2. Customer Experience Management
Why is Customer Experience important to Banking?
What is Customer Experience Maturity?
What are the critical factors for success?
3. Why is Customer Experience
important to Banking?
40 Revenue Growth per Customer 2006-2008
36
34
29
23
17 14
11
6
0
Russia/CIS
-0.2 -2 Cent/East Euro
-6 West Euro
North Euro Source: Efma Retail Banking Trends 2009
4. Why is Customer Experience
important to Banking?
People’s attitudes towards
banks have significantly shifted
over the last 2 years
Source: Ernst & Young 2010
Understanding Customer Behaviour in Retail Banking
- The Impact of the Credit Crisis across Europe.
5. Why is Customer Experience
important to Banking?
People’s attitudes towards
banks have significantly shifted
over the last 2 years
56%
of UK customers
say trust has
decreased
Source: Ernst & Young 2010
Understanding Customer Behaviour in Retail Banking
- The Impact of the Credit Crisis across Europe.
6. Why is Customer Experience
important to Banking?
People’s attitudes towards
banks have significantly shifted
over the last 2 years
c.33%
Personal
relationship is
highly important
Source: Ernst & Young 2010
Understanding Customer Behaviour in Retail Banking
- The Impact of the Credit Crisis across Europe.
7. Why is Customer Experience
important to Banking?
People’s attitudes towards
banks have significantly shifted
over the last 2 years
74%
Have each
product with a
separate bank
Source: Ernst & Young 2010
Understanding Customer Behaviour in Retail Banking
- The Impact of the Credit Crisis across Europe.
8. Why is Customer Experience
important to Banking?
People’s attitudes towards Customers ARE switching
banks have significantly shifted
over the last 2 years 24% have switched at
some point
10% switched in the last
two years
11% intend to switch
soon
Source: Ernst & Young 2010
Understanding Customer Behaviour in Retail Banking
- The Impact of the Credit Crisis across Europe.
9. Why is Customer Experience
important to Banking?
There is another way...
10. Why is Customer Experience
important to Banking?
Customer Experience is
Sum total of customer’s
interactions with company
I
Concerned with how the customer
values these interactions
Trust is
Built through personal relationships
Will lead to increased Share of My
Wallet
Bank
11. Customer Experience Maturity
The extent to which an organisation is able to build and operate customer
experiences that are meaningful to their customers and profitable/valuable to
the business
14. They deliver what they promise
Lowest fares for their routes, no frills and
No. 1 for Punctuality
No. 1 for Fewest lost bags
No. 1 for Flight completions
No. 1 for Fewest complaints
Hygiene Factors
These are the essential hygiene factors of
running an airline and these seal the deal for
people chasing low-fares
“It WAS cheap, they got me and my bags
there... I can hardly complain”
15. They only deliver what they promise
Lowest fares for their routes, no frills and
No. 1 for Punctuality
No. 1 for Fewest lost bags
No. 1 for Flight completions
No. 1 for Fewest complaints
They only report what they measure
It LOOKS like people don’t complain about their
service....
★ RyanAir deals with 99% of their complaints
within 7 days
★ only counts for those customers who follow
the exact procedures (Letter or fax only)
16. Profits Up but where from?
22% of revenues from subsidies
56% from bookings
Meeting targets for subsidies forces price of
tickets down
Yield per available seat mile down
If prices are already rock bottom... operational
efficiencies have been the focus of the company
their whole existence...
where is the sustainable source of profit growth
that markets will demand?
17. Why Maturity Models?
Easy benchmarking
Articulates clearly what will be
different when improvements have
been made
Highlights critical success factors
Encourages you to pace yourself
Makes it more understandable/
palatable to executives to invest in
18. Bruce Temkin
Overall commitment to differentiating through
CX
Stage 0 not present (37% of companies)
Supported by a planned journey towards CX
maturity across core competencies similar to
Experience Banker
The Experience Banker
Level of engagement with & focus on
customer. Underpinned by
Pillar 1: Insight (read good data)
Pillar 2: Culture (read active values)
Pillar 3: Experience Design (read capability)
20. CX Maturity - Stage 1
Insight: Data is collected but
root cause not addressed. Customers
Probably tracking basic metrics feel ignored
through 3rd party research
Culture: Pockets, mostly around
call centres, of customer focus Company
with some execs ‘getting it’. No is ‘interested’ in
coordinated top-down influence customer experience
Design: Fix problems reactively,
no end-to-end design or
coordination of fixes
Source: experiencebanker.com Feb 2011
Three Pillars of Customer Experience: Insight, Culture and Design
21. CXM - Stage 2
Insight: Customer base is
segmented, CSat scores and Customers
drivers understood, VOC are heard
programmes emerging.
Culture: Insights convince some
execs of importance but still no Company
enterprise wide culture embedded is ‘investing’ in
their customers
Design: Multiple improvement
programmes based on insights
across business but not yet
coordinated across enterprise
Source: experiencebanker.com Feb 2011
Three Pillars of Customer Experience: Insight, Culture and Design
22. 5 Levels of CX Maturity
Stage/ Org Design/
Customer Company
Level Capabilities
1 Ignored Interested Disparate
2 Heard Investing Silos
3 Understood Committed Coordination
4 Engaged Engaged Strategic
5 Passionate Embedded Fundamental
Culture:
Key metrics make it to the C-Suite (NPS), customer
insights shared across the organisation.
People are evidently thinking more about the customer.
23. CXM - Stage 3
Insight: Core met and unmet needs
understood driving business Customers
opportunities - insight based actions/
plans feel understood
Culture: Key metrics make it to the C-
Suite (NPS), customer insights shared
across the organisation. People are Company
evidently thinking more about the is ‘committed’ to
customer
its customers
Design: Business actively manages
customer experience and most units
within the organisation have objectives
for this
Source: experiencebanker.com Feb 2011
Three Pillars of Customer Experience: Insight, Culture and Design
25. Journey Stage
“Fault Experience”
First Time Fault Resolution
NPS Score - 0
Customer 20x more likely to leave
in next 90 days
Single Most Important element of the
Customer Journey
26. Call Centre
C-Level :- Consumer
AHT
Resolve or pass on..
In The Field...
C-Level :- Access (Engineering)
Truck Rolls
One Visit Fix
28. CXM - Stage 4
Insight: Organisation can express the
value of customer experience. Customers
Feedback collected at all touch-points
and available in the business are engaged by company
immediately
Culture: All employees fully
understand and evaluated on their part Company
in delivering positive customer is ‘engaged’ in
experiences.
customer-centricity
Design: Enterprise wide customer
focussed design process and
consistent delivery/management of end
to end customer journeys
Source: experiencebanker.com Feb 2011
Three Pillars of Customer Experience: Insight, Culture and Design
29. CXM - Stage 5
Insight: Reporting on all touch-points
and predictions made about future Customers
interactions. CRM data is augmented
by real time feedback. Extremely rich are passionate
customer pictures.
Culture: Passionate customers involved
in development of new products/ Company
services. Org Model structured around culture of the
key customer segments
customer
Design: Services/products can be
is ‘embedded’
developed tailored to individual
customers not just segments. Even
failures can be turned into opportunities
Source: experiencebanker.com Feb 2011
Three Pillars of Customer Experience: Insight, Culture and Design
30. How mature do we NEED to be?
There are two breakthrough levels...
Reaching Level 3
Reaching Level 5
The journey to these may take you 3-5 years each
Most companies will not reach Level 5
Most companies are not at Level 3
31. What are the critical factors for
success?
Monitor your interactions with customers
Share analysis throughout the organisation
Align strategy and customer segments
Action based on customer input not senior management ‘thoughts’
Executive buy-in from the outset
An organisation aligned to both the customer and business strategy
32. What are your next steps
Review CX Maturity Models
Be honest about where you are
Early stages focus on core CX skills gathering as much Insight as possible
and mapping customer journeys
Middle stages focus on demonstrating value of acting on insights as a way to
garner key executive sponsorship & Investment
Later stages - cultural change programmes are critical as well as total
engagement at C-Level
33. Barclays Bank Martin Dowson
Tesco Bank Customer Experience Coach
TietoEnator
Virgin Media Martin holds a passionate belief in the profitability of meaningful
GCap Media customer experiences. A commercially focussed senior CX
Sainsburys professional his experience across a range of industries and challenges
helps him to create customer centred organisations and teams.
Virgin Wines
Centrica “I believe that putting the customer at the heart of your
BT organisation will deliver both immediate improvements and
Argos sustainable long-term benefits. I have seen throughout my
career that you can not silo CX work into one ‘creative
Amazon corner’ of your company or think of it as a bolt on to the
E-Bay latest new project your are delivering.”
GexTech
His experience combines a strong background in User Centred Design
Singapore Airlines methodologies with organisational design and capability building
British Airways experience.
Infineon (Siemens)
Martin works with management teams who are (or want to become)
MorrisonBowmore passionate about
Accenture • Creating meaningful and profitable customer experiences
• The journey towards a customer centred organisation
• Understanding and measuring their customer experience
http://www.linkedin.com/in/martindowson
martin@martindowson.com
