Customer Experience Transformation

To Compete Successfully Close the

Experience GapFebruary 28, 2018

Greg Crandell & Kirk Wright

Why Are These the Top Retail Banking Trends for 2018

Q: What are the 3 most important trends for retail banking in 2018? Source: Digital Banking Report, 12-17

Removing friction from the customer journey

61%

Enhance data analytics capabilities to ID customer needs

57%

Improvements in integrated multichannel delivery

42%

Open APIs 35%

Building partnerships between banking and fintech

27%

Expansion of digital payments 26%

Today’s Objectives

Answer the Questions …

• Why Are People Talking About CX?

• What Is CX Management?

• What Does It Mean to Your Organization?

• How Can You Implement CX in Your CU?

The Process• Assess• Understand• Decide• Act

What We Do• Raise Challenging Questions• Apply Critical Thinking• Develop Inventive Solutions

Millennials Have Never Known a World without the Internet

and “Truly Ubiquitous”

Computing

Source: VocaLink, 11-16

98%

80%

57%

20%

USE A SMARTPHONE

USE A PC OR MAC

USE A TABLET

USE A WEARABLE

Millennials & Technology Use

Technology Is Omnipresent and Personalized

And the Rest of Us Remember It Less

and Less

What Can We Learn from Digital Disrupters?

The Digital Experience is Industry Agnostic

What Is It People Expect

From Connected

Commerce?

• Mobile Friendly Options

• Personal & Customized Experience

• Engaging Brand Content (not

Advertising)

• Hassle Free, Easy to Understand

Products/Services

• Opportunities to Tell You How to do

Better

…and How Has This Changed

Expectations for Banking

Services?

• Do things for themselves, at their own convenience.

• All banking services available on mobile devices.

• Expect services to be intuitive and simple.

• Able to talk to someone whenever they can’t do something.

• Want complete information. Access data about their business when and where they need it.

• Think banking should be enjoyable.

Digital Disruption in Financial Services Fueled by…

TechnologyOmnipresentPersonalized

Other IndustriesUser experience migrates across industriesNew retailers define expectations

FSI Players & FinTech CompetitionBig Banks & FinTech startups“FAANG”

DemographicsMillennials and Gen Z

Is Customer Experience (CX) Management the Response to These Disruptive Forces?

But What Is Customer

Experience Management?

Traditional Interpretation

Customer experience management is the collection of processes used to track, oversee and organize every interaction between a customer and the organization throughout the customerlifecycle.

Is CX Thinking Compatible with

Traditional Thinking and

Behavior?

Traditional Thinking Dilutes Impact and Forestalls Outcomes

• Incremental Change will not suffice

• Must Adopt the Disruptors’ Playbook

• Must Alter Behavior to Effect Change and Create a New You.

CX Thinking and Behavior Must

Break from Traditional Thinking,

Managing, and Leading

CX Initiatives Can’t Be “More of the Same”

• 5 C’s (Company, Customer, Competition, Collaborators, Context)

• Drucker’s Effective vs Efficient Management

• Technical Disruption

• Demographics

• Past is Prologue, until it isn’t

• “Slough off the Past”

Move “Outside In”

Why Strive to Improve the

Customer Experience?

Top 3 Reasons Given for CX Initiatives:

1. Improve Customer Retention

2. Improve Customer Satisfaction

3. Increase Cross-Selling & Up-Selling

BUT IS THIS ENOUGH?

Goals of CX?

“Create and Keep a Customer”

3 Keys to Member Retention

• Ease of conducting business

•Quality service

•Acting in the best interest of members

Break out your pen and paper!The path to Transformative CX…

How CX Transforms Your CU

• Acknowledge the Challenge of the CX Gap o Member Service vs Member Experienceo Millennials/Technology/CFI Industry Disruptiono Digital Disruption and the Member Experience Impact

• Identify How CX Initiatives Drive Successo Impact on Member Experienceo Member Experience impact on CU Outcomeso Fix Processes and Improve Engagemento Fix the Digital Disconnect

• Steps to Implement CX (and beyond)o Assess Your Culture and Assign Championso Set Objectives and Prioritize Expectationso Design VoC and CX Processeso Govern Datao Measure to Manage

• Question Everything

Start by Recognizing and Understanding What You Already Know and Do

• Retail Strategies and Service

• Touchpoints and Customer Journeys

• Digital Delivery

Successful Customer

Experience Development Begins with an

Assessment

• Strategy/Vision development

• Data capture and customer analysis

• Project/Process design

• Delivery

• Measurement

• Culture development

Please Take Our Brief CX Assessmenthttp://queryconsultinggroup.com/cxsurvey/

Why Is It Important to Address the

Touchpoints?

• Impact on Customers’

perception of

Ease of conducting business

Quality of service

• Impact on Loyalty

Best Interest of Members

VOC Platforms/Initiatives

Promote Understanding Ahead of Being

Understood

To Compete Successfully at CX. You Must First Understand the Experiences You Provide. To do that, You Must Listen.

• VOC platforms promote understanding & action in 3 areaso Collection (relevant, real-time,

multichannel)o Analysis (assessment/understanding)o Action (decision/action)

• VOC initiatives impact the whole enterpriseo Customer journeyo All siloso Resource allocationo Employee participation (VOE)

o and more

If You’re Ready, It’s Time for These CX

Initiatives

• Assess culture; turn to customer-centric listening and learning.

• Assign champions

• Set objectives for capturing and prioritizing customer expectations

• Design VoC & VOE processes and implement technology

• Govern data from multiple sources to understand and act upon

• Measure results, learn from them, and do better each time

CX’s Impact on Your Organization?

•Mission• Improve the well being of

members

• Strategy• Move from commoditized

services to value creation

•Organization• Build teams across silos • Promote data-driven dialogues

•Culture• Identify leaders and promote

questioning

The Process -- Questions lead to Decisions and then Actions

Assess

Understand

Decide

Reassess &

Repeat

Act

Follow Through

Applying The Thinking• Customer Experience Management (CXM):

Vision/Program Development & Education

• Digital Transformation Strategy, Tactics and

Implementation Planning

• Data Strategy in Support of CXM and

Transformation Strategy

• Software Evaluation/Selection (e.g. VOC)

• Marketing Strategy (fintech)

• Business Development Strategy (fintech)

• Strategic Planning

Customer Experience Transformation

Contact Us / Learn More

I info@queryconsultinggroup.com

http://queryconsultinggroup.com

Please Take Our Brief CX Assessmenthttp://queryconsultinggroup.com/cxsurvey/ Greg Crandell & Kirk Wright

Question Everything