2015 Momentum Webinar Series:

Omni-channel Engagement Maximizing Profitability in a Consumer-driven Market

Russell Lester & Ryan Loesch

Introduction

Q/A

Social Media (#DIWebinar & @Digital_Insight)

Post-webinar Materials

Welcome

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The future of customer engagement

Your strategic imperatives

Three steps to get started

Overview

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Introductions

Russell Lester - Senior Director, Strategy & Business Analytics, NCR Financial

Services - Russell has over 15 years of experience in the financial services industry and presently leads

the Analytics center of excellence for NCR Financial Services. In this role, Russell is responsible for

managing a team of seasoned analysts that provide timely, accurate, relevant and pro-actively persuasive

insights to internal stakeholders and customers. This team helps customers navigate the complex

landscape of their diverse data assets to identify, quantify and prioritize areas of opportunity. Russell has

spent much of his career interacting with financial institutions to understand their business challenges and

identify ways in which insights can help inform their strategic plans. Prior to joining NCR, Russell was vice

president of financial planning and analysis at Harland Clarke.

Ryan Loesch – Senior Product Manager, NCR Financial Services – Ryan joined NCR

Financial Services from NCR retail, where Ryan led the design and development of omni-channel tablet

and mobile applications for high-touch retail environments. Ryan’s focus with NCR Financial is to seek out

both short and long-term integration opportunities across physical and digital channels while developing

and implementing relevant solutions. Prior to NCR, Ryan was first vice president of strategic program

management with SunTrust Bank in Atlanta, Georgia. Ryan has been developing mobile applications since

app popularity began to surge 6 years ago.

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THE FUTURE OF CUSTOMER ENGAGEMENT

Retail and Mobile are driving omni-channel

expectations.

22%

Conversion rates for proximity based offers vs comparable digital campaigns which only

show single digit conversion rates

50%

Of sales are being influenced digitally

60%

Of adults don’t go an hour without checking their smartphone or tablet

20%

Of retailers are offering location based mobile apps

Source: RetailTouchpoints.com

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The omni-channel experience is alive in other

industries.

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Consumers’ view of financial services is changing.

Source: Millennial Disruption Index: http://www.millennialdisruptionindex.com/

33%

are open to switching banks in the next 90 days

68%

think the way they will access their money in 5 years will be

completely different

33%

don’t think they’ll need a bank at all

73%

would be more excited about a financial service

offering from Apple, Google, Amazon, PayPal or Square

than from their own national bank

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Retail banking’s business model is under attack by

companies creating great customer experiences.

Your biggest threat, particularly with the Millennial generation, may be technology companies entering banking and payments with innovative products, respected brands, and massive customer bases.

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• $1 invested in user experience = $2 to $100 return¹

• More times at bat = more home runs • More interactions = more profitable

customers • More transactions = higher satisfaction

and more business

Retail data underscores the value of omni-channel.

“Consumers don’t distinguish between channels. They are channel blind, therefore they expect the same service, products, offers, and pricing online as they do in-store and on mobile.” - Miya Knight, Senior Research Analyst, IDC

¹AGBeat. “Why UX is Critical.” May 9, 2014.

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Continuity of Consumer

Experience

Consumer 360 or 720 View

Personalization and

Preferences X-Channel

X-Channel Consumer

Insights, Events, Trans

The customer experience is at the center of omni-channel.

Smart and Relevant X-

Channel Offers and Promos

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Mobile Banking Bill Pay Problem

Telephoned the Contact Center

Walked Into the Branch

Referred back to Contact Center

Submitted Online Complaint

Performed Large Withdrawal

Continuity of Consumer

Experience

Consumer 360 or 720 View

Personalization and

Preferences X-Channel

X-Channel Consumer

Insights, Events, Trans

The Consumer is at the Center of Omni-Channel: Examples

Smart and Relevant X-

Channel Offers and Promos

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Omni-channel is the next evolution of personalized service.

How consumers will benefit:

Improved account opening on mobile

Better needs alignment and

personalization

Secure authentication and transactions

Better access to expertise for faster

resolution

Better alerts and notifications

Better control (card management)

Personal financial management

mobilized

Ability to bundle services and products

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You have countless considerations.

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Your customers have countless considerations.

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Creating great customer experiences by bridging the digital and physical channels

Take a fresh look at how you service your customer

Make things EASY

Make them flow seamlessly

Focus on customer-centered service

Our industry acknowledges that omni-channel is critical, but

little progress has been made.

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LET’S TALK ABOUT YOUR STRATEGIC IMPERATIVES.

Map the baseline and target with each imperative.

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Good strategies are multi-channel.

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Multi-channel is the norm.

Source: Digital Insight Internal Study, over 300,000 consumers, January 2015

• 75% of Gen X are multi-

channel users

• Consumers of all generations

are using multiple channels

and devices

• Digital and self-service

channels are the most popular

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Industry data shows that multi-channel interaction

means more interaction.

McKinsey & Company, Retail Banking Insights, The Future of U.S. Retail Banking Distribution. February 2014

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Digital Insight data shows the same: More digital

means more interactions.

Source: Digital Insight Internal Study, over 300,000 consumers, January 2015

With more interactions, we also see an increase in deposits and loan balances.

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It’s not only good for the consumer—but it’s also more

profitable for you.

Source: Digital Insight Internal Study, over 300,000 consumers, January 2015

Profitability drivers include:

• Balances

• Account Ownership

• Retention Rates

• Cost to Serve

• Interchange Fee Income

• Engagement Opportunities

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The best strategies are omni-channel.

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Omni-channel is multi-channel—integrated.

• Seamless interaction between channels

• Individual channel strengths optimized to meet consumer needs

• Real-time information and consistency across channels

Omni-channel puts you at the center of every engagement.

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Why is an omni-channel strategy important?

Financial potential

• 10% - 20% income improvement to your bottom line.¹

• 25% increase in customer contacts with a 30% gain in

efficiency.”²

Retention benefits

• If you don’t deliver, you will lose out to non-banking

competitors and lose customers/members.

• 73% would be more excited about a financial service

offering from Apple, Google, Amazon, PayPal or

Square than from their own national bank.³

¹Digital Insight Internal Study, over 300,000 consumers, January 2015 ²Finextra, October 23, 2014. http://www.finextra.com/news/announcement.aspx?pressreleaseid=57308

³ Millennial Disruption Index: http://www.millennialdisruptionindex.com/

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How do you achieve omni-channel results?

It’s like making a soufflé.

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+ + =

Results (Delicious)

+ + =

Results

That’s omni-channel. 28

• Technology

• Device

• Channel

• Choreography

• Ownership

• Sequencing

• Internal

• External

• Performance

• Measurements

You won’t achieve maximum results without the

convergence of solution, process and partnership.

It’s not just a buzzword.

Omni-channel is real, but it takes action. Today we’ll introduce 3 steps to get

you started:

1. Determine where you are today

2. Develop a plan

3. Measure success

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THREE STEPS TO GET STARTED

Step 1: Determine where you are today

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Chart your course to transformation.

Performance

Place

Process

People

Technology

KPIs / NPS

Market Potential

Profit / Efficiency

ROI / Benchmarking

Regulation / Compliance

Performance / Migration

Consistency / Efficiency

Innovation / Culture

Segmentation / Profiling

Education / Communication

Satisfaction / Engagement

Empowerment / Voice

Efficiency / Performance

Migration / Consistency

Usability / Integration

Capacity / Customization

Innovation

Channel Synchronization

Network consistency

Distribution

Optimization

Segmentation

Usability

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Step 2: Develop a plan

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Omni-channel Engagement Model

Financial Review

1 Impact

Activities & Options

3 Impact Sizing

4

Execution Plan

5

Peer Benchmarking

2

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Get a clear picture of your revenue drivers and opportunities.

• Profit trends of the institution today

• Key areas of opportunity derived from financial

analysis

• Costs per channel transaction using FI data or

industry benchmarks

Key question: Do you have organizational alignment?

Financial Review

1 Peer

Benchmarking

2 Impact

Activities & Options

3 Impact Sizing

4

Execution Plan

5

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Know where you stand alongside your peers.

• Comparison to best-in-class institutions

• FI strengths

• FI opportunities

• Case studies & best practices review

Key question: Who do you want to be like? Or if you’re

the leader, how do you hold your position?

Financial Review

1 Peer

Benchmarking

Impact Activities &

Options

3 Impact Sizing

4

Execution Plan

5 2

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Assess your options and prioritize your activities.

• Potential transformation options

• Recommended transformation path

• Support activities

Key question: What’s most important to prioritize first?

Financial Review

1 Peer

Benchmarking

Impact Activities &

Options

Impact Sizing

4

Execution Plan

5 2 3

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Size up the potential impact.

• Potential profit impact

• Overlay to the FI current state

• Get specific with data but look at the big picture

• Next steps prioritization based on likelihood to achieve

Key question: What’s your confidence level in supporting

the funding that you need?

Financial Review

1 Peer

Benchmarking

Impact Activities &

Options

Impact Sizing

3

Execution Plan

5 2 4

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Map out your execution plan.

• Data-driven branch assessment

• Transaction time studies

• Digital channel deep dive (profit study)

• End user engagement plan

Key questions: What’s your roadmap? Do you have the

resources to do this on your own?

Financial Review

1 Peer

Benchmarking

Impact Activities &

Options

Impact Sizing

3

Execution Plan

4 2 5

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Step 3: Measure success

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Convert low value transactions to low cost channels

Anticipate customer needs to drive retention

Enable smooth channel handoffs that delight your customers

Keep the following metrics in mind when evaluating impact.

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Innovate design and experience to enable

acquisition

Connect data to inform, predict and engage

Lead to a stronger financial standing and a

more loyal customer base

Metrics, cont.

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As you leave today, remember the 3 steps.

1. Determine where you are today

2. Develop a plan

3. Measure success

Your customers expect it—and your

profit will reflect it.

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2015 Momentum Series

June 3rd: User Credentials and Your Financial Institution’s Brand – Virtual

Identities at Risk

Registration: http://www.digitalinsight.com/m/momentum2015/rsvp_security_p.html

November 4th: Business Customers: How to Compete and Win

Registration: http://www.digitalinsight.com/m/momentum2015/rsvp_business_p.html

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Coming soon . . .

Thank you!

Visit Digital Insight: www.digitalinsight.com

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