What matters most to Customers

Isabelle M. Conner
Global Head of Marketing, ING
Rotterdam, 3 December 2009
What’s the Ultimate Question in Financial services today?

How to regain trust???

1
Before the crisis, people were already negative about the
financial services industry

“Getting anything done with financial services is like overcoming hurdles”

“You act like my

money is your
money!!!”

nt nt gs m e ed
r e a i n
t in st us
sp
a rro
g
t e th
es sing t ru
f oc
an a a r f u to ly
t tr a nt, p lic i nte on rd rd
No
t C Ha a
Dis Co
m
Lo
w In w

Source: “ING Value Proposition” research, metrixLAB, April 2008

2
… and then the crisis hit

3
The financial crisis has made consumers more concerned, angry
and helpless about their financial future

Q: How do you feel about the financial crisis? (in %)

Concerned 73

Angry 55

No control over my
46
future

Cheated 42

Calm 32

0 10 20 30 40 50 60 70 80 90

Source: “ING Crisis Research” Dec 2008, 32 countries

Banking - Investments - Life Insurance - Retirement Services 4

To make things worse, consumers are not getting professional
help

Q: Who do you get your financial advice from? (in %)

69% have no
No one 47
access to
professional
advice!
Friend/family/colleague 22

Someone at bank 16

IFA 9

Other 3

0 10 20 30 40 50 60 70

Source: “ING Crisis Research” Dec 2008, 32 countries

Banking - Investments - Life Insurance - Retirement Services 5

We survey customers throughout the year

Feb ‘08 June ‘08 Jan ‘09

What do consumers want? Is ING delivering? Is ‘Easier’ still relevant?

Crisis
4,200+ Research:
16,950
consumers,
External consumers 6,550
28 focus
Research in 32 consumers
groups in 6
countries in 32
countries
How can a countries
financial
services July ‘09 Oct ‘09
company like What matters most to Is ING delivering?
ING enhance customers?
its clients’
experience?
20 focus 16,800
groups in consumers
in 32
5 countries countries

6
Consumers’ concerns can be summarized into 6 Key Themes

Savings

Investments

Housing

Retirement

Insurance

The Economy
Banking - Investments - Life Insurance - Retirement Services 7
The burning questions of customers (1)
Savings: Investments:
How do I build up my How can I make my
savings? investments go further?
- How much should I be - I’d like to invest, but where do I
saving? start?
- What should I do with my - How much should I invest and
savings to keep them safe how much should I save?
and get the best return?
- What are the basic investment
-How can I best keep track of products available and how do I
my finances? know which ones I need?
- What is the best investment
strategy?
Banking - Investments - Life Insurance - Retirement Services 8
Housing:
What is the best way to
finance my home?
- How does a mortgage work?
- Can I afford to buy a property
and when is the best time to
buy?
- Rent or buy: what’s the right
choice for me?
- What are the different types of
mortgages available and how
can I choose the best one?
 The burning questions of customers (2)

Retirement: Life Insurance: The Economy:

What is the best strategy Why do I need life insurance and How does the economy affect
for retirement? when should I get it? my personal finances?

- How much do I need to retire - What is life insurance? How - When are we coming out of
comfortably? does it work? the crisis?

- When should I start saving for - Why do I need life insurance - What does the recovery look
my retirement? and when should I get it? like?

- What are the basic retirement - How much coverage do I - How can I manage my
products available and how can I need? money better?
choose the best one for me?
- What types of life insurance - How can I protect myself
- How can I keep track of and are available and how can I from unemployment?
protect my retirement? choose the best one for me?

Banking - Investments - Life Insurance - Retirement Services 9

Video

10
ING is going ‘Back to Basics’

Banking - Investments - Life Insurance - Retirement Services 11

Going ‘Back to Basics’ means satisfying consumers’ basic
needs

Elements of service Elements of trust

Easy to contact Clear overview

to C
sy act o v le a “They give me a clear overview of my
“I can contact them any way I like” a
E nt er r
vi e current financial situation, which
(internet, phone, in person) co w
makes me feel I have greater control”

Easier
& Tran
Fa st nt s pare
ie
Fast and efficient Effic nt
Transparent
“They offer solutions that help me “They offer products and services
manage my finances in a fast and Professional that are clear and transparent” (no
efficient way” Assistance hidden fees, no small print)

Professional Advice
“Whenever I need help with complex issues, they offer
me professional assistance and advice” (knowledge,
Source: “ING Value Proposition” research, objective advice)
metrixLAB, 2008

Banking - Investments - Life Insurance - Retirement Services 12

Delivering an ‘easier’ customer experience is more important than
ever

Trust in the industry Friends and family The 5 ‘Easier’

Customers are
has evaporated, are the most trusted attributes are even
sceptical. They no
replaced by concern source of more important.
longer believe
and anger information. Clients want to
advertising
experience them
messages.
from their provider.

sy
to
t Ov Clea
E a n tac erv r
ie w
Co

EASIER T ran
spar
+
F ast nt ent
ie
Effi c

Professional
Advice

Building a Strong Customer Feedback Culture

Banking - Investments - Life Insurance - Retirement Services 13

Traditionally, NPS has been used as a methodology for market
research

“How likely are you to

recommend ING to a
friend, colleague or
family member ?”

Detractors Passives Promoters

22% 33% 45%

0 1 2 3 4 5 6 7 8 9 10

Not at all likely NPS = 45%-22%=23%

Extremely likely

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Historically, we’ve focused mostly clients’ overall satisfaction

OVERALL RELATIONSHIP

Consideration Purchase Use Inquiries Re-use

• Lead Generation • ‘Selling’ of Policy • Inquiry • Claims Handling • Surrenders

• Provide general • Complaints payments
information • Policy Change • Maturity
• Policy Anniversary payments
• In-payments
• Servicing Visit
• Fund Management

TRANSACTIONAL NPS
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We are gathering feedback about all aspects of banking…

Our staff (People) Branch experience

Professionalism Proximity
Proactive Opening hours
Knowledge Waiting time
Customer Phone accessibility

Age
Gender
Wealth
Products Geography Processes

Checking & cards Card issuance

Lending & Mortgages Online transfers
Insurance Self Bank
Investments & Savings Deposit account activation

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…and all aspects of insurance

Staff/Agent Services

Agent experience
Call-centre experience

Customer

Age
Gender
Region
Products Processes

Investment Linked Agent anniversary visit

Old Unit Linked Purchase
Endowment Policy Change request
Inquiry
23% response rate shows that Customers are eager to share
their opinions

Banking Insurance

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The feedback is just a means, the most important is what ING
businesses do with it

Home Baking
•NPS score & why?
•Ease of navigation
Purchase •Ease of setting up
Customer •Time needed
Customer Feedback Customer

Banking Self Bank

(Automated Survey (Customer Follow-Up:
•NPS score & why?
Invite) 48 Hours)
Post- •Ease of navigation
Purchase •Quality of assistance
•Support
Negative
Email Alert

Agent: Satmetrix Primary Owner

•NPS score & why?
•Communication clarity
Purchase •Knowledge & attitude
•Financial needs
Results
analysis
Call centre:
•NPS score & why? Functional Teams
•Communication clarity
Customer Servicing •Turnaround time
•Delivered on promises (Individual/Team Results)

Insurance
Mail:
•NPS score & why?
•Clear instructions Direct / Indirect
Claims •Quality of assistance Management Owners
•Agent support

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‘Closing the loop’: Follow up with demonstrates ING’s responsiveness
and is opportunity to get further insights

Process layout Activity in each step

3 1 Based on specific interaction with

Negative the bank and every full year,
feedback Alert
customers receive email inviting
them to complete an online survey

2 Customer fills out the survey online

1 2 4 Closed loop
Email survey Customer fills System
invitation online survey 3 Should a customer score us
extremely low or high notification
1

would be sent to closed loop

personal to investigate
4 Close loop personal contacts the
customer to demonstrate
5 responsiveness collect more
details and try to assist
5 Management and direct owners
Direct /
could monitor customer feedback
Indirect to track changes and identify
Management Owners burning issues

For detractors

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Analysis: Customer feedback pinpoints operational improvements as
well as strategy implementation

Process layout Activity in each step

1 Based on specific interaction with

the bank and every full year,
customers receive email inviting
them to complete an online survey
1 2 3
Email survey Customer fills System
invitation online survey
2 Customer fills out the survey online

3 The system creates standard

reports as well as tailor made
charts
4 5
4 Management will be able to adapt
the implementation of strategy, by
a better understanding of
Direct /
Indirect -Customers
Management Owners
-Product performance
-Drivers of satisfaction

5 Direct Owners of channels and

Quick wins & Strategic changes products can find quick wins based
on customers’ feedback

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Customer feedback will not only drive operational
improvements but also strategic improvements

Strategic focus on
drivers of loyalty

Operational
improvements
Strategic Improvements

‘Quick fixes’

Operational Improvements
(quick wins)

Preparation Launch Year 1 Year 2 Year 3

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In order to convert all customers into promoters, we must excel in
products and services as well as address what matters most to
customers

Promoters

0 1 2 3 4 5 6 7 8 9 10

ING S&BC\2009\485\91 23
As Customers share their experiences with friends and
family, a positive NPS score is crucial!

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What are the priorities for ING?
“The most important priority is always to serve the
customer. In the end it is the willingness of customers to
do business with us that makes us a good company. So
that’s the number one priority and especially in times
like this, when our customers are suffering, we can
make a difference to them.”

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