More than two years ago, Westpac – a bank in New Zealand – rolled out its “Cash Tank” feature for mobile bankers. Suddenly, customers could view key information like account balances without needing to log in (needless to say, it was and is opt-in-only). This new mobile banking feature immediately made a splash and was hailed as a small-but-impressive innovation. Other banks – such as Société Générale in France and Bank of the West in the US – offer similar pre-login information features.
This led folks like me to wonder: How might digital teams at banks take pre-login information further or make it even better?
Great digital strategy is often about pushing the limits – and not just in big ways. So Citi’s recent update to its smartphone apps is noteworthy for the bank’s decision to push the idea of pre-login information even further with Citi Mobile Snapshot. Citi customers who bank via their mobile phones can view not only balances but recent transactions without the hassle of logging in.
We spoke with Andres Wolberg-Stok, Global Head of Emerging Platforms and Services who shared with us a diagram that demonstrates the evolution of its mobile banking effort before and after Citi Mobile Snapshot (see below).
It’s a fact: Marketers in Asia purchase digital technologies without involving the tech management department. They do it because they believe that:
Digital technologies are key enablers of successful marketing strategies. Customers in Asia Pacific in general, and in Singapore in particular, are always connected and empowered by technology to access the right information in their moments of need. They increasingly value — and do business with — organizations that provide them with experiences that are effective, easy, and emotional across all customer touchpoints. It’s not a surprise, then to see marketing professionals — just like their colleagues in sales, product management, and customer service — source digital technologies to enable such experiences.
The tech management department hinders their business success. This is the more worrying part, but if you take a step back, as a technology management professional, you understand why. You work with technology life cycles that are oriented toward core business, back-end systems like enterprise resource planning and therefore are risk-averse and slow. However, marketers need tech management professionals who are open to innovation, experimentation, and moving toward a risk-tolerant, agile life cycle that supports digital experience delivery.
There’s a good chance that you’re a Verizon customer. I am; I get my cable TV, Internet access, and home phone service from it.
All in all, there are 130 million of us Verizon customers — and that’s a daunting challenge for Verizon. How do you — how can you — create a high-quality, consistent customer experience for all those people when they’re buying and using such diverse products?
The answer: business process discipline. And that’s why we invited Nancy Clark to speak at Forrester’s Forum For Customer Experience Professionals East, 2014. Nancy is Verizon’s senior vice president, operational excellence, a business process maven, and the sharp point of the spear for the company’s customer experience improvement initiative.
Nancy was kind enough to answer a few of our questions about what she’s doing. Read on for insight into how Verizon rose in every category of our Customer Experience Index that it’s in this year.
Those of you who’ll be with us in New York on Tuesday, June 24, can hear even more from Nancy. I hope to see you there!
Q: When did your company first begin focusing on customer experience? Why?
A: Verizon’s history dates back more than a century in some parts of our business. Like all good companies, we’ve always had a philosophy of putting the customer first. At the heart of this is a shared credo — our aspirational statement about who we are as a company. It fits on one page, but the word “customer” appears 10 times, and the first line is, “We have work because our customers value what we do.”
Don’t you hate when a company advertises a product but fails to make it easy to find and buy?
Mad Men’s Don Draper, who, in the 1960’s could have been as likely to work in insurance as advertising (but the story would have been not nearly so interesting), would have a field day with the findings from Forrester’s just published report, “The Next Act For Usage-Based Car Insurance”, the first in a four-report series addressing the UBI landscape in the US, Canada,and Europe and the future of UBI.
Smart devices, smartphones, and smart cars are converging to create what should be a smart insurance choice for safe drivers and their insurers. The report examines American consumer interest and adoption of usage-based car insurance and the obstacles to purchase, many of which point directly to insurance eBusiness failings.
When Forrester last looked at the UBI market in 2008 (then termed “Pay As You Drive” or PAYD), consumers couldn’t get it because of a big distribution problem: It was offered by few insurers in just a few states. A couple of months ago, we decided to see just what had changed over the past five or so years when it came to consumer interest and purchase. What did we learn?
Okay, maybe “demigod” is a little over the top. But maybe not.
John Maeda is both design partner at Kleiner Perkins Caufield & Byers and chair of the eBay Design Advisory Board, where he collaborates with design leaders across eBay to disseminate design thinking. But that’s just what he’s doing now. He previously served as the president of Rhode Island School of Design (RISD), and before that, he was a professor and head of research at the MIT Media Lab.
Now where I come from (Cambridge, Massachusetts, these days), RISD and the Media Lab are synonymous with innovative thinking. But eBay already changed the way about 145 million people shop — most people would say that’s already pretty innovative. So how do you improve innovation by disseminating design thinking at eBay?
In advance of John’s talk, he was kind enough to answer some of our questions about what he’s been doing and why. I hope you enjoy John’s responses, and I look forward to seeing many of you in New York on June 24th and 25th!
Q: When did your company first begin focusing on customer experience? Why?
When I ask government employees why improving customer experience (CX) is so important, I often hear a version of the same answer: "It's the right thing to do." But I'm not about to take an easy answer like that at face value, so I dig deeper.
I try getting them to admit that they're really motivated by the CX mandates in Executive Order 13571, the digital government strategy, and agency mission statements. Time and again, I'm politely told I have it backward. These documents were inspired by the core moral imperative to improve government CX, and they exist only as practical guidance for agencies in pursuit of this obligation. The maxim is the motive; the documents just articulate it. I next try arguing that government employees are motivated by the political quest for public acclaim — that they pursue customer experience improvement simply because it will make them or their agencies popular, winning them promotion or reelection. Again, they tell me I'm all turned around. Doing the right thing for the customer is the real motive, and luckily the American people reward it.
Maybe their answers aren't surprising, given that many government employees chose public sector careers due to their dedication to public service. But what about customer experience professionals in the private sector? Are they motivated by a moral imperative, too? In recent interviews with companies at the top and bottom of Forrester's Customer Experience Index (CXi), I found some surprising answers.
One word describes the state of US health plan digital strategists at the end of 2013: exhausted! The October 1, 2013 open enrollment milestone for the public exchanges became not an event but an epic saga. Integration failures, wobbly deadlines, and substandard policies that became the walking dead stymied large numbers of potential plan buyers, who either gave up or stood on the sidelines. But through a lot of persistence, 8 million Americans had managed to enroll in the public exchanges by mid-April 2014.
But with the enrollment process behind them, these tired digital strategists can’t rest. It’s time to shift attention from getting customers to keeping them. And not surprisingly, what matters to consumers when it comes to picking health plans is whether their doctors are “in-network”. But other practical aspects of the health insurance experience also matter, like:
Ease of resolving problems. When it comes to handling the nit-natty issues of plan maintenance issues like claims and payments, consumers want easy. That means that health plans have to make it easy for them to view their payment history, get their individual plan bills paid, monitor claims status, and access statements and tax documents online and increasingly through a plan’s mobile site, especially for that critical “young and healthy” segment.
Once upon a time, insurers sat in the power seat when it came to their interactions with policyholders. The insurers understood the magic behind how insurance was sold, how premiums were calculated, and how claims were adjudicated. Those days are gone. In the Age Of The Customer, consumers are changing the rules and who wield the power. Thanks to all things digital, consumers have shifted from being passive sideliners and are willing — and able — to play more active and demanding roles across the insurance business. That means that digital must now be a core underpinning of an insurer’s customer experience philosophy, not an endpoint.
Just what are the factors propelling North American insurer agendas this year? For starters, it’s about:
Booming growth in revenues and profits. 2013 was a very good year for most North American insurers --the best since the financial crisis. Many are sitting on hefty policyholder surpluses and capital.
The fallout from HealthCare.gov. Balancing political winds with project management reality heaped more pressure on already stressed health plans, thanks to shifting deadlines, relaxed employer mandates, and zombie health plans. And as a result, trust across the broad healthcare ecosystem was undermined.
The risk of emerging insurers to meet the needs of digitally empowered consumers. Consumers are getting being trained to expect even more from their digital interactions. New insurers are coming to market offering new digital experiences that simplify, personalize, empower, and reassure customers.
Extreme weather. US and Canadian insurers have shifted to a posture of adaptation, and are looking to arm policyholders with new tools to better protect them from natural hazard risks.
We've been talking about Adaptive Intelligence (AI) for a while now. As a refresher, AI is is the real-time, multidirectional sharing of data to derive contextually appropriate, authoritative knowledge that helps maximize business value.
Increasingly in inquiries, workshops, FLB sessions, and advisories, we hear from our customer insights (CI) clients that developing the capabilities required for adaptive intelligence would actually help them solve a lot of other problems, too. For example:
A systematic data innovation approach encourages knowledge sharing throughout the organization, reduces data acquisition redundancies, and brings energy and creativity to the CI practice.
A good handle on data origin kickstarts your marketing organization's big data process by providing a well-audited foundation to build upon.
Better data governance and data controls improve your privacy and security practices by ensuring cross-functional adoption of the same set of standards and processes.
Better data structure puts more data in the hands of analysts and decision-makers, in the moment and within the systems of need (eg, campaign management tools, content management systems, customer service portals, and more).
More data interoperability enables channel-agnostic customer recognition, and the ability to ingest novel forms of data -- like preference, wearables data, and many more -- that can vastly improve your ability to deliver great customer experiences.
It’s that great time of year when I finally get to talk publicly about Forrester's Forum For Customer Experience Professionals in New York at the end of June. If you’ve ever been to one of our events, you know that we always have a theme, and this year that theme is “Why Good Is Not Good Enough.”
We picked our theme because of the good news/bad news story told by our Customer Experience Index (CXi) results this year. First, here’s the good news: The number of brands in the “very poor” category of the CXi is down to one out of 175 brands we studied. What’s more, only a handful of brands — 10% — are in the “poor” category. Together, those findings show that as customer experience improvement efforts got traction over the past year, the number of truly awful experiences dropped like a rock.
Now for the bad news: Just 11% of brands in the CXi made it into the “excellent” category.
Taken together, those two pieces of news mean that most brands are bunched up in the middle of the curve — not awful in the eyes of their customers but not differentiated either. I think of this situation as “okay is the new poor” or, in my darker moments, “the year of ‘meh.’” Regardless, it adds up to the same thing: A merely good customer experience is no longer good enough if you want incremental sales, positive word of mouth, and better customer retention.