What Are You Missing In Your Digital CE Program? Helping You Make Smarter Business Decisions Webinar March 25, 2015 2015 Greenwich Associates, LLC. Javelin Strategy & Research is a division of Greenwich Associates. All rights reserved. No portion of these materials may be copied, reproduced, distributed or transmitted, electronically or otherwise.
Jacqueline Vose Senior Vice President, Customer Experience Greenwich Associates Mary Monahan Executive Vice President & Research Director Javelin Strategy & Research Today s Presenters
Today s Focus Making Your Digital CE Strategy a Priority Proof Points: Digital Trends in Banking The Evolving Service Landscape Uncovering What s Missing: Recommendations Top 5 Digital Strategies to Start Today 3
Digital Strategy is a Priority Every organization that makes customer experience a top priority needs a strategy for its digital customer interactions that will satisfy customer needs, drive corporate strategy, and build the brand. Don t stop at the human interaction. Always consider the digital interaction. Break away from the traditional belief that digital interactions do not matter. Ensure there is a connection between your bank s customer experience strategy and the digital strategy. 4
Proof Points Digital Trends In Banking 5
Percent of consumers Online Banking Is Highly Adopted But Appears To Have Peaked 100% 90% 80% 84% 73% 79% 74% 85% 80% 70% 60% 50% 40% 30% 20% 2009 2010 2011 2012 2013 2014 Q11. Please indicate the last time you personally conducted the following activities at your primary bank: Logged into online banking. August 2009 to August 2014, n = varies; 1,859 to 3,084. Base: Consumers with a PC and financial account. 2015 Javelin Strategy & Research 6
Smartphones Have Exploded In Popularity Tablet Adoption Is Rising Even Faster 7
More Customers Are Touching The Bank Through Mobile Banking 8
2 in 5 Customers Say That Digital Banking Is Sufficient For Their Banking Needs 9
Who Are Mobile Bankers In the U.S. Gen Y.1 (18 24) Gen Y.2 (25 34) Student Hispanic/Latino Smartphone Moneyhawks Mass Affluent Core Affluent $75k to $100k $100k to $150k $150k + Mobile Bankers 16% 32% 8% 21% 91% 25% 19% 12% 16% 21% 9% All Consumers 12% 21% 6% 15% 68% 14% 17% 10% 14% 16% 7% 2015 Javelin Strategy & Research 10
The Evolving Service Landscape What You Need to Know 11
The Evolving Service Landscape Changing technology adoption requires rethinking your CE strategy to ensure it goes beyond human to human interactions Experiences must meet customers evolving expectations. The proliferation of devices is changing user experiences. When companies focus on understanding their customers' needs, aspirations, and behaviors, they can uncover and improve the most critical parts of the digital experience. Digital is an opportunity to differentiate yourself create a positive user experience. 12
8 Times As Many Younger Customers Switch Banks For Mobile 13
Gen Y Has Different Banking Requirements 14
Moneyhawks Are The Financial Institution s Most Valuable Asset They Represent 13% of the U.S. Population Yet they control... They are 2.8x more likely to be at risk of switching banks Moneyhawks control 72% of deposits held by potential switchers (and 71% of investable assets). 15
High Value Moneyhawks Engage More In Multiple Channels Not Just Online And Mobile Moneyhawks Emergents Traditionalists Online banking 87% 85% 92% Mobile banking 83% 63% 20% Branch 75% 57% 67% ATM 82% 68% 59% Phone customer service 49% 23% 17% Online chat with customer service 42% 14% 2% Transfer funds at FI website 70% 50% 53% Transfer funds using FI mobile app 59% 33% 8% Pay a bill at FI website 74% 51% 64% Pay a bill using FI mobile app 60% 27% 6% Mobile deposit 55% 23% 6% Opened a checking account online or with a mobile device (past two years) 29% 14% 3% 16
All Wealthy Customers Are Early Adopters of Technology Tablet Ultra-high net worth High net worth 64% 64% Core affluent 73% Mass affluent 68% All consumers 53% Smartphone Ultra-high net worth High net worth 71% 75% Core affluent 87% Mass affluent 81% All consumers 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Percent of consumers Q7. Please select the products and services that you personally own and use from the list below: Tablet and smartphone displayed. May 2014; n = varies; 135-5,956 Base: All consumers, by segment. 2014 Javelin Strategy & Research 17
The Affluent Control Primary Accounts At Risk That Can Be Won With A Nuanced Digital Strategy DEFINITIONS: Mass affluent: $100K to less than $150K in annual income Core affluent: $150K and more in annual income High net worth: Investable assets of $1 million $5 million Ultra-high net worth: Investable assets greater than $2 million 18
Declining Weekly Branch Visits % Of Customers Visiting Your Branch on A Weekly Basis Is the branch dead, or simply transforming with the addition of new banking channels? Customers still expect their bank to satisfy their needs and support a standard brand in digital channels 19
What Are You Missing In Your Digital CE Program? Recommendations 20
Empower Your Customers With An Omnichannel Customer Experience ONLINE ATM BRANCH CUSTOMER CALL CENTER MOBILE 21
Bring Customer Experience to the Table A best in class CE program is part of the corporate strategy. The corporate strategy includes every channel a customer could leverage. If customer experience is not on the minds of your partners, drive that behavior by forming a CE Council. Leverage the CE Council to address customer feedback directly, particularly that feedback on digital channels. 22
Get Engaged You represent the customer. Get engaged. It s not only IT driving technology choices today. Institute a standing CE position on all IT projects that are customer impacting. Remove Silos T T I I a elin trate y esearch 23
Listen to Your Customers Best In Class Customer Experience Solutions Consulting Customized Roadmap Software Data Collection 24
NPS Support an ROI Strategy Best in class CE programs focus on return on investment (ROI) CE is a non-negotiable in today s banking world Customers look for digital ease and expect the same stellar experiences in self-service channels Satisfied customers drive shareholder value. Sample Bank Customer Experience Measurement Sample Bank Share Price History 2002 2003 2004 2005 2006 2007 2008 2009 2010 Oct 02 Oct 12 25
Create a Roadmap Customer Experience is an evolution of a culture Digital technology is also an evolution of a service You can partner with technology teams to influence digital if you have a realistic view of the two strategies Take the time to create a road map for the year, ideally the next three years, to understand how customer experience and digital can align 26
5 Digital Strategies How to Bring CE Insight to Digital 27
5 Priorities For Bringing CE Insight to Digital emove the obstacles standing bet een your customers and their ob ectives P ra t an e erience or each customer based on his or her uni ue ro iles T TU Use data to see the story behind individual actions T Provide instant everything loading s eed ayments re ards and eedbac I T T a e it easy or consumers to move bet een channels to ards their goals 28
Thank You Thank you for taking the time to attend our webinar today. Additional information or questions contact: Jacqueline Vose jacqueline.vose@greenwich.com Mary Monahan mmonahan@javelinstrategy.com ContactUs@greenwich.com Please take a moment to let us know what you think. (Optional survey will appear) Greenwich Associates, is the global leader for the financial services industry, providing authoritative market data, insights and consulting solutions to senior financial professionals worldwide. www.greenwich.com 2015 Greenwich Associates, LLC. Javelin Strategy & Research is a division of Greenwich Associates. All rights reserved. No portion of these materials may be copied, reproduced, distributed or transmitted, electronically or otherwise, to external parties or publicly without the permission of Greenwich Associates, LLC. Greenwich Associates, Competitive Challenges, Greenwich Quality Index, Greenwich Greenwich I and Greenwich Reports are registered marks of Greenwich Associates, LLC. Greenwich Associates may also have rights in certain other marks used in these materials. 29