Transcript Corporate PPT Template

<Insert Picture Here>
Customer Centricity - Driving Growth in Today's Leading Banks
Larry Dalus
Senior Solutions Consultant, Financial Services Industry
Oracle Corporation
Safe Harbor Statement
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decision. The
development, release, and timing of any features
or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
2
Customer Service –
A Sustainable Competitive Differentiator?
“The customer should only have to ask once”
“Leveraging the service profit chain”
“Our mission is to be a Premier Bank in the Asia-Pacific region, committed to
providing Quality Products and Excellent Customer Service.”
“Understanding and responding to our customer needs is fundamental to the
way we do business”
“Fundamentally, we owe our improved performance to a customer-centric
approach that puts customers at the core of our business strategy”
“We listen to our customers and understand their needs”
“Reaching Out To You”
“Helping You Get On With Life”
3
Is the Customer’s Experience Important?
Improving the customer experience is critical in order for banks to meet customercentric goals
4
What is an Exceptional Customer Experience?
• Every customer interaction is a “moment of truth” – a point in time where the
customer will form a view of the Bank and their willingness to continue the
relationship
• Ingredients of an exceptional customer experience includes:
– Know your customer
– Anticipate and understand their needs, up-servicing the customer
– Being a customer advocate and trust advisor
– Leveraging existing customer and interaction data
– Only ask for customer for specific information once, but capture for future use
– Address issue promptly removing any non-value added processes
– Regularly update and realign to changing customer needs and feedback
5
Challenges to Delivering an Exceptional Customer
Experience
FACTOR
CHALLENGE
Customer
Recognition
Bank’s are required to scale relationships
across millions of customers
Blended Sales &
Service
>80% of customer interactions are purely
service transactions
Consultative
Selling
Agents and sales reps focus on selling the
most familiar products
Follow Up Leads
Customer requests not fulfilled at the point
of communication
Multi-Channel
Capabilities
Customer interactions typically span
multiple channels
6
Retail Banking Investment Priorities
Core Systems Replacement
Performance Analytics
 Technology refresh due to
outdated, legacy technology
platforms
 Executive analytical dashboards
deployed at the front line through
pre-packed analytical applications
to drive business transformation
 Opportunity to redefine business
processes, customer relationship
models, and fee based products
 Aligns with KPI and incentive
realignment
Multi-Channel CRM
Branch Transformation
 Deploying core CRM capabilities to
both assisted and self-service
channels
 Recognises the importance of the
Branch network in building
customer relationships
 Examples include Internet Banking,
Call Centre, Relationship Manager,
and Branch Sales
 Transforms branches from
transaction processing centres into
customer-centric financial sales
and service centres
7
The Underlying Objective of Branch Transformation
"Like many organisations, post the internet revolution, we're recognising that branches and face-to-face (service)
are more important than we might have expected, so further developing our branch network is an important goal
for us.“ – Les Matheson, CEO, Citibank Australia
Main Business Goals of Branch
Transformation
Source: US FST Survey 2003; Datamonitor
Source: “Citibank Hunting for Deals”, October 31, 2005
8
Post Interaction
Branch Interaction
Pre-Interaction
Branch Banking Example
 New Loan product created
 Promotion launched
Branch Staff unaware of
promotion or other calls
Compensation for Teller and
CSR is Manual
Static list of target customers
Teller is unaware of
whether customer has
product
Referrals are written on
paper
CSR manual follow-up about
product closing
‘One size fits all message’
CSR has to manually follow-up
Uncertain about product sales
9
Post Interaction
Branch Interaction
Pre-Interaction
Addressing the Challenge through a
Multi-channel Customer-Centric Transformation
 New Loan product created
 Promotion launched
 Branch Staff are
aware of customer
campaigns
 Product sales known
 Effective Target
Campaign & Offers
 Teller reads
product offer
 Segmentation to leverage
predictive customer insight
 Referral electronically captured
 Automatically assigned to the
appropriate user
 Automated follow-up
on product closing
 CSR verifies product fit and
applies online
 Compensation is
automatically tracked
10
Siebel CRM 8 – Transformational CRM
Empower Users
– Provide proactive, real time insight at the
moment of customer interaction through
a flexible, role-based user interface
Enable Business Responsiveness
– Enable the business to respond to
ongoing business process changes and
to directly improve the customer
experience
Ensure Value
– Provide choice by supporting multiple
deployment options and ease of
integration at the lowest cost
11
Superior User Experience
Empowering Users :: Task Based User Interface
12
Embedded Intelligence
Empowering Users :: Embedded Intelligence
13
Information Discovery
Empowering Users :: Enterprise Search
14
Empowering Knowledge Workers
Empowering Users ::
Email and Collaboration
15
Siebel Branch Banking Solutions
Branch Platform Sales & Service







360 degree view of customer across channels
Process oriented account origination
Needs analysis and sales tools
End to end service management
Campaign and lead management
Fully integration with desktop productivity
applications
Contact management
Branch Teller







Embedded 360 degree view of customer
Customer centric transaction processing
Optimised for maximum speed
Prompts and indicators to offer superior service levels
Referral capture and routing
Cross- & up-selling
Store and Forward / Offline Processing
16
Siebel Finance Analytics Solutions
Siebel Analytics for Retail Banking






Over 120+ purpose built analytical charts for
retail banking
Pre-built mappings to Siebel operational CRM
Executive dashboards
Credit Origination and Credit Card dashboards
Private Banking dashboards
Marketing dashboards
Siebel Analytics for Institutional Finance






Institutional Sales dashboards
Investment Banking dashboards
Corporate and Commercial Banking dashboards
Wealth Management dashboards
Account Management dashboards
Investment Holdings dashboards
17
What’s new in Siebel 8 for Financial Services?
• Streamlined Account Origination
• Rules Based Loan Underwriting
• Advanced Insurance Claims Management
– Automatic Reserve & Coverage
– Payment & Invoice
– Subrogation
– Fraud
Banking
Teller
Marketing,
Sales,
Service
Core
Banking
Financials
Human
Resources
Banking
Analytics
18
The Global Leader in Front Office Solutions for Retail Banking
19
Westpac Banking Corporation
• As of September 30, 2005 Westpac had:
– 27,000 Employees
– Global assets of $260 billion AUD
– Net profit after income tax was $2,818 million
• Westpac is ranked in the top 10 listed companies by market capitalisation on the
Australian Stock Exchange Limited (ASX)
• Westpac serves 8.3 million customers, through key business areas of:
– Business and Consumer Banking
– Wealth Management
– Institutional Banking
20
Five Year Strategy to Transform Westpac’s
CRM Capabilities
CRM
CRM at
at Westpac
Westpac
Sales
Sales &
& Service
Service
Transformation
Transformation
 Capture
Capture future
future customer
customer
needs
needs and
and profiles
profiles
 Lead
Lead actioning
actioning
 Easy
Easy to
to do
do referrals,
referrals,
service
service requests,
requests, single
single
customer
view,
etc.
customer view, etc.
Marketing
Marketing
Transformation
Transformation
Sales
Sales Skills
Skills Upgrade
Upgrade
 Proactively
Proactively call
call customers
customers
 Disciplined
Disciplined sales
sales
management
management
 Dashboards
Dashboards for
for visibility
visibility
 From
From “above”
“above” and
and “below“belowthe-line”
the-line” to
to Integrated
Integrated
Marketing
Marketing
 From
From intuitive
intuitive customer
customer
selection
selection to
to “needs”
“needs” and
and
event-triggered
campaigns
event-triggered campaigns
Technology
Technology Delivery
Delivery
Transformation
Transformation
 Install
Install market-leading
market-leading
packaged
packaged applications
applications
 Integrate
Integrate these
these
applications
applications with
with existing
existing
systems
systems
 Strategic
Strategic jointjointdevelopment
development
Strategic
Strategic Benefits
Benefits
 Revenue uplift
 Competitive advantage through CRM capability leadership
 Superior customer experience
 Operational excellence & staff satisfaction
Source: “Customer Centric Bank Transformation”, Fernando Ricardo, Head of Sales and Service Desktop, Process and Channel Transformation, Westpac Bank
21
Five Year Strategy to Transform Westpac’s
CRM Capabilities
• Customer Needs Based Conversation is linked to Oracle CRM across the
Bank’s branch network:
• Westpac’s CRM program provides the bank’s sales teams with the context to
understand and meet customer needs
Source: “2006 Market Update”, Westpac Bank
22
Five Year Strategy to Transform Westpac’s
CRM Capabilities
Customer
Web
Branch
Managing the Customer Experience
Customer Contact Management
Leads
Westpac
Leads
Need-based
Future
Employee
Multi Channel Access
Partner
Face to Face
Call Centre
ATM
Enabling the Sales & Service Team
Managing Business Performance
Sales & Service Skills
Dashboards & Scorecards
Opportunity/Pipeline Management
& Insights
Alerts
Dashboard
(NCR Relationship Optimiser)
Event-based Leads
The Westpac Way
Product/Transaction History
Relationship Builder
(Oracle Siebel eBusiness)
Sales & Service Leadership
(Oracle Siebel Analytics)
Aligned Performance Targets
Customer Feedback/Complaints
Customer Profile & Needs Capture
Analytical Optimisation
Event
Westpac
Detection
Behaviour &
Leads
Preference
(Relationship Optimiser)
Customer
Value
Needs &
Risk Adjusted
Modelling Environment
Enterprise
Pricing
Propensities
(SAS eMiner)
Credit & Fraud
Managing (Real-Time) Information
Metadata
Siebel
Oracle
management
Analytics
Operational data
Data warehouse
store
NCR Teradata/Oracle
Series/
MQ
Middleware
Websphere
Source: “Customer Centric Bank Transformation”, Fernando Ricardo, Head of Sales and Service Desktop, Process and Channel Transformation, Westpac Bank
23
Five Year Strategy to Transform Westpac’s
CRM Capabilities
5,500
users
300
users
2002
2003
8,000
users
10,000
users
1,800
users
2004
2005
2006
2007
Kick-Off
Source: “Customer Centric Bank Transformation”, Fernando Ricardo, Head of Sales and Service Desktop, Process and Channel Transformation, Westpac Bank
24
Five Year Strategy to Transform Westpac’s
CRM Capabilities
“I now have the ability to track sales
every day across the network. I can
drill down to a small business
banker individually and look at what
their pipeline looks like. As you can
imagine, this is a great capability for
a small business manager for
coaching”
– Mike Pratt, Group Executive, Business and
Consumer Banking, Westpac Bank
Source: “Customer Centric Bank Transformation”, Fernando Ricardo, Head of Sales and Service Desktop, Process and Channel Transformation, Westpac Bank
25
• 155 Year Old Bank of the Philippine Islands
– 11,000 Employees
– 890 Branches
– Assets of over $10 Billion USD
– Headquartered in Manila
• Significant Market Share:
– 2.6 Million Customers
– Second largest commercial bank
• For years, international publications and rating agencies have given annual awards
to BPI as one of the best banks in the region.
• Among these are the Far Eastern Economic Review, The Banker, Euromoney,
Asiamoney, BusinessWeek, The Asset, Global Finance, Finance Asia, and The Asian
Banker.
26
• BPI recognised the need to constantly look for ways to maintain its market leading
position, viewing technology as vital to supporting their business strategy
• In 2001, BPI became the first bank in the Philippines to implement a Customer
Relationship Management (CRM) system. This was to address:
– No centralised sales system
– RM’s using different application or manual paper files to locate customer information
– RM’s managed their time and client data using paper calendars and notebooks
– No automated method of monitoring sales campaign responses, gleaming knowledge from sales
data, or targeting campaigns to specific customer segments
• “Our vision was to become a customer centric organisation, delivering
personalised service and superior products. But even at the branch level we had no
standard way of managing customer relationships or leveraging cross-sell
opportunities”
- Arlene S. Dayrit, Assistant Vice President, CRM, Bank of the Philippine Islands
27
• BPI divided its customer base into different segments,
focusing its CRM initiatives on the Preferred customer group.
Each Preferred Customer was:
–
–
–
–
Assigned a dedicated RM
Given an express lane in bank branches to complete transactions quickly
Provided with updates on developments and trends in the economy
Profiled in order to better understand their needs
• BPI restructured its branch organisational structure into two
distinct teams:
Sales Team
• Lead by the RM
• Concentrates on selling and managing a portfolio of preferred customers
Service Team
• Focuses on processing counter transactions
28
• Improved Marketing Performance
– Marketing users are now able to query the customer database, develop customer segments, and
distribute prospect lists to RM’s
– Reduction in prospect list creation from 30 days to only 1-3 days
– 233% increase in campaign response rates
– 174% increase in campaign conversion rates
• Enhanced Customer Service
– Call Centre Agents now have real time access to customer information
– 40% reduction in service request processing time
– Increased customer satisfaction
• Increased Sales Over Non-CRM Branches
– 71% increase in Auto loans
– 110% increase in mortgage lending
– 164% increase in Credit Card applications
• BPI recovered 105% of its cumulative investment in hardware, software, and
training in just three years
29
<Insert Picture Here>
Customer Centricity - Driving Growth in Today's Leading Banks
Oracle | Siebel CRM 8