Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1 The J.D. Power service marks...

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.1 The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

Monetizing CX Through Customer Satisfaction for Financial Services

Voice of the Customer

Customer ExperienceEmpowering People, Empowering Brands

Oracle OpenWorldSeptember 25, 2013


THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL PRODUCT DIRECTION. IT IS INTENDED FOR INFORMATION PURPOSES ONLY, AND MAY NOT BE INCORPORATED INTO ANY CONTRACT. IT IS NOT A COMMITMENT TO DELIVER ANY MATERIAL, CODE, OR FUNCTIONALITY, AND SHOULD NOT BE RELIED UPON IN MAKING PURCHASING DECISIONS. THE DEVELOPMENT, RELEASE, AND TIMING OF ANY FEATURES OR FUNCTIONALITY DESCRIBED FOR ORACLE'S PRODUCTS REMAINS AT THE SOLE DISCRETION OF ORACLE.

The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission


Welcome and Introductions

Panel

– Rocky Clancy, JDPA, Practice Lead, Financial Services

– Mark Garrett, JDPA, Research Director, Insurance

– Paul Dolbec, Oracle, Industry Director, Insurance

– David Wright, Oracle, Industry Director, Financial Services Moderator

– Mark Carberry, Oracle, Global Client Advisor


Your customer knows what drives a positive experience. JD Power provides customer insight, Oracle enables the actions to deliver it. Insight. Action. Impact!

Making Voice of the Customer Actionable Operationalize the value of “world class research” Tracking CX Requires Metrics – VOC is the metric for CX

If you can’t Measure it you can’t Manage it

• Insight• Independence• Integrity

• CX Solutions• Analytics Infrastructure• Customer Execution Data

Why does CX bring JD Power and Oracle together?

Customer Impact


Research & Insight Process & Execution

Client Execution

Present “Next Best” Action for

Customer

Continuous research & execution process

Intercept for Reaction

• CX Solutions• Customer Intercepts• Analytics Infrastructure

• Measure • Understand• Improve• Recognize

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.6

Agenda

CX Matters –What to Do about It: Research Based Insight

Oracle & JD Power – CX Solution Framework



Problem = Grow the business in the face of a challenged business environment

Critical Success Factors: Customer needs and preferences, in terms of product, pricing, channel, and service levels, at a customer

segment level – i.e., what are table stakes and what’s going to give me the winning hand? What is the financial impact of meeting or not meeting particular segments’ level needs and preferences so I

know how to prioritize? With rapid shifts in channel development, preference, and usage, what does my distribution infrastructure need

to look like in 5 years and how do I stage the build? To keep up with the continued changes, how do I create a feedback loop that’s giving me more rapid input from

more of my customers at a reasonable cost?

CX Strategies

Focus on Target Segments

Capture the Changes in the Environment

Act with a Heightened Level of Precision

Leverage Technology



Points of View

20%

Executives estimate that their potential revenue loss for not offering a positive, consistent, and brand-relevant customer experience is 20% of their annual revenue, or $400M for a $2B firm

of executives state that improving the customer experience is one of their organization’s top three priorities in the next two years

of executives believe that delivering a great customer experience is critical to their business advantage and results

93% 97%

Survey Site Full Report Benchmark Tool


http://event.on24.com/event/56/45/37/rt/index.html?target=lobby.jsp&eventid=564537&sessionid=1&key=82A3FA8149D68C4357BDC987AD9C8958&eventuserid=87443642

http://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=564537&sessionid=2&key=82A3FA8149D68C4357BDC987AD9C8958&eventuserid=87443642&lobby=http://event.on24.com/event/56/45/37/rt/index.html&autoreg=true&std10=2&partnerref=undefined&param1=PPT_OKeefe&sourcepage=register

https://cx.oracle-dashboard.com/en


The Business Benefit of CX

95%Actual Retention1

14.4%Acquisition Cost2

Financial Return by Insurer Satisfaction Tier

38%Will not Switch for Any Price

1: Source: 100,000+ households screened by J.D. Power and Associates 2012 Insurance Screener Study2: Standard and Poor’s; Based on 2011 statutory findings—Insurance Express Exhibit (Part III) od NAIC’s Annual Statement

88%

84%

17.3%

20%

24%

17%

High SatisfactionAverage SatisfactionAmong the Rest



Dissatisfied (below 550) Indifferent (550-749) Pleased and Delighted Cus-tomers (750+)

$6

$8

$10

$12

$14

$16

$18

$20

0

1

2

3

4

5

6

$14.7 $14.6

$17.7 4.34.8

5.1

0.600000000000001

1.1

3.7

Annual Premium # of Products # of Recommendations

Customer Satisfaction Tiers (Index scores)

An

nu

al P

rem

ium

(00

0)

Source: J.D. Power 2013 Small Business Commercial Insurance Satisfaction Study

At the respondent level, high satisfaction can lead to deeper product penetration



7.1%

5.1%

2.0%

-0.2%

5.5%

4.2%

1.5%1.1%

-2%

0%

2%

4%

6%

8%

10%

Continuously Satisfied(High Sat in 2008 & 2011)

Improved Satisfaction(Low Sat in 2008; High Sat in 2011)

Declining Satisfaction(High Sat in 2008; Low Sat in 2011)

Continuously Dissatisfied(Low Sat in 2008 & 2011)

Assets Under Management Gross CommissionsImpact of Satisfaction on Growth of AUM and Gross Commissions

Gro

wth

(2

00

8 –

20

11)

In another proprietary study, financial advisor performance was stronger when satisfaction was higher and/or improving



The association between respondent level satisfaction and share of wallet is clear

Source: J.D. Power 2010-2012 Retail Banking Satisfaction Study – 15 largest banks

Share of Wallet and Retail Banking Satisfaction Among 15 Largest Banks 2010-2012

13%16% 17% 23% 23%

26%31%

39%

49% 51%57%

64%68%

71%76%

79%

50%* 49%

57%60% 61%

70% 70%

0%

20%

40%

60%

80%

100%

0%

10%

20%

30%

40%

50%

< 300 300 - 399 400 - 499 500 - 599 600 - 699 700 - 799 800 - 899 900 - 1000

Sh

are

of W

alle

tP

erc

en

t o

f C

usto

me

rs

Overall Satisfaction Share of Investments Share of Deposits Share of Borrowing Accounts



…And have direct impact on servicing costs

Assumptions: 97% use a non-automated channel to interact, an average CSR can handle 6.5 contacts per hour, an average work year of 1,750 hours, and average cost per full time employee is $75,000

18% Problem

Incidence

A 5 point reduction in problem incidence equates to 16 full time employees for every 1,000,000 customers

1,000,000 Customers

2.5 Problems Per Customer

81% Contact

1.9 Contacts Per Problem

671,774 Total Contacts Per year

In-person Online chat/email

Call centerWebsite



Good CX management recognizes that “satisfaction” is not a goal unto itself

What types of client behavior are likely to be positively impacted if a you have high client satisfaction?

Which levers of financial performance are those behaviors likely to move?


Know what you stand for: Define your value proposition

For whom are you doing what?– Target customers

– Tickets to admission

– Winning hand

Why should customers do business with you?

What do you have that no one else does?

What problems can you solve in a sustainably differentiating way?


CROSS CHANNEL ENGAGEMENT IS THE NEW NORMAL

Browse Web Site

Comparison Site

WebSearch

Ask Facebook Friends

Visit Branch

Chat

Email Order Confirm w/Rec

Visit Branch

Tweet AboutPurchase

Experience

Read Reviews Ask for Help on Community Chat Room

Product Info

Order Online

Kiosk

Change Order

Select Product

Complete Order Online

Call for Info about Packaged Services

Research Select Buy Use RecommendReceive

The issue is how to manage the experience across so many touch points


BuyMarket & Sell

OwnSupport & Service

Use the Lifecycle to Guide CX StrategyAligning the ‘brand promise’ with the ‘brand execution’

Differentiate Orchestrated Experience > Profitability, Brand Equity, Enterprise Agility


Where Brand Promise Meets Brand Execution >> Monetization

Complete Customer Experience Engagement

#3: Contextual Journeys

Know the financial impact of my CX initiatives

#5: Interaction PrecisionStructure a continuous improvement process, and ongoing maintenance

#4: Continuous Monitoring

Ongoing CSAT Sampling & Analysis

#7: Mobility / Location Services

Leverage channel expansion and ubiquitous access

#6: Fulfillment Updates

EXECUTE (People, Process, Technology)

#10: Social Networking

Align social interactions to my Brand strategy

#8: Efficient Customer Support

Leverage KPI’s which make a difference in my business by LoB, segment, etc.

#9: Enduring LoyaltyUnderstand my lifetime value/CSAT

performance; Align CSAT and Loyalty, Rewards and CX programs

#1: Value EquationImprove Shareholder value, Revenue pressure, Scarce resources, Changing customer, competitive and customer

dynamics

#2: Industry BenchmarkingCompare to my Competition in CSAT

#11: Operational data access

Align CSAT to my desired Brand strategy; Which customers and prospects do I invest

in…



Research & Insight Process & Execution

Continuous research & execution process

Intercept for Reaction

• CX Solutions• Customer Intercepts• Analytics Infrastructure

Operational Information

Capture

Customer Profile & Propensities

Process & Tools for CX Delivery

How do I internally incent the

“right actions”

• Measure • Understand• Improve• Recognize

Where do I rank competitively? (Benchmarks)

What is important

to the customer?

What do I need to do to get better at what is

important ?

Client Execution

Present “Next Best” Action for

Customer


FRAMEWORK: Making Voice of the Customer Actionable

Next Action

(Presented to Customer)

Customer Profile, Sentiment &

Attitude

Segment Analysis

Organization Insight

Benchmarking

Tracking

Consulting & Training

Performance Implementation

Data Services

Analysis

Awards (Certification & Brand)

Cross Channel Execution

Marketing, Sales & Service

Social Monitoring & Engagement

Customer Data Management

Business Intelligence

Business Process Enablement

Structured & Unstructured Data


Representative Solution Architecture

Treatment Analysis Treatment Development

Interaction Detection

Treatment Presentation Execution

An

alyt

ical

Fra

mew

ork

Marketing

Data Modeling

Data Warehouse

Finance & Risk

Interaction Management

Cross Channel Execution

Interaction Manager• Channel Determination• Interaction Type• Treatment Strategy• Lead Arbitration

Treatment Determination Rules (Determination & Real Time Prediction)

Treatment Plan

Service

Retention

Cross-Sell

Loyalty

Channel Format

Content Repository

TreatmentExecution

Lead /Treatment RepositoryOffers & Response History “Feedback Loop”

Customer Profile Interactions PropensitiesCustomer Monitoring Triggers/Events Channel Preferences

ECIF Profile Real Time

Web/Social


23

Continuous Survey

VOC Propensity

Segmentation & Benchmarking

Additional KPI & Profile

Attributes

Performance Implementation

Certification & Brand



What is Your Solution Objective?

Deliver actionable customer insights from all sources of xChannel data

Enable profitable outcomes at the time of each interaction for acquisition as well as retention

Help me discover and reveal patterns that will drive differentiation

Provide me with the data that will sustain and grow my Brand

Allow me to detect and act upon my customers’ digital body language across the value chain


Sample Initiatives: Insight through Digital & Analytical Rigor

Seamless Voice of the Customer Capture - Real Time Feedback

• Survey Dispatch: More Frequent & In Context• Leveraging More Frequent Interactions• Understanding the “Story” of interactions• Digital Intercept

Closing the loop; Strategy-Operations-Improvement leveraging a VOC Profile

• Enabling Interaction/Treatment Optimization• Problem Type Detection• Mapping the Journey

Collect, Process, & Analyze, Customer Interactions & Transactions

• Aligning Events & Outcomes• Understanding the impact of issue resolution• Increasing Analysis of Unstructured Data• Ongoing KPI Impact Analysis

What Really Matters (CX PoV) • Perception vs. Reality• How to best execute• ROI & Relative Priority• KPI-Driven Prioritization


Starting Points

1. J.D. Power Studies and Metrics2. CX Data & Processes 3. Client Operational Systems

VOC/CX ASSESSMENT Continuous Incremental Feedback Augmented CSAT Analytics INSIGHT/ACTION/IMPACT

1. Customer Journey Mapping2. In-process “survey” instruments (bread crumbs)3. Recommended Impact Points4. Value Quantification - Financial Model


Audience Questions & Additional Panel Discussion


Call to Action

How does a potential or existing client engage with J.D. Power/Oracle? What is the next step for an interested company?

Contacts:

– J.D. Power: [email protected]

– Oracle: [email protected]

mailto:[email protected]

mailto:[email protected]

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1 The J.D. Power service marks...

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