ABA Banking Journal - August 2008 - (Page 46) Tech topics their institution to others. Accenture isn’t recommending that banks make indiscriminate improvements. “Of the highest performing banks on customer satisfaction scores, one quarter of that group indicated that what they spent on sales, service, and product delivery didn’t resonate with their customers,” McHugh explains. Said differently, of the total amount spent to make customers happy, 25% missed the mark and didn’t result in organic growth. Accenture’s research suggests some customers aren’t worth investing in, either because they are unlikely to leave, will leave anyway, or are not aligned with a target segment. The consultancy advises banks to align brand messages, experiences, and capabilities to meet certain segment objectives and use measures like NPS to make adjustments to the program. As to how to use scores, McHugh advises that bank marketing teams pick a few metrics, stick with them over time, and supplement them with focus group research and other forms of frank discussions with clients. That’s because scoring systems can be “gamed,” as was openly acknowledged among advocates of NPS. “If you are coaching your customers to give a certain score by, for example, ‘guilting’ them into it, the way I saw an employee doing at one car rental agency, what you wind up with is meaningless,” Reichheld said good naturedly. “There has to be integrity in the process.” Sunny Banerjea, global solutions executive, IBM Banking Industry, based in Plano, Tex., says that top tier banks have been measuring general satisfaction for as long as a decade. He indicated when he worked at a money center bank years ago, it was common to outsource customer satisfaction scores. “What’s different now is a linking of satisfaction to other key metrics within the institution,” he says. “In addition, banks are trying to build internal expertise and really understand how loyalty, profitability, and cross selling ratios interrelate.” with all customers.” Bettinger explained that the firm began the gradual Using customer process of recalibrating opinion as a guide product pricing and One NPS advocate is retail deliver about Walter Bettinger II, presitwo years ago. dent and CEO, Charles It has relied Schwab & Co. who also spoke at on analythe Forrester Conference in New sis and net York. He admitted that Chuck promoter Schwab’s shareholder position gave score to help guide its senior management the leverage it adjustments. “With strong needed to put a significant portion of top-down commitment, you can instirevenue at risk by eliminating the tutionalize practices that put you and “bad profits” that come the customer on the from sources like same side,” says nuisance fees or Bettinger.“ You from the can do well “With strong top-down practice of by doing attracting good.” commitment, you can shortWhile term a quick institutionalize putting only scan of cusmarketyou and the customer on tomers ing from related the same side. You can giveblogs aways and shows that do well by doing good” a seasonal not all the campaign. It pros are equal—Dick Bettinger Schwab let management ly enamored with realign incentives and the net promoter score reward a different sort of (perhaps its fairer to say that behavior, one that embraced the cus- several have pointed out that it is, after tomer. “We realized that we were send- all, just one measure of several), the ing the wrong message to loyal, exist- method definitely has a following. ing customers by making special offers Reichheld himself mentioned the critito the new ones,” said Bettinger. cism. “I’ve read that NPS is too simAmong the investment firm’s well- ple,” he said. “I’ve read NPS doesn’t heeled customers, surprising feedback paint an accurate enough picture of surfaced. “We had wealthy clients ask who the brand advocates or detractors us about fees that they didn’t have to are,” he said. “While vigorous meapay, but saw that they were bothered surement is required and root cause by what we charged less wealthy analysis needs to occur as part of the clients,” says Bettinger. “That’s when it exercise, the information you get from became clear that we were being judged a net promoter score is a good proxy not only on our interactions with a into how that revenue is being generatgiven customer but our interactions ed,” he explained. BJ 46 AUGUST 2008/ABA BANKING JOURNAL Subscribe at www.ababj.com https://www.schwab.com https://www.schwab.com http://www.ibm.com http://www.ababj.com
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