Jaime fitzgerald on data driven customer experience in financial services and beyond
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Transcript of Jaime fitzgerald on data driven customer experience in financial services and beyond
Data-Driven Customer Satisfaction
Zohar Swaine, TD Ameritrade Institutional Jaime Fitzgerald, Fitzgerald Analytics, Inc.
Architects of Fact-Based Decisions™
This material is designed for an investment professional audience, primarily Registered Investment Advisors (RIAs) and is for illustrative and informational purposes only. TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2011 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission. TD Ameritrade and Fitzgerald Analytics are separate and unaffiliated companies and are not responsible for each other’s policies and services.
2 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Trading Investing Advice
Approach to Serving the Individual Investor
Multi-Channel
Delivery Web Phone Branch RIAs
Full range of trading products, tools, and information; planning services; investment
and cash management products
Products/Open
Architecture
Client Needs
Education
TD Ameritrade — Overview
3 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
-20%
0%
20%
40%
2005 2006 2007 2008 2009 2010E
Client Asset Growth: RIA Retail AUM vs. Wirehouse Retail AUM
35 pts
Independent RIA Model Gaining Assets
Sources: Cerulli “State of the Wirehouses” – Nov ’09, “RIA Service Agent Survey” – Q2 ’10, “Advisor Metrics” – 2010 Update. RIAs include dually registered advisors. 2010E represents estimated results based on
industry publications, public filings, and TD Ameritrade internal analysis.
RIAs Wirehouses
+39%
+4%
The RIA Model is Winning
4 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
‘The problems of victory are more agreeable than those of defeat, but they are no less difficult.’ -Winston Churchill
5 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Our Moment of Truth: Growth Led to Declining Satisfaction with Service
Customer Satisfaction
Customer Loyalty
Asset Growth
Profitability
Growth / Scale
System Complexity
Competition
Expectations
Effects
Consequences Causes
In ‘07-’08, Customer Satisfaction Declined*
* Based on Client Satisfaction and Net Promoter scores from monthly TD Ameritrade Institutional surveys of representative panel of ~200
advisors, 2007 to 2008.
6 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Service Matters to RIAs…More Than Any Other Factor
Source: “Cerulli Advisor Quantitative Update Report,” 2010, Cerulli Associates, in partnerships with the College for Financial Planning, the Financial
Planning Association, the Investment Management Consultants Association, and Morningstar.
De
cisi
on
Fac
tors
5. Execution Speed
3. Fees
4. Reputation
2. Technology Platforms
1. Service
Reasons Given by Advisors for Their Choice of Custodian
7 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
“If You Can Measure It, You CAN Manage It”
8 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Example: Account Opening Metrics
Success: 90% Success: 90% Success: 90%
Success: 90% Success: 90% Success: 90%
Mail Room Receives
Application
Application Scanned into
Workflow
Task Assigned to
Workflow Queue
Account Setup Process
Compliance Review
Account Funding
1 2 3
4 5 6
Illustrative
9 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Adapting the “Service Profit Chain” Framework
Internal
Service
Quality
Employee
Satisfaction
Employee
Retention
Employee
Productivity
External
Service
Value
Customer
Satisfaction
Customer
Loyalty
Revenue
Growth
Profitability
workplace design
job design
employee selection
and development
employee rewards
and recognition
tools for serving
customers
service concept:
results for customers
service designed and
delivered to meet targeted
customers’ needs
retention
repeat business
referral
Source: James Heskett, Gary Loveman, Leonard Schlesinger et al.
Operating Strategy and Service Delivery System
10 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Our Organizing Framework: The Service Chain with TD Ameritrade Institutional
Factors Driving the Customer Experience
Customer Experience
Initiation
Expansion
Routine Services
Moments of Truth
Customer Behavior
Business Impact
Advocacy
Receptivity (to new info, offers, etc.)
Attrition/ Defection
New Accounts
Asset Inflow
Asset Outflow
Bottom Line: Profitable Asset
Growth
Service Expectations of
Customers
Service Provided
( = Result of Our Processes)
Loyalty
Products & Services
(including tech functionality)
Brand Values / Promises
Our Service Processes
Commitments
Competitor Benchmarks
Source: Adapted from Heskett, et al, Harvard Business Review, July 1, 2008
11 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Customer Experience Customer Sentiment Customer Actions =
Business Impact
Accuracy Rate
Time to Open Account
Customer Satisfaction Scores
Net Promoter Scores
New Account
Assets
Quality of Exception- Handling
Customer Service Quality
Quality
Speed
Experience
Experience
Example Causal Map: New Account Opening
12 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Example: Account Opening Metrics
Success: 90% Success: 90% Success: 90%
Success: 90% Success: 90% Success: 90%
Mail Room Receives
Application
Application Scanned into
Workflow
Task Assigned to
Workflow Queue
Account Setup Process
Compliance Review
Account Funding
1 2 3
4 5 6
Illustrative
13 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
And Metrics Alone Wouldn’t Change Customer Experience…
Dashboards… Gaps/Opportunities Process Enhancements
Which Created Better Results
Made it possible
to identify
Which pointed to needs
for
1 2
3 $
14 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Better Measurement Created a “Virtuous Cycle”
TD Ameritrade Institutional
Our Client/ Customers
Insights About Service Gaps
Improvement Opportunities For Our Clients
Improved Service
Client Operations Improved with Our
Help…
Led To
And
Led to
15 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Impact on Results was Significant and Lasting
78%
91%
75%
80%
85%
90%
95%
J F M A M J J A S O N D J F M A M J J A S O N D
2009 2010
Client Satisfaction Net Advocate
49%
75%
45%
50%
55%
60%
65%
70%
75%
J F M A M J J A S O N D J F M A M J J A S O N D
2009 2010
Scores are based on a 3-month rolling average. CSI is based on 11 point scale, that is, from 0 to 10, top 3 box = 8+9+10 rating points. Net Advocate is based
on [10+9 ratings] – [0+1+2+3+4+5+6 ratings]. Results for Legacy TD Ameritrade and Legacy Fiserv Trust Company combined November 09 and forward.
16 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Our Journey: Data
Maturity Level
Data Barely exists in
usable form Exists in abundance, but
quality & value varies High impact metrics Better data mgt / data quality
Analysis Ad hoc 3-Inch Binders Static
Key scorecards Decision tools & models Data-driven learning
Mgmt Decisions
Gut decisions Informed / Educated Fact-based optimization People / Process / Data
integrated
Initiatives Opportunistic Reactive
Short list / rough prioritization
Resource allocation optimal ROI maximization
1. Early Stage 2. Mature 3. Next Generation
17 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Our Journey: Support
Maturity Level
Business Intelligence Community
Scattered / Ad-hoc Limited access Available, flexible,
dynamic
Experience Analyst
Constrained by data gaps Overwhelmed by data
deluge
Empowered by KPI production, analysis of drivers / causality
Databases Decentralized / Ad-hoc Centralized Made available
1. Early Stage 2. Mature 3. Next Generation
18 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Diverse Benefits from CXP Measurement System
1. People 2. Process
3. Technology 4. Other
Incentive Changes
Confidence in Decisions Up
Cultural Shift
Workflow Changes
Six Sigma Process Improvements
Earlier Detection of Issues/More Proactive Resolution
Changes to Technology and Systems More Efficient
Upgrades have been easier
Additional innovation built on top of measurement platform
Less Trees Cut Down
More Transparency with Advisors
Competitive Advantage in the Marketplace
19 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Key Concepts
Concept Key Implications
1. If you don’t measure what matters, you are managing the wrong things!
Agree on key drivers of results Measure the drivers and manage improvement
2. Better Metrics != Better Decisions Beware of unintended incentives “Walk through” processes carefully to find the real
opportunities to improve
3. Managers don’t care about process…
Managers care about results the most, and process the least.
This creates a challenge because process enhancements are essential to better results!
A clear causal model helped us a lot
4. Executive buy-in essential Demonstrate the need (tie back to pain!) Create proof of concept with early wins Iteratively fund additional investments
20 Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved
Key Frameworks Integrated
Customer Experience
Balanced Scorecards
Data Management
Questions?