GALLUP® CORP Template

Report
Link between customer engagement and
revenue growth
How Customer Engagement Can Boost the Bottom Line in Banking
Presented by:
Jay Freeman, Senior Advisor
Applied Behavioral Economics for Organizations
Copyright © 1996-2002, 2012 Gallup, Inc. All rights reserved.
3
Applied Behavioral Economics for Organizations

Each node is an intervention
point that can be optimized.

Recognizes the role that
human nature plays.
“Performance
Optimization”

Emphasizes the essential
emotional connections that
employees and customers
form.

Recognizes that employee and
customer engagement interact
to drive even higher levels of
performance.
Copyright © 1996-2002, 2012 Gallup, Inc. All rights reserved.
4
Customer Engagement Hierarchy
Increased Financial & Operational Effectiveness
Can’t imagine a world without
Perfect company for people like me
Treats me with respect
Feel proud to be a customer
Fair resolution of any problems
Always treats me fairly
Always delivers on promise
Name I can always trust
Overall Satisfaction
Likelihood to Recommend
Likelihood to Continue
Passion
Pride
Integrity
Confidence
Rational Foundation
Your company is irreplaceable to
me. I feel passionate about you.
Your company is prestigious. It
is part of who I am.
When we have a problem,
you always treat me fairly.
I can safely assume that
you will always keep
your promises.
Your company executes
and fulfills my basic
expectations.
Copyright © 2008 Gallup. Inc. All rights reserved.
5
Customer Engagement Groups | Four Customers
Fully
Engaged
Engaged
Not
Engaged
Actively
Disengaged
Strongly
attached and
loyal. Your most
valuable
customers
Beginnings of
emotional
attachment but
not strong
Emotionally
and attitudinally
neutral
Active
emotional
detachment
and
antagonism
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6
Engaged Customers
How do Customer
Engagement behave
differently?
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7
Engaged Customers more likely to Recommend and less
likely to switch
Customers
satisfied with
Main Bank
(T2B): 88%
Fully Engaged
customers:
26%
Actively
Disengaged
customers:
18%
32% said Extremely Likely to
Recommend
67% said Not at all Likely to
switch
100% said Extremely Likely
to Recommend
91% said Not at all Likely to
switch
0% said Extremely Likely to
Recommend
32% said Not at all Likely to
switch
(T2B = those scoring Overall Satisfaction with either a 4 or 5, out of 5)
Wells Fargo Experience
“We want to satisfy all our customers’ financial
needs and help them succeed financially.”
-Wells Fargo Vision and Values
Unit of measure = products per HH
Benchmark for greatness = total wallet opportunity
Copyright © 2012 Gallup, Inc. All rights reserved.
9
Wells Fargo Experience
Retail HH X-Sell
6.3
3.8
2001
2011
66% growth over decade (0.06 solutions per HH
per quarter)
Copyright © 2012 Gallup, Inc. All rights reserved.
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A x E = R — Example
Customer/Employee Encounter
“The employee-customer encounter . . . is the crucible
where value is created in sales and service organizations.” In
our emotionally driven economy, human nature plays a
central role in the emotional connections that employees and
customers form.”
-John Fleming, Gallup’s chief scientist for marketplace practice and HumanSigma
consulting and coauthor of Human Sigma: Managing the Employee-Customer
Encounter
Copyright © 2012 Gallup, Inc. All rights reserved.
11
Driving to engaged customers
AxE=R
Activities x Effectiveness = Results
1. The desired result is cross sell derived
revenue
2. The effectiveness measure is increased
CE 11
3. Now, solve for A
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12
What are the Drivers of Engagement for Banking in
Australia

The Key Drivers of Engagement for Banking Industry:
Odds Ratio (Impact on Customer Engagement)
–
Always Handles my problems effectively
33
–
Always makes me feel like a valued customer
29
–
Always makes it easy for me to do business
29
–
Looks out for my financial well being
22
–
Understands my needs and aspirations
22
–
Provides exceptional customer service
22
–
Provides me with a comprehensive range of products and services
21
–
Fits my lifestyle
21
–
Delivers a consistent brand experience across all channels
20
–
Rewards me for the business I do with them
18
–
Has products and services specifically tailored to my needs
18
–
Friendly bank
17
–
Provides me competitive rates and charges
14
–
Innovative / Creative
10
–
A local bank
7
–
Secure bank
6
Assessing Customer Experience
Correlation Vs. Coaching Complexity
Difficulty to Observe and
Coach
High
Low
Went out of way to please
Solutions perfect for me
Warm Greeting/ Smile
Use of name
Correlation to Customer
Engagement
The degree of correlation to CE is linked to the
degree of difficulty to observe manage and coach
High
What activities lead to top box on this dimension?
• Resolve a problem or
annoyance in a superior
manner (especially non
verbalized)
Went out of way to please
• Uncover a previously
unidentified need and
solve for it
• Dramatically exceed an
expectation
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15
Storytelling
Copyright © 2012 Gallup, Inc. All rights reserved.
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Wells Fargo Experience
“We want to satisfy all our customers’ financial
needs and help them succeed financially.”
-Wells Fargo Vision and Values
Unit of measure = products per HH
Benchmark for greatness = total wallet opportunity
Copyright © 2012 Gallup, Inc. All rights reserved.
17
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guidance of your company only and is not to be copied, quoted, published, or divulged to others outside of your
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trademarks are the property of their respective owners.
This document is of great value to both your organization and Gallup, Inc. Accordingly, international and domestic
laws and penalties guaranteeing patent, copyright, trademark, and trade secret protection protect the ideas, concepts,
and recommendations related within this document.
No changes may be made to this document without the express written permission of Gallup, Inc.
Copyright © 2012 Gallup, Inc. All rights reserved.
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