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Topic: Customer Experience Analysis

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

Positive customer feedback matters

May 24, 2017

Passionate customers tell you what makes your brand exceptional

Often, customer experience research focuses too heavily on business shortcomings.  Managers want to know when customers are dissatisfied, what caused their dissatisfaction, and how to fix the problem.  As a result, decision makers overlook positive customer feedback.  Managers expect positive feedback, and when it’s received, they don’t celebrate the occasion. Instead, managers continue to search for shortcomings in their businesses – they don’t want to be complacent, even if their customers are happy.  However, this oversight misses an opportunity: a chance to understand what drives customer passion and excitement.

Word-of-mouth advocacy is a powerful driver of new business, and positive customer testimonials received during customer experience research help highlight the topics brand advocates are most likely to talk about with friends and family.  To maximize the value of this feedback, businesses should ask customers the following questions about their experiences:

  • How does our service/product/interaction make you feel?  When a customer describes a positive experience, asking them about their feelings helps businesses understand the type of value their services bring.  Are customers relieved? Excited?  Do they feel in-control?  Understanding the specific emotions they feel helps businesses understand why a service/product/interaction is important, and what emotions are driving the customer’s behavior.
  • How is our business different from others?  When it comes to positive customer experiences, unique positive experiences are true brand differentiators.  Identifying those unique positive experiences allows businesses to replicate that experiences across their customer base.  Once the experience is consistent, that unique positive experience is a brand differentiator, which can be used to solicit new customers.
  • How does our business make a difference in your life, even if it is small?  Asking customers to relate a business’s services to their lives helps communicate those services in the customers’ language.  For example, customers might not care about the UX testing, which guided development of a bank’s mobile app; but they DO care that the app is easy to use and saves them time.  Managers and directors are prone to talk about the services they provide in their own terms – from the behind-the-scenes perspective, talking about the nuanced details of the services they provide.  Conversely, customer feedback vocalizes positive experiences in ways mangers struggle to verbalize, and their feedback provides a template for how managers should talk about the services they provide.

Beyond the benefits of analyzing positive customer feedback, the process provides a venue to build morale among employees and recognize their hard work.  By addressing positive feedback, employees are incentivized to continue (and increase) positive behaviors, which lead to positive customer experiences, because they know their good deeds are noticed and valued.

In 2017 and beyond, managers continue to look at positive customer experiences to identify, replicate and reinforce aspects of their businesses leading to positive feedback.  Once reinforced, branding/marketing managers use these competitive advantages to drive new business, while customers drive business on their own through brand advocacy.

Responding to negative customer feedback is important, but most organizations already do a good job at identifying their own shortcomings.  Many managers overlook positive feedback at their own detriment, and those who utilize feedback to create a model for consistent positive experiences will come out on top.

3 Tips for a Positive Workplace & Positive Customer Relationships

April 26, 2017

While you’re hard at work trying to maintain lifelong customer relationships, it can be easy to overlook the relationships among your staff. It seems obvious that a friendly work environment leads to greater productivity, decreased stress, less turnover and increased satisfaction—and in fact, research shows that this assumption is true. Happier employees lead to a more positive customer experience, as well.

A positive workplace starts with a strong manager. Start by surveying your employees to gauge their satisfaction. What do they really think about their job? Then try to build in the tips found below.

Boundaries

Clearly communicating your ideas and expectations at the beginning of a project save you from a conflict later in the process.

  • Try replacing open-ended questions like, “Do you want to start or shall I?” with “I’d like to start with x and then get your opinion.”
  • Create a space or time wherein employees can feel free to express their ideas and concerns safely. If confidentiality is important, consider using a comment box and then reading entries anonymously at meetings.

Customers benefit from companies that enforce clear boundaries, because they know what to expect.  Consistent results from a well-communicated plan of action go a long way to build relationships with your customers, too.

Gratitude

Everyone likes to know that they’re valued and appreciated.  Cultivating an atmosphere of gratitude can encourage employees and help them understand their integral role in the office.

  • Begin conversations by recognizing something positive your employee has done recently. They’ll likely be more receptive to suggestions or critique if they know you’re aware of their successes too.
  • Make sure your praise is specific and/or spontaneous. Let your employees know you’re paying attention to their work.

Have you ever walked into a bank and the teller was clearly miserable?  Your customers associate the positive and negative emotions they experience with the brand itself.  By ensuring your employees have a smile on their face, your customers will be smiling too.

 

Fun

Dale Carnegie, a famous thought leader in corporate thinking, said “People rarely succeed unless they have fun in what they are doing.”

American culture often does not include “fun” as a regular component of the work day.  Work shouldn’t be fun, right?  In fact, incorporating fun into the workplace used to be more common with company picnics, birthday parties, and friendly office wagers.

  • You can maintain a professional atmosphere while still having fun. The key is to designate a time and a place.  Scheduling a regular happy hour can give employees something to look forward to after a long day at the office.
  • Assign “birthday cake duty” to one of your employees to make sure birthdays are recognized and everyone can take a sugary break in the afternoon for a slice.

Your customers don’t want to feel like they’re a burden to your employees.  Let people know that you’re working hard and playing hard on their behalf.  This gesture also goes a long way in humanizing your brand and service, further cementing lifelong, loyal relationships with customers.

If you’re interested in reading a little more on this topic, check out our articles on how to boost employee morale:

https://www.csp.com/encouraging-cross-departmental-collaboration/#.WP9ysYgrJPY

https://www.csp.com/10-examples-of-employee-engagement-in-action/#.WP91oIgrJPY

4 Questions to Ask When Appealing to Millennial Customers

April 10, 2017

Millennials may access customer service in new ways, but many of their priorities remain the same as previous generations.

Millennials may access customer service in new ways, but many of their priorities remain the same as previous generations.

Millennials are taking over the world—literally. As of April 2016, Millennials have edged out Baby Boomers as the largest generation in America. That means Millennials are a driving force behind modern evolutions in customer experience.

The largest, most diverse, most educated generation of Americans to date have incredible spending power. Their familiarity with and reliance on technology defines the Millennial experience and means major changes for businesses and brands looking to court their loyalty.

So how can you become a favorite among Millennial customers?

Millennials still want reliability, friendliness, responsiveness, and quality – they just want even more of it than previous generations were satisfied to have.

No generation before has seen such a rapid progression and diversification of technology. While older Millennials still remember the dial-up days, the younger set are coming of age in a time of ubiquitous and instant availability of favorite resources and channels. Millennials see technology as a lifestyle, not a toolbox.  

If you’re looking to strengthen your appeal to Millennials, your business should embrace a similar mindset. Your business already uses technology to communicate quickly and efficiently. The next step is to embrace the wide variety of apps, devices, and networks that make your brand easy to access and share. The following questions are a good way to gauge if your business is ready to attract Millennial consumers.

IS IT FAST?

Millennials know what they want, and they want it now. Influenced by their always-available, multi-tasking, multi-device lifestyles, their attention span is rather short. Millennials have little patience for clumsy user interfaces or apps that struggle to load. They don’t want to wait for answers! They make decisions quickly and will gravitate to businesses that help them accelerate their progress.

IS IT SOCIAL?

Millennials are always connected to the Internet and therefore, always connected to each other. Businesses quickly realized that the key to engaging Millennial markets is to connect via social media.

Millennials begrudgingly accept the presence of brands and businesses in their social networks, but they expect businesses to behave socially. Personal interactions with businesses make them feel heard and valued.

Rather than picking up a phone, Millennials favor direct Tweets, Yelp reviews, and Facebook posts to describe their experience with a business. An active social media presence demonstrates your business’ willingness to personally connect with customers and keeps your brand fresh in someone’s news feed. 

IS IT MEANINGFUL?

Millennials maintain a heightened awareness of social issues and causes. They’re not interested in money for the sake of money—they want their dollar to mean something when they spend it. Consequently, businesses that include an element of social justice in their work are more likely to successfully engage Millennials.

IS IT AUTONOMOUS?

Millennials are self-starters. They want to feel empowered by their business interactions. Many customer experience disruptions come from Millennials as they initiated their own startups to fill niches not served by the existing market. They’re not content to say: “This is the way things have always been done.” 

This generation saw the birth of “crowdsourcing and online reviews as a significant influencer on purchasing decisions. Conversely, Millennials also value the availability of self-service options, especially those that get them to their destination faster by cutting out the middleman. They’re not opposed to picking up the phone or having a face-to-face customer service interaction, but it’s usually not their first choice. In fact, they may snub a business that doesn’t give them enough opportunity to help themselves.  

Brands Millennials Love

Venmo and other P2P (person to person) payment apps are a recent example of the way Millennials prefer to handle their finances. Venmo provides a slick, no-hassle interface, connects users directly to social networks, and is completely autonomous. Venmo has also partnered with GiveDirectly to make it easier than ever for users to donate to their favorite charity. 

TOMS Shoes is another good example of a brand that successfully engages Millennial markets. Their “One for One” campaign elevated an ordinary purchase of new shoes to an act of goodwill. TOMS also has a strong social media presence. They encourage customers to share stories and make them feel like they’re a part of the TOMS mission to improve the lives of others. 

 

These new insights into Millennial habits in combination with your own Voice of the Customer research will create a customer experience tailored to Millennial demands. In Part Two of this series, we review the areas of the experience to prioritize and provide examples of specific actions to take and offerings to consider when engaging this desirable demographic.

The Dangers of Overlooking Low-Value Customers

March 23, 2017

One way to segment your customers is by their lifetime value. Compared to many other measurable customer attributes, lifetime value is the kind of big-picture description that can be difficult to observe or estimate at a glance. But it’s also one of the most valuable pieces of information you can have about your customers.

Customer lifetime value is a prediction of how profitable your relationship with a given customer will be over time. Lifetime value can be calculated a number of different ways, from simple formulas to complex equations. Some of the factors that go into this calculation include how long you expect the customer to stay a customer; how much money that customer tends to spend with you, and how often; what it costs to keep that customer loyal; and the average rate of churn throughout your customer base.

Essentially, a lifetime value measurement boils down your relationship with a customer to a dollar amount. But the benefit of is not just quantitative: it influences businesses to prioritize the long-term maintenance of customer loyalty, compared to more expensive efforts like customer acquisition.

Using Customer Lifetime Value for Segmentation

customer segmentation based on lifetime customer valueOnce you’ve predicted the lifetime value of each customer, you can then group them into tiers, from most to least valuable. The most valuable customers are those who shop with you frequently, generate the most profit, and are most likely to stay. The least valuable customers may be new or casual shoppers who split their attention and money between you and your competitors. In the middle are the rest: regular, if not devoted, customers who don’t have the most to offer you, but don’t cost you much to keep, either. These are customers who could possibly be influenced toward more value if tended correctly – and if not, may slip down to the bottom tier.

For the highest third, the ones you can’t ask much more of, the goal is to make sure they stay. For the middle third, you can try to grow their value by appealing to them with additional services or products, or offering loyalty rewards, like discounts.

But what about the lowest tier – the one that experiences the most churn? Do they have anything to offer? Would you be better off without them?

Don’t Write Off Your Low-Value Customers  

Once you’ve singled out your most valuable customers, it’s only natural to want to gravitate in their direction – to reward their loyalty with perks, to provide them the best service, and to otherwise do everything in your power to keep them around and keep them spending. All this effort is still less costly than investing the time, energy, and budget to convert lower-value customers up the ladder.

All of that would seem to justify prioritizing your top tier. But do so at your own peril. Every customer’s “lifetime” with your business has to start somewhere, and many of them start in that lowest tier. It’s rare to simply acquire a high-value customer out of the gate: they must be nurtured, and this tier is where that relationship-building has the most impact.

Converting an existing low-value customer into a higher-value one is still less expensive than acquiring a new one, with unknown value. Despite the investment they demand, it’s easier to see a customer move up the value ladder, while the ones at the top are not terribly at risk of slipping back down (unless you really mess up). Besides, if you don’t devote attention to the least committed customers, chances are that your competitors would be more than happy to take them off your hands.

The easiest way to make your low-value customers into VIPs is to treat them like VIPs.

No matter how many invisible dollar signs hang over their heads, every interaction with your business and brand should make them feel valued and respected. They can also be a valuable source of insights and intelligence. Don’t be afraid to ask them directly: What would make you shop here more? How can we best serve you? Voice of the Customer research is your friend, especially among this group. What applies to some can likely be used to woo others.

Of course, some customers will just never be converted and end up taking up more resources than they’ll ever be worth to you. Customer divestment was once practically an anomaly, but these days, some companies see it as a smarter move than keeping low-value customers on the books. (Read more: The Right Way to Manage Unprofitable Customers on HBR.org – though we at CSP don’t necessarily stand behind that headline.)

Bottom line: Give each customer the attentive and inviting customer experience they deserve, and watch the overall value of your customer relationships grow.


You may also want to read:

Customer Segmentation Pitfalls and Potholes

March 9, 2017

Customer segmentation can be an immensely useful tool in getting actionable insights from your customer research. From those insights, you can devise strategies to improve the customer experience, because you have a more specific understanding of what customers want. But segmentation is far from simple.

To get the most out of it, you need to understand a few things about the art and science of conducting customer research. That’s just what CSP has been doing for more than thirty years, so we thought we’d share some of our pointers.

What Can Go Wrong with Customer Segmentation

customer segmentation

Methodology Mishaps

What does your business have in common with the Large Hadron Collider – the massive facility in Switzerland that smashes atoms together to better understand physics? You both rely on the Scientific Method. Or at least, you should (and they certainly should).

Any good research, whether studying customers or plants or animals or atoms, is based on these standards, which have been the guiding principles of science since the mid-1700s. To get good results out of your research, your methods must be scientifically sound, unbiased, and verifiable.

Research is not just conducted, but designed. That means knowing how to create a sound and testable hypothesis, conducting the right kind of ‘experiment’ to test it, and verifying your results with the proper vigor. Get any of these parts wrong, and the rest unravels from there.

Contaminated Sample

Sometimes research starts from scratch, but often, it relies on parsing data you already have on hand. That might include one or more customer databases or Customer Relationship Management (CRM) tools. These databases must be meticulously maintained so as to avoid contaminating the results. Examples of database disruptors include duplicate entries, incomplete entries, “dead” entries (meaning, invalid or out-of-date information, such as dead email addresses), and false categorization.

A slip-up here or there may seem like not a big deal, but it can lead to disasters in customer communication. For example, in 2011, the New York Times erroneously sent out a special discount offer to a small list of 300 recent ex-subscribers to entice them back – except that it was delivered to 8 million contacts, including many current subscribers who suddenly became aware of a discount they were not being offered. Things like this can happen when database entries are not correctly or clearly identified and grouped.

You Know What They Say About Assumptions…

Everyone has conscious and unconscious biases and makes assumptions based on those biases – it’s only human, and it’s rarely malicious. But such assumptions, no matter how logical or benign, can still affect the viability of research results and the value you get out of them.

A good example of where you see this happening is in discussions of the different generations – Boomers, Gen X, Millennials, and so forth. Many sweeping generalizations have been made about each group, some supported by sound research, and others just created by socialization. Eye-grabbing headlines and op-eds easily filter through to form your beliefs about these potential customer segments.

When that happens, you are more prone to leaping to the wrong conclusion. Don’t assume that seniors don’t use mobile banking because they’re technologically illiterate, or that lower-income customers don’t have smartphones. Any conclusions derived from research must be supported by that research.

It Pays to Have an Expert on Your Side

Done well, customer segmentation can lead you to valuable insights and an improved customer experience. Done poorly, it can just as easily lead you astray, or not lead you anywhere at all. If it were easy, businesses like CSP wouldn’t need to exist – but luckily, we do. To learn more about how we guide businesses in using their data to provide stellar customer service, contact us


You may also be interested in:

SOURCES

New York Times email mishap
Unsupported assumptions

Customer Segmentation in the Big Data Age: Where Banks Find Value

February 8, 2017

Customer segmentation helps banks get to know their customers on a more granular level. Segmentation reveals specific intelligence that could otherwise be obscured by the sheer volume of data. These insights, in turn, inform messaging strategies for marketing and customer service strategies. Segmentation can also help banks better understand the customer lifecycle and predict customer behavior.

Examples of common customer segmentation criteria:
  • Customer value – How many products & services customers purchase and what kind of revenue that generates for the bank – past, current, and predicted for the future
  • Demographics – Age, geography, gender, generation (e.g. Millennials and Baby Boomers), income level, marital status, and other “vital statistics”
  • Life stage – Slightly different from age, focused instead on customers’ journeys through various milestones and markers; for example, graduating college or starting a family
  • Attitude – Customers’ subjective stances on things like the financial industry as a whole, online and mobile banking, the economy, and their satisfaction with their bank
  • Behavior – Interactions and transactions between customers and their bank, which channels they use and how often, and which products they adopt

Similar criteria can be applied to banks’ business customers – profitability, number of employees, “life” stage (start-up, established, legacy), and so forth.

These are the traditional ways that customers have been segmented for decades. However, relying just on these categories is not going to yield many actionable insights.

In the age of Big Data, you sometimes have to think small. The real power of segmentation is not the quantity of data you can collect – which, with today’s technology and methods, is virtually infinite. It’s in the ability to drill down to the information that actually teaches you something about your customers.

Often it’s not the segments themselves, but where they overlap, where you’ll find the most valuable intelligence.

customer segmentationSome examples: unmarried, home-owning, degree-holding women under 45; middle-income married parents of high-school-age children in a particular school district; and minority Millennials who are starting their own digitally driven businesses.  Any of these micro-segments may prove valuable customer niches for banks to prioritize. But first, you have to conceive of their existence. Second, ask the right questions. And third, conduct the relevant research to answer those questions.

To understand how this can come in handy for banks, just think about the sometimes bizarre categories that show up in your Netflix queue based on what you’ve been watching lately. Vintage sci-fi with a strong female lead? Critically acclaimed British nature documentaries? Criminal investigation murder mysteries based on books? The more they know your tastes, the more likely you are to keep using their service based on their recommendations.

The options for how segments can overlap are nearly limitless.

Nearly. There is a bell curve to the usefulness of segmentation. Too broad, and the results are less than insightful. Too narrow, and the value of the insights gained will have minimal bottom-line impact.

This is where it helps to have experienced data scientists on your side. The purpose and advantages of segmentation are easy to enough to grasp, but the farther you get into analytic methodology, the more highly technical it becomes, and the more you need to understand about mathematical models and formulas. If things like our guide to data visualization make your eyes glaze over, chances are that the nuances of segmentation will put you right to sleep, too.

But you’re in luck, because CSP’s customer experience & research experts are passionate about getting you the insights you need out of the wealth of data we can gather. So if you are interested in getting to know your customers down to the niche level that segmentation empowers, give John Berigan a call at (800) 841-7954 ext. 101 or contact us by email to start a conversation.


More articles on using data to your advantage:

The Future of Banking in 2017 – and What it Means for the Customer Experience

January 26, 2017

2017 outlook and predictionsIn this season of annual meetings and strategic planning, those with a 30,000-foot view on banks and credit unions are predicting what the year will bring. Some of these predictions are fueled by polls and studies, while others come from the informed instinct of seasoned experts. Having served the financial services industry with quality customer research for 30 years, CSP is interested in how these predictions could impact the customer.

So let’s review some of what the experts foresee for banks and for customer experience trends across industries, through our own unique lens:

“Banks will open 1,000 new branches, with an emphasis on the right location.”
– David Kerstein, BAI Banking Strategies

Our Take: The influx of digital channels has had banks questioning the relevance of the branch for years now. As banks reassess and update their branch placement, they will need to look to their customer data to evaluate how the new locations are serving the customers, both new and current, now using those branches. Brick-and-mortar branches aren’t dead, but the successful banks will be the ones who optimize the in-branch experience around customer needs.

“CEOs will exit at least 30% of their CMOs for not mustering the blended skill set needed to drive digital business transformation, design exceptional personalized experiences, and propel growth.”
– Forrester’s
2017 Predictions: Dynamics That Will Shape The Future In The Age Of The Customer

Our Take: As we’ve reported before, more and more CMOs are finding themselves saddled with the responsibility for the customer experience. While not a traditional marketing function, new research unequivocally proves customer experience to be not only a decisive factor in brand identity, but also in differentiation within the marketplace. An alternative would be the fairly novel position of CXO – Chief Experience Officer – but the point remains that this person would need the left-brain/right-brain balance of data analysis and experience design expertise.

Consumers will take more control of their financial relationships and will look for digital tools for advice and insight. Banks will come to realize that fintech is not a threat, but rather an opportunity.”
– Bryan Clagett, CMO at Geezeo (
as reported by Jim Marous at the Financial Brand)

and

“One product that will likely receive greater attention in the next year is digital personal financial management (PFM). As customers develop higher expectations of their banks, reporting basic account data is no longer enough. Today’s banking customers are in greater need of financial advice than ever, and internal data silos prevent banks from providing effective and personalized guidance.”
Rob Guilfoyle of Abe, a customer service AI for financial institutions

Our Take: Customer loyalty is all about that relationship-building.  Digital tools and advances in artificial intelligence add convenience and responsiveness to daily transactions. That said, customers still like to talk to real live people when it comes to more complex money matters. That means understanding both the uses and the limits of automation and AI. Fintech-enabled solutions should seek to bridge the gap between software and staff, providing customers a direct and convenient channel to a trusted advisor.

And let’s not forget that a great customer experience starts with the employee experience:

Creating a culture of continuous feedback will be top priority for organisations and is being driven by millennials’ expectations for regular, ongoing feedback and the increasingly fast-paced business environment.  Adopting tools that enable people to receive regular feedback from different sources, such as peers, customers or multiple managers for instance, will therefore become more and more important for boosting engagement among the growing millennial workforce and improving overall productivity.”
– Sylvia VorhauserSmith of PAGEUP, an HR solutions provider

Our Take: Regardless of what generation the majority of your employees were born into, transparency and trust are essential to a healthy workplace environment. Any manager who is charged with giving employees feedback on their performance must be willing to take feedback, too, and to use it constructively for the benefit of the whole team. That’s the kind of leadership that builds a healthy and productive company culture. Smart employers will have structured systems in place to allow for this multi-directional feedback, as well as training and development programs to foster leadership. (Hey, we know a thing or two about that…)  


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Email Analytics: Dig Deeper to Uncover Customer Insights

December 7, 2016

email analytics reporting tells you more than just opens and clicks.The line between customer experience management (CEM or CXM) and traditional marketing responsibilities has been blurred, and email is a great example. Email campaigns need not be just about generating business or converting sales. They’re also a useful platform for building and continuing customer relationships. Email analytics tell you a lot about how customers are receiving and reacting to your messages.

Email analytics 101: The basic measures of the success of an email marketing campaign include Opens, Clicks, Bounces, and Unsubscribes. Email marketing software records these types of reader behavior within a customer relationship management (CRM) database. The level of detail of the data collected will vary from provider to provider – for example, what device or operating system your readers are using. From within that CRM tool, you can generate reports and track trends in each rate over time. That said…

Email analytics tell you more about your customers than their email reading habits.

You just have to know where to look.

What links are customers clicking on?

What topics, subjects, or messages are getting the most attention? Where are they positioned within your template design? How were they presented – as text, as images or icons (e.g. a button)? These small but significant factors can all have an impact on engagement.

With this information, you can: tailor the content and/or design of future campaigns to best match your customers’ interests and visual preferences.

Who are your most frequent openers and clickers?

Are they current customers, or prospects? How did they get on your list? Did they sign up voluntarily, or were they added automatically through another process? Pay attention to infrequent engagement, too – whose name is new since last time you sent a campaign? And who never opens or clicks – do they belong on this list, or is their information out of date?

With this information, you can: follow up with more personalized messages targeted at your most engaged subscribers, and make adjustments to your list-building strategy, including cleaning outdated or inactive subscribers.

When are your customers reading and engaging?

Typically, open and click engagement rates spike in the first few hours after a campaign is delivered. Some internet users still jump at every incoming notification or try to keep their inboxes clear of unread messages. But if you are varying your delivery times (as you should be), you may see that timing makes a difference. Review the timestamps on opens and clicks to see when your readers are most likely to open, and whether they click through immediately, or come back to the message later.

With this information, you can: optimize the timing of your regular campaigns for when users are most likely to engage. You may even be surprised by what you find; it may seem counterintuitive to send emails on a Sunday night, but if the analytics support it, go for it!

Was there a sudden spike in a given metric?

Outliers – campaigns that defy your typical averages or medians – are worth your attention. A spike in Opens could indicate that you hit the sweet spot with your subject line. Spikes in Clicks can reveal a hot topic or an effective graphic. A bump in Bounces is a red flag that your list needs some cleaning up, while high Unsubscribes warn that something you did got under your customers’ skin.

With this information, you can: optimize future subject lines and inside content in favor of the tactics that produced the spike – unless you’re talking Unsubscribes – and clean your list so that the next delivery only goes to valid subscribers.

PRO TIP: Some email marketing providers ask Unsubscribers to indicate the reason they’re opting out before their contact information is deactivated. Use this information!

Have you tried an A/B split test?

A split test is a great way to gauge the effectiveness of different email techniques. This involves splitting your list into two (or more) groups, each of which gets a different version of the same message.

With this information, you can: learn which variables – subject lines, template design, inside content, special offers – get your subscribers’ attention, and apply that learning to future campaigns.

PRO TIP: This works best with very large lists; if you have fewer than 500 contacts, it’s harder to get statistically significant results.

Where did customers go after clicking through?

Click-throughs might be the most valuable action a customer can take from an email, but that’s just the start. Ideally, the content they landed on will keep them engaged for a while. After a campaign is delivered, check your website analytics and follow the trail of breadcrumbs. (Again, your mileage will vary depending on the sophistication of your website analytic tools.)  

With this information, you can: make improvements to the landing spots linked to from your emails to pull customers further down the funnel or encourage them to take a desired action.

Bottom line: Email marketing is not a “set it and forget it” endeavor.

There’s a time and a place for automation in your customer communications. But if you are running email campaigns, why not use the email analytics they produce to learn more about your customers?

Data is at the core of CSP’s services, practices, and philosophy. We can’t emphasize this enough: analytics are only as powerful as what you do with them. In this age of Big Data, knowing how to use the infinite information at your fingertips makes all the difference.


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