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CUSTOMER EXPERIENCE MANAGEMENT THROUGH FINACLE

Agenda/Topics To Be Covered
• CUSTOMER EXPERIENCE MANAGEMENT • CUSTOMER LOYALTY

• WHAT IS CBS
• CUSTOMER RELATIONSHIP VIEW • DEPENDENCIES • Q&A

CUSTOMER EXPERIENCE MANAGEMENT
• Every Time a Customer comes into contact with an Enterprise – whether through

– The People;
– A Web site;

– Advertising Campaigns; or
– Marketing materials The Customer has an opportunity to form an opinion, be it

– Good
– Bad – Indifferent

CUSTOMER EXPERIENCE MANAGEMENT
• Customer Experiences – Are both logical and emotional

– Can be designed
– Convey Value – Usually influence future behavior more than the product or service does – Involve all five senses

– Must be managed

CUSTOMER EXPERIENCE MANAGEMENT
• Common mistakes when thinking about Customer Experience – Considering only the logical or rational part of an experience, e.g., the product said that I could remit money free of charge, when a large part of customer experience is emotional, e.g., my son could not have a bike on his birthday as the Term Deposit was not encashed in time

– Forgetting that an experience involves all five senses, e.g., a front desk employee is selling a great product, say “Super Sixer” but is chewing tobacco or pan or is shabbily dressed
– Confusing the product or service design with experience design – Underestimating the value of an experience

CUSTOMER EXPERIENCE MANAGEMENT

CUSTOMER EXPERIENCE MANAGEMENT
The Economics of Poor Customer Experience Translated to BOB 20 million customer

At risk 34% Issue Not Resolved Defect – 28%

29920 customers Rs. 1,49,60,000/24640 customers Rs. 1,23,20,000/-

Revenue = Rs. 1000 crores
Average Revenue per customer = Rs. 500 Poor Experience 22% Complain 2% 88000 customers

Resolved – 38%

44,00,000 customers

Positive Experience 78%

Do Not Complain 98%

43,12,000 customers

At Risk – 55% Decline in wallet share

2371600 customers Rs. 118,58,00,000/-

Defect – 45%

1940400 customers Rs. 97,02,00,000/-

Total Lost Revenue = Rs. 2,72,80,000 + Rs. 215,60,00,000 = Rs. 218,32,80,000

Customer Loyalty
• Very Important for the enterprise • Silent Attrition - We tend to focus on vocal dissatisfied customers, while ignoring the silent ones • It can cost 30 to 40 time more to attract a new customer than to retain an existing customer • An increase of only 5% in customer retention can translate into a 25% to 55% increase in profitability

Customer Loyalty – An example
Profitability Based on Length of Customer Relationship
<6 MONTHS 6-12 MONTHS 1-2 YEARS 2-5 YEARS > 5 YEARS

24%

25%

24%

19%

8%

% OF CUSTOMERS

4%

13%

26%

32%

25%

% OF PROFIT

49% Customer provide 17% Profits

27% Customer provide 57% Profits

CBS, Customer and YOU
• How Can CBS assist in the creation of – Positive Customer Experience; and

– Customer Retention
• CBS is NOT a substitute for “emotional bonding” with the customer – But CBS can provide some inputs for creating “emotional bonds” • CBS CANNOT provide any sensory experience

What is CBS
• CBS is a – TRANSACTION PROCESSING,

– CENTRALIZED
Application Software • Transaction Processing is the backbone of BANKING • Transaction Processing requires that we have CUSTOMER DATA • Since CBS is centralized, it means that the same CUSTOMER AND TRANSACTION DATA is available to each and every operational unit connected to the central Data Centre

CBS enables
• Any Where Banking – Geography becomes redundant, the world becomes a village

– Customer can derive the benefits of our LARGE FOOTPRINT
– Our Customers can enlarge their MARKET SIZE – “wherever you go, BOB is available to SERVICE your needs” – Our customers can deposit their cheques ANYWHERE and get IMMEDIATE CREDIT – Our customer’s suppliers can get IMMEDIATE CREDIT for cheques issued

– Our customers can REDUCE THEIR RISK by depositing CASH at any CBS branch

CBS enables
• Uniform Banking Experience – One Version of Truth

– Product features UNIFORM across all Branches
– Fees, Interest Rates, Charges UNIFORM across all Branches – Changes in Fees, Interest Rates, Charges happens INSTANTLY AND FOR all branches AT THE SAME TIME

CBS enables
• ANY TIME BANKING – ATM, E-commerce – The Bank never sleeps – 24/7 Real Time

– Cash withdrawal through ATMs
– Fund Transfers through “Baroda Connect” – Tax Deposits – Direct Taxes, Indirect Taxes – Bill Payments – Shopping Mall

– Railway Booking

CBS enables
• New Channels for Service Delivery – Internet Banking

– SMS banking
– Electronic Channels – Email/Softcopy for Statements of Accounts • New Products - Salary Linked Accounts

- Pooling of Accounts

How You Can Serve through Finacle
• Use “Customer Relationship View” (CRV) for – A complete unified view of the customer

– CRV provides true GUI and drop down lists
– Summary & drill down – Extensive search capabilities – WSIWYG printing – Online data

– Online context sensitive help

The CRV Screen

Horizontal Menus

Online Help Search Icons

WYSIWIG Printing

Hyperlinks for detailed info Vertical Menus

Summary Info

CRV - Broad Classification
• Customer Level Detail • Account Level Detail

• Limit & Margins Detail
• Trade Finance Details

CRV – Customer Level Links
• Customer Search • General Details

• Account Inquiry
• Summary Portfolio Statement • Turnover • Maturities • Sweep Details

CRV – Account Level Links
• • • • • • • • • General Details Transaction Inquiry Balance Details Interest Inquiry Inward Cheques Inquiry Outward Cheques Inquiry Account Turnover Details Limit Details Related Party Inquiry

CRV – Account Level Links
• • • • • • • • • TD Transaction Details TD Interest Details TD Tax Deduction Details TD Renewal History Details Asset Classification Loans Inquiry Delivery Channel Transaction Bill and Coll History of Revolving OD Interest Rate Inquiry

• • • • • • • • • •

Loan General Details Repayment Schedule Collection and Past Due Inquiry (including charges) Ledger Inquiry Inquiry on Interest Inquiry on Charge Off and Non Accrual Messages Inquiry Documents Inquiry Loan Late Fee Details IRR Inquiry

Limit & Margin Links
• Customer Limit Details
• Limit Node Details • Customer Collateral Details • Insurance Details • Limit Tree Details

Trade Finance Links
• Import

– Documentary Credit – Bills
• Export

– Documentary Credit – Pre Shipment Credit – Post Shipment Credit
• Inland

– Inward DC – Outward DC – Bills
• • • • • Forward Contracts Bank Guarantees Remittances Inward Outward

Dependencies
• A computer is a GIGO machine – Quality of Data, a PRIME dependency

• Cleaning existing data – Addresses, Dates of Birth, Deduplication of Customer IDs, New Cust IDs for Joint Holders • Cleaning of Migrated Data
• Data Enhancement – Email addresses, Telephone Numbers – Missing Data

• Cheque Books Issued but not entered in Finacle (Inter-SOL transaction – Any Where Banking – denied) • Signature not uploaded/not verified – Any Where Banking denied

Dependencies

• Single window service delivery – Universal Teller – Use Customer Terminal for Internet Banking

• Marketing New functionalities – encourage customers to use channels other than Branch
– Internet Banking – Fund Transfer, Payment of Taxes, Bill Payment – Debit Cards, Credit Cards

• Training of Front-line staff
– Finacle

– Behaviour

Q&A

Thank you