.1B 1.0B 900M+ 330M+ 310MBarry Libert, Open Matters © 2012 SAP AG. All rights reserved. 10
  11. 11. Mobile is fuelling the new human consumption model2012: 327M U.S. 2013: mobile phones most 2015: mobile phonesmobile phones consumer web access primary computing devices deviceCITA, Gartner © 2012 SAP AG. All rights reserved. 11
  12. 12. Enter the world of the new „Digital‟ Customer MOBILITY RICH CONTENT SOCIAL APPS “Touch” replaces the “Click”© 2012 SAP AG. All rights reserved. 12
  13. 13. Market View 20121. Banks need to evolve to where their customers are to get the word out – largest growth areas are mobile, social media, video and interactive ads.2. Delivering the correct product at the optimized price on the preferred channel for each customer should be the goal of all financial institutions3. 2012 will be a year of shifting alliances and competing press releases as various mobile wallet platforms attempt to claim the leadership position© 2012 SAP AG. All rights reserved. 13
  14. 14. And If That‟s Not Enough…Executive Board of Banks are starting to be aware of THIS!!! Per Global Bank Google Apple Paypal Employee Revenue $200k $1,500k $2,000k $50,000k Profit $40k $391k $513k $3,500k Source – The Banker – October 2011 X 10 X 13 X 88© 2012 SAP AG. All rights reserved. 14
  15. 15. The good news is that technology CAN help“ “71% of CEOs agree that technology will have a significant impact on future business.” IBM CEO Survey 2012© 2012 SAP AG. All rights reserved. 15
  16. 16. Four „Fab‟ things to consider when engaging the DigitalCustomer© 2012 SAP AG. All rights reserved. 16
  17. 17. #1 Know your Customer / Know your Audience 4M Loyalty Members 37% Revenue© 2012 SAP AG. All rights reserved. 17
  18. 18. #2 Be Transparent, Be Engaging, Be Social© 2012 SAP AG. All rights reserved. 18
  19. 19. The Average Social Media Strategy for FSIs “Of the 1650+ Banking Twitter Accounts tracked since 2010 > 90% are inactive. Less than 0.05% wear the „verified account‟ badge” Cristophe Langois,CEO,© 2012 SAP AG. All rights reserved. 19
  20. 20. Customer Service is becoming the new Marketing…“A recent study by Boston-based, Cone inc, discovered that 4 out of 5consumers reversed purchase decisions based on negative online reviewsregarding products and services” Blog source: Do you trust Strangers? – B2Community part-6-do-you-trust-strangers-0161670© 2012 SAP AG. All rights reserved. 20
  21. 21. …and „Trust‟ is gained through the voice of your customer76% of consumers trust peer recommendations, 49% trust the opinions ofstrangers, whilst 35% will trust what they read on Brand websites” Source: Neilson, Advertising Trends – June 2011© 2012 SAP AG. All rights reserved. 21
  22. 22. SAP Social Customer Engagement OnDemandTeam-based social engagement for an excellent customer experience Social media listening Get a prioritized list of important messages Detect sentiment and keywords Understand brand-level trends and buzz Real-time Facebook and Twitter message response Route, assign and escalate messages Organize messages with tagging, flagging, favorites Collaborate among team members Respond rapidly and consistently with integrated Social Knowledgebase Increase efficiency with response templates Complete social profile and history Capture the complete social interaction history View public social profile and message timeline Determine Social influence Manage consumer data Analytics Embedded charts and dashboards for critical information Measure team performance and impact with built-in KPIs Explore messages and people with tag clouds© 2012 SAP AG. All rights reserved. 22
  23. 23. #3: Think Mobile First – Contextual & ConvenientSolution Highlights Driving improved customer Comprehensive self-service offerings engagement. Delivering Convenient and personalized alerts & notifications convenient and superior Innovative new transactional capabilities, such as remote check deposit, person-to-person payments, card customer service, one activation/cancellation experience at a timeKey Benefits Greater customer satisfaction through convenient self- service Improved operational efficiency Embedded Loyalty drives retention and greater cross-sell capabilitiesCustomer Examples © 2012 SAP AG. All rights reserved. 23
  24. 24. With Mobile Banking, StandardBank of South Africa isconnecting the ‘Unbanked’ forthe first time.Standard Bank of South Africaempowers their employees towork where the Unbanked areand have revolutionized the waytheir employees can providebenefits to their customers.Standard Bank is enabling itsUnbanked consumers toconnect to financial systemsand enable financialindependence. And they do allof this with SAP.
  25. 25. #4 Blended Service / Exposing Core Processes to Channel Increased FCR rate from 65% to 90% Raised customer satisfaction index by 20 percentage points© 2012 SAP AG. All rights reserved. 25
  26. 26. ABC‟s of delivering Connected Engagement supports Engaging CRM Differentiated Customer Experiences Web ChannelAlways Be Connected Network Service IFAs Understand your Mobile Sales customers‟ devices history, sentiment, prefere nce … and expectations Social Payments monitoring Make every interaction Loyalty count, take the Contracts opportunity to listen Customer and learn Security Employee experts Deliver on your promises, Business Transaction Intelligence live your brand History Collaboration Marketing© 2012 SAP AG. All rights reserved. 26
  27. 27. Thank you!© 2012 SAP AG. All rights reserved. 27
  28. 28. ContactJamie AndersonGlobal Marketing DirectorCRM Web Channel & eCommerce SolutionsE: j.anderson@sap.comT: +44 7825 833047T: @collsdad