A New Normal: Implications for Bank Customer Experience Measurement Post Pandemic – Stabilizing Relationships

Part 3: Onboarding Research: Research Techniques to Track Effectiveness of Stabilizing New Customer Relationships

As we explored in an earlier post, Three Types of Customer Experiences CX Managers Must Understand, there are three types of customer interactions: Planned, Stabilizing, and Critical.

Stabilizing interactions are service encounters which promote customer retention, particularly in the early stages of the relationship.  It is incumbent on an integrated digital-first banking model to stabilize new customers, without relying on the local branch to build the relationship.  It is important, therefore, to get the onboarding process right in a systematic way.

New customers are at the highest risk of defection, as they have had less opportunity to confirm the provider meets their expectations.  Turnover by new customers is particularly damaging to profits because many defections occur prior to recouping acquisition costs, resulting in a net loss on the customer relationship.  As a result, customer experience managers should stabilize the customer relationship early to ensure a return on acquisition costs. 

Systematic education drives customer expectations beyond simply informing customers about additional products and services; it also informs new customers how to use services more effectively and efficiently – this is going to be critical in a digital first integrated strategy.  Customers need to know how to navigate these channels effectively.  

Onboarding Research

The first step in designing a research plan for the onboarding process is to define the process itself.  Ask yourself, what type of stabilizing customer experiences do we expect at both the initial account opening and at discrete time periods thereafter (be it 30 days, 90 days, 1-year)?  Understanding the expectations of the onboarding process will define your research objectives, allowing an informed judgment of what to measure and how to measure it.

Kinesis recommends measuring the onboarding process by auditing the performance of the process and its influence on the customer relationship from the bank and customer perspective.

Bank Perspective: Performance Audits

Performance audits are a type of mystery shop, and an effective tool to audit the performance of the onboarding process.

First, mystery shop the initial account opening (across a channels: digital, contact center and branch) to evaluate its efficacy and effectiveness.  Be sure to link these observations to a dependent variable, such as purchase intent, to determine which service attributes drive purchase intent.  This will inform decisions with respect to training and incentives to reinforce the sales activities which drive purchase intent.

Beyond auditing the initial account opening experience, a performance audit of the onboarding process should test the presence and timing of specific onboarding events expected at discrete time periods.  As an example, you may expect the following onboarding process after a new account is opened:

Period Event
At Opening Internet Banking Presentation
Mobile Banking Presentation
Contact Center Presentation
ATM Presentation
Disclosures
1-10 Days Welcome Letter
Checks
Debit Card
Internet Banking Password
Overdraft Protection Brochure
Mobile Banking E-Mail
30-45 Days First Statement
Switch Kit
Credit Card Offer
Auto Loan Brochure
Mortgage/Home Equity Loan Brochure

In this example, the bank’s customer experience managers have designed a process to increase awareness of digital channels, introduce the integrated layered service concept, and introduce additional services offered.  An integrated research plan would recruit mystery shoppers for a long-term evaluation of the presence, timing, and effectiveness of each event in the onboarding process.

Customer Perspective

In parallel to auditing the presence and timing of onboarding events, research should be conducted to evaluate the effectiveness of the process in stabilizing the customer relationship by surveying new customers at distinct intervals after customer acquisition.  We recommend testing the effectiveness of the onboarding process by benchmarking three loyalty attitudes:

  • Would Recommend: The likelihood of the customer recommending the brand to a friend, relative or colleague.
  • Customer Advocacy: The extent to which the customer agrees with the statement, “You care about me, not just the bottom line?”
  • Primary Provider: Does the customer consider you their primary provider for financial services?

These three measures, tracked together throughout the onboarding process, will give managers a measure of the effectiveness of stabilizing the relationship.

Again, new customers are at an elevated risk of defection.  Therefore, it is important to stabilize the customer relationship early on to ensure ROI on acquisition costs.  A well-designed research process will give managers an important audit of both the presence and timing of onboarding events, as well as track customer engagement and loyalty early in their tenure.

In the next post, we will explore the third type of experience – experiences with a significant amount of influence on the customer relationship – critical experiences.

 

Click Here For More Information About Kinesis' Bank CX Research Services

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About Eric Larse

Eric Larse is co-founder of Seattle-based Kinesis CEM, LLC, which helps clients plan and execute their customer experience strategies through the intelligent use of customer satisfaction surveys and mystery shopping, linked with training and incentive programs. Visit Kinesis at: www.kinesis-cem.com

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