CUSTOMER EXPERIENCE: THE 14BN RISK

NOTES FOR DISCUSSION

SEPTEMBER 2018

© Oliver Wyman
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© Oliver Wyman
Contents

1. Introduction: The €14bn opportunity

2. Digitisation and Customer Experience
3. Customer Experience as a value driver
4. How can Oliver Wyman help?
5. Why Oliver Wyman

© Oliver Wyman 2
1. Introduction: The €14bn opportunity

Why does customer experience matter?

€14bn of customer value at risk due to customer experience

Customer Experience Digitisation

• 2/3 of clients work with more than one bank • “Digital” customers are more satisfied across
and 40% of them are looking for banking all aspects of their relationship with the bank
alternatives • Strong correlation between digitalization,
• There are different client behaviours customer experience and client attrition
coexisting in most markets, digital only and
• Negative experiences are concentrated in
branch only clients, but most of them are
heavy users of all channels
• Banking clients are increasingly open to
+ non digital channels, especially within the
higher value segments
• There are new alternatives (e.g. financial
share their data and engage with third platforms) that are shifting the understanding
parties to satisfy their financial needs
the financial services industry
• Flow of customers from less digital to more
digital banks

• Estimated value at risk of up to 15% of net margin – €14bn1

• Value at risk is typically linked not to one but to several different hassles by segment
• Customer experience needs to be linked to economics and actions need to be prioritized to be efficient
• Leaders are improving economics by better targeting investments and better protecting revenue
1. Countries in scope of the analysis: Germany, Spain, France, Italy

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1. Introduction: The €14bn opportunity

Poor customer experience has strong impact on client value

Quantified impact of hassles in retail banking Customer Experience (Spain example)

65% 44% 31% 67%

Have downgraded Would not recommend Overall satisfaction Experienced at least one
or maintained their their primary bank to score less than 5 with hassle with their bank in the
opinion of their bank anyone their bank last year, 29% experienced
more than 3 hassles

1/10 1/6 1/4

Abandon the bank Reduce their State their intention to 15% Customer margin base
(half of them maintain relationship with reduce relationship – at risk due to bad
a c.a. and may not be the bank 25% of them do not know experiences….
accounted as churn) where to go; further 11%
is not sure whether they €14BN for the 4 largest
will intend to change European countries1
Source: OW customer survey
1. Germany, France, Italy and Spain

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1. Introduction: The €14bn opportunity

CVaR is calculated as the probability of decreasing relation because of bad

experiences times the expected loss on value

Customer
Attrition due to poor
Value at Risk Expected value loss
Customer Experience
CVaR

• The probability of reducing relation will • Loss on value will be calculated based
be calculated according the data on historic data from clients who have
obtained with the survey, having reduced their relation
previously identified the clients who
decreased their relation with the bank • Therefore, expected loss on value will
be calculated as:
• This way, the probability of reducing
relation for clients with bad experiences
will be calculated as:

# clients who reduced

Probability of relation because of bad
reducing experiences Expected Gross margin t
relation loss on 1
because of # clients who have had bad value (%) Gross margin t-1
bad exp (%) experiences

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1. Introduction: The €14bn opportunity

In the four largest European countries, we estimate the total CVaR to be €14bn

Value1 Probability of attrition Expected Value Loss CVaR

21 x 45% x 52% = 5

37 x 25% x 46% = 5

11 x 42% x 53% = 2

17
x 24% x 50% = 2
1. Net Interest Margin of Domestic banking groups and stand-alone banks. Source: ECB
2. “Intend to change” or “might consider changing” of primary bank. Source: OW analysis

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Section 2 Customer Experience and Digitisation
2. Customer Experience and Digitisation

Customer Experience satisfaction

Digital leaders are best performers and biggest entities are typically at or
below average
CX satisfaction across countries and banks
0-10
9
Top
performers

8
Middle
performers

7
Bottom
performers

Source: Oliver Wyman analysis

Top 3 bank Digital leader Market average

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2. Customer Experience and Digitisation

Despite the metric used to monitor CEX, Digital banks perform better
Illustrative example

1 Satisfaction rates 2 Recommendation rates 3 CVaR

Bank 1 8,3 Bank 1 8,4 Bank 1 12,8

Bank 2 7,9 Bank 2 8,1 Bank 2 13,8

Bank 3 7,7 Bank 3 7,8 Bank 3 13,8

Bank 4 7,4 Bank 5 7,7 Bank 4 14,5

Bank 5 7,3 Bank 7 7,6 Bank 5 14,5

Bank 6 7,2 Bank 4 7,6 Bank 6 14,7

Bank 7 7,2 Bank 10 7,6 Bank 10 14,9

Bank 8 7,0 Bank 8 7,4 Bank 7 15,0

Bank 9 7,0 Bank 9 7,3 Bank 8 15,4

Bank 10 6,9 Bank 11 6,8 Bank 9 15,9

Bank 11 6,7 Bank 16 6,8 Bank 12 16,2

Bank 12 6,1 Bank 12 6,7 Bank 11 17,3

7,2 7,5 14,9

Digital: Best practices1 Intermediates1 Laggards1

We classified banks into digital best practice, intermediates and laggards according to 16 digitisation KPIs
1. Clusters defined based on OW Digital Banking Index, April 2017
Source: OW study, 2,241 surveyed customers in Spain, April 2017

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2. Customer Experience and Digitisation

Net Promoter Score

NPS is better for digital banks – Traditional banks wouldn’t be “net”
recommended by their clients in Europe
Spain Italy France Germany
NPS NPS NPS NPS

100 100 100 100

57%
50 50 50 50
27% 30%
18% 16%

0 0 0 0
-7%
-14%
-21%

-50 -50 -50 -50

-100 -100 -100 -100

Digital Traditional Digital Traditional Digital Traditional Digital Traditional

Source: Oliver Wyman analysis

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2. Customer Experience and Digitisation

Whilst the full benefits of “digital” are yet to be fully demonstrated, it is true
that digital players are more successful in attracting customers

Net flow of customers between digital and traditional

% of customers switching bank segment

Net flow to digital

Net flow to digital

21% 17%

23% 26%
Digital Traditional Digital Traditional
3% 9%

Net flow to digital

12% 4%

31% 14%
Digital Traditional Digital Traditional
19% 10%

Source: Oliver Wyman analysis

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2. Customer Experience and Digitisation Illustrative

“Digital” customers are more satisfied across all aspects of their

relationship with the bank

Primary bank customer satisfaction Comments

Client perception on… (out of 10) Best practices
Laggards Intermediates
• Fees and commissions Accessibility shows to be the
• Interest rate (deposit, real estate,
overdraft) 1 category in which Best Practice’s
banks are most valued
• Few errors / ethical Price
• Transparent fees and commissions
Reliability and +
• Possibility to talk with someone transparency 2
Call center
• Possibility to interact with the bank convenience
through online channels Reliability and transparency
Online channel

(Best Practice – Laggard)

Gap
3 presents one of the most
• Range and quality of offering convenience 2 exacerbated gap between
• Ease of purchasing new products
Offer quality Laggards and Best Practices
• Quality of fidelity programs
• Lack of hidden fees
• Bank’s ethics Empathy

• Easy accessibility to products and Accessibility 1

continuous communication Online channel convenience
Advice quality shows to be highly valued
• No errors, effective management and 3 among Best Practices and greatly
required skills to meet clients’ needs
Service quality 4 differentiated from that of
• Speed and responsiveness Laggards
• Process flexibility Personal
advisory
• Personal advisor and awareness of
customers' needs Customer
assistance - Service quality also shows to be
• Courtesy of employees among the most valued
• Ability to resolve customers issues Branch access
4 categories among Best Practices
• Branch location / schedules despite the gap being smaller
• Office design and image 4 5 6 7 8 compared to other banks
Source: OW study, 2,241 surveyed customers in Spain, April 2017

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2. Customer Experience and Digitisation Illustrative

Negative experiences are concentrated in non digital channels, especially

within the Affluent segment

Hassle rate by channel (%)

Mass market – Online banks are excluded for branch and relationship manager
10%
9%

6%
5% 5% 5% 5%
3% 3%
3% 3%
2% 2%
2%
1% 1% 1%
0%
Branch Relationship manager ATM Call Center Online App

Hassle rate by channel (%)

Affluent – Online banks are excluded for branch and relationship manager
10% 10%
8% 8% 8%
8%

5% 6% 5%
4% 4%
2% 2% 2%
1% 2%
0% 0%
Branch Relationship manager ATM Call Center Online App

Source: Oliver Wyman Observatory of clients’ experience, May 2015 - May 2017 Best practice Intermediate Laggard

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Section 3 Customer Experience
as a value driver
3. Customer Experience as a value driver

Banking relations per customer

Most customers already work with more than 1 bank

Number of banking relations per household Number of banking relations per household
Germany Spain

2 banks 1bank 2 banks 12%

1bank
30%

41%
45%

43%

29%

3 or more banks 3 or more banks

Sources: Oliver Wyman Digital Banking Survey Germany July 2017 | N = 2,006, OW study, 2,241 surveyed customers in Spain, April 2017

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3. Customer Experience as a value driver

Desire to switch bank

Despite better average customer experience, Italian clients are less sticky
than others
Spain Italy Satisfaction rate
9% 45% 7% 42%
13%
11% -19%
32%
31%
100% 100%
64% 50%

Total Have Strong Consider Didn’t and Total Have Strong Consider Didn’t and
market changed desire to to change don’t want market changed desire to to change don’t want
Banks in change to change Banks in change to change
last 2 years last 2 years

6,78
France Germany
5,51
14% 25% 6% 24%
11%
10% 13%
15%
100% 100%
61% 70%

Total Have Strong Consider Didn’t and Total Have Strong Consider Didn’t and Consider Didn’t and
market changed desire to to change don’t want market changed desire to to change don’t want
Banks in change to change Banks in change to change
to change don’t want
last 2 years last 2 years to change

Source: Oliver Wyman analysis

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3. Customer Experience as a value driver

Channel usage
Despite the fast increase in the digital channels, customers still have frequent
branch interaction
Segmentation of users interacting with the bank depending on channels and frequency
Low touch online: Once a month or less
High touch online: daily - weekly
- Online interaction +
Low touch branch:
less than quarterly

4%
- 8% Low touch

17%
Neither Online or Online / App only
Branch
0% 17%
39% Digital
2% 12%
Branch interaction

47%
Low touch Dominant online
8% 22%
2% 5%
Mix use of Online and Branch 32% High touch
Branch / RM only
High touch branch:
Weekly - quarterly

Dominant branch High touch

10% 32% 32%
11% 21% Branch
14% 47%
++ 18%

Spanish customers are still more “branch” than German ones

Sources: Oliver Wyman Digital Banking Survey Germany July 2017 | N = 2,006, OW study, 2,241 surveyed customers in Spain, April 2017 – Sample: 1,826
Note: In Germany Clients were asked how often they use mobile banking, how often the mobile app and how often they visit the branch for any activity beside cash withdrawal while in Spain
the question was “In the last 12 months, how frequently have you used the following channels to interact with your bank?”

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3. Customer Experience as a value driver Illustrative

Channel usage
Key hassles are different by channel behaviour, making enhancements
“trickier”
Low touch Digital1
Despite limited interaction, they care about availability ATMs are key to digital users

Number and location of ATMs Number and location of ATMs

Option to speak with a representative when using online Option to speak with a representative when using app/mobile

Commuting time to reach the branch ATM operational status

Low touch Digital

Branch High touch

Branch1 High touch

Branch hassles are more important than digital for hybrid
Branch efficiency is important for
clients
Branch opening and closing hours Branch opening and closing hours

Employees availability to assist you in procedures Commuting time to reach the branch

Time required to execute basic operation Option to speak with a representative when using online

1. Branch includes dominant branch and “Digital” includes dominant online

Source: Oliver Wyman Digital Banking Survey Spain April 2017 | N = 2,241

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3. Customer Experience as a value driver

Channel usage by age group

We observe the highest degree of online/mobile banking activity for clients in
their thirties
Segmentation of users interacting with the bank depending on channels and frequency by age group

Germany Spain
3% 4% 4% 1% 4%
9% 7% 7% 7% 8% 6%
9%
11% 14%
16% 17%
19% 20%

32% 32%
40% 38% 39%
48%
48%
46% 52%
47%
46% 47%
32% 31%

33% 33% 33%

34%

38%
34% 32% 32%
29% 30% 30% 29%
19% 20% 21%
11%

18-29 30-39 40-49 50-59 60 + Overall 18-29 30-39 40-49 50-59 60 + Overall

Low touch Digital High touch Branch

Sources: Oliver Wyman Digital Banking Survey Germany July 2017 | N = 2,006, OW study, 2,241 surveyed customers in Spain, April 2017
Note: Clients were asked how often they use mobile banking, how often the mobile app and how often they visit the branch for any activity beside cash withdrawal

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3. Customer Experience as a value driver Illustrative

Product offerings and extra services

Bank relationships are becoming increasingly “open”

40% 35% 59%

…would provide their data …expect their bank to …would purchase third
for concrete product offers support with financial party products through
planning their primary bank

… knows that their

…are familiar with
bank offers the
feature to connect 20% 14% the concept of
robo advisors
different bank
accounts

Source: Oliver Wyman Digital Banking Survey Germany July 2017 | N = 2,006

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Section 4 How can Oliver Wyman help?
4. How can Oliver Wyman help

Our approach
A tested, quant based and result driven approach towards
customer experience
Oliver Wyman Customer Experience approach

4 Solve hassles

• Design Thinking approach

• Engage most relevant areas of the bank in
initiatives to solve customer experience
1 Customer Value at Risk

• ~250 interaction points covering key

relationships, moments, channels and products
• Ability to understand value by cluster
• Linked to real economic behaviour 3 Heatmap 5 Build delights
• Risk of Reducing business (not only churn)
• Consolidated view of mismatches between • Client acquisition strategies based on positive
Customer Value at Risk and bank KPIs customer experience
• Prioritize strategic actions according to • Cover and reinforce needs of our clients
2 KPI Dashboard
value
• Translates “Experience Promise” into a set • Supports decision making
of hard KPIs
• Covers key relationship moments by Monitor and
channel and product 6 continuously improve
• Compares with best promises, benchmarks
and aspirations • Continuous tracking tool
• Highlights changes and red flags
• Builds virtuous circle based on value

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4. How can Oliver Wyman help
1 Our competitive advantage
We have proprietary data and experience to support our
project development

Our Survey Our Client Work

Proprietary survey across multiple countries

in Europe: Tailored to client strategy
• ~250 interaction points
• Key relationship moments
• All channels
• All product families Linked to real economic behaviour

Hassles & delights

Sociodemographic Granularity fits with strategy and

operational model (e.g. channels to be
considered)
Expected behaviour

Define customer value at risk, typically 15% of gross margin margin

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4. How can Oliver Wyman help
1 The first step is to understand the underlying value of our customer’s
needs – CVaR approach

CVaR Methodology Calculation dimensions of CVaR

Illustrative

Customer Value at Risk CVaR

Bank’s potential value loss if

customer needs are not met CVaR 6%
Segment n

Client segment
… Segment 1
3 Call-center ACX 30%
Segment 3
P. Solving
Attrition due to poor
Customer Experience (ACX) Segment 2 EVL 20%

Through a survey and observed

Segment 1
client behaviours, we analyse the
customer experience drivers of those

products

products

Problem
Saving

solving
Credit
Basic
clients reducing their relationship with
the bank

Interaction

CVaR 4% CVaR 10%

Expected value loss (EVL)
Segment 2 Segment 3
1 Brach 2 Internet ACX 20%
Value loss from those clients who ACX 20%
P. Solving
P. Solving
have reduced their relation
Several client metrics can be used EVL 20% EVL 50%
(gross margin, net present value,
potential value, etc.)

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4. How can Oliver Wyman help
1 A granular analysis helps prioritize efficient areas of intervention
Hassles ≠ CVaR Some hassles are worth more Some clients more affected than
than others others

By segment (traditional,
exclusive vs shared client,…)

By sociodemographic
(age, income…)
Example
analysis By province, by distance to
CVaR

branch…

By channel behaviour

By branch type
Rest
Hassles rate
…
Some hassles are not linked to value Typically no “1 big issue to fix” but
destruction several

Example:segment mentioned has higher hassle rate No significant differences across sregments Medium differences Large differences

Point of Value Territories Province Age Branch Compe- Multicha- Branch use Portfolio
contact type tence nnel
Office Core areas MAL Median age (30 – Affluent branches - Digital clients - -
VAL 50) years are Multichannel
hours
SEV worse clients
MAD

Waiting Low value clients East (35%) AVI Median age (30 – Transactional Shared clients Heavy users Clients who are
CAST 50) years are branches not in a portfolio
office times
worse

Branch Low value clients Non-core areas TAR, GRA, Median age (30 – Shared clients Digital clients Heavy users
MAL, CAD 50) years are Branch clients
proximity
worse

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4. How can Oliver Wyman help Disguised client example

2 In parallell, from the bank’s perspective a set of KPIs are defined

to help the organisation embed its customer experience strategy in
the business
Experience promise layers

Meaning for
Attribute KPI definition KPI embedding
Experience promise

Intrinsic characteristics of Translation of strategic levers Definition of key metrics to Metric embedding across
the brand and related to into meaningful concepts of monitor and report performance segments, channels or products
the business strategy of customer experience
the bank

APPROACHABLE Low value

% customers stating they
Get to know and
have no reference person Medium value
recognize the client
in the bank
High value

SIMPLE
% products that can be Web
Easy to understand,
signed on with less than
simple to use App
(3) “clicks”

TRANSPARENT Low value

Be professional and % customers stating they
trustworthy understand our products Medium value

High value

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 4. How can Oliver Wyman help Sanitized client example
2 Selected KPIs cover the whole spectrum of client interactions
KPIs by channel and contact

Realización de Renovación/
Oferta final Firma y contratación Realización operaciones Cancelación de Interposición/ Resolución
personalizada del producto de consulta (i.e. transacción) productos de incidencia
Oficina % operaciones que solo se pueden hacer en oficina de origen

% de clientes que entienden lo contratado

% de contratos que han sido revisados y adaptados

% de ventas que no cumplen criterio de necesidad cliente

Tasa de venta cruzada por cliente

institucional
% oficinas que hace venta
% de ofertas basadas en modelos de BI
# de productos por cliente por segmento (LPs)
% de ofertas personalizadas

% de información completa en ficha comercial por cliente (mail)

% de clientes por tipología

% de clientes a menos de 1 km de una oficina

% de comunicaciones que cumplen criterio de

claridad - (ej. letra, págs, explicación riesgos)
% de clientes invisibles por oficina
Tiempo medio de espera en oficina/ oficina ágil
% de clientes que forman parte de un programa de fidelización y lo conocen
% de clientes que manifiestan haber tenido alguna incidencia

Tiempo medio de respuesta en

% de cumplimiento de plazos en procesos comerciales
% de clientes no carterizados con persona de referencia
% de los contactos a clientes (con gestor) realizados por su gestor de referencia

hipoteca y préstamos
% del número de
Gestor de clientes con los
referencia Tasa de éxito por # de contactos (llamadas, correos electrónicos) por cliente en los últimos 12 meses
que se ha
campaña contactado en los % de clientes que dicen tener una persona de referencia
últimos 12 meses
% de clientes carterizados por segmento
Media del # de entrevistas por gestor en 12 meses

% de clientes con avisos por descubierto

% de
% contratos que
contrataciones
cumplen criterio
que se pueden
de claridad
% de clientes con productos preconcedidos

realizar % de interrupciones de contratación de productos online

Oficina % de contratos por canal % de productos que se pueden contratar en menos de 3 clicks
formalizables
Internet % de clientes que utilizan funciones básicas en la oficina internet y móvil
de

resueltas que exceden

% de cumplimiento de
forma no

plazos en resolución
regularizaciones en
presencial
% de disponibilidad

% de clientes con
de sistemas (por

% de quejas no
% de mensajes personalizados
Cajero

de problemas
canal, uptime)

de 2 meses
automático % de cajeros con funcionalidad avanzada

12 meses
% disponibilidad de cajeros

Atención % de contratos
formalizables Tiempo de respuesta en canal telefónico
Telefónica
de
Llamadas entrantes no atendidas
forma no
presencial % de llamadas para aclarar consultas relacionadas con términos de contratación

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4. How can Oliver Wyman help
2 A target ambition is set for each KPI, ensuring full coverage of
the bank’s customer experience touchpoints

Illustrative KPI distribution in a bank- by channel KPI typology and ambition setting
and high level customer journey
KPI type KPI ambition
Explore Purchase Use Solve
KPI per channel
Channels
Branch Average waiting
A E A 60 min
time at branch
5 min
% of calls answered
B by call center within
RM
D 20 seconds 10%
90%
% Branches with
C smart ATM
20%
Web
F 80%
KPI per phase
% Contracts
ATM D understood when
C explained by RM 10%
90%
% Complaints
E solved in less than 1 40%
Call Center month in Branch
B 80%
% Complaints
F solved in less than 1
month online 50%
70%
KPI
Current Target/ ambition

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4. How can Oliver Wyman help
3 Identifying areas of focus of customer value and deviation on experience
promise are the initial steps to improve customer experience
Illustrative example
CVaR and Experience Promise dashboard Touch
point Customer need Experience promise
A • Customer visits a couple of • The bank has set a target of 5
times the branch looking for minutes maximum average
Explore Purchase Use Solve hassles advise to buy a car waiting time
Branch
A • All employees are busy and the • Currently, the average waiting
customer leaves time is 13 minutes

B • The bank is reducing the time

• Mortgage application process
C needed to grant a mortgage (17
RM cannot be completed online
days vs. a target of 15)
• They are required to file paper
• Some steps that still need to be
work at the branch
performed at the branch
Internet/ B
C • Customers feel that they have
Mobile
less attention by their usual • Recently, the bank has reduced
RMs its physical RM coverage
ATM
D • However, they appreciate the • The online RM model is still to
advantages of the newly reach its full potential
developed online service model
D • The bank is pushing for a wider
Call E • Customers still use traditional
network of smart ATMs
Center ATM
• At the moment they are only
• They rely on the branch tellers
available in 25% of branches
for more complex transactions
while the target is 90%
Not meeting Experience Promise E • The bank has set an strategy to
Customer
Beginning to meet Experience Promise attend customer calls in less
Value at • Customers contact the Call
Risk Exceeding Experience Promise than 20 seconds
Center to solve their issues
• Their current outsourcer has an
• Waiting times have increased
average time to answer the calls
of 1 minute

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4. How can Oliver Wyman help
4 Design-led Customer Experience
5 To align the organization in defining the solution to solve existing hassles

Design-led Customer Experience

Deploy divergent thinking as a Let users compare

way to ensure that many possible alternatives,
solutions are explored in the first experience with
instance, and then convergent proposed solutions
thinking as a way to narrow these and observe
down to an optimal solution for behaviour from the
our customers end user
1. Ideate Solutions that are

Desirable What people need

and value

Solution
Embrace prototyping
as a way to iteratively Build on strengths of
Feasible current operating
hone-in on solutions
through the capabilities
2. Prototype 3. Test
production of tangible
customer experience
initiatives that allow
Profitable, with a
for robust feedback Viable sustained business
and engagement model

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4. How can Oliver Wyman help
4 Interactive workshops
5 We will use our proven “StudioModel” methodology to further build on
customer delights
About our StudioModel Workshop approach & format Roles

An open space to share, • A number of workshops to solicit

ideate, and create… feedback and generate ideas
• Define scope and agenda of the
• Cross functional & senior team workshops
engaged
• Prepare materials for discussion
• Background work to frame the for each session
issues and provide a factbase for
informed discussion • Facilitate workshops using
…facilitated by our experienced collaborative methodology
coaches that help your team get • Peer insights used to complement (StudioModel method)
creative (but still be pragmatic)… internal learnings
• Synthesize and summarize
Illustrative potential discussion topics findings from all of the workshops
Branch lay-out
Client onboarding process Credit institution
…getting buy-in from stakeholders,
Credit process pain points
identifying potential challenges and • Define teams to participate in
efficiently prioritising based on user Product understanding workshops
input Branch operating hours • Organize logistics (e.g.,
Governance invites, etc.)
Data and tools for RMs • Participate in the workshops
Implementation challenges

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4. How can Oliver Wyman help
5 An automated tool helps ongoing tracking, management and evaluation
6

Experience based
Tool Description client management
model

• Periodical
online survey
CVaR management tool
Next best
– Random action
– Significant
– 3-6 months
• Source 250
point survey Prioritization
of hassles &
WOWs

Client KPI
Anonymized Client Client channel Other client
sociodemo- dashboard
client data economic info behaviour data
graphic Info feed

Benchmarks

© Oliver Wyman 32
4. How can Oliver Wyman help

High-level project plan example

To be tailored to client situation

Weeks 1 2 3 4 5 6 7 8 9 10

Customer Value at Risk

• Ability to understand value by cluster
• Linked to real economic behaviour

KPI Dashboard
• Understand service qualtiy
• Translates “Experience Promise” into KPIs

Heat map
• Consolidated view of mismatches between value of
customers and bank KPIs
• Prioritize strategic actions and support decision making

Tool building
• Program
• Governance

Make it happen
mobilization
• Solve hassles
• Build delights
Note: additionally there will be a phase zero to organise data request

© Oliver Wyman 33
Section 5 Why Oliver Wyman?
5. Why Oliver Wyman

Why Oliver Wyman

Unique credentials and client experience

1 • We have extraordinary experience in customer experience strategy and implementation for
leading banks globally and locally – client contact can be established

Deep industry knowledge

• Extensive market knowledge
2 • Regular industry and reports
• Customer experience Centre of Excellence, with >30 partners focused on Customer Experience
and continuous capturing of relevant benchmarks, methods and best practice models

CVaR methodology
3 • Proprietary methodology that creates a value based approach to customer experience
• Facilitate decision making of initiative prioritisation
CVaR ACX EVL

Customer experience management tools

4 • Methodology to embed outputs of 1,2,3, into the management and reporting systems of the bank
• Customer experience visualisation prototypes to enable senior executives to see rapid output

Studio model capabilities

5 • A constructive dialogue approach that brings stakeholders together into productive design
driven discussions
• Cocreation of all materials in a collaborative environment

The Lippincott factor

6 • We bring together the acumen, rigor and preparedness of a premier business consulting firm –
and the spirit, courage and imagination of a world-class innovation and design firm

© Oliver Wyman 35
5. Why Oliver Wyman

Case study 1
Customer Experience Strategy: Leading Spanish Bank

CONTEXT AND Our approach

BACKGROUND
• Assess the key threats on digital and identifying the “best in class” innovations
• Large domestic retail bank
– Develop a comprehensive framework structured on two axis:
rethinking their customer
experience strategy - Brand Promise and operational KPIs:
• Unclear approach to customer - Identify a set of operational KPIs to decline and measure brand
experience management, new promise, setting an ambition level
responsibility of the marketing - Customer Value at Risk (CVaR) development
department – Ensure monitoring and implementation in bank system
• Need to assess the impact of
customer experience
improvements
Illustrative example
• CVaR Map:
IMPACT
• Define a monitoring framework
including 40 operational KPIs
• Identify areas of improvement
and key action points including
– Distribution model and
customer management
– Multichannel, Relationship
managers, ATM functionality,
etc.

© Oliver Wyman 36
5. Why Oliver Wyman

Deep industry knowledge

Leading intellectual capital OW Customer experience Centre of Excellence

• >30 partners with focus on retail business and

operating model transformation, focussed on
Customer Experience
• Continuous capturing of relevant benchmarks,
methods and best practice models from across
the globe
• Ongoing online surveys on ~3,000 clients per
country, around aprox. 200 key customer
experience interactions with the intention of
understanding how retail customer experience
dynamics affect client intention of increasing or
decreasing business with their banks
• This survey is part of a series of surveys
already performed in France, Italy, UK,
Germany, Spain, Nordics and Russia

© Oliver Wyman 37
5. Why Oliver Wyman

The Lippincott factor

Who we are and what makes us different

Oliver Wyman is a strategy Lippincott is a creative

consulting firm consultancy

We are a leading consulting firm with We are a team of strategists,

deep industry expertise and unmatched designers, innovators and change
understanding of banking agents that help leaders design
businesses that succeed on the edge
of change

We bring together the acumen, rigor and preparedness of a premier business

consulting firm – and the spirit, courage and imagination of a world-class innovation
and design firm
© Oliver Wyman 38
38
Cuts- not to be used in client
meetings
Customer Experience satisfaction by bank

CX satisfaction across countries and banks (Q3 2017)

0-10
9 Top
performers

8
Middle
performers

7
Bottom
performers

Source: Oliver Wyman survey Q3 2017 Market average

© Oliver Wyman 40
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