Beyond transactions Creating value through customer partnerships in banking and insurance An Economist Intelligence Unit white paper Sponsored by SAP Beyond transactions Creating value through customer partnerships in banking and insurance Preface Beyond transactions: Creating value through customer partnerships in banking and insurance is an Economist Intelligence Unit report sponsored by SAP The Economist Intelligence Unit bears sole responsibility for this report The Economist Intelligence Unit’s editorial team conducted the interviews and wrote the report The findings and views expressed in this report not necessarily reflect the views of the sponsor Dan Armstrong was the editor of the report and Dorian Benkoil was the author Mike Kenny was responsible for layout and design Our thanks are due to all of the financial services executives who responded to the survey September 2009 © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance Contents Introduction Key findings Conclusion Appendix 1: Overall survey results Appendix 2: Americas survey results 14 Appendix 3: Asia-Pacific survey results 19 Appendix 4: EMEA survey results 24 © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance Introduction Banks are being increasingly challenged by cautious regulators, higher capital costs and challenges to core business models, while both banks and insurers face weaker demand, hesitant consumers and calls to rethink both internal processes and customer-facing operations At the same time, the turmoil offers both types of firms the incentive to move farther from a transactional mindset When banks and insurers are trusted by their customers, they find it easier to tap into the knowledge and emotions that drive customer behaviour By rebuilding trust, financial services firms can work consultatively with customers to help them meet their personal goals in a tumultuous economic environment About the survey In July 2009, the Economist Intelligence Unit surveyed 86 executives at 86 financial services firms on the challenges of getting customer-facing departments to work together consistently and effectively Fifty-five percent were from banking, 17% from insurance, and the rest from brokers, asset managers and other types of firms Respondents spanned the globe, with 40% from the Asia-Pacific region, 30% from the Americas (primarily the US) and the rest from EMEA Finance was the best-represented function (37%), but marketing (19%) and customer service and sales (24%) were also well represented © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance Key findings Presenting a consistent face to the consumer The banks and insurers surveyed feel that they need to work more effectively with customers, providing a consistent customer service approach in person, on the phone, on websites and any other means Financial services firms are more than twice as likely to cite customer service as a core strength than operational excellence or product innovation Nevertheless, they acknowledge room for improvement to keep nervous customers on board and build long-term relationships The need for personal contact The role of personal contact and relationships has never been more crucial Consumers have unprecedented levels of choice and access to information They have come to expect more transparency than ever, with real-time data and financial advice available from free or low-cost websites Stronger consumer protection laws and the rise of consumer-oriented websites suggest that prices and sales terms will become more transparent as well Survey respondents acknowledge this reality when 52% say that customers see their products more as commodities than five years ago Although most say that price is not the most important factor that customers consider, they admit that price is becoming more important Even commodity sellers have some pricing flexibility; competitive prices are the price of admission, but the ability to compete on service, convenience and other non-price factors allows some wiggle room Increasing customer satisfaction Most respondents say higher customer satisfaction is a top-priority objective, second only to improving efficiency Higher satisfaction leads to more opportunities to cross-sell and upsell, two areas most in need of improvement Another way to ensure more satisfied customers is to target the right ones—those who respond to the firm’s value proposition—at the start Approaching the right customers allows the firm to close more sales and a better job holding onto the customers once they have purchased © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance The view from financial services organisations More respondents disagree More respondents agree Customers view my organisation’s products and services more as commodities now than five years ago We are more engaged in developing products or services collaboratively with customers than we were 12 months ago Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months My organisation has more flexibility than its competitors in pricing its products Compared to our competitors, my organisation’s customers are more loyal My organisation prioritises sales and marketing resources based on each customer’s lifetime value My organisation has an accurate way to estimate the lifetime value of customers We are currently developing a social media strategy In chosing to business with my organisation, price is the single most important factor most customers consider -40% -20% 0% 20% 40% Source: Economist Intelligence Unit survey, July 2009 The press for efficiency The companies surveyed also want to make their operations more efficient: 65% say this is their highest priority All report having at least ad hoc co-ordination and integration among customer-facing units—marketing, sales and customer service—but few are at the highest levels of integration Whether in gauging customer satisfaction, responding to demands or complaints, tracking leads or planning and executing campaigns, only a small minority of executives claim broad and systematic integration among departments The problem of metrics If the old management saying, “What gets measured gets done”, is accurate, most banks and insurers are not doing enough to serve their most valuable customers Fifty-eight percent of executives say that customer relationships have improved over the past year despite the global economic downturn But it is not clear that the right relationships have been improved Fewer than three in ten have devised an accurate way to measure the lifetime value of customers, and about the same proportion say that they prioritise resources based on lifetime value In other words, 70% not know which of their customers account for the bulk of their profits (and also © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance How well customer-facing departments—sales, marketing, customer services—work together? Ad hoc integration Broad and systematic integration Responding to customer demands or complaints Planning and executing campaigns Gauging customer satisfaction Developing and launching new products Generating, tracking and measuring leads Incorporating customer feedback into products/services Analysing and segmenting customers Measuring effectiveness of processes -30% -20% -10% 0% 10% 20% 30% 40% Source: Economist Intelligence Unit survey, July 2009 offer the highest potential for cross-selling and upselling) Firms that cannot scrutinise customer-level data and model the value of customers—not just customer segments, but individual customers—will fall short in their efforts to improve both efficiency and customer satisfaction How the three regions differ In terms of core strengths, institutions in all regions put customer service first, operational excellence second and innovation third But relatively speaking, EMEA puts the most focus on customer service, AsiaPacific on operational excellence and the Americas on innovation Asia-Pacific Asia-Pacific institutions are more likely to point to core strengths in operational excellence But this strength is not always apparent to the customer: Asia-Pacific institutions rate themselves relatively poorly in terms of gauging customer satisfaction and following up on complaints They also fault themselves on their ability to cross-sell, upsell and provide a consistent customer experience And more so than in other regions, they believe that their customer-facing units live in silos When asked for the biggest benefits of integration, they say “Making each unit aware of how others have interacted with the customer” and “Helping each function support the others” © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance EMEA, Americas and Asia-Pacific regions see different benefits in integrating customer-facing functions EMEA wants to know the customer more intimately EMEA Americas Americans wants to direct resources to the most valuable customers Knowing the customer more intimately Directing resources to the most valuable customers Asia-Pacific Breaking down internal silos Asia-Pacific wants to break down internal silos 0% 10% 20% 30% 40% 50% 60% Source: Economist Intelligence Unit survey, July 2009 EMEA EMEA institutions are most emphatic in saying that customer service is their core strength EMEA institutions are good at following up on complaints, gauging customer satisfaction and building long-term relationships They are intensely curious about customers When asked about the benefits of integrating customer-facing silos, they are most likely to cite the ability to develop a rich and deep profile of customer behaviour Of all the regions, EMEA is most focused on personal service Americas More so than other regions, institutions in the Americas focus on measurement: they say that they are good at targeting the right customers measuring the results of promotional campaigns However, they are frustrated by their inability to forecast the lifetime value of customers, and believe that the biggest benefit from integration will be the ability to identify and prioritise these customers At the same time, as big institutions get bigger, many mid-size and smaller institutions in the region are having difficulty finding the capital to invest in measurement © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance Conclusion With incomes starting to inch up again and the financial markets stabilising, consumers are ready to trust the banks and insurers that have shown themselves worthy In the US, many banks—as well as a few insurers—are battling the perception that they have violated their social contracts by taking government money while acting unfairly towards their customers To retain customers, banks and insurers must present a consistent experience and message with every interaction They need to use those interactions to identify key prospects, while gathering information to improve service and sales In particular, these firms need to: l Align the sales, marketing and customer services departments to provide a consistent experience to customers l Accept the realities of commoditisation and price transparency Give customers a value proposition that goes beyond economic self-interest l Do a better job of analysing customers, measuring lifetime value, and providing a high level of service to high-value customers l Gain experience with social media (only 30% of institutions are doing so) Many customers, especially older customers, may not belong to online communities But the customers of the future do, and small efforts applied consistently today can make a big difference tomorrow In simple terms, banks and insurers need to listen to individual customers and effectively use what they’ve learned A study published recently in the Journal of Financial Services Marketing finds that customer perception of listening effectiveness is positively and strongly associated with service quality, trust, satisfaction, purchase intentions and sales performance By listening carefully and integrating what they learn across internal channels, financial services firms will better meet the needs of their customers, rebuild trust, and improve their own performance © Economist Intelligence Unit Limited 2009 Appendix Overall survey results Beyond transactions Creating value through customer partnerships in banking and insurance Appendix: Overall survey results Percentages may not add to 100% due to rounding or the ability of respondents to choose multiple responses In your view, which of the following best represents the core strength of your overall business? Select only one (% respondents) Customer service: Providing superior service to clients 53 Operational excellence: Creating highly efficient processes 22 Product innovation: First to market with groundbreaking new products or services 15 Other Each of the organisation’s customer-facing departments influences the customer via different channels For each of the processes below, how closely your marketing, sales and customer service units work together? Please rate on a scale of to (% respondents) No coordination; units are completely separate Ad hoc coordination; not systematic or consistent Some procedures established, but not consistently followed Procedures established, regular interaction Broad, systematic and consistent integration of information and strategies Don’t know Generating, tracking and measuring leads 18 22 36 Developing and launching new products 19 22 35 16 Planning and executing campaigns 17 23 40 14 Analysing and segmenting customers 16 27 37 10 39 Gauging customer satisfaction 16 26 Measuring effectiveness of processes 26 33 27 Responding to customer demands or complaints 11 22 46 14 Incorporating customer feedback into products/services 21 26 28 15 Other 11 11 11 58 Economist Intelligence Unit 2009 Appendix Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance Which of the following trends have had the greatest impact on your business over the past 12 months? Select up to three (% respondents) Which customer characteristics does your organisation most use to segment your customer base and prioritise marketing activities? Select up to three (% respondents) Global economic downturn 80 Average balance Finding access to credit/capital 40 Number and type of products used 47 Significant demand shifts for our products/services 40 Household net worth (even if held with other institutions) 30 Changing customer requirements 37 Length of relationship 27 Focusing on sustainability efforts 30 Age 17 Emergence of new markets for our products and services 17 Primary channel used to deal with bank (online, teller, call center) 13 Emergence of new competitors 17 Gender 10 Disruptive technology developments Ethnicity Accessing key components or resources through our supply chain Other Other 20 Don’t know 13 Don’t know If you expect changes in financial regulations, what you expect the impact will be? In which of the following ways does your organisation empower retailers and distributors? Select all that apply (% respondents) (% respondents) Re-alignment of internal product development and marketing units to address financial regulations Improving usability, search and navigation of customer-facing websites 57 Improving online or self-service product support tools 43 Making prices and sales terms more transparent for easy comparability 37 Investing in self-service tools across multiple channels (eg, web, mobile devices, e-mail, point of sale) 30 Building or supporting online customer communities 23 38 More customer education to inform them about the portfolio choices and associated risks 31 No impact yet on front-office customer management processes 14 We not expect changes in financial regulations Other 14 Other 10 Don’t know 16 Economist Intelligence Unit 2009 Appendix Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance Please indicate whether you agree or disagree with these statements about the channels used by your customers (% respondents) Agree Disagree The role of the branch channel and personal advisors facilitating in-person customer meetings has increased due to the financial crisis 60 40 The channel(s) used by customers depend(s) largely on the age of the customer 70 30 Our customers are increasingly using automated channels (rather than in-person channels) not just for transactions, but to resolve problems as well 73 27 Social networking sites ( eg, Twitter, Facebook) are influencing choices made by customers of financial services institutions 37 63 Regardless of the channel used to contact us, our customers receive a consistent brand message and quality of service 63 37 How important will each of the following objectives be to your institution over the coming year? (% respondents) Top priority objective Medium priority objective Low priority objective Not an objective Don’t know Cut costs 37 47 13 3 Raise efficiency 57 37 Increase fee-based revenues 59 10 17 14 Increase interest margins 13 33 30 23 Increase customer satisfaction 50 33 13 Achieve or maintain regulatory compliance 53 37 Improve supplier relationships 17 27 40 17 In which region are you personally based? In which area of financial services primarily work in? (% respondents) (% respondents) North America 77 Latin America 23 Asia-Pacific Eastern Europe Banking 40 Insurance 27 Other 33 Western Europe Middle East and Africa 17 Economist Intelligence Unit 2009 Appendix Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance What are your organisation’s global annual revenues in US dollars? Which of the following best describes your title? (% respondents) (% respondents) Board member CEO/President/Managing director $500m or less 28 $500m to $1bn CFO/Treasurer/Comptroller CIO/Technology director Other C-level executive 54 $1bn to $5bn $5bn to $10bn 11 $10bn or more 32 SVP/VP/Director 28 Head of Business Unit Head of Department Manager 17 Who are your organisation’s primary customers? Other (% respondents) What are your main functional roles? Please choose no more than three functions Business-to-business 40 (% respondents) Consumer/retail 33 Both 27 Risk 40 Finance 37 Strategy and business development 37 General management 33 Marketing 20 Customer service 17 Sales 13 Which perspective—consumer/retail or business-to-business—are you sharing in this survey? (% respondents) Operations and production 10 Information and research Legal Business-to-business 63 Consumer/retail 38 IT R&D Procurement Human resources Supply-chain management Other 18 Economist Intelligence Unit 2009 Appendix Asia-Pacific survey results Beyond transactions Creating value through customer partnerships in banking and insurance Appendix: Asia-Pacific survey results In your view, which of the following best represents the core strength of your overall business? Select only one (% respondents) Customer service: Providing superior service to clients 50 Operational excellence: Creating highly efficient processes 28 Product innovation: First to market with groundbreaking new products or services 15 Other Each of the organisation’s customer-facing departments influences the customer via different channels For each of the processes below, how closely your marketing, sales and customer service units work together? Please rate on a scale of to (% respondents) No coordination; units are completely separate Ad hoc coordination; not systematic or consistent Some procedures established, but not consistently followed Procedures established, regular interaction Broad, systematic and consistent integration of information and strategies Don’t know Generating, tracking and measuring leads 25 20 35 10 Developing and launching new products 10 18 20 40 13 40 44 33 23 13 Planning and executing campaigns 20 28 Analysing and segmenting customers 10 13 26 Gauging customer satisfaction 23 33 Measuring effectiveness of processes 30 33 Responding to customer demands or complaints 10 15 23 40 Incorporating customer feedback into products/services 13 28 28 25 Other 14 19 14 14 290 29 Economist Intelligence Unit 2009 Appendix Asia-Pacific survey results Beyond transactions Creating value through customer partnerships in banking and insurance Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to business with my organisation, price is the single most important factor most customers consider 33 68 Compared to our competitors, my organisation’s customers are more loyal 40 40 20 My organisation has an accurate way to estimate the lifetime value of customers 28 63 10 My organisation prioritises sales and marketing resources based on each customer’s lifetime value 33 55 13 We are currently developing a social media strategy 40 50 10 My organisation has more flexibility than its competitors in pricing its products 45 40 15 Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months 65 33 We are more engaged in developing products or services collaboratively with customers than we were 12 months ago 55 38 Customers view my organisation’s products and services more as commodities now than five years ago 58 30 13 Our margins are higher than the margins of most of our competitors 36 54 In your view, which of your organisation’s activities are most in need of improvement? Select up to four (% respondents) 10 Which of the following would provide the biggest benefits in integrating your organisation’s marketing, sales and service activities? Select up to three (% respondents) Providing a consistent customer experience 43 Cross-selling or upselling customers Making each unit aware of how the others have interacted with a given customer 43 40 Presenting customers with a consistent picture of the organisation Segmenting and profiling customers 40 38 Gathering customer intelligence in the course of providing service Helping each function find and act on ways to support the others 38 30 Targeting the right customers in order to close a high percentage of prospects 28 38 Generating qualified leads 25 Measuring/optimising effectiveness of marketing and promotional campaigns 25 Efficiently acquiring customers (eg, reducing the cost of sales) 25 Maximising the number of repeat sales 23 Building long-term relationships 20 Measuring customer satisfaction and loyalty 20 Ensuring that customer complaints are resolved quickly 18 Involving customers product/service development (eg, co-creation) 10 Creating effective collateral Prioritising resources directed towards customers by total value over life of customer Integrating customer tracking from lead through post-sales service 30 Developing and sharing a detailed picture of customers, behaviour and preferences 30 Establishing common definitions, assumptions and data 28 Measuring the probability that leads will turn into sales, and using these scores to guide sales 15 Our company sees no need to integrate our marketing, sales and service activities Other Don’t know/Not applicable Other Don’t know 20 Economist Intelligence Unit 2009 Appendix Asia-Pacific survey results Beyond transactions Creating value through customer partnerships in banking and insurance Which of the following trends have had the greatest impact on your business over the past 12 months? Select up to three (% respondents) Which customer characteristics does your organisation most use to segment your customer base and prioritise marketing activities? Select up to three (% respondents) Global economic downturn 80 Number and type of products used Changing customer requirements 43 Length of relationship 43 Finding access to credit/capital 40 Household net worth (even if held with other institutions) 25 Emergence of new competitors 38 Age 25 Significant demand shifts for our products/services 25 Average balance 25 Focusing on sustainability efforts 25 Primary channel used to deal with bank (online, teller, call center) 20 Emergence of new markets for our products and services 25 Gender 15 Disruptive technology developments 18 Ethnicity Accessing key components or resources through our supply chain Other Other Don’t know Don’t know If you expect changes in financial regulations, what you expect the impact will be? In which of the following ways does your organisation empower retailers and distributors? Select all that apply (% respondents) (% respondents) More customer education to inform them about the portfolio choices and associated risks Improving online or self-service product support tools 48 53 Making prices and sales terms more transparent for easy comparability Re-alignment of internal product development and marketing units to address financial regulations 45 Investing in self-service tools across multiple channels (eg, web, mobile devices, e-mail, point of sale) 40 Improving usability, search and navigation of customer-facing websites 38 Building or supporting online customer communities 33 No impact yet on front-office customer management processes 15 We not expect changes in financial regulations Other 20 Other Don’t know 18 21 Economist Intelligence Unit 2009 Appendix Asia-Pacific survey results Beyond transactions Creating value through customer partnerships in banking and insurance Please indicate whether you agree or disagree with these statements about the channels used by your customers (% respondents) Agree Disagree The role of the branch channel and personal advisors facilitating in-person customer meetings has increased due to the financial crisis 65 35 The channel(s) used by customers depend(s) largely on the age of the customer 69 31 Our customers are increasingly using automated channels (rather than in-person channels) not just for transactions, but to resolve problems as well 58 43 Social networking sites ( eg, Twitter, Facebook) are influencing choices made by customers of financial services institutions 35 65 Regardless of the channel used to contact us, our customers receive a consistent brand message and quality of service 70 30 How important will each of the following objectives be to your institution over the coming year? (% respondents) Top priority objective Medium priority objective Low priority objective Not an objective Don’t know Cut costs 30 50 20 Raise efficiency 63 30 8 Increase fee-based revenues 38 48 Increase interest margins 20 30 25 20 Increase customer satisfaction 55 33 13 Achieve or maintain regulatory compliance 40 38 18 3 20 Improve supplier relationships 30 25 23 In which area of financial services primarily work in? In which region are you personally based? (% respondents) (% respondents) Asia-Pacific 100 Latin America Banking 75 North America Insurance 10 Other 15 Eastern Europe Western Europe Middle East and Africa 22 Economist Intelligence Unit 2009 Appendix Asia-Pacific survey results Beyond transactions Creating value through customer partnerships in banking and insurance Which of the following best describes your title? What are your organisation’s global annual revenues in US dollars? (% respondents) (% respondents) Board member CEO/President/Managing director $500m or less 18 36 $500m to $1bn 10 CFO/Treasurer/Comptroller $1bn to $5bn CIO/Technology director Other C-level executive 13 $5bn to $10bn $10bn or more 33 SVP/VP/Director 28 Head of Business Unit Head of Department Manager 23 Who are your organisation’s primary customers? Other (% respondents) What are your main functional roles? Please choose no more than three functions Business-to-business 43 (% respondents) General management Consumer/retail 28 Both 30 33 Finance 33 Risk 33 Strategy and business development 28 Marketing 20 Operations and production 13 Sales Which perspective—consumer/retail or business-to-business—are you sharing in this survey? (% respondents) 10 Customer service 10 Information and research IT Consumer/retail 63 Business-to-business 38 Legal R&D Supply-chain management Human resources Procurement Other 23 Economist Intelligence Unit 2009 Appendix EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance Appendix: Europe Middle East and Africa survey results In your view, which of the following best represents the core strength of your overall business? Select only one (% respondents) Customer service: Providing superior service to clients 68 Operational excellence: Creating highly efficient processes 18 Product innovation: First to market with groundbreaking new products or services 11 Other Each of the organisation’s customer-facing departments influences the customer via different channels For each of the processes below, how closely your marketing, sales and customer service units work together? Please rate on a scale of to (% respondents) No coordination; units are completely separate Ad hoc coordination; not systematic or consistent Some procedures established, but not consistently followed Procedures established, regular interaction Broad, systematic and consistent integration of information and strategies Don’t know Generating, tracking and measuring leads 11 14 11 32 11 21 Developing and launching new products 18 14 39 18 21 Planning and executing campaigns 21 11 39 Analysing and segmenting customers 7 29 43 11 15 41 19 21 Gauging customer satisfaction 11 19 44 Measuring effectiveness of processes 22 30 Responding to customer demands or complaints 15 56 Incorporating customer feedback into products/services 21 18 29 Other 11 24 11 78 Economist Intelligence Unit 2009 Appendix EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to business with my organisation, price is the single most important factor most customers consider 36 64 Compared to our competitors, my organisation’s customers are more loyal 54 25 21 39 21 50 21 My organisation has an accurate way to estimate the lifetime value of customers 39 My organisation prioritises sales and marketing resources based on each customer’s lifetime value 29 We are currently developing a social media strategy 25 46 29 My organisation has more flexibility than its competitors in pricing its products 46 43 11 Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months 68 29 We are more engaged in developing products or services collaboratively with customers than we were 12 months ago 43 32 25 Customers view my organisation’s products and services more as commodities now than five years ago 43 46 11 Our margins are higher than the margins of most of our competitors 25 46 In your view, which of your organisation’s activities are most in need of improvement? Select up to four (% respondents) 29 Which of the following would provide the biggest benefits in integrating your organisation’s marketing, sales and service activities? Select up to three (% respondents) Cross-selling or upselling customers 36 Generating qualified leads 32 54 Presenting customers with a consistent picture of the organisation Segmenting and profiling customers 32 50 32 Making each unit aware of how the others have interacted with a given customer Building long-term relationships Gathering customer intelligence in the course of providing service 32 Targeting the right customers in order to close a high percentage of prospects 29 Maximising the number of repeat sales 25 Providing a consistent customer experience 21 Creating effective collateral 18 Measuring/optimising effectiveness of marketing and promotional campaigns 18 Efficiently acquiring customers (eg, reducing the cost of sales) 18 Ensuring that customer complaints are resolved quickly 18 Measuring customer satisfaction and loyalty 18 Involving customers product/service development (eg, co-creation) 14 Developing and sharing a detailed picture of customers, behaviour and preferences 43 Establishing common definitions, assumptions and data 36 Prioritising resources directed towards customers by total value over life of customer 32 Helping each function find and act on ways to support the others 25 Integrating customer tracking from lead through post-sales service 21 Measuring the probability that leads will turn into sales, and using these scores to guide sales 18 Our company sees no need to integrate our marketing, sales and service activities Other Don’t know/Not applicable Other Don’t know 25 Economist Intelligence Unit 2009 Appendix EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance Which of the following trends have had the greatest impact on your business over the past 12 months? Select up to three (% respondents) Which customer characteristics does your organisation most use to segment your customer base and prioritise marketing activities? Select up to three (% respondents) Global economic downturn 79 Number and type of products used Changing customer requirements 39 Length of relationship 50 Finding access to credit/capital 39 Household net worth (even if held with other institutions) 29 Emergence of new markets for our products and services 36 Age 21 Significant demand shifts for our products/services 25 Average balance 21 Emergence of new competitors 25 Primary channel used to deal with bank (online, teller, call center) 18 Focusing on sustainability efforts 14 Gender 18 Accessing key components or resources through our supply chain Ethnicity Disruptive technology developments Other Other 11 Don’t know Don’t know 11 If you expect changes in financial regulations, what you expect the impact will be? In which of the following ways does your organisation empower retailers and distributors? Select all that apply (% respondents) (% respondents) More customer education to inform them about the portfolio choices and associated risks Improving online or self-service product support tools 43 Investing in self-service tools across multiple channels (eg, web, mobile devices, e-mail, point of sale) 29 39 Making prices and sales terms more transparent for easy comparability 39 Improving usability, search and navigation of customer-facing websites 36 Building or supporting online customer communities 29 36 We not expect changes in financial regulations Re-alignment of internal product development and marketing units to address financial regulations 25 No impact yet on front-office customer management processes 11 Other Other, please specify Don’t know 14 26 Economist Intelligence Unit 2009 Appendix EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance Please indicate whether you agree or disagree with these statements about the channels used by your customers (% respondents) Agree Disagree The role of the branch channel and personal advisors facilitating in-person customer meetings has increased due to the financial crisis 68 32 The channel(s) used by customers depend(s) largely on the age of the customer 50 50 Our customers are increasingly using automated channels (rather than in-person channels) not just for transactions, but to resolve problems as well 63 37 Social networking sites ( eg, Twitter, Facebook) are influencing choices made by customers of financial services institutions 26 74 Regardless of the channel used to contact us, our customers receive a consistent brand message and quality of service 70 30 How important will each of the following objectives be to your institution over the coming year? (% respondents) Top priority objective Medium priority objective Low priority objective Not an objective Don’t know Cut costs 43 54 Raise efficiency 74 26 Increase fee-based revenues 25 46 14 7 Increase interest margins 19 37 22 19 Increase customer satisfaction 57 29 14 Achieve or maintain regulatory compliance 50 36 11 18 Improve supplier relationships 29 25 25 In which region are you personally based? In which area of financial services primarily work in? (% respondents) (% respondents) Western Europe 54 Middle East and Africa 32 Eastern Europe 14 Asia-Pacific Banking 43 Insurance 21 Other 36 Latin America North America 27 Economist Intelligence Unit 2009 Appendix EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance What are your organisation’s global annual revenues in US dollars? Which of the following best describes your title? (% respondents) (% respondents) Board member CEO/President/Managing director $500m or less 21 $500m to $1bn CFO/Treasurer/Comptroller 11 CIO/Technology director Other C-level executive 46 $1bn to $5bn 18 $5bn to $10bn $10bn or more 21 18 SVP/VP/Director 14 Head of Business Unit 11 Head of Department Manager 11 Who are your organisation’s primary customers? Other (% respondents) What are your main functional roles? Please choose no more than three functions Business-to-business 52 Consumer/retail (% respondents) Both Finance 41 36 General management 32 Risk 29 Strategy and business development 21 Marketing 18 Customer service 18 IT 11 Which perspective—consumer/retail or business-to-business—are you sharing in this survey? (% respondents) Information and research 11 R&D Operations and production Consumer/retail 63 Business-to-business 38 Sales Procurement Legal Supply-chain management Human resources Other 28 Economist Intelligence Unit 2009 Cover image: Shutterstock Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd nor the sponsors of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in the white paper LONDON 26 Red Lion Square London WC1R 4HQ United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8476 E-mail: london@eiu.com NEW YORK 111 West 57th Street New York NY 10019 United States Tel: (1.212) 554 0600 Fax: (1.212) 586 1181/2 E-mail: newyork@eiu.com HONG KONG 6001, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com [...]... Responding to customer demands or complaints 15 7 56 Incorporating customer feedback into products/services 7 21 18 29 Other 11 24 11 78 Economist Intelligence Unit 2009 Appendix 4 EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to... or business-to-business—are you sharing in this survey? (% respondents) 10 Customer service 10 Information and research 8 IT Consumer/retail 63 Business-to-business 38 5 Legal 5 R&D 3 Supply-chain management 3 Human resources 3 Procurement 0 Other 5 23 Economist Intelligence Unit 2009 Appendix 4 EMEA survey results Beyond transactions Creating value through customer partnerships in banking and insurance. .. customer demands or complaints 3 3 33 47 Incorporating customer feedback into products/services 7 13 30 30 Other 33 14 67 Economist Intelligence Unit 2009 Appendix 2 Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to do business with... perspective—consumer/retail or business-to-business—are you sharing in this survey? (% respondents) 9 Sales 9 Information and research 8 Consumer/retail 54 Business-to-business 46 IT 6 Legal 5 R&D 4 Procurement 2 Human resources 2 Supply-chain management 1 Other 3 13 Economist Intelligence Unit 2009 Appendix 2 Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance. .. results Beyond transactions Creating value through customer partnerships in banking and insurance Please indicate whether you agree or disagree with these statements about the channels used by your customers (% respondents) Agree Disagree The role of the branch channel and personal advisors facilitating in- person customer meetings has increased due to the financial crisis 65 35 The channel(s) used by customers... Measuring/optimising effectiveness of marketing and promotional campaigns Developing and sharing a detailed picture of customers, behaviour and preferences 40 37 Providing a consistent customer experience 37 40 Segmenting and profiling customers 27 Presenting customers with a consistent picture of the organisation 27 Integrating customer tracking from lead through post-sales service 37 Cross-selling... systematic and consistent integration of information and strategies Don’t know Generating, tracking and measuring leads 3 13 37 40 7 0 20 0 Developing and launching new products 23 33 23 Planning and executing campaigns 10 30 40 17 3 Analysing and segmenting customers 7 30 27 23 13 0 Gauging customer satisfaction 10 13 23 43 7 3 Measuring effectiveness of processes 13 23 37 20 7 0 13 0 20 0 Responding to customer. .. America 23 Asia-Pacific 0 Eastern Europe Banking 40 Insurance 27 Other 33 0 Western Europe 0 Middle East and Africa 0 17 Economist Intelligence Unit 2009 Appendix 2 Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance What are your organisation’s global annual revenues in US dollars? Which of the following best describes your title? (% respondents)... established, regular interaction 5 Broad, systematic and consistent integration of information and strategies Don’t know Generating, tracking and measuring leads 11 14 11 32 11 21 Developing and launching new products 4 18 14 39 18 7 21 7 Planning and executing campaigns 21 11 39 Analysing and segmenting customers 7 7 29 43 11 4 15 4 41 4 19 4 21 4 Gauging customer satisfaction 7 11 19 44 Measuring effectiveness... Establishing common definitions, assumptions and data 13 Our company sees no need to integrate our marketing, sales and service activities 0 Other 0 Don’t know/Not applicable 0 Other, please specify 0 Don’t know 0 15 Economist Intelligence Unit 2009 Appendix 2 Americas survey results Beyond transactions Creating value through customer partnerships in banking and insurance Which of the following trends .. .Beyond transactions Creating value through customer partnerships in banking and insurance Preface Beyond transactions: Creating value through customer partnerships in banking and insurance. .. results 24 © Economist Intelligence Unit Limited 2009 Beyond transactions Creating value through customer partnerships in banking and insurance Introduction Banks are being increasingly challenged... 2009 Beyond transactions Creating value through customer partnerships in banking and insurance Conclusion With incomes starting to inch up again and the financial markets stabilising, consumers