the rising importance of cx in financial services

THE RISING IMPORTANCE OF CUSTOMER EXPERIENCE (CX)

IN FINANCIAL SERVICES

We’re an agile Customer Experience Management firm helping companies know and serve the people that matter most.

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• The CX Pilots Operating System

• Our past clients

• External factors impacting the Financial Services industry

• Internal Environments Impacting the Financial Services Industry

• How World Class CX Programs are Developed

• How to Assess The Maturity Of Your CX Program

• Roadmap: 180 Day Action Plan

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Agenda

CUSTOMER-CENTRIC

Leading with an out-side-in mindset while acting as a fierce advocate for the customer in the face of organizational resistance to change.

This empathic attribute is critical to direct the organizational shifts to better understand and serve the needs of their customers.

CONTENT-DRIVEN

Strategic content is under-used.

It’s necessary to tell the organization’s story about its value, its customers, the efforts of employees, the changes it needs to make and the journeys along the way.

It’s how you build collective ambition.

DATA-MINDED

CX requires persistently finding the right information for the right purposes and quickly converting it into meaning toward outcomes.

Successful CX programs use data as a compass.

They use it to increase confidence in decisions.

CHANGE-FLUENT

Modern CX requires internal change management applied to team structures, processes, technologies and platforms and to people’s ability to manage and work.

Understanding impact and how to reduce friction in every change is mission-critical.

BITE-SIZED & AGILE

Smaller, modular quick wins create momentum and confidence in change. Demonstrating a string of early successes does wonders—not to mention they require fewer resources and are significantly easier to accomplish.

The key is to think in terms of “delicate interventions” with an abundance of prioritization and foresight.

EMPLOYEE-ENGAGED

Employees thrive when they feel an increased sense of purpose, trust, authority and autonomy to meet expectations around accountability.

When organizations empower their employees, they are significantly more likely to put more into their work and get more out of it as a result. Win-win.

Our Operating System

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Customer Experience Clients: Banking/Financial Services

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How We Keep Busy

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EXTERNAL FACTORS IMPACTING THE FINANCIAL SERVICES

INDUSTRY

There are three primary external pressures.

1. Financial Tech Start-ups 2. Regional Competition 3. Hyper-dynamic Customer Expectations

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1. Financial Tech Startups: “The Unbundling Effect”

Consumer/retail bank customers are being intercepted by products and services that are changing the conventional customers’ relationship with their money.

People are being shown that they don’t really need “banks,” they need “banking.”

As this FinTech wave crosses the Atlantic, American banks will begin to experience the effects of unbundling resulting in a loss of new and existing account-holders.

What this means:

The largest national banks are working to improve their innovation “reflexes” by investing in more adaptive innovation management programs.

Many larger regional banks are the slowest to react or are focusing heavily on CX efforts for existing products.

How banks are reacting:

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1. Evaluate your future competitive landscape with Competitive Research.

2. Develop or enhance your org’s Innovation Management Program to consider impact of FinTech incursions.

3. Develop a modern CX Center of Excellence to enhance your org’s CX “reflex” speed and quality.

4. Explore integration of light-weight Business Intelligence capabilities to become more predictive.

Pro Tips:

Competitive Research

Innovation Management Program

CX Center of Excellence

Light-weight Business Intelligence

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Regional banks are feeling the pressure from both the larger national chains and their smaller regional competition.

What this means:

Many of the largest national banks are setting the curve, so to speak—forcing smaller regional players to “up their offering game” or lose out to stronger, more mobile application-based products.

Many regional banks are constricting their competitive efforts, focusing on Voice of Customer surveys and applying conventional CX to enhance “light touch” elements of the customer experience.


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2. Regional Competition

1. Evaluate your future competitive landscape with Competitive Research.

2. Develop or enhance your org’s Innovation Management Program to consider impact of FinTech incursions.

3. Develop a modern CX Center of Excellence to enhance your org’s CX “reflexes.”

4. Expand measurement beyond Voice of Customer to deepen understanding of customer needs and expectations.

Competitive Research


CX Metrics Strategy


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Pro Tips:

2. Regional Competition

Customers are perpetually re-evaluating new paths of convenience and accessibility.

They’re also being taught through other industries (entertainment, hospitality, retail, travel) that their phones are how they want to manage more of their lives.

Banks and Financial Services companies have to find better ways to remain relevant as customers redefine their relationship with money—on mobile devices.

What this means:

Most banks are confident that their brand strength protects them and that most customers will be patient.

A smaller number of banks are adapting by increasing (up to 15%) their investments in innovation and more accountable customer experience programs.


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3. Hyper-Dynamic Customer Expectations

Dis

cont

ent

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Dis

cont

ent

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Following is a list of mobile banking innovations customers are beginning to expect from their banks. The question is, where is par?

• Simple, instant, personal UI

• Integrated bill pay with alerts

• Photo bill pay

• Real-time/actionable alerts

• Untethered login/mobile only

• Voice/biometric authentication

• PIN login/2 factor payment

• Quick balance / text tie-in

• Network agnostic payments

• NFC/proximity payments

• A2A (real-time option)

• P2P (instant option)

• Social/connection payments

• Proximity controls

• Social service hooks

• Services/merchant discovery

• Multi-language support

• Cross-app service launches

• Email/personal info edits

• Basic account opening

• Insurance/other products

• Product calculators

• Contextual offers

• Click-to-call/calendar appt

• Secure/contextual chat

• Video/Facetime support

• Virtual assistant

• Intra-FI transfers

• Debit/credit card off/on toggle

• Card ordering

• Mobile RDC/check deposit

• Transaction gamification

• Mobile PFM/Aggregation

• Safe to spend/budget

• P2P and B2P invoicing

• Integrated statements

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1. Expand your awareness of the gaps between customer expectation and experience.

2. Develop or enhance your org’s Innovation Management Program to accelerate innovations to market.

3. Develop a modern CX Center of Excellence to enhance your org’s CX “reflexes.”

4. Expand measurement beyond Voice of Customer to deepen understanding of customer needs and expectations.

Comprehensive CX Programming


CX Metrics Strategy


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3. Hyper-Dynamic Customer ExpectationsPro Tips:

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INTERNAL FACTORS IMPACTING THE FINANCIAL SERVICES

INDUSTRY

There are three primary internal pressures. 1. How you’re organized 2. The priorities and processes you follow 3. Your culture

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Key Internal Inhibitors of CX Success: Organizational Friction Map

IDIOSYNCRATIC COMMONDifferent silos

Different CX methodology

Isolated BI teams, not focused on CX

Disconnected innovation methodology

Different levels of authority in play

Varying levels of IT involvement

Different budgets

The org not set up for success

No agile processes in place

The culture is disengaged

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Key Internal Inhibitors of CX Success

IDIOSYNCRATIC COMMONDifferent silos

Different CX methodology

Isolated BI teams, not focused on CX

Disconnected innovation methodology

Different levels of authority in play

Varying levels of IT involvement

Different budgets

The org not set up for success

No agile processes in place

The culture is disengaged

This is where we spend most of our time

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Key Internal Inhibitors of CX Success

CUSTOMERS

PROSPECTS PROSPECTS

This white space represents your financial institution, surrounded by typical products and channels.

Current CX efforts tend to focus on the space between you and the market.

PRODUCTS checking

savingsinsurance

loans

line o

f cred

it

billpay

credit

money transfer

analy

sis

CHANNELS

mobile

branch

phon

eonline

social

CX

CX

CX

CX

MARKET

available market

money market

planning

advisoryret

irement

financial

serviceable

market

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Environment

Factor 1: Your Organizational Structure.

There are three key organizational segments that require holistic balance in order for CX initiatives to prove truly successful.

CUSTOMERS

PROSPECTS PROSPECTSavailable market

PRODUCTS checking

savingsinsurance

loans

line o

f cred

it

billpay

money marketcredit

planning

advisory

money transfer

analy

sis

retire

ment

financial

CHANNELS

mobile

branch

phon

eonline

social

CX

CX

CX

CX

serviceable

market

ORG

MARKET

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Environment

Factor 2: Your Organizational Process

By having a process aligned with structure, you begin to achieve a defined priority of operations and strategy.

CUSTOMERS

PROSPECTS PROSPECTS

PRODUCTS checking

savingsinsurance

loans

line o

f cred

it

billpay

credit

money transfer

analy

sis

CHANNELS

mobile

branch

phon

eonline

social

CX

CX

CX

CX

ORG

PROCESS

priority

available market

money market

planning

advisoryret

irement

financial

serviceable

market

MARKET

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Environment

PRODUCTS checking

savingsinsurance

loans

line o

f cred

it

billpay

credit

money transfer

analy

sis

CHANNELS

mobile

branch

phon

eonline

social

CX

CX

CX

CX

ORG

PROCESS

priority

CULTURE

effectiveness

capabi

lity

Factor 3: Your Culture

Aligning your culture with your structure and process reaps an effectiveness and capability crucial for CX. This in turn, leads you organizational quality.

= Quality

CUSTOMERS

PROSPECTS PROSPECTSavailable market

money market

planning

advisoryret

irement

financial

serviceable

market

MARKET

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Environment

1. Prototype a more effective organization.

2. Develop an CX-oriented operations strategy that redefines priority and process with customers at the center.

3. Develop a “canonized” CX Shift that refocuses key employees on CX-centricity. Embed it in a CX Center of Excellence.

4. Develop an employee engagement program

CX Organizational Prototyping

CX Operations Strategy

Employee Engagement Program

CX Shift, CX Center of Excellence

Process & Culture connected but not connected to leadership (org)? Or Leadership (org) and process are connected but Culture is not engaged? These are examples of misalignments.

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Have you experienced a misalignment with your org?

Pro Tips:

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HOW WORLD CLASS CX PROGRAMS ARE DEVELOPED

HOW TO DIAGNOSE NEED FOR IT: 1. I am a new executive and know I want to make changes in Marketing but am not sure where

we stand today. 2. We are not sure where we need to start the changes we feel are necessary. 3. What are the most modern/progressive marketers doing that may be applicable to us? 4. How can we know what marketing approach is optimal for our company? 5. How do I justify significant marketing transformation (sponsoring/funding the initiative) to

the C suite? 6. We want to know what changes can free up some capital to fuel new growth initiatives. 7. We want to know how to develop a business model and operating model to increase our

competitive advantage. 8. We want to plan a major re-alignment that of our investment in technology, people and

process and need to figure out how to roadmap it all.

OUTPUTS:• Audits/Analysis• Future State Vision & Planning • Marketing Maturity Modeling• Business Case Design

1. CX Organizational Audit

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How World Class CX Programs are Developed

HOW TO DIAGNOSE NEED FOR IT: 1. Our employees aren’t owning responsibilities. They’re not clear on roles. 2. Departments are silo’d. Authority unclear when it comes to decisions. 3. Executive decisions made irrespective of other departments. 4. Employees morale is low. They feel that their voice is not heard. They say

they don't know what changes are happening. 5. Wrong talent and/or capabilities to perform the right task necessary. 6. There's a lack of organizational accountability. 7. Need to be set up for sustainable high performance. 8. We need to establish the strategic direction for growth but aren't sure how

to get there?

OUTPUTS:• Organization Map • Roles/Responsibilities• Authority Matrix • Employee Engagement Programs

2. CX Organizational Prototype Design

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HOW TO DIAGNOSE NEED FOR IT: 1. We need to make significant changes and ensure that they stick. 2. How can we centralize all the necessary leading practices,

knowledge and planning? 3. We want to continuously improve. 4. We need to empower our people with change. 5. How can we manage the change? 6. How can we build in accountability of these changes into our

processes and structure?

OUTPUTS:• Centers of Excellence Design • Future Vision • Implementation/Integration Plans• Process/Prioritization Re-engineering • Governance

3. CX Centers of Excellence

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HOW TO DIAGNOSE NEED FOR IT: 1. We have to shift to listening more to our customer but not sure what works. 2. What options, vendors, tools are there that can help me engage with my customers better? 3. How can I build a program that will help us better capture customer insights? 4. I want to take customers insights and fold that back into business improvements. How do

we do that?

OUTPUTS:• VOC Integration Strategy

• Vendor/Tool Selection

• Program Integration/Support

4. Voice of Customer Programs

HOW TO DIAGNOSE NEED FOR IT: 1. It's not clear what specific things we need to do to remain

aligned to our corporate strategy. 2. We're not planning our resources appropriately to accomplish

all the things this company needs to do.

OUTPUTS:• Operations Maps • Strategic Operations Alignment

5. CX Operations Strategy

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HOW TO ASSESS WHERE YOU ARE WITH YOUR CX EFFORTS

Where does your organization currently sit on a CX maturity scale? What are your current CX goals and are you doing all that is needed to achieve those goals? Where could you use additional help to achieve these goals?

The following CX Maturity Program will help to answer these questions. It will also provide a trajectory for your CX program.

BUILD MOMENTUMESTABLISH CX FOUNDATION GETTING STARTED

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CX Maturity Model

BUILDING CX MOMENTUMESTABLISH CX FOUNDATION GETTING STARTED

ORG CX GOALS Action Needed To Achieve ORG CX GOALS When Establishing CX Foundation

• Define CX need within the org

• Determine the org’s CX benchmark

• Start CX strategy

• Identify CX leadership

• Establish CX initiative goals

• Create CX charter

• Obtain senior buy-in on funding and charter

• Nominate CX leaders

• Identify BI desires - what you wish you had (i.e.

data, visualizations, technologies, etc.

• Prioritize BI desires

• Design coalition story • Build business case for CX program • Roadmap 180 journey • Start of CX strategy (align strategy with biz

strategy) • Review cultural landscape • Review innovation management methods • Marketing/Sales/Ops financial ecosystem • Review customer segmentation/journeys • Review competitive landscape • Review operations strategy • Conduct BI current state assessment

Your Organization CX Pilots

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Are You At Level One, Establishing a CX Foundation?CX Maturity Model

• Establish CX team • Establish CX advisory board • Define measurement • Establish system for CX data/results capture and

measuring • Establish Governance • Internal CX Comms strategy established • Better understanding audiences • Better understanding and identify of customer behavior • Determine if any additional tools are needed for CX

program (i.e. VOC tool) - If yes, bring on a tool to capture data

• Design and assemble CX team

• Assemble CX advisory board

• Integrate CX with BI and IM

• Start to capture and review CX data/results

• Kickoff CX internal communications strategy

• Launch internal blog

• Assemble core CX team leadership mandate • Perform a CX team skills/capabilities audit • Create roles, responsibilities and range of authority

matrix for CX team • Design centralized data environment • Design data models • Build initial data model within centralized environment

based on prioritized BI • Build reporting and dashboards • Define data governance plan • Develop internal blog • Develop internal communications plan • Customer segmentation • Customer Journey Mapping • Audit tools/capabilities to capture data


ORG CX GOALS Action Needed To Achieve ORG CX GOALS When Getting Started


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Are You At Level Two, Getting Started?CX Maturity Model

• Grow CX team grows • Integrate CX knowledge into the org culture • Integrate CX across more channels/divisions • CX, IM and BI fully integrate • Expand CX tool(s) across all channels and divisions

• Hire additional needed CX specialists • Establish a CX coalition • Employee Engagement Program • Employee CX Training programs • Build out Journey maps across all channels for all divisions • Distribute Channel Matrix to all org divisions • Establish KPI framework • Continue to capture and review CX data/results • Make business changes and IM updates based on CX data/

results (BI) • Continuous improvement of processes • Progress internal communications • Document process for external comms

• Conduct employee survey on CX • Develop Employee Engagement Program • Develop CX Training Program • Build comprehensive journey maps • Build Channel Matrix • Establish core intake prioritization schema • Co-establish KPI framework • Prototype CX innovation management method • Prototype BI/data ETL approach/warehouse • Develop series of video content on the changes • Tie CX to financial outcomes


ORG CX GOALS Action Needed To Achieve ORG CX GOALS When Building CX Momentum


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Are You At Level One, Building CX Momentum?CX Maturity Model

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ROADMAP TO “CX-PERT” IN 180 DAYS

(aggressive but achievable)

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CX Roadmap: 180 Day Action PlanYO

UR

OR

GC

X PI

LOTS

Establish initiative goals

Build business case

Define CX Agenda

Roadmap 180 day Journey

Design CX team

Align CX strategywith business strategy

Build CX coalition

Design coalition story

Perform a CX skills/ capabilities AuditPerform an rapid BU collaboration auditInterview leadership, BU heads

Develop CX internal blog

Assemble core CXIMBI team leadership mandate

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CX Roadmap: 180 Day Action Plan

Establish CX funding

Co-present business case

Create CX Charter

Gather and review all CX data/results

Obtain Sr. buy in on funding and Charter

Review all customer and Market BI/data/analytics

Kickoff CX comms

Review innovation management methodsMarketing/Sales/Ops financial ecosystemReview customer segmentation/journeysReview competitive landscape

Review operations strategy

Review cultural landscape

Develop Comms Plan

Launch internal blog

CX

PILO

TS


Build business case

Define CX Agenda


Design CX team


Build CX coalition





YOU

R O

RG

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CX Roadmap: 180 Day Action Plan

Present Prototype EcosystemEstablish core intake prioritization schemaEstablish hardened measurement/reportingPrototype CX innovation management methodPrototype X-channel data collectionPrototype BI/data ETL approach/warehouse

Prototype KPIs/metrics

Prototype CX process

Prototype org structure

Collaborate on prototypes

Co-establish KPI framework

Progress Communications

Establish Prototype Environment



Create CX Charter




Kickoff CX comms




Develop Comms Plan


CX

PILO

TS


Build business case

Define CX Agenda


Design CX team


Build CX coalition





YOU

R O

RG

Present CXIMBI ecosystem to leadershipRun two successive 2 week CX sprintsDevelop series of video content on the changesTie CX to financial outcomesRefine ETL for BI/data and metric outputs

Create CX governance

Refine CX processes

Design executive dashboards

Launch video content on CX blog

Collaborate on CXIMBI Sprints

Collaborate on ETL for BI/data

Co-create video content for blog

Collaborate on Executive Dashboards

Present Prototype EcosystemEstablish core intake prioritization schemaEstablish hardened measurement/reportingPrototype CX innovation management methodPrototype X-channel data collectionPrototype BI/data ETL approach/warehouse

Prototype KPIs/metrics

Prototype CX process

Prototype org structure

Collaborate on prototypes

Co-establish KPI framework

Progress Communications

Establish Prototype Environment



Create CX Charter




Kickoff CX comms




Develop Comms Plan


CX

PILO

TS


Build business case

Define CX Agenda


Design CX team


Build CX coalition





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CX Roadmap: 180 Day Action PlanYO

UR

OR

G

than the experience

About CX Pilots

Follow Us

CX Pilots is a new voice, idea and approach to purpose-led CX programs. Our strategic approach helps the C-Suite down to the front line, close the gap between the organization (leaderships and employees) and its customers while lowering the cost of CX Program implementation. 100% of CX Pilot’s program implementations decrease the risk inherent in embedding Customer-centricity into the organizations while speeding up the cycle time to start seeing quick wins.

We are momentum-builders who know how to create internal coalitions, eliminate program and adoption friction by partnering with leadership on the goals and initiative execution, and engage employees in incremental digestible change programs and that ultimately yield critical CX outcomes. CX Pilots predicates is success on more meaningful, in-depth and precise CX Maturity assessments that are built custom to each organization.

Contact: cxpilots.com Steven Keith, Founder/CX Program Architect [email protected] (919) 771-5219

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your customersand employees

have with your organization?

revenue

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