Monetizing CX Through Customer Satisfaction for Financial Services

1. Monetizing CX Through Customer Satisfaction for Financial Services Customer ExperienceEmpowering People, Empowering Brands Voice of the Customer Oracle OpenWorld September 25, 2013

2. THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL PRODUCT DIRECTION. IT IS INTENDED FOR INFORMATION PURPOSES ONLY, AND MAY NOT BE INCORPORATED INTO ANY CONTRACT. IT IS NOT A COMMITMENT TO DELIVER ANY MATERIAL, CODE, OR FUNCTIONALITY, AND SHOULD NOT BE RELIED UPON IN MAKING PURCHASING DECISIONS. THE DEVELOPMENT, RELEASE, AND TIMING OF ANY FEATURES OR FUNCTIONALITY DESCRIBED FOR ORACLE'S PRODUCTS REMAINS AT THE SOLE DISCRETION OF ORACLE. The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

3. Welcome and Introductions • Panel • Rocky Clancy, JDPA, Practice Lead, Financial Services • Mark Garrett, JDPA, Research Director, Insurance • Paul Dolbec, Oracle, Industry Director, Insurance • David Wright, Oracle, Industry Director, Financial Services • Moderator • Mark Carberry, Oracle, Global Client Advisor

4. Why does CX bring JD Power and Oracle together? • Insight • Independence • Integrity • CX Solutions • Analytics Infrastructure • Customer Execution Data Customer Impact • Making Voice of the Customer Actionable • Operationalize the value of “world class research” • Tracking CX Requires Metrics – VOC is the metric for CX • If you can’t Measure it you can’t Manage it Your customer knows what drives a positive experience.  JD Power provides customer insight, Oracle enables the actions to deliver it.   Insight. Action. Impact!

5. Research & Insight Process & Execution Client Execution • Measure • Understand • Improve • Recognize • CX Solutions • Customer Intercepts • Analytics Infrastructure • Present “Next Best” Action for Customer • Intercept for Reaction Continuous research & execution process

6. Agenda • CX Matters –What to Do about It: Research Based Insight • Oracle & JD Power – CX Solution Framework The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

7. Problem = Grow the business in the face of a challenged business environment Critical Success Factors: • Customer needs and preferences, in terms of product, pricing, channel, and service levels, at a customer segment level – i.e., what are table stakes and what’s going to give me the winning hand? • What is the financial impact of meeting or not meeting particular segments’level needs and preferences so I know how to prioritize? • With rapid shifts in channel development, preference, and usage, what does my distribution infrastructure need to look like in 5 years and how do I stage the build? • To keep up with the continued changes, how do I create a feedback loop that’s giving me more rapid input from more of my customers at a reasonable cost? The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

8. Points of View Executives estimate that their potential revenue loss for not offering a positive, consistent, and brand-relevant customer experience is 20% of their annual revenue, or $400M for a $2B firm 20% of executives believe that delivering a great customer experience is critical to their business advantage and results of executives state that improving the customer experience is one of their organization’s top three priorities in the next two years 93% 97% Survey Site Full Report Benchmark Tool The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

9. The Business Benefit of CX Financial Return by Insurer Satisfaction Tier 14.4% 95% 84% Acquisition Cost2 20% Actual Retention1 17.3% 88% 38% 17% Will not Switch for Any Price High Satisfaction 24% Average Satisfaction Among the Rest 1: Source: 100,000+ households screened by J.D. Power and Associates 2012 Insurance Screener Study2: Standard and Poor’s; Based on 2011 statutory findings—Insurance Express Exhibit (Part III) od NAIC’s Annual Statement The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

10. At the respondent level, high satisfaction can lead to deeper product penetration Source: J.D. Power 2013 Small Business Commercial Insurance Satisfaction Study The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

11. In another proprietary study, financial advisor performance was stronger when satisfaction was higher and/or improving Impact of Satisfaction on Growth of AUM and Gross Commissions Growth (2008 – 2011) The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

12. The association between respondent level satisfaction and share of wallet is clear Share of Wallet and Retail Banking Satisfaction Among 15 Largest Banks 2010-2012 Source: J.D. Power 2010-2012 Retail Banking Satisfaction Study – 15 largest banks The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

13. …And have direct impact on servicing costs 2.5 Problems Per Customer 671,774 Total ContactsPer year 18% Problem Incidence 81% Contact 1.9 Contacts Per Problem In-person Online chat/email 1,000,000 Customers Website Call center A 5 point reduction in problem incidence equates to 16 full timeemployees for every 1,000,000 customers Assumptions: 97% use a non-automated channel to interact, an average CSR can handle 6.5 contacts per hour, an average work year of 1,750 hours, and average cost per full time employee is $75,000 The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

14. Good CX management recognizes that “satisfaction” is not a goal unto itself What types of client behavior are likely to be positively impacted if a you have high client satisfaction? Which levers of financial performance are those behaviors likely to move?

15. Know what you stand for: Define your value proposition For whom are you doing what? Target customers Tickets to admission Winning hand Why should customers do business with you? What do you have that no one else does? What problems can you solve in a sustainably differentiating way?

16. CROSS CHANNEL ENGAGEMENT IS THE NEW NORMAL Research Select Use Buy Recommend Receive Order Online Complete Order Online Comparison Site Chat Call for Info about Packaged Services The issue is how to manage the experience across so many touch points Visit Branch Visit Branch Change Order Kiosk Select Product Browse Web Site Product Info WebSearch Email Order Confirm w/Rec Read Reviews Ask for Help on Community Chat Room Tweet AboutPurchase Experience Ask Facebook Friends

17. Use the Lifecycle to Guide CX Strategy Aligning the ‘brand promise’ with the ‘brand execution’Differentiate Orchestrated Experience > Profitability, Brand Equity, Enterprise Agility Own Support & Service Buy Market & Sell

18. Where Brand Promise Meets Brand Execution >> MonetizationComplete Customer Experience Engagement • #1: Value Equation • Improve Shareholder value, Revenue pressure, Scarce resources, Changing customer, competitive and customer dynamics • #2: Industry Benchmarking • Compare to my Competition in CSAT • #11: Operational data access • Align CSAT to my desired Brand strategy; Which customers and prospects do I invest in… • #10: Social Networking • Align social interactions to my Brand strategy • #3: Contextual Journeys • Know the financial impact of my CX initiatives • #4: Continuous Monitoring • Ongoing CSAT Sampling & Analysis • #9: Enduring Loyalty • Understand my lifetime value/CSAT performance; Align CSAT and Loyalty, Rewards and CX programs • #8: Efficient Customer Support • Leverage KPI’s which make a difference in my business by LoB, segment, etc. • #5: Interaction Precision • Structure a continuous improvement process, and ongoing maintenance • #6: Fulfillment Updates • EXECUTE (People, Process, Technology) • #7: Mobility / Location Services • Leverage channel expansion and ubiquitous access The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

19. Research & Insight Process & Execution Process & Tools for CX Delivery What is important to the customer? Client Execution • Measure • Understand • Improve • Recognize • CX Solutions • Customer Intercepts • Analytics Infrastructure Customer Profile & Propensities • Present “Next Best” Action for Customer Where do I rank competitively? (Benchmarks) • Intercept for Reaction Operational Information Capture How do I internally incent the “right actions” What do I need to do to get better at what is important ? Continuous research & execution process

20. FRAMEWORK: Making Voice of the Customer Actionable

21. Representative Solution Architecture Marketing Customer Profile Interactions Propensities Customer Monitoring Triggers/Events Channel Preferences ECIF Profile Real Time Lead /Treatment Repository Offers & Response History “Feedback Loop” Web/Social Data Modeling Treatment Analysis Treatment Development Interaction Detection Treatment Presentation Execution Interaction Management Analytical Framework Interaction Manager Data Warehouse Treatment Plan • Channel Determination • Interaction Type • Treatment Strategy • Lead Arbitration Service Treatment Execution Retention Cross-Sell Finance & Risk Treatment Determination Rules (Determination & Real Time Prediction) Loyalty Cross Channel Execution Channel Format Content Repository

22. Additional KPI & Profile Attributes VOC Propensity Segmentation & Benchmarking Certification & Brand Continuous Survey Performance Implementation The J.D. Power service marks and content are owned by J.D. Power & Associates, Inc., and used by permission

23. What is Your Solution Objective?

24. Sample Initiatives: Insight through Digital & Analytical Rigor

25. Starting Points Customer Journey Mapping In-process “survey” instruments (bread crumbs) Recommended Impact Points Value Quantification - Financial Model J.D. Power Studies and Metrics CX Data & Processes Client Operational Systems • VOC/CX ASSESSMENT • Continuous Incremental Feedback • Augmented CSAT Analytics • INSIGHT/ACTION/IMPACT

26. Audience Questions & Additional Panel Discussion

27. Call to Action • How does a potential or existing client engage with J.D. Power/Oracle? • What is the next step for an interested company? • Contacts: • J.D. Power: Mark.Garrett@jdpa.com • Oracle: Dave.a.Wright@oracle.com