Innovation Edge. Customer Experience (English)

NOVEMBER 2013
Designing customer experiences for value
Customer Experience
Customers at the Front & Center of Business Customer Experience & Banking Hello Omnichannel! Omnichannels for FSs
also in this issue
Trending issues Technology trends
Corporate social responsibility at the sales coalface no more only 'what's in it for me'
Customer experience management (CX) will replace CRMs
Customers control the buying process
Salespeople become financial managers
The rise of smartphones in sales
Marketing (as we know it) is dead
Breaking the chain of ignorance, upping the pace of transformation
Empathy, the new sales edge
The university of selling
Instant access to solutions
Sales leadership in uncertain times; stop managing and start leading
Delivering real value beyond product and price
Customers at the Front & Center of Business

Changes in technology are forcing change onto business models. We are moving away from product-centric models and moving towards customercentric models. Leading companies are discovering ways to harness this shift by placing customers at the front and center of business.
Ready for customer-centricity

Customers are living increasingly digital lives, with access to technology and information that enable them to make better and more-efficient decisions across their day-to-day interactions with companies and other individuals. Understanding the underpinnings of this digital life, the ecosystem that is driving customer adoption and how this integrates into existing face-to-face interactions will be key to banks and financial services companies flourishing through the next five years. Nexus of Forces: the convergence of major technology trends; setting the table for the post-product era: Welcome to customer-centricity.
Source: Gartner | The Nexus of Forces: Social, Mobile, Cloud, and Information, June 2012 Gartner | Agenda Overview for Banking and Investment Services, January 2013 image: i95dev | Applying Gartners Nexus of Forces to Retail, March 2013
Behaviour
Information Delivery Social Access
Cloud Context Mobile
Customers are now in control

Customers now hold the power in their relationships with banks. They are more connected, vocal, and on the lookout for stronger relationships than ever before.
They want a partner in their daily lives, not just a product or service
Source: EFMA/Peppers&Rogers Group Customer Experience in Retail Banking, 2010
People are the new channel

In a digital and social age, pipes are less important. People are the channel. You dont own or rent them. You cant control them. You can only serve and support them. This new world is disorienting because pipes and people work very differently as channels. Pipes flow out; people flow in. Content is pushed out through pipes, but pulled in through people. This reversal is shifting the balance of power.
You can only serve and support them!
Flow in! You cant control them!
Flow out!
Content is pulled in through Content is pushed out through!
Source: Harvard Business Review | People Are the New Channel, April 2013
CX (Customer Experience) is increasingly a top of mind issue

Competitive differentiators of the pastmanufacturing strength, distribution power, and information masteryhave each been commoditized and are now easily accessible to every company (and, lets face it, any enterprising individual with a smartphone). This has led to mass digital disruption and dissolution of traditional industry boundaries. The field of customer experience has risen to prominence over the past several years because weve entered a new era: the age of the customer. As we approach the end of 2012, the business discipline of customer experience, or CX, has gone mainstream. Its acknowledged as a key competitive differentiator, even by those who prefer spreadsheets to sticky notes.
Source: Forrester | Outside In: The Power of Putting Customers at the Center of Your Business, 2013
Other industries are focusing on customer experience

Over the past seven years, Forrester has observed an increase in the number of companies that have a single executive leading customer experiences efforts for a business unit or entire company. Whether firms call them a chief customer officer (CCO) or give them some other label, Forrester sees an increasing number of executives accountable for customer experience efforts across a business unit or an enterprise.
Software Professional services Financial services Utilities Healthcare Telecommunications services Business services Retail Automotive Consumer products manufacturing Food manufacturer Transportation services Art. entertainment and recreation Beverage manufacturer Industrial manufacturing Commercial printing Education Media Restaurant, bars, and food services Wholesale
1% 1% 1% 1% 1% 1% 1% 2% 1% 2% 1% 3% 3% 5% 3% 2% 3% 2% 1% 2% 2% 2% 4% 5% 4% 5% 5% 6% 8% 9% 10 % 17 % 16 % 15 % 24 % 15 %
7%
8%
2013 2012
The rise of the Chief Customer Officer

CCOs will play an increasingly critical role for firmsnot just in helping them differentiate based on great experiences, but also in adopting new business architectures and operating models made possible by new capabilities like digitally connected products and services, mobile computing,social networks, and dynamic partner networks.
Source: Forrester Research | The Rise of the Chief Customer Officer, January 2011
Successful CCOs will move their company
from a reactive find-and-fix mentality to one that aligns employees, partners, processes, and technologies around customer goals and uses emerging capabilities to deliver new value.
Customer Experience & Banking

In a crowded banking market, just having good branch locations with high-level service and competitive rates are not going to cut it. Banks must find ways to remain relevant in the future Financial Services industry by embracing CX as a key element of a sustainable, competitive business model.
If I need banking services nearby, how many providers are there?

Theres a lot!!! For example, in the US, there are more than 15,000 Financial Institutions; about 7,800 banks and 7600 credit unions. In a typical metropolitan setting, a depositor will have more than 50 banking providers competing to capture the deposit. Needless to say, just keeping the money safe isnt going to be enough to win the business. At the end of the day, whoever consistently offers the best experience for the customer will win.
Competition is intense, with 28 Banks competing in a typical geographic area
N MSA ( Metropolitan Statistical Area ) % Deposits
Just 5% deposits are held by banks competing in regions with less than 15 Fls.
89
28 Banks competing in a typical MSA
66% of all deposits are held by banks competing in regions with more than 15 Fls.
41%
82 82
18%
38
Source: Optirate | Retail Banking is more competitive than most believe, 2011
Financial Institutions
40
7%
24 6 13
6% 1% 4%
< 10 11-15
9%
13%
16-20 21-30 31-50
51-75 76-100 > 101
And if we add direct banks into the mix ...

Not only do consumers have lots of nearby banks offering financial services, they also have access to direct banks (aka branchless) ... and they are capturing the customers attention and their business.
Source: TNS | Direct Banks and the Future of Retail Banking, 2012
Share of New and Lost Primary Bank Relationships

BOFA, CHASE, WELLS
Share of New Relationships
24 REGIONAL BANKS
37% 30%
Share of Lost Relationships
35% 34% 29% 28%
30% 28%
COMM. BKS & CUS

41% 32%
4 DIRECT BANKS
8.0%
Net share loss
31% 28%
3.5%
Net share gain
07%
2000 2005 2006 2007 2008 2009 2010 2011 2012 Proj 2000 2005

2006 2007 2008 2009 2010 2011
1.0%
2012 Proj
Customer Experience & ROI

Despite an increased focus on customer experience initiatives by banks of all sizes, new research has found that not all of these efforts may be resulting in revenue growth ... Part of the problem is a lack of association by banks between customer experience initiatives and a tangible ROI. The important question is which activities lead to revenue growth. By evaluating activities being implemented at growth and non-growth banks, the research found that there were four fundamental customer experience practices that could be directly tied to revenue growth at financial institutions. The practices that were found to be most correlated with financial performance:
Establishing a goal for customer experience improvement
Utilizing a decisionmaking process that emphasizes the customer
Taking action on individual customer feedback
Sharing a common definition of what a positive customer experience is
The two most important differentiators are CX PRACTICES OF GROWTH that growth banks have invested in technol- VS. NON-GROWTH BANKS ogy that helps to close the loop between cus- There are four foundational customer experitomers who report a problem, indicate a need ence practices that differentiate Growth Banks or recognize an employee who performs well. from their Non-Growth competitors. Growth banks and credit unions also have a set of criteria they follow when prioritizing, funding Source: Bank Marketing Strategy | All Bank Customer Experience Initiatives are Not Created Equal, June 2013 and resourcing customer-aligned initiatives.
Non-Growth Banks
Growth Banks
71%
points
42
60%
points
39
29%
21%
TAKE INDIVIDUAL ACTION CUSTOMER FEEDBACK
DISCIPLINED DECISION MAKING AROUND THE CUSTOMER
69% 63%
points points
27
34
42%
29%
COMMON UNDERSTANDING OF CX
ESTABLISHED GOALS FOR IMPROVEMENT
The fastest growing financial services institutions are retailers, grocery store chains and automotive companies. They have adopted the omnichannel (approach) more aggressively than the banking industry
Ralph Silva
Competition in the financial services is heating up

Its getting rather crowded in the FS space. Banks are no longer just competing with each other, they are also at war with a growing number of retailers and innovative start-ups that employ social media tactics to offer soughtafter services. In the retail world, a customer can order an item online and pick it up in the store. They can go into a store and ask for a particular item to be delivered to their home (or in the store). This type of service is no longer just multichannel or cross-channel; it is omnichannel a seamless and integrated experience for consumers without restrictions. It is exactly this type of offering that is lacking among banks. Indeed, there is little choice for banks but to change their strategy.
Source: The Banker | Social Banking in the Omnichannel Era
The threat of disintermediation is real

From a financial services institutions perspective, disintermediation is a major risk in thecurrent wave of transformation. Disintermediation happens when the current industryoffering (and revenue model) becomes obsolete by failing to adapt to new technology enabled value propositions.
Source: Cisco | Winning Strategies for Financial Services Players in the Age of Mobile and Social Payments, February 2013
FinTech start-ups Telcos Tech Companies Retails
For banks, CX is a top priority

Improving the customer experience was the foundation of almost all of the responses I received around 2014 strategic priorities. Whether we are talking about branch reconfiguration, mobile banking applications, back office operations, etc. banking industry leaders believe an improved customer experience is the key to growth. Jim Marous
This threat is coming from four major players
Source: Bank Marketing Strategy | Banking Leaders Discuss 2013 Strategic Planning Activities, July 2013 See also: Gartner |Gartner Says Customer Experience Enters Top 10 CIO Priorities for 2012, April 2012
Hello Omnichannel !
Which way should I go? In an omnichannel world, it doesnt really matter; the customer will have a consistent, frictionless journey regardless of the road she chooses to take, accompanied by his preferred device and, increasingly, devices.
A little about todays consumers

Today, consumers take a multi-device/multichannel path journey to purchase and navigate seamlessly between various touchpoints, driven by the given context.
CONTEXT DRIVES DEVICE CHOICE Today consumers own multiple devices and move seamlessly between them throughout the day.
The device we choose to use at a particular time is often driven by our CONTEXT
The amount of TIME we have or need
The GOAL we want to accomolish
LOCATION
Our
Our ATTITUDE and state of mind
SEQUENTIAL USAGE Moving from one device to another at different times to accomplish a task
TOP ACTIVITIES PERFORMED WHEN SEQUENTIALLY SCREENING BETWEEN DEVICES
81% 72% 67% 63% 46%
43%
43%
Browsing the internet
Social Networking
Shopping Online
Searching for Info
Managing Finances
Planning a Trip
Watching an Online Video
SMARTPHONES
TABLETS
PC / LAPTOP
Smartphones are the most common starting place for online activities
Inicio on a Started en un smartphone PC
63% 30
66 30%
65 25%
65 29%
59 34%
47% 38
56 34%
Browsing Navegar por internet the internet
Social en Interaccin redes sociales Networking
Shopping Compras online Online
Searching Buscar informacin for Info
Managing Gestionar las finanzas Finances
Planning Planificar un viaje a Trip
Watching an Ver un vdeo online Online Video
Continued Contina on a PC en un smartphone
58 24% 5% 6
58 27% 8 4%
61% 19 4 5%
60 % 23% 4% 6
56% 29 3% 6
45 % 31% 3 7%
48 24% 8% 10 %
Contina Continued en una on a tablet tableta
Source: Google | The New Multi-screen World, August 2012
SMARTPHONES
TABLETS
PC / LAPTOP
Tablets are most often a starting point for shopping and trip planning
Started on a tablet
7%
4%
11%
7%
7%
15%
11%
Social Networking
Shopping Online
Searching for Info
Managing Finances
Planning a Trip
Continued on a smartphone
1% 6%
2% 3%
0% 10%
1% 6%
1% 6%
1% 14%
2% 9%
Continued on a PC
SMARTPHONES
TABLETS
PC / LAPTOP
PCs are most often a starting point for more complex activities
Started on a PC
30%
30%
25%
29%
34%
38%
34%
Social Networking
Shopping Online
Searching for Info
Managing Finances
Planning a Trip
Continued on a smartphone
24% 6%
27% 4%
19% 5%
23% 6%
29% 6%
31% 7%
24% 10%
Continued on a tablet
A new path to purchase

The new path to purchase is called customer decision journey. Marketing has always sought those moments, or touch points, when consumers are open to influence. For years, touch points have been understood through the metaphor of a funnel. But today, the funnel concept fails to capture all the touch points and key buying factors resulting from the explosion of product choices and digital channels, coupled with the emergence of an increasingly discerning, well-informed consumer. A more sophisticated approach is required to help marketers navigate this environment, which is less linear and more complicated than the funnel suggests. We call this approach the consumer decision journey. When marketers understand this journey and direct their spending and messaging to the moments of maximum influence, they stand a much greater chance of reaching consumers in the right place at the right time with the right message.
NOW
THEN
Source: McKinsey & Co | Winning the customer decision journey, December 2011
NOW: The consumer decision journey
THEN
Evaluate Commit Consider

Interest trigger Advocate Decision trigger
Buy
Experience
THEN: The purchase funnel Awareness Familiarity Consideration Purchase Loyalty
Customer journey as a differentiator

Consumers connect with brands throughout the customer life cycle: they discover, explore, buy, and engage using a multitude of touchpoints. But some sources are more effective than others at driving consumers to the buy phase and have a stronger influence on the price they ultimately pay for their purchase. Marketers need to understand the iterative and circular consumer decision journey so they reach consumers in the place at the right time with the right message. Getting the basics right starts with the customer decision journey and it can mean millions of euros in growth or savings. Marketers can find millions of euros by being much more systematic and disciplined about extracting value from every stage of the customer decision journey.
Sources: Forrester Research | Assess the Impact of Touchpoints Along the Consumer Path-to-Purchase, April 2013 McKinsey & Company |Major Bank, Major Digital Transformation, December 2012
Moving from point of sale to point of decision: the omnichannel

A differentiating strategy in the omnichannel era is moving from the point of sale to point of decision
Omnichannel, an attempt at a definition

In its most simple sense, omni-channel can be defined as doing multi-channel properly. Omni-channel starts with understanding the needs and behaviors of your customers, then designing experiences that fit your brand into their natural habits and day to day lives. Finally, the right technologies are chosen and optimized to deliver the experiences in an efficient, enjoyable and consistent manner to the consumer.
Source: webcredible | Omni-channel Customer Experience, November 2012
Omnichannels for FSs

For established financial services companies, the challenge of omnichannel lies in finding the right mix of branch banking, mobile, social, and video technologies to offer seamless banking experiences to customers in contextually meaningful way.
The era of omnichannel banking is here

Omnichannel banking is different from the current multichannel approach in which banks encourage customers to use the least expensive channel, while delivering minimal crosschannel consistency and an inconsistent user experience. Omnichannel banking provides a consistent experience across channels to provide customers with seamless access to financial products and serviceswhere and when they are needed. In the world of omnichannel banking, customers are in control of the channels they wish to use. Omnichannel banking is not a hypothetical concept; instead, it is essential to addressing customers desire to control the time, place, channel, and information required to perform their banking activities. In developed countries, a rich mix of physical (branch) and virtual (web, mobile, and social) banking channels has prepared customers for the advent of a seamless omnichannel experience.
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, June 2012
Branch
Social
Mastering digital channels

Digital tools are a wonderful opportunity for banks to address customers needs throughout the lifecycle.
source: Bain & Company | Customer Loyalty in Retail Banking, 2012
Mastering digital channels: from a single moment of truth approach to a global client lifecycle approach
Optimised channels all over the customer lifecycle Increasing client knowledge
Cross-selling Increase stickiness
Loyalty Develop client intimacy
Retention Be the main bank
ATM
Branch
Mobile
Social media
Tablet
Website (internet banking)
Source: Kurt Salmon study
High
Low
Elements of the omnichannel for banks
Large branch in high-traffic crossroad surrounded by small, largely automated branches
Hub and spoke
In grocery store or metro station, with staff member for quick service
Kiosk
Video teller machine

Video connection to extended-hours tellers for transactions or problem solving
For remote deposit capture, alerts related to accounts, alerts on homes for sale, etc
Mobile applications
Pay bills; buy airline tickets, stamps, transit system passes; or other third-party transactions
Smart ATM
With expert specialist for advice and consultation
Video conferencing
To browse and get turorials on products
Touch-screen wall
Unstaffed center connected via video to remote office for credit applications
Credit center
Source: Bain & Company
4 Pillars for transforming to Omnichannel banking
The new branch
Mobile
Social
Video
4 pillars for transforming to omnichannel banking: the new branch

The Old Branch Is Dead; Long Live the Omnichannel Branch
The death of the branch has been greatly exaggerated. The most avid adopters of virtual channelstech-savvy consumersare also among the most frequent branch visitor. The branch continues to be the preferred channel for personal attention and advice, including new services. Customers are also open to having advice delivered to them virtually in the branch as long as quality and personalization do not suffer. Video will be at the center of branch transformation.
The percentage of US Studies indicate that 47% customers who prefer to bank of US banking customers believe online jumped to 62% in 2011, that a bank is not even legitimate up from 36% in 2010 unless it has branches, up from 41% only a year ago
Digital technologies will accelerate branchtransformation

The Branch Remains a Preferred Channel for Complex Products and Advisory
18% 2% 13% 4% 28% 14% 5% 48%
Branch ATM/Kiosk Telephone Banks mobile app/site Banks Website Social media (e.g. Facebook)
Source: Cisco study, Winning Strategies for Omni Channel Banking, 2012
73% 70% 6% 70% 20% 69% 76% 75% 53% 5% 70% 39% 59%
1% 5% 1% Research/compare available products/services 5% 8% Pay for something 2% 5% 3% 8% 28% 1% 3% 1% 11% 3% 7%

Manage my account Trade a security (e.g., buy/sell a stock) Transfer funds between accounts Obtain support from banking representative Receive/review account alert
10% 9% 10% 4% 10% 5%
3% 7% 3% 4% 10%
Pay a bill Apply for a loan Check account balance
9% 7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
4 pillars for transforming to omnichannel banking: mobile

The Promise of Embedded Banking in Consumers Lives As Internet access continues to improve over mobile devices, mobile is rapidly emerging as a banking channel. Preferred features for mobile banking include real-time expense tracking, mobile payments, and location-based commerce.
What Consumers want from financial institutions I would feel more confident in buying goods and services through a mobile phone if i coul do so through an app offered by my bank. Among smartphones owners
Agree
100% 80% 60% 40% 20% 0%
Source: Monitise/Future Foundation/nVision Base: 500 online respondents per country who are aged 16+ and own a smartphone, 2013
Agree strongly
Spain
UK
Germany
Mobile Capabilities Considered Most Valuable (North America) Respondents clearly have a preference for mobile banking, (however)its important to note that they do not want it to replace other channels. ... and are verysupportive of using multiple services in an omnichannel environment.
22
Real-time expense tracking and money management Remote check deposit by talking a picture Mobile phone acts as a payment mechanism, replacing cards / cash Shopping offers based on location Peer-to-peer payments Being recognized upon entry into a bank branch or retail store for more personalized services Customer support from my bank using natural language query
21% 18 14% 14% 10 7

% % %
38% None of the above 10%

0% 10% 20% 30% 40%
Do not know
N= 1,671
4 pillars for transforming to omnichannel banking: social

The Potential Is Here When Will Banks Be Ready? Social banking is still lagging, as an overwhelming number of customers are reluctant to mix banking with social activities. A key reason for their reluctance is concern about privacy and lack of control over personal information. When it comes to going social, one segment stands outyounger, tech-savvy customers, especially those in emerging countries who tend to be dissatisfied with their bank.
Social is not another channel, its a whole new way of doing business and its key to customer experience. Customer experiences are about touchpoints and touchpoints are by definition social. Guess what is a key focus in 2013? Indeed, social. Not as just another channel but as a whole new way of doing business. Gartner predicts that by 2014, refusing to communicate with customers via social channels will be as harmful to the relationship as ignoring their emails or phone calls is today. Our discussions with service providers and end users indicate that CRM services are shifting from a focus on point solution deployment centered on application suites, to a customer experience that brings together customer information, analytics, workflows, mobility and social CRM disciplines into a richer, multichannel access to capture the entire customer journey.
Source: Gartner | Analyst, Ed Thompson
4 pillars for transforming to omnichannel banking: video

Seeing is Believing In banking, video is a key enabler of building trust in situations where humans are not physically available.
Video is a key feature and experience enhancer for unmanned banking kiosks, afterhours multipurpose ATMs, and next-generation virtual banking delivered to homes and offices. Video adoption in consumers personal lives or at work isnt limited to younger, tech-savvy consumers. Cisco IBSGs study indicates that Gen X and early-majority technology adopters are now solid believers in the role of video.
26 percent said that video conferencing with a remote expert would enhance their experiencewhen the expertise was not available in the branch.This makes video a key feature and experience enhancer for unmanned banking kiosks,after-hours multipurpose ATMs, and next-generation virtual banking delivered to homes and Offices. Interestingly, those most interested in video as a banking channel tend to be GenX customers who are also in the early-majority group when it comes to technology adoption.This shows that video is ready for mass adoption above and beyond younger, tech-savvyconsumers.
Global Snapshots
A quick look at some examples of omnichannels in the financial services industry and other leading retail businesses and some notable providers of omnichannel technology solutions.
Experience Design
BANKS / FS l RETAILERS l PROVIDERS

COMMONWEALTH BANK Pi is an open platform developed by Commonwealth Bank designed to optimise business payment processes and enrich customer experience.
Sources: www.commbank.com.au/business/pi.html www.banktech.com/payments-cards/commonwealth-bank-aims-to-revolutionize/240003842 See the video: http://www.youtube.com/watch?v=oaWHgl4984E

FIDOR BANK Is built around web 2.0 and social media, allowing customers to experience their finances as a retail social experience.
See the video: http://www.youtube.com/watch?v=Br39kKaCKxA#at=42

ALIOR BANK Unveiled Alior Sync, Polands first digital bank, pitching it as a new type of financial services firm, available anytime, anywhere, for a young, digitally savvy customer base.
Source: Finextra I Virtual branches and Facebook payments: Poland gets new digital bank, June 2012

MBANK Is a banking spin-off of BRE Bank, redesigned from scratch based upon four key tenets: real-time marketing, personal Financial management, Mobile banking and Social media. Winner of Finovate Europe Best in Show 2013 award with Efigence for their facebook and social platform.
Source: Techcrunch I mbank and the future of responsive banking, July 2013

MASTERCARD AND VISA Just like AmEx members, Mastercard and Visa cardholders can sync their accounts with Foursquare to earn discounts at nearby restaurants and retail stores.
Source: Fastcompany I Foursquare syncs mastercard visa merchant specials, February 2013

CRED At the heart of Moven is CRED, a credibility score that incorporates the social sphere to financial scoring: its not about your credit, its about your credibility.
Vimeo I Cred Score from Movenbank, 2012

KIWIBANK Kiwibanks Adaptive Experience Prioritizes DeviceSpecific Tasks. On a PC, the site focuses on products and Internet banking. On a mobile handset, it prioritizes mobilerelevant tasks and content.
Source: Forrester I Digital Customer Experience Trends To Watch, January 2013

CITIBANK Implemented PolyVistas Cloud Solution to discover what drives and what impacts negatively customer experience during a loan application process.
Source: Businesswire I Citibank Harnesses PolyVista Discovery Capabilities to Improve the Customer Experience, February 2013.

BNP PARIBAS Bnp Paribas mimicks the retail experience one might see in an online supermarket adding icons that denote various financial product categories, providing familiarity to the sales process.
Source: Mapa Research www.maparesearch.com/brochures/MapaResearchDigitalSalesReport-Brochure-Apr13.pdf

NATWEST Natwest approaches the ideal proposition in providing direct access to customer support as users look to be leaving the sales journey. As a potential customer attempts to click out of an application, possibly in frustration, the web site provides a clickable link for direct contact with an advisor to help complete the journey.
Source: Mapa Research www.maparesearch.com/brochures/MapaResearch-DigitalSalesReport-Brochure-Apr13.pdf

TESCO Tesco leads the way in addressing mobile grocery buyers with a range of apps and services that allow customers to shop on the go and have the items delivered at the door later or a GPS-enabled app that tells customers where in a store a certain product is.
See the video: http://www.youtube.com/watch?v=JcgfgO3Vzmw

AMAZON AND WALMART Companies such as Amazon and Walmart provide users with temporary lockers to receive delivery of packages. Basically, you can go online, order all of the things that you want, and your items will show up in this locker rather than your doorstep. Its a convenience thing for sure, and the reason why Google bought Y Combinator company Bufferbox and the reason why a company like Swapbox can emerge.
Source: Techcrunch I Walmart follows amazons lead starts testing locker delivery in retail stores, March 2013

HOINTER Is a fully automated store run on software algorithms and machinery that closes the gap between online and brick and mortar marrying digitals instant gratification with in-store benefits.
Source: Psfk I How to close the gap between online and brick and mortar, May 2013 See the videos: http://www.youtube.com/watch?v=2ZjWwlzRYBM http://www.youtube.com/watch?v=r-9tYnXntrQ

MACYS Is expanding their capacity to fulfill online orders from stores as part of its omnichannel push, essentially turning their hundreds of retail locations into local distributions centers.
Source: Forbes I Macys, others turn stores into online fulfillment centers, January 2011

BRAUN Brauns website is designed to disrupt the shopper experience dropping context as shoppers move between touchpoints: the where to buy function directs shoppers to retailer websites; however all context about the products that the shopper was researching is lost in the transition.
Source: Forrester I Managing The Cross-Touchpoint Customer Journey, December 2012

BURBERRY Is a very good illustration of online-offline coordination: 60% of its customers shopped online and then picked up their products from the store. Burberrys new flagship store on Regent Street is currently the best example of truly omni-channel instore approach.
Source: Webcredible, Omnichannel Report, 2012

BANKTRON Multichannel online banking product BANKTRON helps finance institutions to maximize cost savings and bring a unified user experience across different channels and devices, while retaining core legacy systems.
See the video: http://www.youtube.com/watch?v=_bT3vMVeIV4

LODO SOFTWARE Provides a full range of integrated financial services using a powerful, predictive analytics engine to deliver a personalized customer experience anytime, anywhere, on any device.
Source: Finovate I Lodo software launches d3 banking to help banks deliver a personalised customer experience, May 2013

SAP Completes Acquisition of hybris to Help Businesses Deliver Seamless Commerce Experience to Customers hybris Commerce Suite is an open, extensible omni-channel platform, with state-of-the-art product content management and unified commerce processes designed to give a business a single view of its customers, products and orders, and its customers a single view of the business.
Sources: Forbes I Smoothing the kinks in your omnichannel strategy, August 2013 www.news-sap.com/sap-completes-acquisition-of-hybris-to-help-businesses-deliver-seamless-commerce-experience-to-customers/

IDINTERACT IDInteract Demand Exchange platform leverages Big Data analytics to pluck demand signals from a sea of social, mobile and customer relationship management (CRM) data sources and deliver realtime, context-aware insights for targeted customer engagement.
Source: www.enterpriseappstoday.com/crm/dinteract-launches-demandexchange-cloud.html Cmswire I Customer Experience idinteract creates personas based on multichannel big data for targeted digital marketing, December 2012 See the video: http://www.youtube.com/watch?v=nVzJq-W-XGQ

SUNDAYSKY Enables organizations to dynamically embed customer-specific personal data and details into a video related to a product or service, and then deliver the custom how-to video for that specific client.
Sources: Brandchannel I SundaySkys SmartVideo Transforms Consumer Data into Digestible Videos, June 2013 www.gartner.com/document/2428616 www.forbes.com/sites/petercohan/2012/10/15/sundayskysmart-videos-boost-customer-service-productivity/

WALKME Is an interactive online guidance system, enabling organizations to overlay on-screen Walk-Thrus, onto their sites and apps. WalkMe encourages enduser self-service helping user complete complex tasks and making any online process intuitive.
Sources: www.gartner.com/document/2428616 betanews.com/newswire/2012/10/26/walkme-worlds-first-interactivewebsite-guidance-system-announces-5-5-million-funding-round-from-gemini-israel-ventures-mangrove-capital-partners-and-giza-venture-capital/
GLOBAL SNAPSHOTS
the BBVA experience
BBVA & the Omnichannel

We are living in the consumers era. With internet and the new possibilities technology provides, customers have more power than ever (empowered consumer). The only source of sustainable competitive advantage comes from having a strategy based on the obsession for understanding, delighting, connecting and serving customers.
ithin this reality, customers choose to interact with companies through any channel, at any time and from wherever they may be, in a simple, convenient and pleasant way - in short, they are demanding an omnichannel experience. To provide an omnichannel experience means to go a step beyond the multichannel, overgoing the concept of channels as silos, the connectivity gaps between channels and the limited supply in digital channels.
The omnichannel vision is already being applied in certain consumer-related areas, such as in the ROPO effect (research online, purchase offline), which describes the customer who researches on the internet and buys in the physical channel, or in some models developed in the distribution industry, such as the online purchase and in store pick up, or the purchase of geolocated deals.
How can we get an omnichannel experience?:

Providing a seamless experience (seamless journeys) in those processes in which the client uses and combines several channels. Developing a complete offering across all channels (full channel choice), with a strong focus on digital distribution channels (internet and mobile).
Generating a consistent experience regardless of the channel the client is using.
n banking there is no doubt that omnichannel is the way to go. The key is to be able to articulate this process and to generate a strategy that results in a differentiated omnichannel experience for customers, increasing their satisfaction, recommendation and engagement.
Based on a customer-centric vision, this strategy will be implemented with a clear message: BBVA Banking Anywhere (BBVA donde ests), which is the main message of the first global campaign for a bank in the omnichannel field.
BBVA wants to offer its customers the best way BBVA is a pioneer in having an omnichannel to access its products and financial services, vision and strategy. A strategy based on the in a fast and easy way, wherever they are and following pillars: with their channel of preference. BBVA wants to make sure its clients know that these services are available and that they understand their benefits they can choose how they want to connect with us. This is the transformation path designed by BBVA to make the omnichannel vision happen.
Become real omnichannel, increasing sales and transactions in non-branch channels
Become the bank best valued in Customer Experience in all geographies, segments and channels (IReNe) Raise digital channels penetration in our client base and become leaders vs. competitors
Innovation Forecast
The journey towards customer centricity is really just beginning. Though we are continuously learning as we try to figure this out; here is our sharing, so far, on the customer experience framework, the design, and keys for survival in this new world.
The old framework

One environment while performing a task. Segregated approach. Linear thinking:
A new framework
Multidimensional context, Multi-device usage no constant environment. Holistic approach. Systems thinking
Personas (user profile) Contextual inquiry ONE context Single channel evaluation Sitemaps, wireframes Navigation design Design consistency Efficient task design Platform & resolution optimized designs
Personas + day in the life + user journey Multi-dimensional Usage scenarios Cross-channel experience analyses Experience maps, systems models Navigation design + cross channels connections Design consistency + cross channel continuity Cross channel task breakdown Platform & resolution optimized + channel and device designs
Source: Infosys | Finsights, January 2013
Key Takeaways: for thriving in the new paradigm

A few tips to help you thrive in this new paradigm:
for designing CX
A few tips to remember when designing CX:
1.
w e n a s i e r e Th i s u b r o f k framewor ple o e p e r e h w ness el. n n a h c w e n are the t. s r fi m e h t t Pu
1. Move from a line-
ar thinking framework to a holistic approach where there is no constant environment: multidimensional context, multi-device usage.
tomer experience as top priority.
2. Consider Cus-
2.
t u o b a t s Think fir n e h t , s d e e rn e m o t s u c y g o l o n h ec t e h t t u abo . r e l b a n e as
3.
s u c a e Think lik erms t n i t o n : s m tomer r e t n i t u b , s o l e c of si i v e d d n a l e n n a h . s n of c o i t c a r e t n i c i t agnos
the customer lifecycle.
3. Organize around
4. New ways of think-
ing still need analytics and metrics. Identify CX initiatives that lead to tangible ROI and reward by customer-driven metrics.
the journey, not the touchpoint.
4. Optimize
publications
Books &
In depth
A list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the Experience Design report.
On the
web
Books & publications

Accenture | Banking on Digital. Building Trust and Innovation in Financial Services, 2013. Accenture | The RE-banking Revolution. Innovative Practices from Non-banking Companies that Banks Can Use to Improve Customer Engagement, 2013. Bain & Company | Customer Loyalty in Retail Banking, 2012. CapGemini | The Future of Bank Branches. Coordinating Physical with Digital, 2013. Celent | Top Trends in Retail Banking 2013, 2012. Cisco IBSG | Winning Strategies for Financial Services Players in the Age of Mobile and Social Payments, February 2013. Cisco IBSG | Winning Strategies for Omnichannel Banking, 2012. EFMA/Kurt Salmon | Phygital and Other Digital Challenges for Retail Banks, 2013. EFMA/Peppers&Rogers Group | Customer Experience in Retail Banking, 2010. Forrester Research | Assess the Impact of Touchpoints Along the Consumer Path-to-Purchase, April 2013. Forrester Research | How Chief Customer Officers Orchestrate Experiences, 2013. Forrester Research | How to Engage Your Omnichannel Consumer. Brand Engagement the Consumer Way, 2013. Forrester Research | The Rise of the Chief Customer Officer, January 2011. Gartner | Agenda Overview for Banking and Investment Services, January 2013. Gartner | Ed Thompson, analyst. Gartner | Gartner Says Customer Experience Enters Top 10 CIO Priorities for 2012, April 2012. Gartner | Online Banking as a Discrete Channel Is Obsolete, 2013. Gartner | The Nexus of Forces: Social, Mobile, Cloud, and Information, June 2012. Google | The Customer Journey to Online Purchase, 2013. Google | The New Multi-screen World: Understanding Cross-platform Consumer Behavior, August 2012. Google | The Role of Search in Credit Card Shoping, 2010. Google | The Zero Moment of Truth for Credit Cards, 2011. Google | Understanding Credit Card Researchers, 2010. Harley Manning, Kerry Bodine and Josh Bernoff | Outside In: The Power of Putting Customers at the Center of Your Business, 2012. Harvard Business Review | People Are the New Channel, April 2013. Harvard Business Review | The Truth About Customer Experience, 2013. Infosys | The Multi-channel UX Model, 2013. Infosys | Technology insights for the Financial Services Industry, 2013. iProspect | Omni-channel: The Marketing Evolution That Changes Everything, 2013. Mapa Research | Digital Sales: Enhancing Existing Customer Relationships. Insight Report on Digital Sale Techniques across Different Channels (Internet, Mobile and Tablet Banking), 2013. McKinsey & Company | A Symphony of Separate Instruments: Cross-channel and Online Sales - CMO & Sales Office Forum: Multichannel Delivery, 2013. McKinsey & Company | Customer Journey Analytics and Big Data, 2013. McKinsey & Company | Major Bank, Major Digital Transformation, December 2012. McKinsey & Company | Winning the customer decision journey, December 2011. Monitise/Future Foundation/InVision | M-commerce: What Consumers Want from Financial Institutions, July 2013. Online Banking Report | FINovate Quarterly Q2 2013, 2013. PricewaterhouseCoopers | Rebooting the Branch. Reinventing Branch Banking in a Multi-channel, Global Environment, 2013. TNS | Direct Banks and the Future of Retail Banking, 2012.
Web
AdExchanger | Google Is Pushing An Omni-channel Mindset. Are You Ready?, 2013. Bank Innovation | Increasing Customer Acquisition and Retention with Predictive Analytics, 2013. Bank Marketing Strategy | All Bank Customer Experience Initiatives are Not Created Equal, June 2013. Bank Marketing Strategy | Banking Leaders Discuss 2014 Strategic Planning Activities, July 2013. The Banker | Social Banking in the Omnichannel Era. Ben Evans | Twitter, canvases and cards, 2013. Financial Times | Big Data in the Spotlight as Never Before, 2013. FinExtra | ASB Bank Pilots Customer Video Conferencing Facility for PC and Mobile, 2013. Finovate Blog | Lodo Software Launches D3 Banking to Help Banks Deliver a Personalized Customer Experience, 2013. The Financial Brand | Experiments With Pinterest In Retail Banking Fail Miserably, 2013. Forrester | Outside In: The Power of Putting Customers at the Center of Your Business (video). Gallup | How Customers Interact With Their Banks, 2013. Martin Gill | Agile Commerce - Thats Forresters Word for Omnichannel, Right?, 2013. i95dev | Applying Gartners Nexus of Forces to Retail, March 2013. Inside Intercom | Why Cards Are the Future of the Web, 2013. Geoff Livingstone | What Comes First, Multichannel Integration or Social Business?, 2013. MIT Sloan Review | Competing in the Age of Onmichannel Retailing, 2013. Optirate | Retail Banking is more competitive than most believe, 2011. Chris Skinner | Project New mBank. Perhaps the Worlds Most Innovative Online Banking, 2013. SmartCompany | The 12 sales trends that will drive 2013: Report sneak peek, December 2012. Brian Solis | The Conversation Prism, 2013. Wall Street Journal | Banks Using Big Data to Discover New Silk Road, 2013. webcredible | Omni-channel Customer Experience, November 2012.
1 Trending issues
Summaries of the most relevant news of selected topics that have been published over the course of the period based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
also in this issues
2 Technology trends
In the following section, we outline the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Innovacin
Highlighted in this section some of the actions in which BBVA Innovation Center takes part, on innovation and entrepreneurship. Through this section we also provide direct access to the BBVA Innovation Center events.
Trending issues
Core Banking Platform New Formats Mobile Banking Social Business Mobile Payments CustomerCentricity Brands & Branding Crowd Finance App Ecosystem Gadgetology New Banking Concepts Big Data Future of Work DIY
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
The Core Banking market is poised to grow through 2017; a modest 4% growth rate, steadily growing to a market size of $10.7B
Though decision-making related to core banking technology is dependent on local circumstances, three global trends are observed: 1. Banks are increasingly willing to consider core replacements, whether big bang or phased (which is dependent on size). 2. Cost and customer demands for agility are key drivers motivating banks to finally make the switch. 3. Vendor products have matured enough that the trepidation banks have typically felt may no longer be warranted.
Global Market Share, in percentages, of leading core banking technology providers

Celent analysis N= 1,276
Sopra ERI Accenture 3% 3% 2% CSC 4% Other 5% Infosys 6% SAP 6% TCS 6% Oracle 6% Misys 14%
FIS 24%
Temenos 21%
Trending issues
Learn about Banking at Allied Irish Banks The Lab, a digital banking showroom
The space at the Lab is divided into five zones: 1. The Quick Banking Zone: ATMs, card kiosks, phone booth, and social media wall. 2. The Product Zone: a showcase of AIBs products, services, and innovations. 3. The Mobile Banking Zone: dedicated to mobile banking, featuring an interactive table and a display of AIBs mobile banking devices/services. 4. The Lounge & Learning Zone: an area to interact with experts, with a digital learning wall and play area for children. 5. The Business Banking Zone: for business customers to network and conduct meetings, with remote access to specialists Customers now choose how they wish to interact with AIB in the way that suits them best, said a spokesperson.
Trending issues
The 10 Best Mobile Banking Apps for iOS & Android

Based on a recent analysis of mobile banking apps of the top 53 US banks, here are the 10 best apps for each platform:
Top 10 Highest Rated Android Banking Apps iOSMobile Banking Apps

01 - USAA 4.6 stars, 95% favorable reviews 1. RBS Citizens 4.5 stars, 93% favorable reviews 02 - RBS Citizens 4.5 stars, 97% favorable reviews 2. 4.0 stars, 91% favorable reviews 03Charter - AmExOne 4.4 stars, 91% favorable reviews 04 - Wells Fargo 4.3 stars, 90% favorable reviews 3. KeyBankfor iPad 4.0 stars, 83% favorable reviews 05 - BofA 4.2 stars, 88% favorable reviews 4. City National 4.0 stars, 76% favorable reviews 06 - TD Bank 4.2 stars, 88% favorable reviews 07 - Chase 4.2 stars, 87% favorable reviews 5. Santander 3.5 stars, 83% favorable reviews 08 - BB&T 4.2 stars, 87% favorable reviews 6. Associated Bank 3.5 stars 76% favorable reviews 09 - Regions 3.9 stars, 80% favorable reviews 7. Huntington Bankfor iPad 3.5 stars, 75% favorable reviews 10 - Union Bank 3.9%, 79% favorable reviews
Top Banking Apps Top 10 10 Highest Highest Rated Rated iOSMobile Android Banking Apps
01 - RBS Citizens 4.5 stars, 93% favorable reviews 1. USAA 4.6 stars, 95% favorable reviews 02 - Charter One 4.0 stars, 91% favorable reviews 2. Citizens iPad 4.5 stars, favorable reviews 03RBS - KeyBankfor 4.097% stars, 83% favorable reviews 04 - City National 4.0 stars, 76% favorable reviews 3. AmEx 4.4 stars, 91% favorable reviews 05 - Santander 3.5 stars, 83% favorable reviews 4. Fargo Bank 4.3 stars, 90% favorable reviewsreviews 06Wells - Associated 3.5 stars 76% favorable 07 - Huntington Bankfor iPad 3.5 stars, 75% favorable reviews 5. BofA 4.2 stars, 88% favorable reviews 08 - US Bank 3.5 stars, 71% favorable reviews 6. TD Bank 4.2 stars, 88% favorable reviews 09 - Utrecht Bank 3.5 stars, 69% favorable reviews 7. 10 - Bank of the West 3.5 stars, 68% favorable reviews
Trending issues
8 Social Media KPIs to track & monitor

By tracking the right KPIs, your company will be able to make adjustments to your social media strategy and budget. Below, an industry expert shares her Top 8 KPIs for Social Media: 1. Number of Fans and Followers 2. Demographics and Location 3. Number of Active Followers 4. Likes and Shares 5. Comments 6. Mentions 7. Retweets 8. Traffic Data
Trending issues
80% 70% 60% 50% 40% 30% 20% 10% 0% 5
Consumers are very loyal to their favorite payment instruments

A recent study conducted by the Federal Reserve Bank of Boston reveals that consumers almost never deviate from their favorite payment types, but that they also arent likely to use their top payment method all the time.
Pay type by household income.
9.8 15.5 20.7 28.3 34.7 39.5 43.7 47.7
55 57.7
65
71.1 82.3 85 91.7 103.5 110
In regards to mobile payments and wallets, though consumers are hardwired to pay like they already pay, theyre kind of willing to switch around a little bit within [payment types], that at least gives you the kind of beachfront for mobile to get in there, and for people [to] try it out.
Trending issues
These 5 Customer-Centric habits enabled Sprints dramatic turnaround, helping the company to go from zero to hero in 5 years
Listen Understand what customers value, act on their feedback Think Make smart, fact-based decisions Empower Give employees resources and authority to serve customers Create Produce new value for customers and company Delight Exceed expectations, be remarkable.
Trending issues
Eleven wow stats that researchers and marketers should know about mobile. The stats tell us that mobile is just starting; people are loving it, offers richer data, and is a global phenomenon
1. Mobile broadband subscription growth averages 40% annually, climbing from 268 million in 2007 to 2.1 billion in 2013. 2. In 2013, there are almost as many mobilecellular subscriptions as people in the world, with more than half in the Asia-Pacific region (3.5 billion out of 6.8 billion total subscriptions). 3. More people have access to mobile phones than to toilets or latrines. 4. Similarly, more people are users of mobile devices than owners of toothbrushes. 5. Mobile usage makes up about 15 percent of all Internet trafficand its not showing any signs of slowing down. Mobile is already huge, but its just getting started. 6. At the end of 2013, mobile search queries in South Korea are expected to exceed the number of PC queries. Mobile isnt just a West thing. 7. Over one third (37%) of time spent consuming digital media is now spent on mobile devices rather than PCs. 8. In 2012, 72 percent of all newly-acquired mobile devices are smartphones. This is great news for researchers who would like to take advantage of the rich features of smartphones. 9. The average response time for emails is 90 minutes; for text messages, its 90 seconds. 10. Compared to traditional coupons, mobile coupons have 10x the redemption rate. 11. More than three quarters of the worlds mobile phones are located in the developiing worldand growth is set to rocket.
Trending issues
Can the big boys play the crowd financing game? Say hi to 2.0
Call it crowdfunding 2.0. Established companies are using Kickstarter and the like to launch new products, paid for by a built-in customer base before they hit the production line. The appeal is not limited to raising funds. Just as important, were looking to get feedback, he says. This campaign is about market messaging and product viability. Its forcing us to think about how this product should be sold.
Trending issues
The EU is a player in the App Economy, producing 22% of worlds apps

The App Economy in the EU28 countries generated revenues of 10.2 billion in 2012 and is projected to grow to 14.9 billion in 2016, according to VisionMobile. The European Commissioner, Neelie Kroes, pointed out the app economy is a great example of what happens if you create the right environment; give people the framework to create. Borderless, open, and as innovative as your imagination.
Trending issues
iPhone fans, fear not, as Apples response to Galaxy Gear is near

With the introduction of iPhone 5s, Apple also launches theM7 chip, which runs alongside the new iPhones main A7 processor, (and) opens up opportunities for developers of health-monitoring gadgets and apps, as well as other connected devices. (it)enhances the iPhones core capabilities, and also makes it a better hub for wearable accessories, whether they are made by Apple or anyone else. The M7 is an example of a clever way to start learning about wearables and what consumers want, without getting them to pay for [a dedicated device] right now, says Carolina Milanesi, mobile analyst at Gartner.
Trending issues
Seeing is Banking: video banking to enhance customer engagement

According to a recent industry report, there are four reasons to adopt video banking: 1. The imperative for branch redesign.In response to business conditions, declining branch foot traffic, and growth in digital channel usage, banks must increase both the efficiency and effectiveness of the branch channel. Video can play a role. 2. Consumer acceptance.Once primarily a business application, mass market usage of video is burgeoning. Its appeal extends well beyond Gen-Y. 3. Customer engagement.As more customer interaction occurs in digital media, banks must devise ways of engaging customers digitally. Banks can no longer afford to view digital channels simply as a mechanism for low-cost transactions. Video and chat can play a role. 4. Solution viability.Modern video alternatives are light years ahead of earlier solutions, improving efficacy at a much lower cost than before.
Trending issues
EMCs Big Data expert shares his point of view on best practices for projects and success
The Key Takeaways: 1. Start a Big Data project by concentrating on business processes already supported by BI (Business Intelligence) and data warehouse enviornment. Leverage Big Data to take that business process to the next level. 2. Apply insights from diverse sources: customers, products, operations, etc. By applying these insights, for example, organization can re-wire their interactions with customers to build a more engaging, more sticky, more profitable relationship. 3. Find a positive spiral. Big Data has a liberating organizational effect whereby once users start to experiment with data and see positive results, more people in the organization will get involved to share ideas and collaborate around Big Data.No longer do you have a single department head making decisions around data, but rather people working together to come up with new ideas as to how to solve key business problems.
Trending issues
Core Banking Platform New Formats Mobile Banking Social Business Mobile Payments
Future of Work: Evolve or go Extinct

At the recent SWSX V2V event, experts were discussing the future of work. Here is what some believe awaits around the cornerregarding the future of work:
Companies are less committed to commitment Gene Zaino,MBO Partners Our childrens generation will have ten jobs by the time theyre 40 Gary Swart,oDesk The winners are those who can learn fast, have a strong network and the best online reputation R Ray Wang,Constellation Research The best talent will have even more options in this new economy Maynard Webb: entrepreneur, author, investor & company director
CustomerCentricity Brands & Branding Crowd Finance App Ecosystem Gadgetology New Banking Concepts Big Data Future of Work DIY
Trending issues
With 3D Printing, the complexity is free

In large organizations, in the old days, a designer would have to design the product, then build the machine tools to make a prototype of that part, which could take up to a year, and then it would manufacture the part and test it, with each test iteration taking a few months. The whole process ... often took two years from when you first had the idea for some of our complex components. Today computer-aided design software now design the part on a computer screen. Then they transmit it to a 3-D printer, which is filled with a fine metal powder and a laser device that literally builds or prints, the piece out of the metal powder before your eyes, to the exact specifications. Then, you immediately test it four, five, six times in a day and when it is just right you have your new part. To be sure, some complex parts require more time, but this is the future; the complexity is free. Though the example alludes to how a large multinational corporation is approaching 3D Printing, the complexity is free concept can be applied to everyone, including makers or DIYers. Itll be interesting to see how they take advantage of this concept moving forward.
EACH SECTION EXPLAINED
Core Banking Platforms

Here you will find articles related to basic IT infrastructure which supports main banking processes, including technologies such as SOA, WOA, digital platforms, etc.
App Ecosystem
There are 5 main components in the current Apps Ecosystem: connectivity, devices, OS platforms, app platforms, and apps; along with related products and services providers (MEAPs, Mobility as a Service providers etc.).
New Formats
Based on design principles focused on customer insights, New formats offers retail banking customers more channels which are more granular and highly functional; a consistent, simple, and collaborative universal user interface; real-time intelligent processes; highly personalized solutions; and is open to social networks and the web. Examples of these new formats are provided here.
Gadgetology
Gadgets are everywhere and it seems that there are more and more each passing day. We are moving towards a contextual computing environment and, as a result, the number and functions of gadgets are poised to grow (thanks in part to the internet of things). In this section, we share a word or two about gadgets.
Mobile Banking
Relevant news about mobile banking platforms (which enable customers to access financial services, such as transfers, bill payments, balance information and investment options) can be found here.
New Banking Concepts

Banks around the world continuously explore new approaches to strengthen customer relationships, both in the virtual and the physical worlds; including Virtual assistants, natural language search tools, new marketing tools, different segmentation (children, gen Y,) etc. This section will cover news along these lines.
Social Business
Social Business is the integration and use of social technologies by an organization, which includes social media/work media, crowd listening, crowd intelligence, crowd working, etc. Stay tuned to see how this space will evolve.
Big Data
It been said, what gets measured, gets managed. The Big Data trend offers organizations an opportunity to manage just about everything. Here well share stories about Big Data capture, curation, storage, sharing, analysis, and visualization.
Mobile Payments
The process of using a hand-held device to pay for a product or service, either remotely or at a point-of-sale. Up to date information is provided.
Future of Work
Work, increasingly, is not about where you do, but what you do. The future of work is more flexible and collaborative; and values are going to play an important role, especially corporate values. The way we work is changing fast stay tuned.
Customer-Centricity
Customer-centricity is the organizations understanding of customers at a granular level and the capability to create, deliver, and capture different kinds of value propositions to different groups of customers, based on customer understanding.
DIY
Do It Yourself (DIY) refers to a trend of people doing projects to either be creative/recreational and/or costsaving activity. This trend becomes really interesting as new technologies enable new functionalities such as 3D printing, health/wellness, etc, which help empowers individuals; this may even change the we think about businesses in the future.
Brands & Branding

Marketing in the modern world have many channels to reach consumers at their disposal: (smart)phones, tablets, PCs and (smart)TVs and different ways to communicate their brands, such as traditional ads, banner ads, SMS/MMS, etc.
Crowd Finance
A process where small amounts are money raised for a definite purpose, Crowd finance sources funds collectively from individuals. In other words, the money comes from a wide range of individuals and not from a single entity. Read more about it here.
Technology trends
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Techcrunch Disrupt NY 2013 Recap

After some dark months in terms of news in well-defined tech trends, in which the good ideas seemed to be sleeping after the SoLoMos big hangover, we can see some light. In the last edition of TechCrunch Disrupt 2013 (NY), there was a big chat about the death of Innovation (good, it seems that I was not the only one who was bored and worried). The conclusion was that Innovation is not dead, even more, there are some green sprouts emerging. Tired of the social networking fever, the apps without a real value, or with a confusing business plan, are sent to the back of the closet (except for SnapChatandVine, which are still considered potential apps, despite beingfrom the previous batch due to the real time concept), and those which offer great solutions to problems are arising.Investors are now very concerned about where they put their money, not only looking for great products but also great founders.
What do I mean?
or example, now theres no need to meet new interesting people around you in real time, but organize the contacts you already met (Glider); theres no need to checkin places anymore, but choose where you go to have dinner (new focus of Foursquare, still alive and growing!!). More examples below:
change the landscape and the way in which digital products are created, however some speakers (like Hill Ferguson from Paypal) stay a little skeptical saying that the problem that Bitcoin is trying to solve is not clear at all (if any), and wondering if their idea is the best way to achieve it. Lets wait and see.
Hardware was the co-star of the event. Some
Productivity a big business:These apps definitely make our life and work easier. Now you can send the attachments of your mails directly to a file in the cloud withKloudless, organize you mail withMailbox orHandle, or you meetings withRetrace. Online for offline:This is still a big trend, for apps as well as devices. The success of AirBnb lead the launch of apps like EatWith, for eatinghomecooked meal in someones home andallowing locals to turn their homes into temporary dining destinations for curious visitors looking to experience something new. Also,Taskrabbit is the seed of Bidzy, aprofessionalizedplatform for last minute tasks and services. still too early. Acording to Square, Stripe or Paypal, is still too early to know what it really means for economy. Bitcoin may
interesting solutions where shown, like KISI, a Keyless home access management platform, or KeenHome, remote vents for your central air conditioning and heating systems that can be controlled from your smartphone to optimally direct air where you actuallyneedit, or away from places you dont.
See video
Bitcoin:
Source: BBVA Digital Technologies & Omnichannel
Two special mentions:

RAMBLER, the winner of the Hackathon contest:a web app that lets users view their credit and debit card transactions on a map. (it may sound familiar to all those who fought for including this feature at the new bbva.es) ENIGMA, the winner of Startup Battlefield: aweb service that allows its users to dig into a vast amount of publicly available (but hardto-obtain) data. The service pulls its data from more than 100,000 data sources, but the process of sifting through all this information is deceptively simple. Just a quick search for a persons name and company brings up multiple previewable tables of information, and jumping in and playing with data is thoughtfully executed.
The emergence of Cards

Seeing that we are now in the post-PC era, there is a trend that is picking up some steam: cards, cards, and more cards. In short, Cards are fast becoming the best design pattern for mobile devices. We are currently witnessing a re-architecture of the web,... towards completely personalized experiences built on an aggregation of many individual pieces of content: Individuals interests, preferences, and behavior Context of location and environmental Interests, preferences, and behavior of friends The ecosystem of targeting advertising
ANY EXISTING OR PROSPECTIVE CUSTOMER Friends Interests Friends Interests Location Demography ...
NEWS
LOCAL NEWS NEWS BASED ON YOUR INTEREST NEWS YOUR FRIENDS HAVE READ NEWS PEOPLE LIKE YOU HAVE READ WORLD NEWS
3rd PARTY SERVICES + DATA Facebook Twitter Google Loyalty Cards Aggregators ...
Sources: insideintercom.io/why-cardsare-the-future-of-the-web/ ben-evans.com/benedictevans/2013/6/18/canvases
any leading companies are moving toward Cards: Google Now. Twitter. Pinterest... Also, many other leading technology companies are moving towards Cards: Facebook, Spotify, Apple, etc. As Inside Intercom puts it, If the predominant medium of our time is set to be the portable screen (think phones and tablets), then the predominant design pattern is set to be cards. The signs are already here
personal cards, and the list seems to go on and on. Also, Cards can present content in a more flexible way. They can be turned over to reveal more, folded for a summary and expanded for more details, stacked to save space, sorted, grouped, and spread out to survey more than one. Cards are perfect for mobile devices and varying screen sizes. They can be stacked horizontally, adding a column as a tablet is turned 90 degrees. They can be a fixed or variable height. Moving forward, its going to be interesting to see how this new content format will bring in the future. Cards are the next big thing in design and the creative arts. Let wait and see how this trend will affect the way we manage and consume content with post-PC devices.
CONTENT FORMAT THAT IS SO FAMILIAR AND FLEXIBLE Cards, as a content format, go back to 9th century in Imperial China and weve been using cards ever since. Today, we are surrounded by them: debit/credit cards, business cards, government issued cards, coupons, card games,
DESKTOP TABLET LANDSCAPE TABLET PORTRAIT MOBILE
SUMMARY CARD
REGULAR CARD
EXPANDED CARD
Open Talent 2013
Discover the winning projects of the BBVA Open Talent 2013 competition
The projects participating in this start-up competition are born from the illusion of people who believe they can contribute to society with the implementation of their very own project. These are innovative and technology-based initiatives launched by start-ups less than two years old and for whom the 100,000 Euros of the award and the opportunities associated with a competition such as BBVA Open Talent can make much a difference. All the initiatives have in common their drive to do things differently through innovation and their enthusiasm for creating something new from scratch. The 2013 edition of the start-up competition has been so far the most international one, registering a record of participation. A total of 916 projects of 24 countries around the globe have been submitted, mainly from Colombia, Spain, Argentina, Mexico and Peru. Furthermore, the participating projects have received more than 70,881 online votes through the Innovation Centres website and social networks. Open Talent is an international BBVA initiative aiming to boost innovative entrepreneurship and establish a real network with start-ups showing potential to lead the changes in the technology and banking sectors, and with all the other stakeholders of the entrepreneurship ecosystem as well.
IM35
Innovador del Ao and Innovadora Social, at EmTech Spain

Bernat Oll and Karen Mrquez were elected from the 10 Spanish winners of Premios Innovadores Menores de 35 aos organized by MIT and the BBVA collaboration. The youngers presented there projects at EmTech Espaa 2013 (Valencia).
IM35
The third edition of the conference EmTech Spain held on 5 and 6 November, analyzed the economic impact of innovation and technological entrepreneurship. EmTech was also the escenario where the winners of Innovadores Menores de 35 presented there projects. With those awards, MIT, supported by BBVA, recognizes young people who are giving a solution to real problems through technology.
ment of diseases and the way he bring it to market. Their innovative ideas and the way to implement them and bring them to market successfull have been key to his victory , according to Pedro Moneo, director of the Spanish edition of MIT Technology Review. Alongside Oll, the other main entrepreneur
Bernat Olle was the youngest elected as Innovador del ao, among the 10 selected Spanis, for his disruptive breakthrough in the treat-
was Karen Marquez, chosen as Innovadora social, by proposing a new approach to early childhood education.
IM35
The Innovators under 35 awards, organized by the Massachusetts Institute of Technology (MIT ), through MIT Technology Reviewy publication since its first edition in 2010 has the support of BBVA, has great international prestige and is a strong impetus for young people in developing their innovation projects. These 10 young Spanish are an example of the ability of innovation and entrepreneurship that is in the country, said Hugo Najera, Chief Innovation Officer of BBVA. Investing in research and innovation is essential to promote competitiveness, at a time when full technological change, economic, social and environmental stressed Njera. We should be proud of our young people, who have the courage and ingenuity of the major problems facing global concern and provide real solutions that have a real impact on society, said Moneo.
Innovators Under 35 in Latin America

Argentina and Uruguay 20 November Peru 30 November Chile December
The 10 winners will present their projects during the Innovators Under 35 awards ceremony.
IN NOVA CHALLENGE Big Data
BBVA invites developers to create apps with transaction data of its cards in the Innova Challenge
Apps for public institutions, for consumers and data visualization. These are the three categories of the first edition of Innova Challenge Big Data, a competition for which BBVA is giving access for the first time to a set of real transaction data of its cards. The best apps in the different categories will be awarded with 15,000 Euros.
IN NOVA CHALLENGE Big Data
Open and collaborative innovation. Based on these pillars, BBVA wants to build a community of developers around its data platform, and for this purpose the bank is now allowing third parties to create new content and services using real transaction data of its cards. With the launch of the Innova Challenge Big Data, BBVA has become the first Spanish bank to open an API for developers to create apps for public institutions, individual consumers or even for the creation of new content visualizations. Registration to participate was opened on 24 September and will end on 3 December, 2013. This international challenge will award prizes to
a total value of 90,000 Euros (15,000 for the winner, 10,000 for the runner-up and 5,000 for the third prize in each of the three categories). Developers may access the API to obtain a set of anonymous and aggregated transaction data generated by banking cards in the cities of Madrid and Barcelona. In order to maximize this platform, BBVA has organized a series of free workshops to show how to work with open data. You may find detailed information about the Terms and Conditions and how to participate in the Innova Challenge Big Data website.
BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group.
CONTRIBUTORS TO THIS ISSUE
Alfonso Bey Reyes Bolumar Vanesa Casadas Luz Fernandez Antonio Garcia Israel Hernanz Marta Javaloys Luz Martin Manolo Moure Multichannel Strategy Team Carlos Perez Javier Sebastian Elena Solera Ignacio Villoch Gustavo Vinacua Phil Sang G. Yim
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Innovation Edge. Customer Experience (English)

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Droits d'auteur :

Innovation Edge. Customer Experience (English)

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NOVEMBER 2013

Designing customer experiences for value

also in this issue

Trending issues Technology trends

Customer experience management (CX) will replace CRMs

Customers control the buying process

Salespeople become financial managers

The rise of smartphones in sales

Marketing (as we know it) is dead

Breaking the chain of ignorance, upping the pace of transformation

Empathy, the new sales edge

The university of selling

Instant access to solutions

Sales leadership in uncertain times; stop managing and start leading

Delivering real value beyond product and price

Customers at the Front & Center of Business

Ready for customer-centricity

Information Delivery Social Access

Cloud Context Mobile

Customers are now in control

Source: EFMA/Peppers&Rogers Group Customer Experience in Retail Banking, 2010

People are the new channel

You can only serve and support them!

Flow in! You cant control them!

Content is pulled in through Content is pushed out through!

CX (Customer Experience) is increasingly a top of mind issue

Other industries are focusing on customer experience

The rise of the Chief Customer Officer

Successful CCOs will move their company

Customer Experience & Banking

If I need banking services nearby, how many providers are there?

28 Banks competing in a typical MSA

16-20 21-30 31-50

51-75 76-100 > 101

And if we add direct banks into the mix ...

Share of New and Lost Primary Bank Relationships

35% 34% 29% 28%

Share of New Relationships

COMM. BKS & CUS

Net share loss

Share of New Relationships

Net share gain

Share of Lost Relationships

Customer Experience & ROI

Establishing a goal for customer experience improvement

Utilizing a decisionmaking process that emphasizes the customer

Taking action on individual customer feedback

Sharing a common definition of what a positive customer experience is

TAKE INDIVIDUAL ACTION CUSTOMER FEEDBACK

DISCIPLINED DECISION MAKING AROUND THE CUSTOMER

ESTABLISHED GOALS FOR IMPROVEMENT

Competition in the financial services is heating up

The threat of disintermediation is real

FinTech start-ups Telcos Tech Companies Retails

For banks, CX is a top priority

This threat is coming from four major players

A little about todays consumers

The amount of TIME we have or need

The GOAL we want to accomolish

Our ATTITUDE and state of mind

TOP ACTIVITIES PERFORMED WHEN SEQUENTIALLY SCREENING BETWEEN DEVICES

81% 72% 67% 63% 46%

Browsing the internet

Searching for Info

Watching an Online Video

Inicio on a Started en un smartphone PC

Browsing Navegar por internet the internet