Pascal Spelier, 14 de Outubro 2015

Digital Customer Experience, two steps ahead

2

3Source: Capgemini World Retail Banking Report 2015

4

Price

Product

Service

(Digital) Customer Experience

The road to loyal customers

‘Commodity’ Distinctive by ‘value added services’

5

Product/service differentiation

Employee satisfaction

Process efficiency Process

effectiveness

- Customer satisfaction

- NPS

- Sales

- Share of wallet

- Retention

- Referral

- NPS

-  Growth revenue

-  Market share

-  Profitability

- Share holder value

People

Product/service offering

Process

Customer Experience Customer Behaviour High level company KPI’s

Leading indicators Lagging indicators

Chan

ges

in re

gula

tions

and

tech

nolo

gy

deve

lopm

ents

Context

Source: based on Schmitt – Managing the Customer Experience

Why is Customer Experience important?

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75,7 73,6

2014 2015

Customer Experience level in Portugal detoriated

Source: Capgemini World Retail Banking Report 2015

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For Gen Y the Customer Experience level is low…

75,0 71,1

Others GenY

… but relatively high compared to the rest of Western Europe

68,3

GenY EU

Source: Capgemini World Retail Banking Report 2015

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44,1%

52%

3,9%

50%

42,3%

7,7%

Percentage of customers with positive experiences and negative experiences increased in Portugal

2014 2015

Source: Capgemini World Retail Banking Report 2015

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Customers with with a positive experience are five times more likely to stay…

… than customers with a negative experience

Source: World Retail Banking Report 2014, Capgemini

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New generation setting new standards for banking

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New generation setting new standards for banking

bunq

12

Rethink your business model

13

Source: Clayton Christensen (Harvard)

Performance

Time

Performance improvement mainstream

Potentially disruptive technology

Disruptive technologies move up market and eventually displace competitors

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Source: Clayton Christensen (Harvard)

Performance

Time

Disruptive technologies move up market and eventually displace competitors

Dvd per mail

Digital movies

Digital series via Ps3/4, Xbox, tablet

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83% of executives acknowledge that customers are comfortable with

FinTech firms

Source: Capgemini World Retail Banking Report 2015

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Customer Distribution / Front Office

Manufacturing / Back Office Market Infrastructure

Individual

Institution

Inve

stin

g /

Wea

lth M

gmnt

Pe

rson

al

Savi

ngs

Lend

ing

Capi

tal

Raisi

ng

Source: based on illustration ‘Financial Services Value Chain Supermarket Age’ by Doug Nelson

Paym

ents

= flow of capital

Current value chain is under pressure…

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Customer Distribution / Front Office

Manufacturing / Back Office Market Infrastructure

Individual

Institution

Inve

stin

g /

Wea

lth M

gmnt

Pe

rson

al

Savi

ngs

Lend

ing

Capi

tal

Raisi

ng

Source: based on illustration ‘Financial Services Value Chain Next Gen’ by Doug Nelson

Paym

ents

…Financial services unbundled and revisited

Independent, digital front ends API-driven middle- and back office

Electrification of market infrastructure

Independent , digital front ends and middle- and back office

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It is not the strongest of the species that survives,

nor the most intelligent that survives.

It is the one that is the most adaptable to

change.

- Darwin -

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Digitization Simplification & Agility

Data & Insights

Your roadmap should have 3 goals

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Digitization Simplification & Agility

Data & Insights

Your roadmap should have 3 goals

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Branch ATM

Phone

Internet

Mobile

Branch

ATM

Phone

Internet

Mobile

Branch

ATM

Phone

Internet

Mobile

Branch

ATM

Phone

Internet

Mobile

40%

50%

60%

70%

80%

90%

20% 25% 30% 35% 40% 45% 50% 55% Customers with positive experience with channel (%)

Cha

nnel

Impo

rtanc

e (%

)

2011 2014 Gen Y (18-34 years) Others

Gen Y drives importance digital

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“Yes, they’ve got WiFi here”

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Digital praying in a church in France

24Customers Using Channels at Least Weekly (%), 2014–2015

Customers (%) in 2015

Customers (%) in 2014

Branch

Internet

Social Media

Mobile

60.9%

65.9%

Western Europe

20.1%

28.7%

Western Europe

11.2%

21.9%

Portugal

45.9%

65.7%

Portugal

9.9%

13.7%

Western Europe

12.4%

12.6%

Portugal

6.5%

7.7%

Western Europe

5.7%

6.6%

Portugal

The Portugese are using digital channels more and more

Source: Capgemini World Retail Banking Report 2015

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44,8% 42,6% 48,0%

32,3% 34,4% 30,7%

11,2% 11,3% 10,9%

8,9% 9,1% 8,6%

2,7% 2,7% 1,8%

0%

25%

50%

75%

100%

First Hear Research Apply

68,4% 61,2%

72,0%

19,3% 25,5%

18,2%

6,4% 4,9% 6,6%

4,8% 6,4% 3,0%

1,1% 2,0% 0,1%

0%

25%

50%

75%

100%

First Hear Research Apply

Western Europe Portugal

Branch

Internet

Mobile Phone

Social Media

Branch

Internet

Mobile

Phone Social Media

Resp

onde

nts

(%)

Resp

onde

nts

(%)

Compared to Western Europe, Portuguese customers have higher preference for branch banking

Source: Capgemini World Retail Banking Report 2015

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Customer Life Cycle

Awareness Orientate Buy Receive Use Service

Digitization starts with customer journey mapping

Advise

Technology

Voice of the customer: I want..., I need...

Voice of the employee: I want..., I need...

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Customer Life Cycle

Awareness Orientate Buy Receive Use Service

Each Customer Journey has an customer side and organization side

Processes

Advise

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‘Beware of putting lipstick on a pig‘‘

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How to become really digital?

FRONTEND

hello customer

ISN’T THIS

ENOUGH?

self

directed

CAN I DO MY

BANKING MYSELF? the customer is

becoming part of

the processes!

only decoration?

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Mobile is the most powerful sales- and service channel of the future

NL: a mobile customer has 11 times more

‘contact’

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Want to open an account? Just use your

smartphone

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33

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The new Rabobank Online Banking Application, it’s all

about you

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Digitization Simplification & Agility

Data & Insights

Your roadmap should have 3 goals

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Customer Life Cycle

Awareness Orientate Buy Receive Use Service

In the end you will need to change your mid- and back office as well

Processes

Midoffice

Customer Relationship

Management

Customer Financial

Management

Document Management

Communication Management

Business Process Management Security

Advise

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Are you the oil tanker or the pilot boat?

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Are you the oil tanker or the pilot boat?

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Source:

41

Source:

Marketing

Product Management Data Analytics

Service Management IT

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Source:

Product Management Processes

User Experience

Data Analytics

Chapter lead

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Source:

A maximum of 150 people

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The transparency and the mutual understanding

between employees is an enormous improvement

We have been working in this agile way for 3 months now and it already

leads to advantages: improved communication and more mandate

for employees and squads

It also created more fun in the teams. The atmosphere is very

good!

[finno]

In a pre-Agile era it took days to solve an issue.

Now it only takes 15 minutes.

Source:

Compared to the past, squads and employees have

a better view on their personal attribution to the

bank’s strategy.

45

Digitization Simplification & Agility

Data & Insights

Your roadmap should have 3 goals

46

Cross-channel ‘Relevancy Engine’ Observation

(data & information)

Trigger

(right message, right channel)

Interpretation (intelligence)

Reaction (call to action)

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48

49

50

The future marketeer is a nerd with empathy

Privacy as a currency

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Source: online survey Edelman ‘Brandshare’ 15.000 respondents in 12 countries

Privacy as a currency

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Awareness Orientation Buy Receive Use Service Advice Retention

How to create customer value using (big) data?

360° customer view (Social-CRM) Workflow management Social listening / external data sources

Datawarehouse / realtime data Big data analytics / predictive modelling Digital marketing & services (inbound)

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Customer Intelligence & Social Listening

Customer Journey

mapping

SEO optimization

Client telling app

Visualization User Experience

Marketing & Campaign management

Mobile app. development

Personalization Odigo contact center

Digital Experience Optimization (DXO)

Channel Performance management

We help you transform and bring innovations and solutions across the customer lifecycle

Awareness Orientation Buy Receive Use Service Advice Retention

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PascalSpelier

ManagingConsultantDigitalCustomerExperience|

Banking&Insurance

Reykjavikplein1,Utrecht,TheNetherlands

Mobile:+31(0)653299017pascal.spelier@capgemini.com

Thank you!

@spelier www.slideshare.net/pascal.spelier www.linkedin.com/in/pascalspelier www.worldretailbankingreport.com