Abstract
With the rapid growth of online banking over the past decade, banks have
started to measure the quality of the online experience from the customer's
perspective and are using this data to improve how well their solutions meet
customer needs. As a result, customer satisfaction scores for online banking
compare very favorably with other businesses and rank higher than the top 100
Online Retailers long considered the gold standard for online performance.
Bank's overall satisfaction scores however, lag their online scores by almost
10%.
Mercator Advisory Group's new report “Managing the Multi-Channel Experience:
Who's Satisfied?” examines the challenges banks face and maps a set of
strategies that banks can implement to improve overall customer satisfaction.
Highlights of this report include:
While the majority of customers now chose the online banking as their
preferred channel, they also want the convenience of the other self service
channels and the person-to-person interaction provided by branches and contact
centers.
To improve the multi-channel experience, banks need to overcome the challenges
created by a diverse customer set, complex technology infrastructures and
sub-optimal product centric organizations.
A comprehensive Voice of the Customer program and enterprise agreement on
customer experience objectives are essential.
To improve multi-channel satisfactions banks need to focus on: relationship
products, staff motivation and incentives, standard cross channel sales and
service processes, consistent customer information and multi-channel
interaction management for data continuity and transactional context across
channels.
“Quality customer experiences lead to high levels of satisfaction which
in turn increases loyalty. High satisfaction and loyalty correlate with
increased customer retention, revenue and profitable relationships,”
states Mercator Advisory Group's Bob Landry, vice president, Banking Group
Advisory Services. “Companies with high satisfaction deliver
significantly higher shareholder value than organizations with low
satisfaction. Banks have long focused on channel specific issues and must
broaden their perspective to improve experience across channels. Quality
multi-channel experiences are the key to leveraging the investments banks have
made in branches, contact centers, ATMs, IVRs, online banking and now mobile
phones. The banks that succeed will improve overall customer satisfaction and
that will deliver results to the bottom line and increase shareholder
value.”
One of the exhibits included in this report:
Multi-Channel Experience: Who's Satisfied? contains 41 pages and
19 exhibits.
Companies covered in this series include: ACI, ACSI, Ally Bank, Argo,
CFI Group, CompuCom, Diebold, FIS, First Data, Fiserv, ForeSee Results, ING
Direct, Intuit, Harland Financial Solutions, Jack Henry & Associates, J.D.
Power and Associates, NCR, Open Solutions, Oracle, Pegasystems, Raymond James,
S1, Sybase, TD Ameritrade, TD Bank, Unisys, USAA, and Wal-Mart.
Table of Contents
TABLE OF FIGURES
INTRODUCTION
I. CUSTOMER SATISFACTION
II. CUSTOMER INTIMACY AS A STRATEGY
III. CUSTOMER RELATIONSHIP MANAGEMENT VS. CUSTOMER EXPERIENCE MANAGEMENT
- CRM's Evolving Role in Banking Driven by Product Diversity
- Expanding Self Service Channels Drive CEM Adoption
IV. WHAT ARE THE CHALLENGES FOR BANKS?
- 1. Retail Banking Serves a Diverse Customer Set
- 2. Technology Complexity Makes a Consistent Experience Difficult
- 3. Who Owns the Customer Across the Enterprise?
V. MULTI CHANNEL MANAGEMENT: GETTING SATISFACTION
- Voice of the Customer Metrics Necessary for Success
- Setting Long Term Goals and Guidelines
- Six Areas to Target for Improving Customer Experience
- 1. Enhanced Products to Expand Relationships, Revenues & Profits
- 2. Motivated & Knowledgeable Staff Are Key to Overall Satisfaction
- 3 & 4. Improved Sales and Service Processes
- 5 & 6. Consistent Customer Information and Coordinating
the Multi-Channel Experience
VI. SUMMARY
Table of Figures
- Figure 1. Relationship between High Satisfaction and Shareholder Value
- Figure 2. Bank Customer Satisfaction Levels Relative to Multi-Channel Peers
- Figure 3. Impact of Investments on Customer Satisfaction is Non-Linear
- Figure 4. Customer Experience Value Chain
- Figure 5. Alternative Business Strategies
- Figure 6. Customer Relationship Management VS Customer Experience
Management
- Figure 7. Retail Financial Products by Value, Level of Service and
Technology Role
- Figure 8. Delivery Channel Capacity Growth from 1980 to 2015
- Figure 9. Total Household Income and Net Worth Grouped by Percentiles
- Figure 10. US Population Grouped by Median Household Annual Income and Net
Worth
- Figure 11. Retail Banking Application Landscape
- Figure 12. Channel Applications, Technologies and Vendors
- Figure 13. Inconsistent Customer Information & Processes Across Channels
- Figure 14. Six Areas to Target for Improving Customer Experience
- Figure 15. Product Innovation Spectrum
- Figure 16. Standardized Sales Processes
- Figure 17. Optimized New Account Initiation Process
- Figure 18. Bank Selection Factors (all ages)
- Figure 19. Multi-Channel Interaction Manager
