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1 “The Total Client Experience” Prepared for: The Securities Transfer Association Prepared by: David Driskill David Driskill Associates National Quality.

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Presentation on theme: "1 “The Total Client Experience” Prepared for: The Securities Transfer Association Prepared by: David Driskill David Driskill Associates National Quality."— Presentation transcript:

1 1 “The Total Client Experience” Prepared for: The Securities Transfer Association Prepared by: David Driskill David Driskill Associates National Quality Review © 2006 David Driskill Service Meeting and exceeding the expectations of everyone in the service equation

2 2 Presentation Map Working definition of a “client”Working definition of a “client” The Core Conditions: What all Clients WantThe Core Conditions: What all Clients Want Minimum Expectations (x Client Type) and Selected Benchmark Data For Each ConditionMinimum Expectations (x Client Type) and Selected Benchmark Data For Each Condition A PrescriptionA Prescription What’s Up Ahead?

3 3 Key Caveat/Limit: This is all about service, not cost of service or investment performance Service cost is driven by market forces and will only drive satisfaction when outside normal range or in relation to other service attributes Value of stock can eclipse all other forces, but seldom does so over the strategic long-term Normative Range

4 4 What defines a client? A client is anyone in a position to feel satisfied or dissatisfied about what you do. And they are able to act on the basis of their satisfaction or dissatisfaction A completely inclusive definition of a client is both real and vital in an environment in which so many interdependencies exist.

5 5 The Core Conditions: What All Clients Want Accuracy Timeliness Risk Management Access Utility Problem Recovery Responsiveness New Means of Access New Use of service DissatisfiersSatisfiers A “Satisfier” is a function in which continuous improvement has a high probability of increased and sustainable client satisfaction. A “Dissatisfier” is a function in which perfect service is required but won’t improve satisfaction and any problem can engender dissatisfaction. Must at least compare favorably to market norms.

6 6 All Clients want their service provider to deliver accuracy and timeliness = 2 Dissatisfiers Accuracy and timeliness are Dissatisfiers Perfect accuracy & timeliness will not increase satisfaction, but errors or being late will produce dissatisfaction. What Clients Want

7 7 Accuracy/Timeliness - Client Expectations Clients Sample Minimum Expectations Issuers At or above norms (experiential and industry) – e.g., transaction processed accurate/timely. Wealthy Individuals Perfect Accuracy and Timeliness – e.g., of Statements, mechanics of portfolio, etc. Brokers At or above norms (experiential and industry) Investor Accuracy and Timeliness within some boundary – e.g., statements within a time span, financial transaction accuracy at 100%, non-financial some tolerance, etc. Employees/ Colleagues At or around norms (experiential and industry) and company promises met (around employment practices/working conditions) Business Partners At or around norms (experiential and industry) agreed to obligations met (around contract/ SLA)

8 8 Accuracy/Timeliness Selected Benchmark Data 1993 – 2003 overall manual transaction processing accuracy rates have dropped from high 90s to low 90s 1 Best in Class stable in the high 90s 1993 – 2003 overall manual financial processing timeliness rates have dropped from mid 90s to low 90s. Best in Class has risen - mid to high 90s Approximately 40% of errors in manual financial transaction processing are the result of typos/keystroke errors. 2 For many clients and many events timeliness is a subjective perception of duration between expected delivery versus actual delivery. The more accurate the expectation set, the closer client perception conforms with actual “clock time.” (In process follow-up or failure has a profound effect.) 1 One Reason: As more transactions are handled via automation, what we are left with are increasingly complex. 2 N = 500,000 (+) transactions reviewed 1993 through 2003.

9 9 What Clients Want All Clients want their service provider to Manage Risk Dissatisfier Risk Management is typically a Dissatisfier Perfect risk management will not increase satisfaction – unless many clients have risk problems that yours do not – but negative consequences and especially negative surprises will drive extreme dissatisfaction

10 10 Risk Management – Client Expectations Clients Sample Minimum Expectations Issuers Risk/compliance targets explained/met/addressed, robust business continuity, quick reporting of exposure, 100% ethical conduct & complete confidentiality Wealthy Individuals Risk expectation explained/met, quick reconciliation, 100% ethical conduct & complete confidentiality Brokers Quick reconciliation, 100% ethical conduct & complete confidentiality Investor Risk explained/met, 100% ethical conduct & complete confidentiality Employees/ Colleagues Well defined risk management procedures, and company support/coverage for individuals (indemnification) Business Partners Applicable risk knowledge/understanding, mutual risk targets met/addressed, robust business continuity, coordination, quick reporting of exposure, 100% ethical conduct & complete confidentiality

11 11 Selected Benchmark Data Risk Management Selected Benchmark Data Ethical conduct – and the reports of the lack of ethical conduct – is a new fixture in the service landscape When risk is explained – well and repeatedly - downside results can be experienced as less severe Clients see transparency/process predictability (easy access to supporting data, full disclosure of underlying process, etc) as a lynchpin to risk management 1 In the global market, local knowledge and trading expertise is viewed as a critical component to risk management/reduction 1 The spirit, if not the reality, of the Sarbanes-Oxley Act is congruent with the principles of transparency and thus risk management

12 12 All Clients want their service provider to aggressively recover from errors or other problems Problem Recovery is a Satisfier & Dissatisfier Ongoing improvement in this function has a high probability of positively impacting client satisfaction, but some clients (wealthy individuals, Issuers) enter relationship with higher expectations and problem repetition is dissatisfier. What Clients Want

13 13 Problem Recovery – Client Expectations Clients Sample Minimum Expectations Issuers Acknowledge & fix error, take responsibility, personal contact, clear/reasonable plan for future prevention and no re-occurrence/pattern Wealthy Individuals Personal accountability and apology, empathic response and no re-occurrence/pattern (prime tickets to an event don’t hurt, after recovery) Brokers Fix the error, personal contact and no re- occurrence/pattern Investor Essential responsiveness, fix the error, and no re- occurrence/pattern Employees/ Colleagues Acknowledge & fix error, take responsibility, personal contact and no re-occurrence/pattern Business Partners Acknowledge & fix error, take responsibility, personal contact/coordination, clear/reasonable plan for future prevention and no re-occurrence/pattern

14 14 Problem Recovery Selected Benchmark Data Since 1994 survey research 1 has shown Problem Recovery to be a “predictor” of overall satisfaction among Brokers.Since 1994 survey research 1 has shown Problem Recovery to be a “predictor” of overall satisfaction among Brokers. Among shareholders (large and small) overall satisfaction can go up after a problem - based on how the problem is handledAmong shareholders (large and small) overall satisfaction can go up after a problem - based on how the problem is handled During problem recovery shareholders, Brokers and issuers prefer dealing with a person that; first, demonstrates and understanding of their situation and, second, can act affirmatively, quickly and with commitment on their behalf (versus web/VRU access)During problem recovery shareholders, Brokers and issuers prefer dealing with a person that; first, demonstrates and understanding of their situation and, second, can act affirmatively, quickly and with commitment on their behalf (versus web/VRU access) Time becomes “elastic” during problem recovery. The more critical/risk related the problem the more time needs to be managed during recoveryTime becomes “elastic” during problem recovery. The more critical/risk related the problem the more time needs to be managed during recovery Post problem, the next concern of the client will often be, “What will you do to prevent this error/risk from occurring again?”Post problem, the next concern of the client will often be, “What will you do to prevent this error/risk from occurring again?” 1 N =

15 15 What Clients Want All Clients want the service provider to be responsive. Responsiveness is a Satisfier Ongoing improvement in responsiveness has a high probability of positively impacting client satisfaction.

16 16 Responsiveness – Client Expectations Clients Sample Minimum Expectations Issuers Points of contact have competence/authority to act, at least normatively good communication skills, and give status updates (“Let me know what’s going on”) Wealthy Individuals Single point of contact, superior communication skills and able to speak for the firm/Service Provider(s) and status updates (“Let me know what’s going on, in process”) Brokers Fast, competent contact, with uniform track record of credibility Investor Rapid access to good CSR skills (perceptions are anchored to norms) Employees/ Colleagues Personable/skilled management (practices) credible feedback and generally fair treatment – and enabled to act affirmatively for clients Business Partners Rapid response to joint issues, points of contact have at least normatively good communication skills & competence/authority to act and status updates

17 17 Responsiveness Selected Benchmark Data Different client segments define responsiveness differently. Wealthy individuals expect their provider to “walk their dog.” Brokers may define it as speed and competence. Issuers might define responsiveness as flexibility, being “proactive” and customized/ customizable reporting.Different client segments define responsiveness differently. Wealthy individuals expect their provider to “walk their dog.” Brokers may define it as speed and competence. Issuers might define responsiveness as flexibility, being “proactive” and customized/ customizable reporting. Issuers and Brokers have several “defining moments” (e.g. per year) in which there is a problem or special need. Wealthy individuals and shareholders have “traumatic events” like a death, a move or the like. How the provider responds creates a lasting relationship definition.Issuers and Brokers have several “defining moments” (e.g. per year) in which there is a problem or special need. Wealthy individuals and shareholders have “traumatic events” like a death, a move or the like. How the provider responds creates a lasting relationship definition. For shareholders, Brokers and issuers “Responsiveness” of client service staff and their managers is a statistical predictor of overall client satisfaction – particularly during problem recovery.For shareholders, Brokers and issuers “Responsiveness” of client service staff and their managers is a statistical predictor of overall client satisfaction – particularly during problem recovery. Even though responsiveness is often characterized (wrongly) as a “soft skill” it can have all of the consequences for a client of product, process and technology attributes. There is ample anecdotal and empirical evidence that responsiveness can be taught, learned and appliedEven though responsiveness is often characterized (wrongly) as a “soft skill” it can have all of the consequences for a client of product, process and technology attributes. There is ample anecdotal and empirical evidence that responsiveness can be taught, learned and applied

18 18 What Clients Want All Clients want Access & Utility Access and Utility can be either Satisfiers or Dissatisfiers New ways to access the provider and new/more useful output can produce increases in satisfaction, but, over time, they become dissatisfiers as the market place normalizes

19 19 Access/Utility – Client Expectations Clients Sample Minimum Expectations Issuers IT interoperability, research, data access via web, reporting flexibility and usefulness Wealthy Individuals Access and utility fully customized or from extensive menu, with access to single point of contact - and good research Investor Rapid access to good CSR skills (perceptions are anchored to norms) Employees/ Colleagues Access and usefulness of the tools, training and information to do the job Business Partners A true collaborative relationship, IT interoperability, data access via web, ease of use, training in use of systems, reporting flexibility and usefulness

20 20 Access/Utility Selected Benchmark Data Issuers have sharply rising expectations with regard to web access and utility of information and data. They want to be able to extract information the way they want, when they want and how they want. They also want interoperability – all of the service applications have to interact When problems or complex questions arise (from the perspective of the shareholder, broker or issuer) there is still a very strong preference for access to a “live” service provider/expert** **Marshal Mcluhan’s predictive axiom about “high tech – high touch” appears to be true. The value and importance of personalized service (high touch) in a high tech environment is significant.

21 21 A Prescription ‘Manufacture’ non–value added tasks/ transactions via automation and low process variation Outsource (onshore, near-shore & offshore) BUT master the process first Ensure that jobs locally and outsourced are ‘satisfying’ to prevent loss of knowledge capital Ensure that your client contact and relationship management personnel have ‘world-class’ listening skills, an obsession with timeliness, and deep process knowledge

22 22 What’s up ahead? Ethical conduct become a routine aspect of risk management Increased demand for access customization Increased pressures on service providers to “commoditize/ manufacture” and deliver more personalized service Increased pressure on cost, lower fees with no loss in service Increased demand for service providers to do special projects Increased demand for global providers to deliver local expertise Frequency of error may go down while severity may go up

23 23 As the global market place becomes “the” market place and our work process and technology become more capable of handling the routine, interpersonal communication, decision making, planning and execution becomes more important, complex and demanding. The “High-Tech/High-Touch” service culture is fully realized


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