Gap analysis of customer centricity

Transcription

1 DANSKE BANK A/S Gap analysis of customer centricity Danske Bank vs. Mandarin Oriental Hotel, Tokyo,, 1/6/2012 This paper is an analysis of the customer meeting process, defined by three steps: Before, during and after. We compare the Danske Bank process with the process at Mandarin Oriental Hotel and focus on gaps in each stage. We have found differences in company cultures and the way the two companies use their CRM systems, which has a significant impact on the customer perspective.

2 Introduction This assignment is a part of our PMD participation through 2011/12. The topics of the assignment are to: - Research on customer focus in Danske Bank Group - Research on customer focus in Mandarin Oriental Hotel The purposes of the assignment are: - To revisit the way that Danske Bank Group is meeting/is in relation with/is partnering with their customers. - Getting ideas, new perspectives, tapping into different mindsets and values regarding understanding customers. Investigate how customer centric organizations are handling / thinking of / perceiving / talking of their customers. What makes them special? - Get inspired and learn of possible new or additional and alternative ways of understanding and handling our Danske Bank customer relationship in the future. Scope In our assignment we focus on the customer focus that Danske Bank DK (DBDK) provides its customers on a physically advisory meeting. We focus on meetings with private customer s held in a traditional branch. We have divided the meeting into three stages: - Before - During - After Dividing the meeting into three stages matches the structure that DBDK uses for guiding/training their advisers and it gives a platform for making gap analysis with a company that we believe are having a customer centric mindset. We want to investigate what DBDK does in the three stages to secure the exceptional customer experience, and to describe the content of each stage in order to compare with another company. We want to identify significant value creating gaps between the two companies finding suggestions for a more customer centric mindset. The organisation we have chosen to compare DBDK with is Mandarin Oriental Hotel, Tokyo (MO). MO is chosen, because we have knowledge of the hotel being very customer centric. Having investigated MOs website and Tripadvisor 1 we find this confirmed. The gap analysis is based on data stemming from our own knowledge of customer meetings in DBDK and the information located on the Mandarin Oriental Hotel website and reviews. Out of Scope Topics not to be handled in this assignment are: - Meetings with other types of customers, e.g. corporate customers. It is not in scope to find out how DBDK differentiate customer focus between customer types. - DBDK divides customers into segments for example by earnings, credit worthiness, etc. A consequence of segmentation is that there are different degrees of service to individual segments. These differences are not to be investigated. 1 Tripadvisor is provided solely to assist customers in gathering travel information, posting opinions of travel related issues, engaging in interactive travel forums and for no other purposes 2

3 Analysis of customer focus in Danske Bank We will focus on DBDKs value added meeting structure, created for private customers when meeting advisors in their local branch. DBDK has implemented a procedure when targeting/meeting customers. This procedure has been adjusted several times as a result of DBDKs MOT (customer questionnaire Moment of truth ). Feedbacks obtained from customers are processed into DBDKs way of meeting/targeting customers. The process contains: Before the meeting: The advisor calls the customer prior to the meeting and confirms the meeting, to align the customers expectations and needs. The advisor asks for relevant documents and sends a meeting confirmation via or letter. Before the meeting the advisor will prepare relevant presentations and gain an overview and perform various calculations, thus building the agenda. During the meeting: Conference rooms are equipped with modern technology such as flat screens and online calculation tools. When the customer enters the room the first slide of the presentation will show the customer name and welcome message. During the meeting the advisor will present the agenda and align this with the customers expectations. Then the advisor will proceed and presents possible solutions that fits the customers needs. Once the meeting ends, an agreement is drafted stating solutions, deadlines and responsibilities. When the customer has left the bank, the Know Your Customer 2 profile will be updated in CRM-system and filed with minutes from the meeting. After the meeting: Based on input from the meeting the system orders relevant documents and next action date will be updated in CRM. If delays occur, these are communicated to the customer, and the advisor or IT systems will follow up on the customer when documents are sent. DBDK s CRM system will, based on the data input, inform advisors about possibilities suitable for the customer, i.e. mortgage change (interest related), pension changes, investment solutions etc. This is important input to advisors. This indicates that DBDK has an inside-out approach 3 to customers. The CRM system identifies which customers to call about a certain product. They are basically being told by the CRM system who to call. DBDK has set an overall target to be number one in Denmark, in regards to customer satisfaction. To measure the satisfaction the customer receives a MOT questionnaires a few days after the meeting. Results from MOT are analyzed and improvements are implemented in order to provide even better service. MOT scores are important input to performance evaluation of each advisor. In case of MOT scores below a certain level, an action plan is agreed upon with the branch manager. Therefore satisfactory MOT scores is an important goal for each advisor. Analysis of customer focus in Mandarin Oriental (MO) MO is a hotel group that focuses on deluxe and first class hotels. We will focus on MO hotel in Tokyo, because the hotel is ranked no. 1 on Tripadvisor. MO are committed to exceptional service, where customers are the first, second and third priority. Customer centricity is key, and MO states in their 2 Know Your customer: In line with Anti-Money Laundering legislation, the Bank is required to classify our customers from a money laundering perspective and subsequently to monitor our customers transactions using a risk based approach. 3 Harvard Business Review: Silo Busting - How to Execute on the Promise of Customer Focus by Ranjay Gulati 3

4 mission: We will strive to understand our customer and guest needs by listening to their requirements and responding in a competent, accurate and timely fashion. We will design and deliver our services and products to address their needs. In fact, we are committed to exceeding their expectations by surprising them with our ability to anticipate and fulfill their wishes. In order to understand the practical implications behind MO mission, we have decided to look into MO customers review (reviews from tripadvisor.com) combined with the hotels internet page. The analysis is designed in the same structure as the view on DBDK s value added chain; before the guest arrives, during the stay, after the guest leaves the foyer. Before arrival: There are two ways of making bookings at the MO hotels; online booking or call/write the hotel. When a guest decides to book their stay online, the guest will be presented with several choices. Room size and quality, add-ons like welcome amenities, pre-booked dining, and wellness treatments. As a customer you will be asked for additional information - is the stay business or pleasure?, special requests and arrival data and form - presumably in order to align with needs for guidance. When you call the hotel you will be greeted by a friendly receptionist on both the local language and English, and the same offers as the online booking will be presented. During the stay: Unlike typical hotels, MO in Tokyo is located on the top 9 floors of a 38 floor building. Customers will be greeted on the main floor; however the main lobby is located at the 38th floor. The hotel staffs are briefed about all new guests on the day, and in customers reviews they state that the greeting are personally and by name or welcome back greetings. In order to give the customers the best possible experience the staff arranges tours, guides on transportation, restaurants advice and booking etc. If the concierge somehow sees that a customers does not need a booking, the concierge will, on own initiative, very kindly cancel the booking. One guest example is a breakfast waiter that occasionally brings food items not available on the breakfast buffet, just to let the customer taste it. o Reading the customer reviews you will see comments as: The Mandarin Oriental in Tokyo is the kind of hotel you feel lucky to stay in. This is now my favourite hotel in the world. Outstanding comfort, service and style. After the stay: On departure day the staff will make sure that checkout is quick and smooth. The bell captain will do the outmost to assure that their customers further journey is pleasant, i.e. order taxi, arrange airport limousine, advise metro line etc. and to some extent make the impossible possible. Management of MO will read the guests reviews and send responds to poor reviews. If the review turns out to be negative and with valid points, the management will make sure that the customer will have upgrades with the next stay. The mission statement and the company culture, indicates that MO has an outside-in customer perspective 4. The before-during-after process is centred around making the customer feel welcome an to exceed the customers needs and expectation, exemplified by the manager greeting the customer personally or the manager calling customers who gave a negative review. Gap Analysis In order to analyze the wide gaps, one must bear in mind that the two companies are different in many ways. They operate in different industries and have different target groups. 4 Harvard Business Review: Silo Busting - How to Execute on the Promise of Customer Focus by Ranjay Gulati 4

5 Setting the differences in industry and target group aside, when it comes to customer service, there is no right or wrong, just the customers perception of the service he is provided. Looking into the customer service level in the two companies, we have found some major value moments in both companies. We have divided these moments, or gaps, into an before, during and after service structure, charted below. Stage Before During After Danske Bank Proactivity and alignment Solutions are tailored to fit Follow up dates, MOT and next sale Mandarin Oriental Gathering information Value added client experience - linked to the information gathered Client in focus experience until you have left - "you" can rate us if you want Gaps Proactivity vs. information gathering Solutions vs. experience Please rate us vs. feel free to rate us.. Before: DBDK are proactive, calling the customer and make sure of the alignment of expectations, thus making it possible for the advisor to prepare properly for the meeting. This is done to, not only understand the customers financial situation, but also to ensure that it is possible to provide correct advice and that time is not wasted. Often customers need to leave their place of work to go to the local branch. MO is gathering useful information, in order to provide tailor made service for the customers. The menu card of MO services are open, and customers can order a la carte, however this also informs the customer about what to expect and what not to expect. Often customers will have time to order additional service, such as a sightseeing tours or exclusive dinners. The gathering of data also allows MO to anticipate their customers needs and to provide highly personalized service. In both cases, the company s CRM systems are used in the Before stage. DBDK is using the CRM system to be proactive. The system provides advisors with information about who to call and why. MO uses their CRM system to, not only identify a customer and personally great him by name, but also to build a profile of the customer, which is the basis for selling additional services. Thus the CRM system is crucial to provide, what the customer perceives as personalized service. During: DBDK are working with solutions that can be fitted to the customer s needs in a professional manner. The advisor must ensure that the customer leaves the bank satisfied, but must also take great care in not providing solution that might lead to bankruptcy, otherwise the bank will loose money. So, saying no to a customer, is also part of the advisors job, and is a crucial part of providing financial advice. MO are working with beyond expectation value creation moments. The information MO has gathered on beforehand are used to personalize the service, and small things are added in order to create experiences something to tell to a friend. Saying no to a customer, is not an option. If a customer asks for a certain service, MO will deliver, thus creating valuable moments. After: At DBDK, once the agreed agenda has been completed and next steps and follow up dates are agreed, it is possible for the advisor to address additional needs. If possible the CRM system will 5

6 provide selling points for the advisor or if the CRM system doesn t provide selling points, the advisor will ask the customer. Sometimes this has a positive outcome, and the advisor has the opportunity exceed the customers needs. Finally the advisor will inform the customer about the MOT-analysis, and ask the customer to answer the MOT. MO will make sure that the experience are kept positive, by providing service until the customer leaves the hotel. After the stay it is up to the customer to pass the experience on to others, to rate the hotel on the internet or to prepare their next stay. Poor ratings are handled differently. If customer answers negatively on the MOT-analysis, the individual advisors performance targets are affected. No follow up towards the customer is performed, and the data is not stored in the CRM system. If MO is rated poorly, it becomes an issue for management, who will contact the customer and will respond and ensure that the next time the customer is in the hotel her or she is upgraded and all responses are stored in the CRM system. Conclusion In conclusion, we have identified key value creating moments that separate Danske Bank DK and Mandarin Oriental Hotels, Tokyo. By analyzing the before-during-after process of a physical encounter, we have identified a significant gap in the way the CRM system is used. DBDK uses the CRM system as an indicator of who to call and why. This is part of what makes DBDK proactive, when trying to reach customers and addressing their needs. However there seems to be a lack of feedback loop, ensuring that all data received from the client is used before, during and after a meeting. MO uses their CRM system primarily before and after a visit. The system ensures that the staff can provide a highly personalized service, which lays the foundation for the fulfilment of their mission exceeding their expectations by surprising them with our ability to anticipate and fulfill their wishes. Thus a rigorous usage of the CRM system, helps them to exceed their customers expectations during their stay; evidenced by the comments on tripadvisor. We have found that MOs culture is very customer orientated based on a long tradition on serving customers. This combined with management leading and pushing customer centricity reinforces their ability to outlive their mission. A similar approach in DBDK where management pushes and drives customer centricity i.e. personally greetings etc for customers combined with aligning internal processes towards customer focus instead of personal goals will help DBDK fulfill their mission of being number one and shift the customer perspective. In short: It is our opinion that combining a customer centric culture with and rigorous use of CRM system, DBDK will create a platform for delivering value creating experience for customers. 6