Based on a survey of Dutch banking executives, we identify the strengths and weaknesses of payments operating models (including selective outsourcing) in a demanding, highly regulated business sector and recommend a customer-centric model.
With a fundamental shift in the CFO mission, the finance function has become a critical change agent across organizations. The role of financial leaders such as CFOs is evolving, from a traditional financial controller, to one that drives performance improvements across the organization.
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Based on a survey of Dutch banking executives, we identify the strengths and weaknesses of payments operating models (including selective outsourcing) in a demanding, highly regulated business sector and recommend a customer-centric model.
With a fundamental shift in the CFO mission, the finance function has become a critical change agent across organizations. The role of financial leaders such as CFOs is evolving, from a traditional financial controller, to one that drives performance improvements across the organization.
Building a Code Halo Economy for InsuranceCognizant
By finding meaning in the digital data that accumulates around people, processes, organizations and things, insurers can simultaneously reinvent how they operate and reshape their customers' experience.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
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Proving the effectiveness of bank marketing strategies beyond brand-building has always been a challenge. Now, several converging forces may help propel marketing forward as a revenue source rather than a cost center.
How Pharma Can Fully Digitize Interactions with Healthcare ProfessionalsCognizant
By building end-to-end IT ecosystems and understanding preferred communications channels, pharmaceuticals companies can create more engaging and fruitful digital relationships with healthcare professionals.
2015-16 Global Chief Procurement Officer Survey - CPOCapgemini
Capgemini Consulting’s sixth Chief Procurement Officer (CPO) Survey examines Procurement Trends, Compliance Management, Advanced Analytics in Procurement, and the Total Supplier Experience. Since our last CPO Survey, much has changed. During the darkest economic hours, Procurement was called upon in many troubled organizations to stem costs in new and creative ways. For many Procurement executives, there was no longer the need to sell the value of its standard services (cutting costs). Instead, Procurement was being called upon as a partner to drive cost out across the organization, thus elevating Procurement executives into a highly visible role in the organization.
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Etude PwC : "Digital Banking Survey" (2014)PwC France
http://pwc.to/1jQNy0n
Le secteur bancaire ne doit cesser d'innover pour continuer de satisfaire les besoins de leurs clients au temps de la digitalisation. Retrouvez toutes les conclusions PwC sur ce sujet.
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Artificial intelligence, customer journeys, and paid analytics
Quest to be more data-centric and insights-driven
Data-driven CMOs drive omnichannel customer intelligence
Companies turn to paid analytics for enhanced capabilities
The power of now: customer journey analytics rely on integrated data
Harnessing AI for more insight-driven marketing and better customer experiences
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The big story behind your big data: Six Practices for Making an Impact with T...Joachim B. Lyon
Text analytics is a powerful technology for drawing out compelling stories and deep insights from millions of customer comments. This study of strategic practices in 12 innovative companies show how customer experience (CX) professionals are using text analytics to change the way they work -- leveraging the customer’s voice to drive innovation and change, and becoming strategic business partners within their organizations.
Life sciences companies can avoid unnecessary risks and common sources of cost escalation by optimizing and centralizing the management of their promotional material references.
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Digital Banking: Enhancing Customer Experience; Generating Long-Term Loyalty ...Cognizant
To stay profitable and grow in the new digital economy, banks need to adopt a customer-centric business model, diversify online delivery of products and services channels and begin making meaning from valuable trails of digital information.
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The growth of social media, including Facebook and Twitter, offers many opportunities for businesses to connect with customers. Nonetheless, most companies still view social media as an extension of their traditional sales and marketing efforts; few are using social media to strengthen customer care and offer customers consistent, seamless and satisfying experiences.
Consumer trust has become the new battleground for digital success. To win, organizations need to master the fundamentals of data ethics, manage the "give-to-get" ratio and solve the customer trust equation, our recent research reveals.
How Semantic Analytics Delivers Faster, Easier Business InsightsCognizant
Facing vast and increasing amounts of data, business users need analytic capabilities to handle the volume and derive meaningful insights based on expert knowledge. Semantic analytics applies metadata and metaknowledge principles to extract actionable answers to complex business questions and detect previously unknown patterns.
Etude PwC : "Digital Banking Survey" (2014)PwC France
http://pwc.to/1jQNy0n
Le secteur bancaire ne doit cesser d'innover pour continuer de satisfaire les besoins de leurs clients au temps de la digitalisation. Retrouvez toutes les conclusions PwC sur ce sujet.
How Digital Is Quickly Reshaping Customer Experience ProcessesCognizant
By invoking six strategies that reimagine the power of customer support processes, digitally-savvy companies can create unprecedented levels of new business value and significantly elevate customer experience.
Improving the Efficacy of Root Cause AnalysisCognizant
When medical device organizations apply a relevant and appropriate level of automation to root cause analysis, they can ensure swift action on nonconformities and avoid issue reoccurrence.
How Insurers Can Leverage Social and Messaging Apps to Enhance Digital ValueCognizant
Insurance carriers looking to bolster their digital ROI and reach their clientele of millennials most effectively must look beyond mobile apps and online portals, into social and messaging apps. We offer a roadmap and use cases for enhancing insurers' digital presence.
Artificial intelligence, customer journeys, and paid analytics
Quest to be more data-centric and insights-driven
Data-driven CMOs drive omnichannel customer intelligence
Companies turn to paid analytics for enhanced capabilities
The power of now: customer journey analytics rely on integrated data
Harnessing AI for more insight-driven marketing and better customer experiences
The Work Ahead: Moving Healthcare Organizations into the Digital AgeCognizant
For healthcare payers and providers, the digital revolution offers a powerful prescription for transforming an industry value chain in need of drastic modernization. In this installment of our Work Ahead research series, we look at the way forward to the future of work for healthcare.
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Electric utility's new complaint handling system reduces resolution times, increases staff productivity, boosts customer satisfaction and improves regulatory compliance.
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Text analytics is a powerful technology for drawing out compelling stories and deep insights from millions of customer comments. This study of strategic practices in 12 innovative companies show how customer experience (CX) professionals are using text analytics to change the way they work -- leveraging the customer’s voice to drive innovation and change, and becoming strategic business partners within their organizations.
Life sciences companies can avoid unnecessary risks and common sources of cost escalation by optimizing and centralizing the management of their promotional material references.
Going Digital: What Banking Leaders Need to KnowCognizant
To compete in the digital era, banks need to embrace data, put customers first and manage organizational change -- three concepts, one payoff. Here's how your bank can put it all together.
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To stay profitable and grow in the new digital economy, banks need to adopt a customer-centric business model, diversify online delivery of products and services channels and begin making meaning from valuable trails of digital information.
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To achieve the dual goals of satisfying tech-savvy customers and boosting the bottom line, banks must first lay the foundation for integrated channels and fulfillment processes. Here is how they can embark on this two-laned path.
Perspective- Multi Channel Banking: A Five Point Strategy Infosys Finacle
The last two decades have witnessed a paradigm shift in the way people bank. While the shift from branches to ATM based cash withdrawals and from there on to internet banking was slow, it has been a different story in the case of mobile banking. The growth in adoption of mobile banking over the last three years has been tremendous. Many banks have rolled out internet banking, mobile banking, call centers, ATM based transactions and video banking. But, have banks moved from multiple channels to true multi-channel banking with seamless cross channel experiences?
Here we explore a five point strategy that would empower banks and financial institutions to define a robust multi-channel offering.
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Amid wavering consumer confidence, changing banking behaviors, widespread hacks and new competition, here’s what traditional banks can do to rebuild trust in the digital era.
The Future of Bank Branches Coordinating Physical with DigitalCapgemini
Digital Technologies will Accelerate Branch Transformation, Not Make Them Extinct
Retail banking is evolving at an accelerated pace. Globally, banks are facing disruptions from multiple directions. Business and economic realities have reduced the total number of US bank branches by 3,000 between 2009 and 2012 - a decrease of 3% over the 3-year period. In Spain alone, banks have closed 5,000 branches or 12% of their overall capacity since the financial crisis began in 2008, lowering the total branch count to approximately 40,000 in 2012.
That is not all. Digital technologies have also brought a significant shift in consumer banking behavior. The percentage of US banking customers who prefer to bank online jumped to 62% in 2011, up from 36% the previous year. Today, four of the top five transactional banking activities in North America – bill pay, viewing balances/transactions, viewing statements and money transfer – are happening online.
This brings us to the key question of this paper: do brick-and-mortar branches have a role to play in the future of retail banking?
Accessibility of Digital Banking on Customer Satisfaction: National bank of K...iosrjce
Banks have been forced to deleverage and identify alternative sources of value as a result of increased
regulations and competitive challenges. This has led to the introduction of digital banking where technology is
mostly embraced while carrying transactions. However, customers are still waiting for this new banking
experience, touted as a revolutionary transformation that will bring many new features, including anytime and
anywhere banking, ultra-fast response times, and omnipresent advisors. The objective that guided the study: To
establisheffect of accessibility of digital banking on Customer Satisfaction case of National Bank of Kenya,
Bungoma County. The target population for the study was bank customers and banking staff from National Bank
in Bungoma County and a sample size of 417. Descriptive survey design was undertaken. Data was collected
using questionnaires, interview schedules and document reviews. Analysis was done with the aid of Statistical
Package for Social Sciences where both descriptive and correlation analysis were performed. The findings of
the study established there was a significant relationship between accessibility of digital banking and
customer’s satisfaction, χ2
(6, N=350) =390.74, P= 0.00. The study recommends that Mobile banking and POS
terminals, need to come up with an application that can be used to enhance digital banking.
Digital intervention is a reality in today’s banking business and banks need to adapt and respond to this change to stay ahead of competition. The digital foreground has presented banks with a huge opportunity to attract new customers, lower costs, develop new propositions and business models, as also explore customer value to its maximum. To create a digital environment is now a priority for all banks and they need to undergo considerable investment for complete transformation.
The CII-PwC report titled, Banks taking a quantum leap through digital, released at CII National BANKing TECH Summit by Mr H R Khan Dy Governor RBI, Mr A P Hota MD& CEO National Payments Corporation of India and M S RaghavanChairman & MD, IDBI Bank.
U.S. Consumer Banks and the Potential of Location-Based OffersCognizant
The increasing use of mobile devices, plus advances in location-aware technologies, are driving the adoption of location-based services across customer-facing industries, including retail. U.S. consumer banks can take advantage of this trend by using the vast amount of customer data they collect to help retailers develop contextually relevant, location-based offers that strengthen and grow customer relationships and position retail banking services as more than mere commodities.
Learn how financial institutions are betting on the Big Data and Artificial Intelligence through APIs that help banks to define products, segmenting customers and detect possible fraud. Throughout this ebook we offer a review of the APIs bank data aggregation. More information in http://bbva.info/2t1NEv7
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20110228 the e bank value proposition_vargasTony Vargas
The Community FI is at NO disadvantage to the large, national box banks with their online presence. Quite the opposite actually; they have the ability to leverage strategic technology vendors to offer a combination of technology and human attention to their needs that box banks are unable to match.
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claims outcomes. Leaders will build on this foundation across the claims landscape, spanning experience,
operations, customer service and the overall supply chain with market-differentiating capabilities to
achieve sustainable results.
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Amid constant change, industry leaders need an upgraded IT infrastructure capable of adapting to audience expectations while proactively anticipating ever-evolving business requirements.
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Up to now, the global media & entertainment industry (M&E) has been lagging most other sectors in its adoption of artificial intelligence (AI). But our research shows that M&E companies are set to close the gap over the coming three years, as they ramp up their investments in AI and reap rising returns. The first steps? Getting a firm grip on data – the foundation of any successful AI strategy – and balancing technology spend with investments in AI skills.
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As #WorkFromAnywhere becomes the rule rather than the exception, organizations face an important question: How can they increase their digital quotient to engage and enable a remote operations workforce to work collaboratively to deliver onclient requirements and contractual commitments?
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For Effective Digital Banking Channels, Put Customers First (Part II of III)
1. For Effective Digital
Banking Channels,
Put Customers First
(Part II of III)
The mandate is clear for banks: Know thy customer,
and develop more meaningful — and
profitable — relationships.
2. 2 KEEP CHALLENGING August 2014
Executive Summary
To build and fortify customer relationships — and generate long-term
profits — banks need to view customers as individuals rather than
as a series of disparate accounts. To do that, they need to develop
sophisticated data analytics capabilities that lead to meaningful action.
Specifically, they need to mine and aggregate customer interaction
and transactional data from all bank channels and social media, make
meaning from it and then develop tailored offerings and services that
suit each consumer’s preferences and needs. It’s what we call Code
Halo™ thinking,1 in which businesses focus on creating unique virtual
identities from the digital data swirling around people, processes,
organizations and devices.
Banking’s typically siloed processes have hampered the industry’s
efforts to deliver consistent customer experiences. But with digital
channels playing an increasingly important role in banks’ overall
customer experience, cultivating consistent, reliable and customer-focused
online and mobile channels is a must. It’s no longer an option.
To drive the customer journey, banks need to develop techniques to
derive customer insight, such as customer personas and journey maps,
to better understand customer behavior and deliver critical outcomes.
Successful customer-centric initiatives typically proceed as follows:
• Evangelize the need for increased customer insight and the types of
data and process sharing required to deliver it.
• Determine potential sources of data from all channels.
3. FFOORR EEFFFFEECCTTIIVVEE DDIIGGIITTAALL BBAANNKKIINNGG CCHHAANNNNEELLSS,, PPUUTT CCUUSSTTOOMMEERRSS FFIIRRSSTT ((PPAARRTT IIII OOFF IIIIII)) 33
• Assess the organizational changes, such as retraining or functional
role modifications, that are required to support the objectives.
• Review existing technology against short- and long-term objectives,
and determine the required changes.
• Examine must-have analytics capabilities and tools.
This white paper, the second in our three-part series on the bank of the
future, reveals how banks can embrace customers as individuals — and
prepare their organizations for success. (For more insight, read our
first installment, “Digital Banking: Enhancing Customer Experience;
Generating Long-Term Loyalty.”)
4. Banking Customers: Reaching the Individuals
Behind the Numbers
When banks began tracking customers as account numbers, it made eminent sense.
But that was before those account numbers shopped online and shared their likes,
dislikes, accomplishments and setbacks on social media. Today’s bank customers
deposit checks by snapping photos with their smartphones. They spend Bitcoin.
Their lives revolve around digital technology.
Bank customers have changed. Now it’s the industry’s turn.
For banks, building customer relationships — and long-term profits — means acquiring
a central view of customers. Instead of seeing them as a series of disparate accounts
containing various transactions, banks need to take a holistic view. And that extends
beyond pure demographic profiling. It requires a deep understanding of what makes
each customer click as a human being: their needs, wants, desires and preferences
for banking.
Getting there requires a new set of disciplines and IT-business capabilities that
distills and applies unique customer attributes, gleaned from customer Code Halos,
to help banks create segments of one.
Customer centricity is a strategic pivot for banks that enables them to provide a
satisfying customer experience — and to grow. What’s required to make the shift?
First and foremost is data. Mining and aggregating customer interaction and
transactional data from all bank channels is key. Equally important is marshaling
consumers’ online data — their unique virtual identity, or personal Code Halo — and
delivering tailored offerings that spur loyalty and increase share of wallet.
Here’s how banks put the new data to work: Customer interactions with social
media and mobile geolocations, for instance, provide qualitative and quantitative
attributes that banks can track and analyze to extract insights. By blending these
insights with transactional data from their own systems of record and aggregated
third-party information, banks can treat customers to a unique, curated experience
that extends beyond their account numbers (see sidebar, next page).
The Truth about Digital Adoption
Like all businesses, banks are taking their cue from the revolution in consumer
electronics. While banks worked to recover from the financial crisis, technology
companies surged forward with innovations that took consumers by storm.
Customers emerged with recharged expectations based on their engaging experi-ences
with sites such as Amazon and Apple iTunes.
Some traditional businesses responded quickly. Companies such as Delta Airlines
and British retailer Burberry created digital channels that drove customer satisfac-tion
and market dominance. They got it.
The same cannot be said of branch and call-center-based banking. With few
exceptions — Wells Fargo and Bank of America were among those that quickly
adopted Facebook as a vehicle for client feedback — banks’ approached online
channels as separate digital platforms and processes, siloed from their branch and
call-center data.
This siloed approach and attendant lack of channel integration has hampered
banking ever since, delivering inconsistent customer experiences that do little to
advance the industry from its customers-as-account-numbers history.
4 KEEP CHALLENGING August 2014
5. Quick Take
Like digital consumer companies, banks can use data and analytics to find meaning in the swirl of online ad clicks, IP addresses, search queries and social network posts that make up customers’ Code Halos.
Decoding consumers’ digital attributes and preferences will help banks create the personalized customer experiences that are the hallmark of online channels. An example is using location services to generate customized offers related to retention and loyalty, basing content on personal interests or integrating multiple accounts.
For now, banks are making progress by using social sentiment to gain efficiency and deepen customer loyalty. For example, using the @AskCiti Twitter handle, Citibank agents send customers direct tweets that contain a link to start a live chat.
Internet-only Ally Bank actively uses all social media channels for customer engagement.
Learning to correlate the social data they collect, however, will enable banks to transform social media to a strategic channel for driving new business.
Understanding Code Halos
FOR EFFECTIVE DIGITAL BANKING CHANNELS, PUT CUSTOMERS FIRST (PART II OF III) 5
Contrary to the sunny reports on Internet banking and mobile adoption that analysts and the banking industry regularly release, a survey by management consulting firm Bain & Co. finds that consumers continue to use bank contact centers and branches in surprising numbers.2
What’s behind bank customers’ slow digital adoption? For one thing, they appear to prefer more of a blend of in-person and online service than originally predicted. McKinsey & Co. reports that customers who use mobile and online banking more than once a week remain much more likely to be active retail branch users than those who do not3 (see sidebar 2, next page).
For another, banks’ stovepipe processes often block customer journeys across touchpoints and products, resulting in frustrated customers turning to costlier hands-on channels. A study by Booz & Co. found that defects within banks’ own systems drive more than half of inbound calls.4
6. 6 KEEP CHALLENGING August 2014
Can Customers Spot Your Value-Added Services?
So far, banks’ disaggregated implementation of digital channels has failed to
improve the cost-effectiveness of their operations. Bank servicing costs are actually
increasing,6 even as they fall short of delivering a satisfactory user experience.
Customers are looking for value-added services — and having a hard time finding
them. Banks face an especially steep climb to acquire and retain young customers.
Fifty-three percent of millennials — those born between 1981 and 1996 — report that
their bank offers nothing different from any other bank, according to a three-year
study of 10,000 respondents by Scratch, Viacom’s brand consulting division.7
Moreover, digital natives who encounter trouble online are unlikely to contact
customer service right away. One study found only 1% of millennials would use the
phone or e-mail to notify their bank of a problem.8
Connecting with older customers online is equally challenging. The silver-haired
set presents its own dilemma for banks: While seniors stand to benefit enormously
from the convenience of digital banking, they often require assistance learning to
use it. To help close the gap, banks are launching innovative programs, such as
Barclays’ branch-based Digital Eagles program, which teaches basic Internet skills.9
The upshot? Digital channels play an increasingly important role in banks’ overall
customer experience. Cultivating reliable, customer-focused channels for every
demographic is a pressing priority for banks.
Quick Take
Bank branches will continue to play a key role in the
digital banking world. Customer surveys indicate a
preference for in-person support to resolve claims
and provide advice for complex, high-value trans-actions
such as mortgage loans or retirement
planning. Branches will also retain a prevalent role
in acquiring and retaining customers, with nearly
80% of consumers affirming that the location of
bank branches influences their choice of institu-tion,
according to a study conducted by Cognizant’s
Equinox consulting group and EFMA, an association
that promotes innovation in retail finance.5
But with branch revenue expected to decline 20% to
30% in the next five to eight years, banks are under
pressure to reduce the cost of branch operations,
even as the in-branch customer experience
becomes an increasingly flexible (and optional) step
in the customer’s cross-channel journey, according
to the study.
Technology can help banks make judicious branch
investments. For example, smart use of analytics can
reveal demographic trends and lead to optimized
locations and staffing for branches. Enhanced
CRM solutions can help banks service high-touch
clientele and improve the ROI from this expensive
channel.
Looking ahead, emerging technologies may place
robot ushers in bank branches, along with tablet-surfing
couches, interactive digital signage and
workflows that easily transfer data and documents
between branch staff and customers.
What’s the Future for Branch Banking?
7. FOR EFFECTIVE DIGITAL BANKING CHANNELS, PUT CUSTOMERS FIRST (PART II OF III) 7
Reshaping Channel Strategies around Customers
Banks that put customers at the heart of their channel strategies are seeing results, some of which are shooting straight at these banks’ bottom lines. According to new research from Forrester Research, Inc., a more holistic customer experience drives banking revenue in several areas.10 Incremental purchases from existing customers generate a revenue benefit for banks of $81 million, and reduced churn produces retained revenue of $73 million. Forrester pegs incremental sales from positive word of mouth at $7 million.
Here are a few of the customer-centric channel initiatives that we’ve observed in banks around the world:
•
In Europe, French bank BNP Paribas rolled out a multi-channel model that provides customers with uniform, high-quality service. To better serve customers, the Paris-based company migrated its retail banking contact centers, branches and Web site to a common CRM environment. It implemented the system at 150 business centers over a period of six years and has replicated it in small business and private banking.
•
Société Générale relies on a multi-channel strategy to advance its relationship banking, which enables it to view customers holistically. The retail bank has bet heavily on mobile and social channels, even running a series of TV ads in 2013 promoting a 30-minute response time for inquiries that it receives via Twitter.11
•
Santander carefully customizes its multi-channel strategy by market geographic segment. In Spain, it deploys tablet apps and integrated CRM, and it also measures customer propensity for next probable purchases. In Chile, it emphasizes online sales, especially for commercial customers. In Mexico, its focus is the call center. The result? A differentiated experience in each region.
•
HSBC UK lets customers choose their preferred channel. Following local custom, many UK customers prefer to carry out banking transactions at the local branch rather than online. The most profitable customers, however, are going online. HSBC says its goal is to offer guidance — “Help us to help you” — and enable customers to take more control over their banking interactions.
To Sidestep the Hype, Start Assessing Benchmarks
How can banks sidestep the multi-channel hype to stay relevant to consumers and derive operational efficiency? What’s missing from digital strategies that lead to poor customer experience? Banks can start to find the answers by first assessing benchmarks and optimizing customer touchpoints. Successfully integrating digital channels requires analyzing customer utilization and preference, providing cross- channel consistency and encouraging the use of lower cost channels.
It also requires thinking big. Imagine, for example, presenting contextual offers to customers at their preferred point of consumption. As customers pay for goods or services with bank debit or credit cards or mobile wallets, they might receive
Successfully integrating digital channels requires analyzing customer utilization and preference, providing cross-channel consistency and encouraging the use of lower cost channels.
8. 8 KEEP CHALLENGING August 2014
merchant-funded offers that can be redeemed digitally. Or perhaps as they make
ATM transactions, they might view targeted on-screen offers based on their Web
browsing.
The idea is to share information with customers, partly because they are happy to
reciprocate. According to Cisco Systems, Inc., the majority of bank customers are
willing to provide more information to banks in exchange for personalized service
(78%) or simplified management of their finances (56%).12 The more data that
banks have on customers, the greater their opportunities are to make use of Code
Halos and know their customers better.
Taking Steps to Better Understand Your Customers
To drive the customer journey through digital channels, banks also need to develop
the underlying data techniques that help them better understand customer
behavior. Mass marketing remains institutionalized within most banks. To realize
the business potential of segments of one, banks need to make a cultural shift in
how they engage with consumers.
The first step is understanding who your customers are — or who you want them to
be — and creating customer personas. Personas are detailed, three-dimensional rep-resentations
of your customers and prospects that let you better understand their
motivations and propensities. As such, they are instrumental in shaping products
and marketing strategies and determining customer needs and preferences. (For
a look at how companies are putting personas to use, read “Rethinking Enterprise
Mobility Strategies.”)
Journey Maps: Exploring the Uncharted Customer
Experience
While personas identify your customers’ attributes, customer journey maps let you
walk in their shoes. Journey maps are powerful visual tools that trace customers’
steps as they travel through your bank’s processes, such as opening accounts,
exploring additional products and services, and resolving problems.
Journey maps provide the big picture. They deconstruct banking processes from the
outside in. Instead of viewing customer experience from an organizational point of
view, journey maps follow customers through channels, decision paths and, perhaps
most important, emotions. They also determine customers’ perception of the level
of effort required by each channel. Ease of use ranks as an important benchmark, as
customers’ perception of effort is the primary determinant for loyalty.13
For many banks, journey maps are eye-openers. Having never traveled as customers
through their organization, many institutions only guess at the routes that consumers
follow. They often find the reality is quite different from what they thought. Barriers
become apparent, and frustrations are noted. The customer journey is frequently
revealed to be far more non-linear than organizations realized.
To realize the business potential of segments
of one, banks need to make a cultural
shift in how they engage with consumers.
9. FOR EFFECTIVE DIGITAL BANKING CHANNELS, PUT CUSTOMERS FIRST (PART II OF III) 9
To begin mapping your customers’ journey, keep in mind these main points:
•
Remember that your organization has lots of different kinds of customers. Journey mapping needs to reflect all of them.
•
The task brings together multiple stakeholders. One of mapping’s greatest advantages is that it is collaborative. Multiple departments contribute to — and benefit from observing — the ups and downs of the customer journey. The process educates all participants. Figure 1 depicts a suggested timeline for the collaboration.
Linking the Customer Journey to Key Outcomes
What can you determine from customer journey maps? Because journey maps provide banks with many more data points, they serve as a form of computer modeling to determine the likelihood of occurrences. Instead of operating on guesswork, your organization can make accurate predictions of customer behavior. The more variables you track, the more accurate you will be.
Banks can determine, for example, the likelihood that customers with specific attributes will buy new products. They can predict how much change customers are likely to accept, such as pointing banks to the customers who will be most receptive to encouragement for self-service channels, for example. You can map for multiple objectives, including attrition, market penetration and preferred channels.
Micro-segmentation is an important outcome of journey mapping. Banks with sophisticated IT functions can tweak and personalize products right down to the level of individual customers. But journey mapping allows all banks to micro-segment to some degree regardless of their technology capabilities. Even if they are unable to tailor products to segments of one, banks can address smaller segments with more targeted products, growing the number of market segments they serve from five or six, for example, to several dozen.
Project Phase Week 1 2 3 4 5 6 7 8 9 10 11 Immersion Data Collection 2 Weeks 6 Weeks 2 Weeks 2 Weeks Analysis and Journey Map Creation Insights and Next Steps
Figure 1
Suggested Project Timeline
10. 10 KEEP CHALLENGING August 2014
The Technology Behind Journey Maps
How can banks link the customer journey to key outcomes? Correlating customer
journeys to produce actionable information requires a detailed analysis of customer
interactions.
At most banks, the underlying data — Web behavioral data, IVR pathing and call
center transcripts — is at least partially available, although it is largely ignored for
this purpose. While all channel interactions produce useful information, most banks
are challenged to apply these insights to micro-segmentation and develop each
customer’s unique digital persona.
The analysis and correlation of customer journeys requires causal and non-causal
input to build and determine actionable information. Causal data input includes
semantic information using natural language processing from human-assisted
channel interactions, and incorporates data that is input from social channels and/
or survey data where customers have self-identified.
Once the data is analyzed and correlated, banks can offer each customer a person-alized
experience. Informed pricing is a powerful tool for attracting and encouraging
digital customers and interactions. A deeper understanding of customer preferenc-es
and habits makes that possible. For example, because digital self-service is said
to decrease servicing costs by a factor of 1:11, banks might offer pricing incentives to
customers who use online and mobile channels.
In addition, by determining the information that customers regularly request and
then proactively providing it, banks can predict, preempt and prevent use of human
channels for low-value interactions. Conversely, for high-value customer interac-tions
— such as financial advisement and complex sales — and for customers with
little digital propensity, banks can encourage the use of human channels that better
facilitate customer relationships.
Imagine your organization being able to take advantage of the following techniques:
• Agents empowered by insight that lets them offer a personal apology for a poor
customer interaction, inadequate performance or channel function — and reme-diating
with the customer in real time.
• Dynamic digital and non-digital product offers, customized for each customer
and, therefore, offering higher chances of acceptance.
• Feedback loops that continuously boost channel performance with improved
functionality, customer service and offers.
Going from no digital segmentation
toward micro-segmentation and finally
arriving at individual customer digital
personas is an evolutionary journey.
11. FOR EFFECTIVE DIGITAL BANKING CHANNELS, PUT CUSTOMERS FIRST (PART II OF III) 11
Looking Ahead: Five Steps to Becoming
Customer-Centric
The customer-centric strategy your bank adopts depends on the data, analytics and direction it wants to pursue. Objectives might include increasing market share, penetrating new markets or lowering costs. Other goals might be reducing attrition, improving product take-up and increasing loyalty or lowering risk.
It is important to not do everything at once. Start small and show early success, gradually building your program and fine-tuning it based on your findings and success as you go.
Here are five steps your bank can take to begin:
1.
Evangelize the need for increased customer insight and the types of data and process sharing required to meet it. Determine any inherent organizational constraints in sharing customer data across lines of business. Examine siloed channel processes such as line-of-business-based call centers and determine the changes that will work in your environment with the least initial disruption.
2.
Determine potential sources of data from all channels. Prioritize the highest cost and lowest cost channels, as these areas will yield the most benefit from the least effort. Audit the data sources for availability and suitability. Assess data gaps and determine remediation. Create a data strategy that supports your objectives.
3.
Assess organizational changes such as retraining or functional role modifications that will be required to support the objectives.
4.
Review your existing technology against your short- and long-term objectives, and determine the required changes. The short-term changes should build toward long-term goals.
5.
Examine must-have analytics capabilities and tools. Analytics is the cornerstone of achieving insights into customer behaviors and their propensity toward certain behaviors, as is correlating the data needed to achieve a suitable degree of digital segmentation. Going from no digital segmentation toward micro-segmentation and finally arriving at individual customer digital personas is an evolutionary journey.
Part III, the conclusion of this series on digital banking, examines the organizational and technology changes required to make a full digital pivot.
12. 12 KEEP CHALLENGING August 2014
Footnotes
1 For more on Code Halos and innovation, read “Code Rules: A Playbook for Managing at the
Crossroads,” Cognizant Technology Solutions, June 2013, http://www.cognizant.com/Futureofwork/
Documents/code-rules.pdf, and the book, “Code Halos: How the Digital Lives of People, Things, and
Organizations are Changing the Rules of Business,” by Malcolm Frank, Paul Roehrig and Ben Pring,
published by John Wiley & Sons, April 2014,
http://www.wiley.com/WileyCDA/WileyTitle/productCd-1118862074.html.
2 “Customer Loyalty in Retail Banking: Global Edition 2013,” Bain & Co., 2013,
http://www.bain.com/Images/BAIN_REPORT_Loyalty_in_Retail_Banking_2013.pdf.
3 “The Future of U.S. Retail Banking Distribution,” McKinsey & Co., February 2014,
file:///C:/Users/Mary/Downloads/Future_of_US_retail_banking_distribution.pdf.
4 “Redefining the Mission for Banks’ Call Centers,” Booz & Co., 2008.
5 “The Future of Bank Branch Networks,” European Financial Management Association, December 2012,
http://www.resolvingsf.it/immagini/rassegna/EFMA_The%20Future%20of%20Branch%20Networks_
Abstract_dic%202012.pdf.
6 “Time for Bold Action: Global Banking Outlook 2013-14,” Ernst & Young, 2013, http://www.ey.com/Publi-cation/
vwLUAssets/Global_banking_outlook_2013-14/$FILE/Global_banking_outlook_2013-14.pdf.
7 Millennial Disruption Index, Scratch, 2014, http://www.millennialdisruptionindex.com/.
8 Brian Solis, The End of Business As Usual, Wiley, 2011, http://www.amazon.com/The-End-Business-Usu-al-
Revolution/dp/1118077555.
9 Jonathan Bacon, “Customer Service Trends: Are You Being Served?” MarketingWeek, July 2, 2014,
http://www.marketingweek.co.uk/trends/trending-topics/consumer-behaviour/customer-service-trends-are-
you-being-served/4010921.article.
10 Maxie Schmidt-Subramanian, “The Business Impact of Customer Experience in 2014,”
Forrester Research, Inc., March 27, 2014, http://resources.moxiesoft.com/rs/moxiesoft/images/
Business_Impact_Of_CX_2014.pdf.
11 Matt Rhodes, “French Bank Uses TV Ads to Promote Twitter-Based Customer Service,” FreshMinds,
July 10, 2013, http://www.freshminds.net/2013/07/french-bank-uses-tv-ads-to-promote-twitter-based-customer-
service/.
12 “Cisco Customer Experience Report,” Cisco Systems, Inc., April 22, 2013,
http://newsroom.cisco.com/release/1174098.
13 Matthew Dixon, The Effortless Experience: The New Battleground for Customer Loyalty,
Penguin, September 2013.
13. About the Authors
Steven DeLaCastro leads Cognizant’s Banking and Financial Services Business Unit’s global “Bank of Tomorrow … Today™” digital banking program. With a wealth of expertise in bank technology and operations, software, services and consulting, he has held the titles of Chief Information Officer, Chief Operating Officer, Senior Vice President, Managing Director, General Manager, EMEA Sales Director, Regional Country Manager, Partner and Managing Partner. Steven holds an M.B.A. and a BSc. in Business Administration with concentrations in operations, finance and psychology. He can be reached at Steven.DeLaCastro@cognizant.com |
LinkedIn: www.linkedin.com/pub/steve-delacastro/0/240/309.
Makarand Pande leads Cognizant’s SMAC consulting efforts. He helps customers think about the future of digital business and its business impact, and how emerging technologies and concepts like Code Halo, social, mobile, analytics, cloud and the Internet of Things can be leveraged to transform existing business models. He also conducts ideation and solution workshops with customers across domains, including digital banking. He can be reached at Makarand.Pande@cognizant.com | LinkedIn: http://www.linkedin.com/in/makpande/.
Swarraj Kulkarni is Chief Architect in the Technology and Architecture Office within Cognizant’s Banking and Financial Services Business Unit and is a core team member of the Digital Banking strategic team. He has 21 years of experience in the IT industry, focusing on architecture and design of J2EE-.NET-based enterprise appli cations in the banking and capital markets domains. In addition to core tech nologies, Swarraj has strong experience in mobile, social media and analytics tools/ technologies and has applied those to building retail banking solutions. He received a B.E. in electronics from Walchand College of Engineering Sangli and completed a senior management program at IIM-Kolkata, India. Swarraj can be reached at
Swarraj.Kulkarni@Cognizant.com | LinkedIn: http://www.linkedin.com/in/swarraj.
Anand Vaidyanathan leads Cognizant’s Digital Banking efforts in North America. As part of Cognizant’s “Bank of Tomorrow...Today” program, Anand has authored several Cognizant point of view papers and has consulted customers on the future of digital business models. Anand is a Product Owner certified by the Scrum Alliance and has launched several industry leading digital products for Cognizant customers. Anand holds an MBA and bachelors in engineering. Anand can be reached at Anand.Vaidyanathan@cognizant.com | LinkedIn: www.linkedin.com/ pub/anand-vaidyanathan/1a/b64/28b/.
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