Moderator: James Alexander – KPMG
Expert: Caroline Burkart – Scorpio Partnership
Everyone in the room had some sort of customer feedback programme, but lots of different methods
- Focus groups
- Quant and qual surveys online/phone
- Client facing staff interviews
- Conversion rates, drop out rates and A/B testing of alternate journeys
- Complaint trends and root cause analysis – real problem is often not what the customer is focussed on in their complaint
NPS is a bit crude, but it keeps you honest over time
- If you deliver something exceptional, initially get big NPS boost but then becomes expected and NPS drops, even if still doing something great.
- Important to understand the key drivers of NPS, and to track the changing score and drivers over time as relationship with customers matures
Customer insight programmes need to be ongoing and part of a culture of continuous improvement, not just a one off or annual exercise
How do you measure trust?
- Should be a combination of questions and measure to provide an aggregate score, rather than a single simple question
- Important to capture KPIs with right granularity and have scores for the firm, for teams and for individual and then benchmark and use high performers as role models both internally and for hiring
- Important to do quant research with big enough sample to get statistically robust findings; qualitative is fine but beware danger of skewed samples influencing, which is why quant so important.
Research widely, not just with your current customers
- Why haven’t people renewed?
- Why haven’t they completed their basket?
- Why have they only bought one product/proposition?
- Why are they using a competitor?
- Beware smart people in a business thinking they know better than the customer (historically, particularly likely in FS)
Understanding client segmentation and analysis
- Data scientists using big data, aggregation and analytics to target segments
- Loyalty card/store cards using individual data to specifically target individuals
- NB the data protection requirements and permissions needed for this
- Do you segment by socio-economic group, wealth, past spending, hobbies/interest groups or psychometric persona/profiles?
Generally, retail miles ahead of FS in much of this, as greater focus driven by narrow operating margins; however, given costs of customer acquisition and the value of loyal customers, retailers are starting to think in terms of lifetime customer value and could learn a lot of from FS and particularly insurance on this.