STEP 3

Design the target Customer Journeys

Digital Capabilities open up the range of possibilities

In the banking and insurance businesses, digital capabilities are the best contributing factors to improve the customer journey. I don’t mean just self-service online capabilities provided to customers – it can also comprise

• digital tools provided to employees (for instance tablets for financial advisors to help them to provide more accurate / customized solutions when meeting customers) ; in a retail bank network, advisors have hundreds of products to sell – how can they combine them best to offer customized solutions?

• online interaction tools, for customers to

  • know anytime the progression of their requests (for instance if their mortgage loan request has been accepted),
  • ask questions without having to know the bank’s organization and the relevant person or department to contact,
  • provide information to help the bank to process the request,

• document exchange and analysis: many processes for banks and insurance companies handle documents (written evidence, supporting documents, etc.) that are exchanged between customers and the company; online features can help a great deal in both exchanging and controlling the documents (to prevent fraud or comply to know-your-customer regulatory requirements)

• data analysis to determine patterns and address the customers' needs proactively

• smartphone features to address customers’ usage and situations related to mobility (for instance when they just lost their banking card in the street, when they need immediate credit answer to buy a car, etc.)

Great Design is key to deliver top-notch Customer Experiences

I took the example described in section “Mapping of the actual customer journeys”, to propose below a target customer journey “Financing the operating cycle” for SME customers.

Both actual and target journey journeys share most elements from the bank’s point of view – same end goal (a financing contract), the same regulatory constraints, the same credit risk analysis, etc., but they differ from the customer’s point of view because the customer interactions are organized differently.  The target customer journey provides ease-of-use and in-context actions to the customer, so that the journey is smooth and efficient.  The expected positive customer perception is indicated against the journey [with quotes].

Delivering innovative Customer Journeys

Innovation in customer journeys can be leveraged through digital capabilities as shown above, but can also be introduced through customers’ situation-based or usage-based new possibilities.

Here innovation derives from customer journey design, not technology.

For instance, corporate banking comprises account handling and treasury reporting. With customers’ eyes, this is directly linked with invoice management (payments, receivables, invoice acceptance, etc.). These processes are distinct from the banks’ point of view – and most of the time banks don’t even offer invoice management services. Here innovation can come from combined invoice and account management journeys.

Another example: consumer credit is based on a credit application, which can be performed online for some banks. But this doesn’t fit customers’ usage who need immediate financing where buying a product (a car for instance). The best solution here might be to pre-determine consumer credit acceptance upfront and propose it with a limit to the customer who could activate it immediately with his/her mobile phone when he/she is a situation of buying the desired product.

Product Marketing vs. Services Marketing

The design of the customer journeys as described above is very similar to what marketers do - customer surveys, focus on customer expectations, etc.  In fact, this approach is a Services Marketing approach.  The "object" designed and proposed to customer is not a product, it's a way of serving him through the customer journeys.

When we asked bank customers what matters to them (internal survey), they provided the following contributing factors:

• 20% for products - product offer range, price-quality ratio, etc.
• 24% for bank advisors - both soft (quality of interpersonal relationship) and hard (expertise) skills
• and 56% for customer journeys - customer orientation, ease of contact, quality and availability of information on all channels, etc.

The first 20% are covered by product marketing, which is a must-do (no well targeted and priced product, no business).  The following 24% are a combination of successful hiring, training and management of the sales force.  Who is in charge of the remaining 56%?  It is unclear for most banks – this is where services marketing takes place.