CSP Happenings





Topic: Customer Experience

Customer Satisfaction: What are the right KPIs to measure?

October 4, 2017

 

 

Guest-blogger Andrew Huber of Harland Clarke discusses 7 rules to follow in determining the right KPIs to measure in customer satisfaction.

 

It’s widely accepted that there can be tremendous value for businesses that rely on key performance indicators (KPIs) to measure, manage and communicate organization results.  KPIs are a valuable tool to tell you if you’re on the right course toward meeting your strategic objectives, or if you need to make adjustments to get back on track.

But one of the key questions that managers grapple with is determining which key performance indicators (KPIs) to measure, and how to deploy them successfully over time. This is especially true when it comes to the measurement of customer satisfaction.

Why determining customer service KPIs can be tricky

Focusing on the wrong KPIs means you’re spending time and money measuring, monitoring and trying to improve metrics that aren’t critical to your financial institution’s objectives. The same is true of poorly structured KPIs, or KPIs that are too difficult and costly to obtain, or to monitor on a regular basis.

Select too many, and you’ll be overloaded with endless pages of data too extensive to be effectively managed or used to improve customer satisfaction.

To avoid common headaches that occur when trying to determine which KPIs to measure, it’s best to adhere to the following 7 rules:

  • Each KPI has its own applicability, and limitations. Each can stand on its own as a useful tool for measuring certain customer interactions, but a comprehensive measurement model is necessary to give a complete picture of account holder experience.
  • Determine what KPIs to measure based on the key drivers that your account holders consider important. Just because something is measurable doesn’t make if meaningful in the context of your account holder’s expectations.
  • Define KPIs accurately and clearly, ensuring that the aspect of the customer experience being addressed is both quantifiable and measurable.
  • KPIs should link back to a customer satisfaction objective and measure something you can impact.
  • Ensure that KPIs deliver comprehensive, actionable insight that is linked to and applied to particular employee interactions or processes on an on-going basis.
  • Focus on trends in your KPIs more than specific data. The direction of change usually matters most.
  • Reviewing on a quarterly or annual basis can provide both positive and challenging insights.[1]

 

Identifying the key drivers of customer satisfaction for your specific account holder base and aligning them with these – or other – metrics that align with your objectives can be the start of a successful KPI program.  Successfully applying the insights you derive from your KPIs can improve key drivers, leading to greater customer satisfaction, stronger brand loyalty and, ultimately, better performance.

But Don’t Get Too Set in Your Ways

KPIs should not be set in stone, but rather evaluated consistently over time and modified where necessary. Revisit your assumptions. Financial institution goals and objectives change, as do those for customer experience. Don’t continue to use KPIs that are no longer meaningful or useful.

While there are an infinite number of metrics that can be used to build KPIs around customer satisfaction, there are several that have gained wide acceptance across industries for providing valuable insight.

Examples include: the Net Promoter Score (NPS), the Customer Satisfaction Score, the Customer Effort Score and Forrester’s Customer Experience Index.

One size doesn’t fit all. When it comes to selecting the right key performance indicators (KPIs) for measuring customer experience, it’s important that the KPIs you use provide valuable customer insights aligned with the goals of your financial institution, not your competitor down the street.

If a metric isn’t key to you, it’s not a “key” performance indicator.  Select KPIs that are relevant for your industry, and, just as importantly, for your organization.

[1] Patterson, Matthew. “How Top Customer Service Teams Measure Performance,” Help Scout, April 16, 2016

How to Create a Successful Customer Experience Strategy

September 8, 2017

 

 

CSP is happy to have guest-blogger, Andrew Huber of Harland Clarke return this month and share his insights on creating a customer experience strategy that is successful.

 

“How are we doing?”

This question is at the foundation of any organization’s quest for continuous improvement. For banks and credit unions, the answer encompasses more than an institution’s financial statements.

In customer-centric organizations, the role of customer feedback is critical to sustaining and deepening account holder relationships, and contributing to long-term profitability.

But, are we there yet?

While many financial institutions say they want to improve the customer experience, are they taking the necessary steps to get there?  A true voice of the customer strategy is a multi-faceted process whose focus is to understand the customer experience via actionable data and analysis on multiple levels.

Below are three important things to keep in mind if your financial institution desires a truly comprehensive customer survey experience.

3 Considerations for Creating a Useful Voice of the Customer Strategy

#1 – Consider All Customer Experience Touchpoints

First comes the design and deployment of surveys using a variety of methodologies. The focus is on gathering, measuring and interpreting customer experience feedback at every touchpoint, from new account openings in the branch to the call center and online channels. Every customer experience touchpoint must be considered, in order for your business to plan for it.

#2 – Ensure You’re Gathering the Right Data

Surveys are just the start.

One of the keys to a successful customer experience program lies in the data accumulated from everything that’s happened to this point. The data gathered needs to be both actionable and all-inclusive. In other words, it needs to include real-time knowledge across significant customer satisfaction metrics that can be applied directly to specific operational and frontline areas that impact the account holder experience. Measuring net promoter score may only scratch the surface of what your financial institution would like to learn.

Learn important satisfaction metrics to measure outside of net promoter score in the white paper, “Customer Experience: Beyond Net Promoter Score.”

Download Your Copy Here.

#3 – Figure Out (in Advance) How You’ll Analyze the Data

While the core value that such a program can provide shouldn’t be underestimated, there can also be a thin line between a comprehensive service that yields insightful customer understanding and one with reams of survey data but little customer insight that can be used to directly affect bottom line performance.

This is why it’s important to answer these questions in advance of implementing your survey strategy: once you’ve gathered the data, then what? Who will mine the data for actionable insights?

If you don’t have a data scientist on staff, consider outsourcing to a third-party.

In today’s customer-focused world, dissecting and analyzing the customer experience can provide key insight that banks and credit unions can use to ensure they are truly putting the customer first. This mindset paves the way for multiple benefits including:

  • Improved customer satisfaction
  • Greater loyalty and retention
  • Better performance

What Does Customer Experience Mean For Financial Institutions?

August 2, 2017

 

 

CSP is happy to have guest-blogger, Andrew Huber, Program Manager at Harland Clarke, share his insights about customer experience (CX) and the need for financial institutions to deliver outstanding service at every touchpoint.

 

 

You likely know that the key to any strong, long-lasting business is delivering an exceptional customer experience (CX).

Unfortunately, when it comes to financial institutions, there can be a big disconnect between the experience they think they’re providing vs. the experience account holders are receiving. For instance, 41 percent of banks and credit unions consider themselves “relationship focused,” while just 13 percent of consumers say the same.

So how can financial institutions stay competitive and deliver an outstanding CX? Especially when, in the age of mobile devices and social media, everyone wants something tailored just for them?

The answer is surprisingly simple (and yet incredibly difficult) – financial institutions must deliver outstanding service at every touchpoint in the customer experience, from in-branch to call center and from online to mobile device.

This white paper reveals that account holders remain loyal to their financial institutions for five main reasons:

  • They were treated well
  • They experienced good communication
  • They received high quality advice
  • Their problems were resolved quickly
  • They had a personal relationship with at least one financial institution employee

Financial institutions have a strong incentive to keep account holders happy: increasing customer retention just 5 percent can show a 25-95 percent increase in profits. This is because acquiring a new customer is anywhere from 5-25 times more expensive than keeping an existing one, with customers having a positive experience spending 140 times more than ones who have a bad experience.

If you think about it, this makes perfect sense. Regardless of the context, people are loyal to who and what makes them happy, they’re more willing to recommend the source of their happiness, and they’re likely to want more from this source. Their financial institutions are no exception.

Creating a positive CX sounds easy enough, but these statistics only convey the benefits, not how crucial it is to get customer experience right.

In one study, 41 percent of account openers and 33 percent of account closers cited customer experience as the number one reason for making their decision, outranking competitive interest rates, low fees and location.

It can take years to build a positive customer experience, but a single negative experience, a single episode of poor customer service, or a single complaint that goes unaddressed can cost a financial institution an account holder — or more, thanks to the power of social media.

CX Best Practices
Want to ensure your financial institution is prepared to deliver an outstanding CX? Find eight best practices to implement in this white paper, “Customer Experience: Best Practices for Growing Revenue.”

> Download your copy here