1. Rethinking Channel Strategy and the Mobile Customer
FINANCIAL SERVICES PRACTICE
CEB TOWERGROUP RETAIL BANKING
7 May 2014
Rethinking Channel Strategy and the Mobile Customer
Breaking Barriers in the Digital Customer Experience
Nicole Sturgill
Research Director

2. Roadmap for the discussion
The Digital Service Gap
Multichannel Service Solutions
CEB TowerGroup Retail Banking

3. Engagement declines for technology oriented customers
Engagement Indicators by Channel Preference
Percentage of Customers in Top Two Categories on a Five-Point Scale for Each Indicator by Channel Preference, 2010
60%
Clear Understanding
of Who and How to
Contact Bank
Bank Willing to
Accept Feedback
High-Quality
30%
Product Guidance
When Purchasing
Bank Cares About
Customers 0%
Personal
Personal
Balance
Technological
Technological
Only
Leaning
Multichannel
Leaning
Only
N = 3,044
FINANCIAL SERVICES PRACTICE,
CEB TOWERGROUP RETAIL BANKING
Source: CEB TowerGroup research

4. Customer support is holding digital back
Customer Preference for Personal vs. Digital Channels
Banking Customers by Banking Task, 2013
80%
75%
Personal Channels
66%
Digital Channels
56%
54%
42%
42%
40%
38%
18%
Explain survey
No difference between digital preference customers between 2010 and 2013 survey – Why not?
Biggest gap between personal and digital preference, and lowest preference by far for digital, was in receiving customer support
Caused us to look closer at the service experience 0%
Receive Customer Support
Learn About Financial Products and Services
Use or Access Financial Products and Services
Purchase New Financial Products or Services
n = 2,013. Source: 2013 CEB Customer Experience Survey.
#CEBSUMMIT
CEB TowerGroup Retail Banking
© 2014 CEB. All Rights Reserved. CMBO SYN 2

5. Poor service for digital customers
Problem Resolution Metrics Spike for Digital Channels
Percentage of North American Banking Customers, 2013
78%
80%
Personal
71%
68%
69%
Digital
41%
42%
39%
40%
30%
These are reversed
Digital customers more likely to face problem more than once and to have to interact with the FSI >3 times to get it resolved
More likely to say that they had to put in a lot of effort to resolve the issues
More likely to say that the resolution was ineffective 0%
Faced Incident More Than Once
Interacted with Institution More Than Three Times
Good or Great Amount of Customer Effort
Ineffective Resolution
n = 341. Source: CEB 2013 Customer Experience Survey.
#CEBSUMMIT
CEB TowerGroup Retail Banking
© 2014 CEB. All Rights Reserved. CMBO SYN 3

6. Digital issue resolution falls short
Even When the Issue is Resolved, Digital Channels Fall Behind
Percentage of North American Banking Customers Who Believe the Institution….
80%
Personal
68%
Digital
62%
49%
49%
44%
40%
37%
28%
23%
This one is fine
Digital customers less likely to say that the bank formally acknowledged the issue and that they were kept informed of the steps taken to resolve
Less likely to say that the issue was resolved satisfactorily and less likely to say that expectations were exceeded
With experiences like these, it’s no wonder that customers can’t really move to the digital channels completely 0%
…Formally Acknowledged the Issue
…Kept Me Informed of Steps It Was Taking to Resolve the Issue
…Resolved My Issue in a Satisfactory Manner
…Exceeded My Expectation in
Resolving the Issue
n = 174. Source: CEB 2013 Customer Experience Survey.
#CEBSUMMIT
CEB TowerGroup Retail Banking
© 2014 CEB. All Rights Reserved. CMBO SYN 4

7. But Improving the digital experience provides payoff
Impact of Engagement on Loyalty Among Tech-Oriented Customers
Percentage of Technology-Leaning or Technology-Only Customers Who Took Indicated Actions Within the Past Year by Level of Engagement, 2010
N = 1,348
FINANCIAL SERVICES PRACTICE,
CEB TOWERGROUP RETAIL BANKING
Source: CEB TowerGroup Retail Banking, Customer Experience Survey, 2010.

8. Roadmap for the discussion
The Digital Service Gap
Multichannel Service Solutions
CEB TowerGroup Retail Banking

9. Functional consistency creates complexity without customer benefit
Current Channel Access Goal
Illustrative
Main Challenges in Providing More Customer Choice
Verbatim
Banking
Service
Complexity
Function
Channels
It wasn’t too long ago that you had to pick up the A 1
phone or a pen to contact us. Today there are so
many customer service touchpoints—I can’t keep
track.” B 2 C 3
Cost D 4
“Investing in new channels or building out a new
functionality isn’t cheap, and it’s not like I have
budget to spare.” E 5
Financial Institution Goal
Enable customers to resolve
any service
request in any channel
at any time.
FINANCIAL SERVICES PRACTICE,
CEB TOWERGROUP RETAIL BANKING
Source: Customer Contact Leadership Council, CEB TowerGroup Retail Banking

10. Cross-channel consistency is necessary
Breakdown Between Two Customer Types
100%
Eff
ort
“The Ends”
50%
Choice
“The Means” 0%
Means Focused: “My Way or the Highway” (16%)
Ends Focused: “Just Get It Done” (84%)
“I want to resolve this issue in the channel of my choice—
“I want this issue resolved as quickly and easily as possible.”
no matter what.” ■
Want fast issue resolution, typically on fi
rst contact ■
Want issue resolved in their preferred channel ■
Don’t want to have to switch service channels ■
Willing to trade off
ease and time to be able to choose ■
Want the experience to feel like it was low eff
ort
their preferred channel ■
Don’t necessarily care where issues are resolved
N = 996
FINANCIAL SERVICES PRACTICE,
CEB TOWERGROUP RETAIL BANKING
Source: Customer Expectations Survey, CEB TowerGroup Retail Banking

11. Map functionality to the logical channel
Feature/Function
Branch
Contact Center
ATM
Online Banking
Mobile
Check Balance
Make Deposit
Withdraw Cash
Cash Check
Account Alerts
Bill Payment
Transfer Funds
Open Account
Address Change
Card Dispute
FINANCIAL SERVICES PRACTICE,
CEB TOWERGROUP RETAIL BANKING
Source: Customer Expectations Survey, CEB TowerGroup Retail Banking

12. Perspective changes the priority
The Realistic View of the Digital Customer Experience
External Customer View, 2014
Positive Customer Experience
Helpful Channel
Interactions
Simple Processes
Agile Technology
Source: CEB analysis.
#CEBSUMMIT
CEB TowerGroup Retail Banking
© 2014 CEB. All Rights Reserved. CMBO SYN 7

13. IMPROVING DIGITAL CUSTOMER SERVICE
Indicators of Effective Service
Opportunities for Effective Service
Send regular updates via channel of choice.
Keep customers informed
Formally acknowledge the issue
Send notice of acceptance.
Resolve the issue to the customer’s satisfaction
Measure resolution effectiveness over time.
Review the business processes for ease of use.
Exceed the customer’s expectations
Think back to slide 4 and what worked well in the personal channels but not in digital, there were really 4 things.
Read through “Indicators of Effective Service”
The first two are easier to accomplish in the personal channels so what does that look like in the digital channels?
Read through “Opportunities for Effective Service”
Questions for panelists
What additions would you make to this list?
Any challenges to the list? Reasons why these things will or won’t work?
What new technology excites you most as a new idea that could solve digital service issues?
Source: CEB analysis.
#CEBSUMMIT
CEB TowerGroup Retail Banking
© 2014 CEB. All Rights Reserved. CMBO SYN 8