Ndfm 2009 Present A Tie Isabelleconner Public

What matters most to Customers

Isabelle M. Conner Global Head of Marketing, ING Rotterdam, 3 December 2009

What’s the Ultimate Question in Financial services today?

How to regain trust??? 1

Before the crisis, people were already negative about the financial services industry “Getting anything done with financial services is like overcoming hurdles”

“You act like my money is your money!!!”

No

an t tr

e gs nt m n a i g th t in ing s e rro s t e a u r a f lic nt, on nte p a i C t m w Dis Co Lo

nt e r a sp

Source: “ING Value Proposition” research, metrixLAB, April 2008

2

rd Ha

to

st u r t

ly rd a In w

us c o f

ed

… and then the crisis hit

3

The financial crisis has made consumers more concerned, angry and helpless about their financial future Q: How do you feel about the financial crisis? (in %)

Concerned

73

Angry

55

No control over my future

46

Cheated

42

Calm

32

0

10

20

30

40

Source: “ING Crisis Research” Dec 2008, 32 countries

Banking - Investments - Life Insurance - Retirement Services

4

50

60

70

80

90

To make things worse, consumers are not getting professional help Q: Who do you get your financial advice from? (in %)

No one

47

Friend/family/colleague

69% have no access to professional advice!

22

Someone at bank

16

IFA

9

Other

3

0

10

20

30

Source: “ING Crisis Research” Dec 2008, 32 countries

Banking - Investments - Life Insurance - Retirement Services

5

40

50

60

70

We survey customers throughout the year

External Research How can a financial services company like ING enhance its clients’ experience?

Feb ‘08

June ‘08

Jan ‘09

What do consumers want?

Is ING delivering?

Is ‘Easier’ still relevant?

4,200+ consumers, 28 focus groups in 6 countries

Crisis Research:

16,950 consumers in 32 countries

6,550 consumers in 32 countries

July ‘09

Oct ‘09

What matters most to customers?

Is ING delivering?

20 focus groups in 5 countries

6

16,800 consumers in 32 countries

Consumers’ concerns can be summarized into 6 Key Themes

Savings Investments

Housing Retirement Insurance The Economy Banking - Investments - Life Insurance - Retirement Services

7

The burning questions of customers (1)

Savings:

Investments:

Housing:

How do I build up my savings?

How can I make my investments go further?

What is the best way to finance my home?

- How much should I be saving? - What should I do with my savings to keep them safe and get the best return? -How can I best keep track of my finances?

- I’d like to invest, but where do I start? - How much should I invest and how much should I save? - What are the basic investment products available and how do I know which ones I need? - What is the best investment strategy?

Banking - Investments - Life Insurance - Retirement Services

8

- How does a mortgage work? - Can I afford to buy a property and when is the best time to buy? - Rent or buy: what’s the right choice for me? - What are the different types of mortgages available and how can I choose the best one?

The burning questions of customers (2)

Retirement:

Life Insurance:

What is the best strategy for retirement?

Why do I need life insurance when should I get it?

The Economy: and

How does the economy my personal finances?

affect

- How much do I need to retire comfortably?

- What is life insurance? How does it work?

- When are we coming out of the crisis?

- When should I start saving for my retirement?

- Why do I need life insurance and when should I get it?

- What does the recovery look like?

- What are the basic retirement products available and how can I choose the best one for me?

- How much coverage do I need?

- How can I manage my money better?

- What types of life insurance are available and how can I choose the best one for me?

- How can I protect myself from unemployment?

- How can I keep track of and protect my retirement?

Banking - Investments - Life Insurance - Retirement Services

9

Video

10

ING is going ‘Back to Basics’

Banking - Investments - Life Insurance - Retirement Services

11

Going ‘Back to Basics’ means satisfying consumers’ basic needs

Elements of service

Elements of trust

Easy to contact

Clear overview

“I can contact them any way I like” (internet, phone, in person)

C o v le a er r vi e w

to sy act a E nt co

“They give me a clear overview of my current financial situation, which makes me feel I have greater control”

Easier

Fast and efficient

& Fa st nt e i Effic

“They offer solutions that help me manage my finances in a fast and efficient way”

Tran s

pare nt

Professional Assistance

Transparent “They offer products and services that are clear and transparent” (no hidden fees, no small print)

Professional Advice

Source: “ING Value Proposition” research, metrixLAB, 2008

“Whenever I need help with complex issues, they offer me professional assistance and advice” (knowledge, objective advice)

Banking - Investments - Life Insurance - Retirement Services

12

Delivering an ‘easier’ customer experience is more important than ever

Trust in the industry has evaporated, replaced by concern and anger

Friends and family are the most trusted source of information.

Customers are sceptical. They no longer believe advertising messages.

The 5 ‘Easier’ attributes are even more important. Clients want to experience them from their provider.

to t sy E a n tac o C

+ F ast nt ie Effi c

Ov Clea erv r ie w

EASIER

Professional Advice

Building a Strong Customer Feedback Culture Banking - Investments - Life Insurance - Retirement Services

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T ran spar

ent

Traditionally, NPS has been used as a methodology for market research “How likely are you to recommend ING to a friend, colleague or family member ?”

Detractors 22%

0

1

Not at all likely

2

3

Passives 33%

4

5

NPS = 45%-22%=23%

14

6

7

Promoters 45%

8

9

10

Extremely likely

Historically, we’ve focused mostly clients’ overall satisfaction

OVERALL RELATIONSHIP

Consideration

• Lead Generation • Provide general information

Purchase

• ‘Selling’ of Policy

Use

Inquiries

• Inquiry • Complaints • Policy Change • Policy Anniversary • In-payments • Servicing Visit • Fund Management

Re-use

• Claims Handling

TRANSACTIONAL NPS 15

• Surrenders payments • Maturity payments

We are gathering feedback about all aspects of banking…

Our staff (People)

Branch experience

Professionalism

Proximity

Proactive

Opening hours

Knowledge

Waiting time

Products

Customer

Phone accessibility

Age Gender Wealth Geography

Processes

Checking & cards

Card issuance

Lending & Mortgages

Online transfers

Insurance

Self Bank

Investments & Savings

Deposit account activation

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…and all aspects of insurance

Staff/Agent Services Agent experience Call-centre experience

Customer

Products

Age Gender Region

Processes

Investment Linked

Agent anniversary visit

Old Unit Linked

Purchase

Endowment

Policy Change request Inquiry

23% response rate shows that Customers are eager to share their opinions Banking

Insurance

18

The feedback is just a means, the most important is what ING businesses do with it

Customer

Purchase

Banking PostPurchase

Purchase

Customer

Servicing

Insurance

Claims

Home Baking •NPS score & why? •Ease of navigation •Ease of setting up •Time needed

Customer Feedback

Customer

(Automated Survey Invite)

(Customer Follow-Up: 48 Hours)

Self Bank •NPS score & why? •Ease of navigation •Quality of assistance •Support

Negative Email Alert Satmetrix

Agent: •NPS score & why? •Communication clarity •Knowledge & attitude •Financial needs analysis Call centre: •NPS score & why? •Communication clarity •Turnaround time •Delivered on promises

Primary Owner

Results

Functional Teams

(Individual/Team Results)

Mail: •NPS score & why? •Clear instructions •Quality of assistance •Agent support

Management

19

Direct / Indirect Owners

‘Closing the loop’: Follow up with demonstrates ING’s responsiveness and is opportunity to get further insights

Process layout

Activity in each step 3

1

Email survey invitation

2

Customer fills online survey

System

Negative feedback Alert

4 Closed loop

1

Based on specific interaction with the bank and every full year, customers receive email inviting them to complete an online survey

2

Customer fills out the survey online

3

Should a customer score us extremely low or high notification would be sent to closed loop personal to investigate 1

4

Close loop personal contacts the customer to demonstrate responsiveness collect more details and try to assist

5

Management and direct owners could monitor customer feedback to track changes and identify burning issues

5

Management

Direct / Indirect Owners

For detractors

20

Analysis: Customer feedback pinpoints operational improvements as well as strategy implementation

Process layout

1

Email survey invitation

2

Customer fills online survey

3

Activity in each step 1

Based on specific interaction with the bank and every full year, customers receive email inviting them to complete an online survey

2

Customer fills out the survey online

3

The system creates standard reports as well as tailor made charts

4

Management will be able to adapt the implementation of strategy, by a better understanding of

System

4

Management

5

Direct / Indirect Owners

-Customers -Product performance -Drivers of satisfaction

Quick wins & Strategic changes

21

5

Direct Owners of channels and products can find quick wins based on customers’ feedback

Customer feedback will not only drive operational improvements but also strategic improvements

Strategic focus on drivers of loyalty

Strategic Improvements

Operational improvements

‘Quick fixes’

Operational Improvements (quick wins)

Preparation

Launch

Year 1

22

Year 2

Year 3

In order to convert all customers into promoters, we must excel in products and services as well as address what matters most to customers




Promoters 0

ING S&BC\2009\485\91

1

2

3

4

5

6

23

7

8

9

10

As Customers share their experiences with friends and family, a positive NPS score is crucial!




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What are the priorities for ING? “The most important priority is always to serve the customer. In the end it is the willingness of customers to do business with us that makes us a good company. So that’s the number one priority and especially in times like this, when our customers are suffering, we can make a difference to them.”

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