Customer experience management (CEM) was first proposed by Bernd H. Schmitt in the book "Customer Experience Management", and is considered to be an important strategy for enterprises to obtain differentiated competition in the era of experience economy. In this issue, we invite Zhongdong Sun, a senior consultant at Boston Consulting Group (BCG), to be a guest in the Financial Times's "Theoretical Research", from the perspective of banks, whether customer experience management is a good medicine to solve the continuous growth of banks and customer decision-making in the stock era.
Zhongdong Sun is a senior consultant of the Boston Consulting Group Global Think Tank, the initiator of the Open Banking Forum, the initiator of open banking in China's banking industry, and a senior expert on the digital transformation of banks.
The concept and composition of customer experience management
Financial Times: First of all, could you please introduce the concept and composition of customer experience management?
Sun Zhongdong: Customer experience, also known as user experience. It is a purely subjective feeling established in the process of using a product or receiving a service. This feeling includes, but is not limited to: the degree of demand satisfaction, the degree of happiness, the degree of convenience, the degree of operation Xi, the degree of service satisfaction, the degree of value improvement, the psychological thoughts after use, etc. Customer Experience Management (CEM), also known in the industry as CXM, refers to "the management approach of designing and responding to customer interactions to meet or exceed customer expectations, with the goal of improving customer service and brand satisfaction, loyalty, and advocacy." ”
A complete customer experience management system generally needs to have a four-tier structure, which are the guarantee system, platform support, customer journey and customer experience from bottom to top. The first layer: the security system;The second layer: platform support;Tier 3: Customer journey;Tier 4: Customer experience. Driven by four major trends, the importance, necessity, and feasibility of creating a great customer experience in the financial industry are becoming increasingly prominent. In terms of banks, they have shifted from the incremental era to the stock era, and it is difficult to obtain long-term and good results by relying on the traditional increase in sales teams, strengthening assessment and guidance, and fee incentives. In terms of customers, affected by the Internet, consumer goods and other industries, more and more attention is paid to customer experience, and the Matthew effect in the financial industry is prominent. In terms of channels, the proportion of online financial services has increased significantly, and the application of technologies such as burying points and big data analysis has reduced the cost of customer experience monitoring and improved the depth and breadth of customer experience monitoring.
Characteristics and values of customer experience management
Financial Times: What is the difference between customer experience management and customer relationship management (CRM)?
Sun ZhongdongCompared with customer relationship management, customer experience management is a higher-dimensional, more granular management method and concept, customer experience management brings deeper business insights to banks by observing consumers' experience and analyzing how experience affects their behavior. Embodied in:
One is that the focus is different from the purpose。Customer experience management focuses on understanding and improving the entire customer experience, including every aspect of a customer's interaction with a product or service.
Second, the time dimension is different。Customer experience management focuses on the future and is committed to shaping the customer experience throughout the lifecycle to ensure continued customer satisfaction and loyalty.
The third is that the data and analysis are different。Customer experience management includes data collected from multiple channels, covering the emotional, behavioral, and social feedback of customers.
Fourth, the interactivity is different。Customer experience management focuses on enabling two-way interactions, emphasizing continuous dialogue and feedback between customers and the business to better meet customer expectations.
Fifth, the business impact is different。Customer experience management impacts the long-term health of the overall business by increasing customer satisfaction and loyalty, increasing brand value and improving word of mouth.
Financial Times: What is the practical value of customer experience management for banks?
Sun ZhongdongThe value of customer experience management to banks is more reflected in the medium and long-term effects, which are manifested in the following aspects:
From a strategic point of viewComprehensive customer experience management brings better return on investment and brand image to the bank.
From a management perspectiveTotal customer experience management can promote bank-wide management and process optimization, bringing better customer service and higher internal efficiency to the bank. Including but not limited to: First, the improvement of internal operation and service efficiency. The second is the improvement of data application and overall management. The third is the end-to-end improvement of the whole journey.
From a business perspectiveComprehensive customer experience management can bring better performance and operational results to banks. According to global peer experience data, through the implementation of comprehensive customer experience management, the bank's customer NPS has continued to increase by more than 20%, revenue growth of 10% to 15%, service cost reduction by 10% to 15%, and employee satisfaction increase by 20% to 30%.
In short, comprehensive customer experience management can lead banks to carry out self-innovation and continuous improvement from multiple aspects such as strategy, management, and business, and provide a steady stream of driving force for the high-quality development of banks.
Implementation and implementation of customer experience management
Financial Times: How exactly is customer experience management implemented?
Sun ZhongdongCombined with the high requirements of customer experience management implementation, we suggest that banks do a good job in the "three combinations" and adopt the "1+1+M" method to implement the bank-wide customer experience management. The details are as follows:
First, three combinations: the combination of overall planning and local pilots, the combination of theoretical guidance and agile action, and the combination of experience monitoring and journey remodeling. A set of planning: that is, to formulate a unified customer experience management system plan to provide guarantee for subsequent implementation work. One platform: Build a unified customer experience management platform for the whole bank to support customer experience management decision-making and journey optimization execution. Multiple journeys: Select one or more customer journeys that the business focuses on as the implementation breakthrough and benchmark journey, carry out journey remodeling and experience monitoring with the support of the system platform, find and solve customer experience problems, and achieve results in a short period of time.
Second, based on the present, focus on the trend, and plan for the future. At this stage, the practice of customer experience management must conform to the trend of platform change, achieve a leap with the help of the latest financial technology, and actively explore a new generation of customer experience management methods and technologies such as digital customer journey management, dynamic journey orchestration, first-class experience analysis, and hyper-personalized customer management, so as to push the bank's customer experience management to a more intelligent height.
Financial Times: The overseas environment is different from China's, how to achieve localization of customer experience management?
Sun ZhongdongThe localization of customer experience management needs to do a good job in the following three points: First, do a good job in the localization of solutions. Combine international advanced management concepts, tools and methods with the local economy and industry reality, and do a good job in localization transformation. The second is to embrace supervision, comply with regulatory requirements, and do a good job in customer service on this basis. Third, it is necessary to be customer-centric, respect the characteristics of localized culture, follow local customs, and reflect the "people-oriented" customer experience management concept.