are two calls too many in the eyes of the customer? financial institution customer complaint...

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Are Two Calls Too Many

in the Eyes of the Customer? Financial Institution Customer Complaint Management

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INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

Summary of Findings

2 INSPIRED TO HELP YOU SUCCEED ©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

Company culture drives great customer service

Customer experience is defined by the first problem interaction

Most complaints are about core banking products: checking, debit card, credit card and mortgage

Banks are not listening close enough to customer suggestions

Complaints remain private between customers and their banks

Even loyal customers will bolt if a bank can’t fix problems

KEY QUESTIONS

1. What is the customer’s current

view toward customer service?

2. What products are frustrating

customers most?

3. How do customers want to

resolve issues with their financial

institutions?

4. Can excellent complaint

resolution overcome the most

severe issues and strengthen the

relationship between the

customer and the financial

institution?


Research Snapshot

43% 19% 31% 7%

Segmentation is a slightly older

demographic

Age Distribution Household Income

Primary Financial Institution

SURVEY METHODOLOGY

1,002 survey responses

All respondents live in the U.S.

18 years of age or older

Online survey

Participants were recruited from an online research panel

Required to have a problem with a financial institution in the last three years

Targeted 50% of respondents to have $100K+ household income

17%

33% 46%

4% Less than$49,999

$50,000 to$99,999

$100,000 to$249,999

$250,000 ormore

24%

41%

35%

18-34

35-54

Over 55

Overall mix of respondents reflects a

higher income base

62% use a National or Large Regional Bank as their primary financial institution


Large

Regional Bank

Smaller Bank Top Five National Bank Other

Cross-Industry Research

Analyzed five best-in-breed customer

service organizations including:

Zappos, Amazon, Southwest Airlines,

Disney and Apple

Conducted interviews with 20 financial

services executives at the top 10

financial institutions in the United

States


Customer Expectations Shaped by Experiences Outside of Financial Services


Our research highlights

Four New Cultural Norms of Excellent Customer Service

Positive Peer Pressure

Anticipatory Customer Service

Employee Enablement

Culture of Advocacy


Top 10 Financial Institutions Aspire to Become Great Customer Service Firms

The regulatory environment does not always allow

us to help our customers.

We know we are being compared to Amazon and

Zappos so we have to get better.

The world we live in is our

biggest obstacle.

Consumers today expect

instant gratification.

Customers want products to be simple and right now FI products are not very simple.

We can’t always give them the answer they want.

We’ve built a pretty good

engine to address

executive or escalated

complaints but the average

complaint by a walk-in at

the branch… those get

lost in the system or are

never reported.

Our CEO said we need to build a real social media

approach and we’ve set about to do it; we’re

chipping away at the silos.

Banks are investing in improving their customer experience


W H AT F I N A N C I A L I N S T I T U T I O N S

T O L D U S …

Banks Are On a Journey to Become Great Customer Service Firms

The bar is high,

and good isn’t good

enough. Banks need to

exceed expectations to be considered

great at customer

service

Q18: Thinking about great customer service companies across all areas of business, how would you compare the customer service quality of your primary financial institution.

18%

47%

35%

MuchWeaker

Not asGood

As Good

% of Total Respondents

Quality of Service Compared to

Great Service Companies

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said that their primary bank

is not as good or weaker than great customer service

companies

65%


7%

22%

43%

28% 5 or more interactions

3-4 interactions

2 interactions

1 interaction

62%

20%

18% Problem Resolved

Problem Not Resolved

Problem PartiallyResolved

62% of problems were completely resolved ...

… of those resolved, 72% of problems

required two or more interactions

“PROBLEM” DEFINED IN

SURVEY

An instance where you must contact your financial institution in order to address:

Inaccuracy

Fee you do not agree with

Concern with the speed of a loan application

Mishandled funds

Other concern

Is Not:

An inquiry to question a transaction

To gather information on a product (e.g. mortgage, domestic wire)

One out of Three Customers Experienced a Problem that was Not Completely Resolved Two or more interactions were required to resolve most customer problems



Banks’ Core Products are Missing the Service Mark

Erroneous Fees

Missing or Misapplied Payments

Fraud

Q22. What type of product was involved with your problem?

15%

14%

12%

Top Service Problems Across Product Lines


Topped by erroneous fees and missing or misapplied payments

Investing in

core products will reduce

customer

problems

Key Problem Areas

Checking

Mortgage

Credit Card

Debit Card

38%

14%

12%

12%


Poor Complaint Management Yields Bad Experiences for Customers

Resolved 1 Resolved 2 or

more Not Resolved

More Business 21.7% 9.9% 1.3%

No Impact 73.7% 66.4% 35.7%

Less Business 4.6% 18.7% 40.4%

Ended the

Relationship 0.0% 5.0% 22.7%


Future relationships depend on the customer experience

4%

74%

22% 24%

66%

10%

63%

36%

1%

More Business No Impact Less Business or Ended Relationship

Resolved in 1 Interaction

First call resolution can lead to more business

Resolved in 2 or More Interactions

Inquiries requiring additional

interactions have a negative impact

Not Resolved

Not addressing customer concerns can lead to less business and terminated

relationships


Banks Aren’t Learning from Customer Problems

10

Customers provided ideas for resolution, but banks didn’t listen


Customer Suggestions Ignored by Banks (when problems were not resolved)

Q45. Did you provide recommendations on how the problem could be solved?

Checking

Debit Card

Mortgage

Credit Card

60%

68%

75%

63%

Listen: customer

complaints

hold hidden

value


Banks Treating Customers Like a Friend or Foe


Impact of Bank’s response on customer satisfaction

I implicitly trust the bank and

my relationship

with it is now

stronger

I have higher

confidence in my bank

since I know the problem will be

resolved quickly

I feel like a valued

customer

38% Resolved in 1 Interaction



17% Resolved in 2+ Interactions



Banks have

ONE SHOT to earn customer

trust and confidence

Q47: How many interactions did you have with the financial institution to resolve the problem?

Q56: How has this problem and the financial institution’s response impacted your overall satisfaction with it?


Challenges Remain


Identifying challenges as heard from financial institutions and consumers

Customer demands

continue to increase

Regulatory requirements

will become more intrusive

Banks struggle with a

comprehensive

view of the customer


CG Recommendations


The Bar

is High

Core

Products

Reign

You Get

One

Shot

Listen

& Act

• Cultivate behavioral and attitudinal customer insight

• Communicate the type of service level that customers can expect

• Share problems and solutions with transparency

Manage customer expectations

• Develop an active and robust listening program

• Value your complaints over your compliments

• Enable employees to take quick action

Learn from your customers

• Deliver customer lifetime value through core products

• Evaluate people, process and technology in the retail bank

• Find the things that drive the most pain; spend time and money to fix them

Invest in core products

• Implement a rapid resolution team

• Anticipate your complaints

• Drive a culture of customer advocacy

Create the feel of first touch resolution for the customer

Solving customer complaint management in today’s world of instant gratification

Contact Us

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212 South Tryon Street, Suite 800

Charlotte, North Carolina 28281

704.936.1600 | @InspiredbyCG | www.carlisleandgallagher.com

Patricia A. Sahm, Ph.D.

Customer Experience & Channels Practice Lead

[email protected]

516.238.6275

http://www.carlisleandgallagher.com/

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