bankonit! predictive analytics world mar 2011
TRANSCRIPT
Beyond the Arc, Inc. | Management Consulting & Strategic Communications
Use all your data to maximize
customer satisfaction, loyalty, and
retention
Predictive Analytics World
San Francisco
Bank on it!
March, 15 2011© 2011 Beyond the Arc, Inc.
Beyond the Arc, Inc. | Management Consulting & Strategic Communications 2
Success stems from understanding your customers
• “Your most unhappy customers are your greatest source of learning.”
− Bill Gates
• “We aren’t in the coffee business serving people. We are in the people business serving coffee.”
− Howard Schultz, Starbucks
• “To understand the man, you must first walk a mile in his moccasin.”
− Native American proverb
• “This may seem simple, but you need to give customers what they want, not what you think they want.”
− John Ilhan (Australian entrepreneur)
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Sometimes we just don’t feel our customers’ pain
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Beyond the Arc helps businesses build
stronger, more profitable relationships
through customer insight and analytics,
strategic communications, and hands-on
program management.
A little bit about us
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Listening to the Voice of the Customer (VoC) is about
improving business outcomes…
• Voice of the Customer programs exist to:
o Monitor the customer experience
o Identify problems that make sense for the business to resolve
• Not every issue can be addressed to the customer’s satisfaction
o Legal & compliance, risk management, and business decisions all play a role
• Why address customer complaints at all?
o Nearly 100% of respondents have taken action due to a bad experience
o Nearly 80% have told someone about it
Right Now’s (NASDAQ: RNOW) Customer Experience Impact Report 2010
…and retaining
customers
• 17% switch banks due to merger
• Switchers had 6 products
• 66% had investable assets over $100K
2010 Deloitte study
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Most VoC programs struggle to incorporate
unstructured text, particularly in high volumes
Survey responses
Employee surveys
Codified customer service data
Unsolicitedcomments
Solicitedcomments
Structured data Unstructured data
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Most VoC programs struggle to incorporate
unstructured text, particularly in high volumes
Inbound calls to customer service
Customer service email
Social media mentions
Letters to Federal/State regulators
Customer verbatims
Survey responses
Employee surveys
Codified customer service data
Free form comments
Customer comments from advisors
Unsolicitedcomments
Solicitedcomments
Structured data Unstructured data
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In banking, Beyond the Arc works with structured
and unstructured text data, across lines of business
• First-person comments o Customer surveys
o Online feedback forms
o Customer email
• Banker inputo Banker, teller, and
contact center customer notes
o Sales referral and CRM
o Suggestions
o Relationship Managers
• Escalation queueso Complaints to Federal and
State agencies
o Internal escalations
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We also incorporate valuable insights from outside
the organization
InternalData from across the enterprise
o Customer feedback
o Frontline notes
o Transactional data
o Behavioral data
ExternalSocial media about you and your competitors
o Twitter
o Facebook
o Blogs
RegulatoryCustomer complaints
o Federal
o State
o Better Business Bureau
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Case study: from analysis to action in the banking
industry
• Challenges faced by the bank
o What are customers saying?
o How do we identify customer experience issues that are actionable?
o How do we share insights with the internal partners who can respond to issues of retention?
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Characteristics of our analysis tool
• “Data flexibility”
o Multitude of formats: Enterprise data warehouses, Excel, MS SQL Server databases, flat files, XML, and more
o Extensive data preparationo Each source required special handling
o “Create once, use forever”
• Integrated text analytics
• Statistical and linguistic models
o Structured and unstructured data
• Quick ramp-up time for new users
o Not rocket science
o Easy for us to train new users at the bank
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Beyond the Arc’s strategy and what we achieved
• What we dido Leveraged banking industry expertise, both ours and our clients’
o Identified process improvements that customers value
o Built support by demonstrating measurable value to internal partners
o Reporting: multiple strategies for sharing findings: dashboards vs. “deep dives”
o Emerging issues: identifying detailed customer concerns that have increasing momentum, and that can be acted upon by the bank
• How we assessed the winso Created scalable system to classify tens of millions of comments annually
o Bank avoided cost of hiring staff to read and code data
o Developed and launched internal Center of Excellence for VoC
o Resources shared by over 20 businesses, avoiding duplicated cost and effort
o Bank CEO publicly announced that success with post-merger retention is a major factor in creation of sustainable advantage over competitors
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Final note: social media helps you understand gap
between bank promises and customers’ experience
• What we’ve learned so far
① Industry-relevant models are neededContext is key to effective social media analysis
② Acquiring social data is challenging Beyond the Arc is developing a standardized approach for the banking industry
③ Focus on emerging issues You need industry-specific measures of momentum (volume of comments plus the rate and direction of change)
ExternalSocial media about you and your competitors
o Twitter
o Facebook
o Blogs
Beyond the Arc, Inc. | Management Consulting & Strategic Communications
Thank you
Steven J. Ramirez, President
Beyond the Arc, Inc.
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Office 877.676.3743
Email [email protected]
Web beyondthearc.com