Customer orientation in banking: success factors

Changed general conditions

The banking environment is shaped by various influencing factors and trends. These include regulatory requirements, the competitive situation, but also customer satisfaction or technological developments. Observers even speak of a veritable crisis of purpose in which the banking business model finds itself:

Dissatisfied clients and those willing to switch

Studies in Switzerland and neighbouring countries show a relatively high proportion of dissatisfied bank clients. Among other things, this can be attributed to a gap between client needs and the actual services offered. The per capita earnings of dissatisfied customers are significantly lower than those of particularly satisfied account holders, who purchase more products, stay longer with the institution and recommend it more often.

Strategic need for action

Our observations show that many banking institutions are prioritising automation in order to increase their efficiency. In order to strengthen the future viability of a company, it is necessary to find the right balance between cost optimisation and investments. This includes decisions on:

•  Target customers,
• product and service portfolios,
• distribution channels,
• process organisation

All this contributes to increasing efficiency and generating growth again. Finally, the mobilisation and qualification of employees also plays a central role in the upcoming transformation tasks of banks.

Customers already want to deal with simple issues online. For complex issues, they ask for seamless multi-channel advice. Translate the changing customer behaviour into multichannel-capable end-to-end process and set-up structures that also relieve the customer advisors of administrative tasks.

Design philosophy hpo

1. The first step is to understand the relevant customer segments, their needs, the value proposition and the services derived from it (products, services, inputs).
2. Subsequently, the activities are defined that are absolutely necessary along the customer life cycle in order to create this performance.
3. According to the required competences, these activities are "cascaded" and "segmented" in order to create
4. consistent and measurable end-to-end responsibilities,
5. clearly defined interfaces and
6. process variants appropriate to the business case
7. Finally, the processes are anchored in the organisation.

Tried and tested procedure

• Analysis of current services, roles and responsibilities of front, mid and back office areas of the bank along the customer life cycle
• Analysis of business area strategies and representative business cases Design of a multi-channel and competence-based business process model to increase customer orientation and thus sales effectiveness and efficiency
• Development of a pilot concept for an optimised customer care process to relieve customer advisors of administrative tasks
• Rollout with support through individual change management

Customer benefits

Functioning multi-channel access through expanded self-service offerings, access to available service experts and personal customer advisors: 

• Exploitation of revenue potential through increased customer satisfaction
• Increased cost competitiveness through optimal service delivery

Break down thinking and acting in bank-internal silo structures and replace them with customer-oriented and process-based organisations. Adapt the profiles of client advisors to the changed framework conditions and mobilise employees in line with your strategy.

Design philosophy hpo

1. Corporate culture is the set of shared values, norms and attitudes that shape the decisions, actions and behaviour of organisational members.
2. Manifestations of culture can be changed and thus new values and attitudes can be anchored in the organisation.
3. Individual measures to achieve the desired corporate culture (for example, "high market and customer orientation") can be consolidated into action areas that can be implemented, communicated and controlled.

Field-tested procedure (example)

A major bank integrated two sales organisations with very different cultures into a powerful new unit through strategy-based cultural change. Top management was involved in the process through interviews and about 10% of the employees through cultural workshops. From this, significant fields of action were derived in which a common target culture was established through a targeted change of so-called "material manifestations", which optimally supported the new strategic direction. This included, for example, defined career models or new advisory processes with a clear professional and management model as well as a more focused way of working with a higher client contact rate.

Customer benefits

Improved customer experience through professional advice and support from motivated and qualified bank employees as a prerequisite for successful implementation of the strategy by employees understanding it and initiating and supporting concrete change projects.