Wowing Your Customer TN Bankers 060517...May 17, 2006 · Defining Your Brand Good Value...
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Wowing Your Customer TN Bankers | Naples, FL Chris Nichols|June 2017
Transcript of Wowing Your Customer TN Bankers 060517...May 17, 2006 · Defining Your Brand Good Value...
Wowing Your CustomerTN Bankers | Naples, FLChris Nichols|June 2017
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What ExtraordinaryService Looks Like
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WOW Service
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WOW Service
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WOW Service
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Banking In One Slide
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The Data
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Customer Focus Drives Performance
Source: Watermark Consulting
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Customer Focus Drives Performance
Source: 2012 Forrester Research Study
Correlation between Customer Experience Scores against three loyalty metrics.
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Why Care?
While almost 100% of banks say they are about service, few (20% in our estimation) have taken steps to formalize the effort.
AcquireNew Customers
Increase Market Share
Increase Brand Equity
RetainIncrease Cross‐
sell
Enhance Loyalty
Drive Referrals
EfficiencyFewer problems
Cheaper to fix problems
Increased productivity
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Selected Key Drivers Of Retail Satisfaction
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Underperformance In Lending
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Drivers Of Profitability
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Top Performing Bank
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Lagging Banks
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Choose Metrics Wisely
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The Fallacy Of NIM (2014)
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10Y Drivers Of Bank Performance
ROAROA
GeographyR2=16%
GeographyR2=16%
Product MixR2=15%
Product MixR2=15%
Customer Mix
R2=14%
Customer Mix
R2=14%EfficiencyR2=13%EfficiencyR2=13%
Fee IncomeR2=13%
Fee IncomeR2=13%
Risk‐Adjusted MarginsR2=12%
Risk‐Adjusted MarginsR2=12%
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Setting Your Bank Up For Success
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Strategic vs. Capital Horizon Mismatch
Capital allocation
New product development
Strategic positioning and business line decisions
Pricing Line strategy
Where The Strategic Horizon Is
Where the Strategic Horizon Should Be
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Transaction or Experience?
“Banks that are transactional are in the process of being commoditized.”
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The End Goal
Engage the customer on an emotional level and help them achieve their goals.
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Building Goodwill
Delivering banking can be a rollercoaster.
Build that emotion bank account!
What company would you refer?
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What Is Your Pricing Policy?
The Better Your Value Proposition Is The Better Your Margins Will Be.
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Defining Your Brand
Good Value Proposition
Customer Service
Customer Experience
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Build A Brand That Means Something
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Brand Benchmark
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A Banking Vision
What would a bank have to look like so that there was a line of customers clamoring to do business with it?
1) Demand would have to exceed supply
2) The Bank would have to createadditive value
3) The Bank would have to make people feelgood about themselves
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Define What It Is
What is Quality Customer Service?
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Define Your Strategy
What is the bank’s value proposition?
What customer type does your bank want?
What risks is the bank willing to take to achieve its
goals?
What is the desired outcome of the customer
experience?
What are the 3 things you want your customers to say
about you?
5 Questions Every Bank Should Be Able To Answer:
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Getting The Right Culture
“Customers will never love a company until the employees love it first.”‐ Simon Sinek
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Composition Of CultureThe “Why?”/ Purpose
Hiring
Training
Communication
Processes
Behavior Standards
Compensation/ Promotion
Awards/ Recognition
CULTURE
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Focusing on The Right Categories
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3) Picking The Right Customer
Customers likely to do business with your bank
Customers Your Bank Wants
Profitable Customers
Your Bank’s Calling Prospect List
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Developing Borrower Personas
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Mapping The Customer Experience
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Lifecycle Management
The Rise of Anticipatory Banking
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Look For Points Of Inflection
• A marriage + 2 years• A baby + 5 years• 12% business growth• A merger + 15 months• A balloon loan maturity – 13 months
• A non‐season line of credit draw
In Banking:
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Inefficient Use of Duration
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Strategic Priorities
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How Cross‐Sell Impacts ROE
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Managing Customer Value
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Managing Customer Value
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Creating The Wow
Experience
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Do You Know Your Customer?
1. Pain Points2. Fears3.Goals 4.Dreams5. Industry/ Economic View
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Customer Information Card Sample
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CRM System
1. Get one for your budget
2. Keep it simple
3. Reward for use
4. Get senior management buy in
5. Use it
Top 10 most important pieces of data to collect/purchase:1. Birthdays2. Email address3. Salary range4. Marital status5. Company / profession6. Job title7. Debt service coverage ratio8. Appraised value of collateral (and date)9. Other bank debt and maturity 10.Collateral address
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Start Collecting Data
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Think Speed
• Removing points of anxiety as fast as possible
• What are the points of anxiety in lending?
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Lending Emails That Make A Difference
The following types of emails were tested to increase satisfaction and revenue:
• The Welcome / Onboarding Email
• The Transaction Receipt
• Reminder Instructions
• The Thank You
• Countdown and Date Reminders
• Confirming & Next Steps
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The Loan Closing Experience
1. Timeline – set expectations (handout)
2. Document prep (handout)3. Branded cover page per doc4. Explanation of closing documents5. All branded
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Making Documentation Easy
• Autofill• E‐signing• Automated updates
• Lifetime storage
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Loan Processing
Automated Loan System Attributes
• Reduces turnaround time• Speeds processing• Better focus of resources• Dramatically reduces risk• Increases transparency• Benchmarks performance
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Do Something Special At Closing
• Thank you gift• Tombstone • Special Event• Confer VIP Status
• Other Ideas
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Leveraging Technology
In The Customer Experience
Loan Platform
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Smartphone > Branch
Customer intimacy can be better achieved by mobile.
Why?
1. More secure2. More interactive (geolocation, context
driven, voice, etc.)3. Cheapest delivery channel available 4. Ability to gather user data 5. Banking at the point of inflection
This will be more than just banking on your phone.
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The Rise Of Artificial Intelligence
Expert Systems:• Education• Advice• Internal coaching
The Future Will Be Easier.
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The Tools You Need For Starters
CRM tools for relationship management: Centralize data and communication to institutionalize the process and gather customer knowledge.
Marketing tools to engage with customers: Sales automation, chat functionality, webinars, video conferencing
Online survey tools and customer satisfaction tools: Get feedback, monitor satisfaction and gather information
Web/email analytics and tracking tools: Measure engagement, traffic, conversions, page views, clicks, opens, etc.
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The Branch Hours Paradox
The Long and the short of it…
Are longer branch hours worth the cost?
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Service, Revenue And Satisfaction Correlation
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The Next Frontier: Loyalty Programs
More regional banks are considering loyalty programs as a way to drive behavior.
Create a loyalty currency Leverage partnerships for
discounts and events Solve points of pain Leverage the difference
between perceived and real costs Focus just on the 20% of
customers that matter
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Communication Channels
Use technology to aid communication• Tie relationship to cell
phone number/SSID/MAC Address
• Texting• Slack for employees• Video• Automation
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Questions?
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Five Steps For Next Month
Design your culture and the customer’s experience
Put a problem resolution process in place
Chart what happens with customer feedback
Figure out how to deliver quick loan approval times
Start to collect data about your customers
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The Hero’s Journey
I am your customer.I’m supposed to be the protagonist, for I am on a hero’s journey. Your bank should be my mentor, my sidekick.
If you just want a transaction, let’s do it, but then get out of my way.
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The End
Chris NicholsChief Strategy OfficerCenterState Bank925‐202‐[email protected]
Want more ideas and data?
Sign up at:
http://csbcorrespondent.com/blog
Thank You!
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Appendix
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Benchmarks / KPIs
The following are some common bank key performance indicators (KPIs) to benchmark the customer experience initiatives:
Revenue per relationship Loan approval / product processing times
Operating Costs Sales conversion rates
Cross‐sell Customer satisfaction / Net Promoter Scores / Referrals
Churn ratio
Employee Satisfaction
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Memorable Banking
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Focusing On Things That Matter
Disclaimer:
This presentation is for general strategic information only and should not be relied upon as a substitute for independent research before making a material management decision. This presentation does not take into account any particular bank’s performance objectives, financial situation or needs. All banks should obtain advice based on their unique situation before making any decision based upon this presentation or any information contained within. In addition, any implied projections or views of the bank market provided by the authors may not prove to be accurate. While all the information contained herein is believed to be accurate as of the date of source or publication, the information is subject to change and constant revision.
