how to benefit from digital distruption

Digital Disruption in Retail Banking

How to Benefit from Digital Disruption in Banking

2016 QUALTRICS LLC.Speakers

Kelly McManusDirector of Market Research andCustomer ExperienceCapital OneBruce PaulPrincipal Consultant, Banking andFinancial ServicesQualtrics

2

Seeds of DisruptionThe Digital Problems Facing BanksUsing Digital to Solve Those ProblemsInteractive Q&A with Kelly McManus, Capital One2016 QUALTRICS LLC.Agenda

3

2016 QUALTRICS LLC.Seeds of DisruptionChange in banking relationshipsLoyalty drops, switching increasesBranch visits decliningFintech is encroachingTrickle up

4

7


Loyalty: 11% switch per year. We used to focus on satisfaction, but highly satisfied customers still leave

8


Quickly to next slide9

Almost 40% didnt even go into a branch in a year.That number grows year by year10


Goto next slide

11

2016 QUALTRICS LLC.Fin Tech

Fintech (start ups and Apple, Google). Starbucks 42million purchases in just over a year, Mint 10 million users. Since my days in silicon valley, like to keep up to date. #1 venture capital area (more than social media)

12


Trickle: Customers want banking to be as easy as all other iphone/android apps (single sign on, single touch, gamification)WE all have apps that instanly tell us all about our health (calories consumed and burned, steps taken, even vital signs), or social networks (how the world at large is reacting to my vacation photos or my comments about the presidential campaign). They can even suggest immedaite action (my sons iwatch tells him he has been sitting too long)IT seems logical that we should be able to see the same for our financial health. Maybe the iwatch can say that my excess cash has been sitting in a money market too long.

13

2016 QUALTRICS LLC.The ProblemsCustomer Relationships > becoming more transactionalCustomer Journeys > becoming more complex, omnichannelCustomer segmentation > becoming more individualizedInnovation > becoming much faster

Customer Relationships:Many people (esp millennials) arent looking for a relationshipThe bane of customer service leaders everywhere: even satisfied customers can defect if they see another more convenient alternativeI hear over and over: Our customer satisfaction numbers are really high, or our members always tell us how much they love us and yet we cant stem the attritionKellyJourneys: used to be walking to the branch, but now can be multi-modeMy favorite example I have seen from customer verbatims: tried to look for an answer online, couldnt find it and went into a branch. and the branch staff has to call the service center to answer the question (and you know the service center agent is checking the website!)We mostly evaluate those as isolated interactions, but they are not. Segments: Used to be one segment: the neighborhood around the branch. Now there are many. KellyInnovation: have to keep up with the Jones, or not too far behind. Kelly.

14

2016 QUALTRICS LLC.The SolutionsCustomer Relationships > becoming more transactionalRetail: eliminating pain pointsCommercial & Wealth: encouraging better quarterbacksCall Center: empowering real-time solutions

Customer RelationshipsRetail: get feedback about all touch points (branch, online, mobile app) and play whack-a-mole; Commercial & Wealth: businesses understand that one person cannot know everything (show old bankers the customer feedback about wanting a QB)Call center: CRM solutions that can show recent transactions, and immediately coach to solutions and cross sell

15

2016 QUALTRICS LLC.The SolutionsCustomer Journeys > becoming more complex, omni-channelMap the paths to resolutionEliminate steps, hurdlesTest the resultsRinse and repeat

Customer Journeys: KELLYStart with deep dives with customers (qual) Can do sophisticated process mapping, but I find most banks can make the quick accurate decisionsGather quantitative feedback at each crucial pointmeasure to make sure you got it rightJourneys continually change, so you gotta re-test every year or two. Used to do driver analysis every 5 years, then every 3, then 2

16

2016 QUALTRICS LLC.The SolutionsCustomer segmentation > becoming more individualizedCustomers are offering A LOT of informationGet all the tools working togetherMeasure the change in cost to serve (for your career!)You can be the bank they want

Customer Segmentation: We know more about customers actions and desires than ever beforehow they bank, when they bank, how they learn, how they interactGreat tech tools: Tie in CRM, website, direct feedback to customize or skin their touchpoints. All while lower the cost to serve. Ask for 1% of the savings to be paid to you in a bonus.I worked with a commercial bank that historically had the policy that every customer deserved the same high level of service. But then they were underserving b/c of too large a book of business. They changed the model and increased retention and cross sell at the top without impacting the bottom very much.For small business customers, manage their expectations. Instead of assigning 400 businesses to 1 banker who will never respond, tell the little ones they need to go into the branch or call center. Had a super regional client who did this, and improved EVERYONEs satisfaction.Have they looked at how-to videos? Did they read about privacy? Get financial advice when they want it. Weekend in the branch, 2am on the app.KELLY

17

2016 QUALTRICS LLC.The SolutionsInnovation > becoming much fasterMore testingFaster pilotsCheaper failure

Innovation: Simple A/B testing on the websiteOr branch designOr call center scriptingKelly

18

2016 QUALTRICS LLC.Digital Disruption DirectiveForces (and enables) you to measure:Pain points in retailTeamwork in commercial/wealthEmpowerment in the call centerJourney, not channelsPerfect fit, by customerQuickly (fail cheap and fast)

US and Canadian banks are far better than elsewhere. This presentation is more dire in Europe, Australia, Asia, Latin America

19

Q & A

Key stages of the customer journeyApplication ProcessPre-SalesOnboardingUse & SupportCross-sell & ExpansionCapture new customer insights instantly on any channel. Drive customer conversion by delivering exactly what customers want. Improve the application process to increase customer satisfaction and drive completion rates. Optimize the onboarding process to ensure new customers are satisfied and responsive to cross-sell efforts.Empower your organization to optimize how it responds to feedback and ensure customer satisfaction by closing the feedback loop.Increase share of wallet and drive cross-sell rates by staying ahead of customer decisions and improving processes that most affect CX.Website & mobile satisfactionPage-level feedbackMarket researchWebsite feedbackTeller CSATPost-onboarding CSATHolistic financial evaluation and barriers to conversionProblem incidence & resolution feedback Teller CSATPost-loan/Line application CSATOpportunity identification by teller/branch managerTarget OutcomesSolutions

21

8 pointINCREASE IN NET PROMOTER SCOREAmerica First Credit Union has to provide the best possible experience to its members every day. Qualtrics allows us to act quickly on real-time feedback better than any other insights tool weve ever used. -VP Service Quality2015 QUALTRICS LLC.

With Qualtrics, insights become action in real-time across our entire organization.AMERICA FIRST CREDIT UNION + QUALTRICS$14MINCREASE IN REVENUE IN 12-MONTHSIncreased revenue by over $14M in 12-months, driven in part by insights acted upon from Qualtrics data which provided organization-wideunderstanding of member needs and expectations.

50%DECREASE IN COSTS + IMPROVED KPI VISIBILITYAFCU reduced survey and overhead costs by 50% by implementing a single, enterprise research platform, and integrating Qualtrics with Tableau to give all 114 branch managers a performance dashboard. As a result, theyve gained better-than-ever visibility to the KPIs needed to grow. 5XHIGHER RESEARCH SPEED & 3X PRODUCTIVITYAs a result of Qualtrics, today every one of our branches has the data they need to know exactly what to do to increase their promoters and drive up their NPS. Thats making a real impact for our entire organization. Its a perfect example of insights to action.

Industries: Financial ServicesCompany Size: MediumType: B2C, B2BUse Cases: CX, MR, EIBackground: Founded in 1939, America First Credit Union is a progressive member-owned, not-for-profit cooperative financial institution with 114 branches, 736,000 members, and $7.1B in assets, making it the 7th largest credit union in the United States. Dedicated to putting its members first, America First sets itself apart in the competitive financial industry through superior member service and tailored products to help its members achieve financial well-being. https://www.americafirst.com/

Challenge: Service Quality department required a reliable survey platform that was available to members at any time, from any locationLacked flexible reporting capabilities for easy data trending and distribution of findingsWanted to consolidate member comments, regardless of the channel, for one version of feedbackNeeded a way to gather innovative ideas from employees.

SolutionAmerica First Credit Union uses Qualtrics Research Suite to: Survey over 200,000 members annually to gather feedback on where they plan to spend their money, evaluate their preparedness for retirement, and track member confidence to understand how were doing as well as track NPS to improve member loyalty.Integrated Qualtrics with Tableau to give all 114 branch managers a dashboard and a scorecard with 10 areas of focus to help them see how theyre performing relative to other branches in the company.Improve processes, systems and behaviors across the organization based on employee and member feedbackFacilitate branch performance metrics through quantitative and qualitative member feedback to evaluate service qualityCollect member feedback on a transactional basis to improve one-time experiences and allow for consistent, prompt follow up from managementGather member feedback via the website to learn of compliments, suggestions, and concerns that require immediate actionCapture employee compliments, suggestions, and concerns via the intranet to drive improvements and foster employee recognition through Service Star Awards

ResultsEstablished benchmarks for service goals based on member feedback Increased organization-wideunderstanding of member needs and expectationsIncreased revenue by over $14M in 12-months, driven in part by insights acted upon from Qualtrics data.Increased response rates by 33%. Increasedmember loyalty and advocacy, growing NPS +8 points in 6-months, from an already high NPS baselineIncreasedresearch speed up to 5X over previous solutionsIncreasedresearch productivity by 3XIncreasedresearch flexibility & control by 100% over full-service solutionsDelivered insights that helped increasedemployee engagementacross 114 branchesDelivered insights that helped connect employee engagement to better customer experiencesReduced survey and overhead costs by 50% by implementing a single, enterprise research platform Improved member and employee satisfaction with real-time visibility into urgent issues requiring immediate attention Can prioritize feedback across the organization to drive critical process changes

Bottom lineDelivered customer experience insights that contributed to increased satisfaction and revenue growth in a highly competitive industry with relatively low switching costs.Quotes:Since we dont have a commodity to offer in the financial services market, America First Credit Union has to provide the best possible experience to its members every day. Qualtrics allows us to put our members first because we can act quickly on real-time feedback. -Tammy Gallegos VP of Marketing, Communication and Service QualityAs a result of Qualtrics, today every one of our branches has the data they need to know exactly what to do to increase their promoters and drive up their NPS. Thats making a real impact for our entire organization. Its a perfect example of insights to action. Jake Bingham, Service Quality Manager

22

+43 pointsHUGE INCREASE IN NET PROMOTER SCORE (NPS)96,000NEW ACCOUNTS BRINGING $9.3B IN ASSETS IN 201550% FASTER RESEARCH FOR 70% LESS COST ON 2-5X VOLUMEIntegrationWITH SALESFORCE AND OTHER APPLICATIONSQualtrics makes all the difference. They make our entire organization more efficient, agile and smart.-Richard Shakarchi, Director of Market ResearchWe turned our focus to customer-facing enhancements, providing a series of new tools and revamped functionality across our site, trading platform, and mobile apps. E*TRADE is in a better position than it has ever been, -Paul Idzik, Chief Executive Officer. With Qualtrics, E*TRADE executes five times the amount of advertising researchand we do it in half the time for less than one-third the cost. We cant afford to wait weeks for reports. Qualtrics drives efficiency!With Qualtrics, now we can consolidate all our voice of the customer data into a single location by integrating with Salesforce.com.2015 QUALTRICS LLC.

Qualtrics makes our entire organization more efficient, agile and smart.E*TRADE + QUALTRICS

Industries: Financial Services / Online Retail Investment BrokerageCompany Size: Medium organizationType: B2CUse Cases: MR, CX

Background: Founded in New York City in 1982, E*TRADE Financial is a leading financial services company with over $1.8 billion in annual revenue. E*TRADE is a pioneer in the online brokerage industry. Having executed the first-ever electronic trade by an individual investor more than 30 years ago, the Company has long been at the forefront of the digital revolution, offering easy-to-use solutions for individual investors and stock plan participants. Founded on the principle of innovation and determined to level the playing field for individual investors, E*TRADE is a digital-first brokerage experience providing the tools and educational material, supported by professional assistance, to help individual investors and traders meet their near- and long-term investing goals. With 3,400 employees today, the Company provides these services to customers primarily online via its award-winning digital platforms and through its network of industry-licensed customer service representatives and Financial Consultants over the phone at two national branches and in-person at 30 E*TRADE branches across the United States.

Challenges: Needed real-time insights to help E*TRADE make better, easier investing experiences for customers Survey creation was time-consuming and required dedicated staff with advanced programming skills Fielding and reporting could take weeks

Solution: E*TRADE uses the Qualtrics Insight Platform to:Create secure and complex surveys in-house without the need for programmers, including sophisticated features such as skip logic, branching and embedded videoConduct ad testing feedback in days, rather than weeks, to support award-winning advertising campaigns with the famous E*TRADE babies Conduct detailed product testing to refine online financial offerings, as well as the E*TRADE mobile app Consolidate all voice of the customer data into a single location by integrating with Salesforce.comExpand both the quantity and range of projects for departments across the organization including marketing, sales, service, PR and product teams

Results:Retained customers and millions of dollars in assets by acting quickly on real-time customer feedbackImproved Net Promoter Score (NPS) by 43 points Reduced advertising research time by 50% Reduced advertising research costs by 70% Provided more timely reporting to more effectively guide executive decision-makingEnabled a small research team to double the volume of research

Customer Story Webpage: Coming soonCustomer Webpage: www.etrade.com23

We use Qualtrics to evaluate our conference and school attendee satisfaction. Our surveys ask attendees to rate speakers/instructors on overall satisfaction and NPS. We are now able to get better information from our attendees, allowing us to make better decisions regarding our programs and schools. By incorporating these insights, our events have grown considerably in the past few years.America Bankers Association

how to benefit from digital distruption

Software