How the customer communications landscape is transforming in the Financial Services Market

Transcription

1 2016 Insight Report Putting customers first How the customer communications landscape is transforming in the Financial Services Market

2 Bridging the gap between company and customer The world is changing and evolving patterns in customer behaviour are fundamentally affecting how organisations structure their engagement programmes. The amount of data that companies need to process is expanding more rapidly than is manageable and it is a struggle to adapt to the changing needs of customers quickly enough. The opportunity to convert data into a meaningful customer engagement strategy is the hot topic for discussion in this report. 2 Insight Report 2016

3 WE SURVEYED 150 BUSINESS LEADERS IN THE FINANCIAL SERVICES INDUSTRY ACROSS EUROPE We wanted to really understand what is shaping the CCM strategy in Financial Services organisations over the next three years. We built up this picture with a single survey conducted within the UK, France and Germany*. We talked to business leaders in Finance, IT, Marketing and Customer Services in the Financial Services sector across Europe to find out their priorities and strategies when implementing future-proof Customer Communication Management (CCM) programmes. In total, 150 interviews were conducted with the C-suite and Directors of Finance (20%), IT (28%), Marketing (26%) & Heads of Customer Care centres (26%). Chief Financial Officers CMO Chief Marketing Officers CC Customer Care CIO Chief IT Officers 20% 26% 26% 28% KEY INSIGHT Communication strategies are changing over the next three years. Whilst CIOs are leading the charge to implement systems to deliver targeted marketing to individual customers, the major emphasis will shift in the next three years to focus on how customer information will be managed by the Marketing and Customer Care departments. * Conducted in November and December 2013 by Coleman Parkes on behalf of Canon Putting customers first 3

4 What are the top 5 goals in Customer Communications Management? Ambitions are high in Financial Services. A desire for building solid customer engagement positions customer acquisition as the highest overall priority for setting up a CCM programme. What are the driving factors behind this goal, and what other matters must firms consider today when building a sustainable engagement strategy? KEY INSIGHT At the core of any CCM programme is the ability to understand your customers at an individual level. This makes improvements in master data management a critical success factor. This can be seen in our results as the most unanimously agreed goal amongst s (83%), CMOs (79%) and Heads of Customer Care (85%). 4 Insight Report

5 TOP 5 GOALS IN CUSTOMER MANAGEMENT CIO 81% Acquiring new customers The ultimate goal for all firms is to build their customer base. The output for customers should result in an overall improvement in the quality of targeted marketing activity. CC 79% Understanding your customers preferences The quality of targeted marketing can only derive from a growing understanding of customer needs driven by better utilisation of personal information. The second overall goal here shows that firms are focused on customer needs, with a view to cross-selling financial products and growing their customer base across their portfolio. CC 70% Improving master data management Improving master data management is also a key factor in developing CCM programmes, more so in the UK (74%) and France (76%) than Germany (60%). Whilst sitting in third place, it is clear that this is the most fundamental of all the goals for firms across Europe. By having a strong grip on their master data, companies will be in good shape to turn this data into information (goal 2) and information into meaningful customer engagements (goal 1). CC 68% Retaining your customers Interestingly, customer retention bears less comparative importance but is still cited by 68% of all firms. With customers being spoilt for choice, the battle for retention is now played across more-channels with more product choice than ever before, making this an even harder win. CC 67% Cross-selling/up-selling to your existing customer base The fourth and fifth goal represent the positive outcome of getting the top three goals in place. It is unlikely this will come without creating a two-way dialogue with the customer first, however. It should also be considered that this dialogue will need to exist across multiple channels. Putting customers first 5

6 How is the customer communications landscape changing? THE SHIFT IN PRIORITISATION FOR THE CUSTOMER COMMUNICATIONS LANDSCAPE OVER A 3 YEAR PROGRAMME TOTAL Main drivers behind CCM priority 88% 1 76% More targeted communication CiO CURRENT TOP 5 PRIORITIES % 65% 59% Optimising workflows Gaining synergies through standardisation Multi-channel integration 74% 69% 74% CMO CIO 5 58% Leveraging customer information 77% CCO With the focus for firms currently emphasising customer acquisition, preferences and data, we wanted to establish next how organisations were intending to tackle their CCM programmes today and into the future. 6 Insight Report 2016

7 Below, you can see that priorities will shift in the coming three years. Not just in terms of what they will be, but also with regard to who will start the march today and who is set to take the lead in the future to secure this change within the business. The main drivers of this strategy are CIOs (84%) and CMOs (74%). However, looking to the future, CMOs are set to be the key stakeholders behind the optimisation of workflows supported by the who will support the drive to a more targeted form of communication. What does this shift tell us about the Financial Services market moving forward? It appears that overall, participants in our survey are focused on getting their targeted marketing programmes in place today. Assuming this plan pays off, the ability to create a closed-loop dialogue with the customer will be a major factor in customer communications over the next three years. CIOs are a catalyst for change today, and over the next three years move into a position to ensure execution of these core business processes are their focus. Main drivers behind CCM priority TOTAL CMO 77% Optimising workflows 79% 1 CIO 60% 67% 73% More targeted communication Multi-channel integration Automation 70% 64% 63% FUTURE TOP 5 PRIORITIES 87% CCO Gaining synergies through standardisation 61% 5 KEY INSIGHT Whilst CIOs are currently focused on implementing targeted marketing programmes, CMOs are increasingly concerned about the ability to create a closed-loop dialogue with the customer over the next three years. How well co-ordinated these two priorities are will indicate the measure of success in the future. Putting customers first 7

8 What are the core activities and resources required to deliver change? CMO 74% Incorporate the design of the pre-sales experience Define and operationalise customer-centric business rules and decisions 65% Our survey has established the strategic goals and business process changes required to deliver transformative CCM programmes. What must be done tactically to ensure success and who is taking responsibility for these activities? As can be seen above, the key to making CCM competitive, relies on how customer data, and the information derived from it, is applied at all customer interactions. From pre-sales communication, through to managing the dialogue with the customer across multiple channels, we can clearly see the CMO is leading this activity. Interestingly, the champions the need to operationalise business rules and decisions made within the CCM programme, whilst the CIO is focused on opening up more channels of communication. 8 Insight Report 2016

9 KEY INSIGHT Whilst activities surrounding customer communication and engagement are clearly dominated by the marketing function, they do not stand alone in this programme. Without s establishing customer-centric business rules and CIOs implementing multi-channel touch points, CCM programmes would not reach their full potential. CMO Use the output of customer interactions to refine future treatments at a customer level CIO Implement customer touch-points across channels, organisational boundaries, and technologies 63% 62% How will CIOs resource this transformation? We asked CIOs and infrastructure professionals in Financial Services firms which of the following activities took up the most resources when implementing CCM transformation programmes. We can see that the top two areas to resource are information security and workflow management. The strict regulations governing these organisations play a huge role in these priorities, but also the IT department will have the challenging task of connecting multiple legacy systems together, including input and output channels, in order to create a seamless customer communications experience. Information Security 29% Workflow Management 27% Information Follow-up 16% Disaster Recovery/ Business Continuity 15% ERP System Integration 13% Putting customers first 9

10 Challenges Whilst our analysis of the changing trends shows the importance of more targeted marketing, optimising workflows and insight from customer responses shaping future communications, it is also clear that success in these areas isn t guaranteed. Below we take a look at the top challenges facing Financial Services organisations today when embarking on customer-centric transformation programmes. Main influencing party: Customer Care Officers with of the vote 64% 74% stated Multi-channel communications We deliver multi-channel inbound and outbound communication services on a platform that maps targeted customer s channel preferences. 74% stated Providing analytics on customer data 59% stated Information Security Main influencing party: Chief Information Officers with of the vote 50% We provide management information tailored to clarify and make sense of customer data. Main influencing party: Customer Care Officers with of the vote 56% We ensure complete operational compliance to various internationally recognised standards (ISO 9001, ISO 27001, ISO 22301). 56% stated Providing a standard service across multiple divisions 51% stated Automation / straight through processing Main influencing party: Chief Information Officers with of the vote 83% We ensure consistent high quality service across end-to-end processes, both locally and in selected shared service centres. Main influencing party: Customer Care Officers with of the vote 81% We are a flexible service provider who can deliver services that improve cost efficiency and productivity. 10 Insight Report 2016

11 Areas of focus in the next year By understanding your organisation s ability to manage customer analytics, deliver messages over multiple-channels, whilst operating within a framework of restrictive regulations and ever-changing information security requirements will be key to success in the mid-term. We can see communication strategies in Financial Services are changing across Europe over the next three years. THE STAGES OF DIGITAL TRANSFORMATION NATIVE DIGITAL Digital foundations Omni channel including mobile Process automation or outsourcing where possible Paper is only used when required by regulation or consumer DIGITAL MATURITY PHYSICAL Paper based Physical document handling, partially outsourced Business process on paper documents Basic levels of digitisation (?) HYBRID Traditional digital Enabling multichannel communication Outsourcing document handling Business process based on digitised documents Turning your customer data into usable information Understanding your customer at an individual level is crucial and ensuring you achieve that requires all divisions within the organisation to come together to face this joint challenge. Accordingly, improvements in master data management will be a critical success factor for any CCM programme. Prioritise transformation of organisational workflows Whilst some firms will struggle in the short term to manage customer data, others need to focus on how this data is processed throughout the company. Management of mass outbound and inbound communication across multiple channels will become more customised and workflow management will become the key success factor to ensuring a sustainable CCM programme over the coming years. Company-wide focus on delivering better customer communications Customer acquisition, retention, cross selling, and cost efficiencies in organisational workflow are all rewards for achieving a competitive CCM programme, all of which require enterprise-wide focus. Finance teams need to work with Marketing to improve decision making at the process level, whilst the IT department must work with Marketing and Customer Care ensure the customer experience is consistent across all channels. Canon can provide the process, software and outsourcing solutions to help with any stage of your digital transformation. Putting customers first 11

12 Canon Inc. Canon.com Canon Europe canon-europe.com Canon Europe Ltd 3 The Square, Stockley Park, Uxbridge, Middlesex UB11 1ET UK English Edition Canon Europa N.V., 2016 #insightreport