Increase Customer Engagement Through Transparency - Forrester Research

Enterprise Content Management Enterprise Report Management

Increase Customer Engagement Through

TransparencyGive Customers the Power to Access Their Own Statements, Bills and Records

© 2014 IBM Corporation

Forrester Research

Craig Le Clair VP, Principal Analyst

February 26, 2014

rohit bhasi

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rohit bhasi

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Increase Customer Engagement Through Transparency

Agenda

• Age Of The Customer Drives E-delivery Expectations

• Compliance Puts Pressure On Transparency

• E-Delivery Adoption Is Still A Struggle As well As Long-term Archival

• Summary: Age of The Customer Provides Great Opportunity For

Accelerated Adoption

© 2013 Forrester Research, Inc. Reproduction Prohibited

We Have Entered The Age Of The Customer October 2013 “Competitive Strategy In The Age Of The Customer”

Most Enterprises Middle Of The Pack For Customer Experience

Missed opportunity ($ millions)

The difference between high and low can be worth millions and even billions

Wireless

carrier

$1,711

Airline

$866

Insurance

$606

Hotel

$1,273

Source: November 19, 2010, “The Business Impact Of Customer Experience, 2010” Forrester report

Customers Connect From Multiple Locations

Agenda






© 2012 Forrester Research, Inc. Reproduction Prohibited © 2012 Forrester Research, Inc. Reproduction Prohibited

“Which of the following initiatives are likely to be your organization ’s top

business priorities over the next 12 months?”(Critical or high priority)

Improve/simplify our supply chain18%

10%

Improve corporate environmental sustainability

and social responsibility 19%17%

Manage brand consistency globally23%

38%

Improve the firm’s ability to innovate50%

58%

Address rising competition for your products/services26%

42%

Improve the quality of our products/services55%

64%

Hire, develop, and retain the best employees41%

55%

Grow in emerging markets43%

45%

Improve the capabilities of your products/services41%

70%

Improve margins52%

47%

Address the rising expectations of customers

and improve customer satisfaction 48%73%

Lower the firm’s overall operating costs50%

69%

Grow overall company revenue83%

78%

Acquire and retain customers78%79%

Comply with government regulations and requirements76%

78% Enterprise (1,000+

employees)

SMB (<1,000

employees)

Compliance Processes Are The Biggest Challenge

© 2013 Forrester Research, Inc. Reproduction Prohibited 11

Transparency: The Next Regulatory Challenge

Agenda







How Forrester Defines “eDelivery” Versus “Paperless” November 2013 “Time For US Banks To Get Tough And Turn Off Paper For eDelivery Customers”


Across All Banking Products, A Majority Of Customers Still Get Paper Mailed To Them November 2013 “Time For US Banks To Get Tough And Turn Off Paper For eDelivery Customers”


Why Recipients Won’t Switch To Paperless November 2013 “Time For US Banks To Get Tough And Turn Off Paper For eDelivery Customers”

E-delivery Adoption Requires Engagement And Context

Smart Statements And Bills Static - Mediocre Layout/Design , No Cross-selling/Interactive Elements.

Finances,

Make Decisions,

Buy New Products


Discover Puts Seven Years’ Worth Of eStatements Directly On Its Secure Site November 2013 “Time For US Banks To Get Tough And Turn Off Paper For eDelivery Customers”


Bank Of America Sends Email Alerts When eBills Are Ready November 2013 “Time For US Banks To Get Tough And Turn Off Paper For eDelivery Customers”


Digital preservation forces itself on agenda

› Long-term retention of digital content means

preservation issues must be addressed.

• Hardware, software, and file format obsolescence

risks will haunt us if not taken seriously.

› IT renewal programs put retention and

accessibility of legacy data at forefront.

• Decommissioning legacy enterprise applications in

favor of cloud-based systems


Confidence in ESI remains tepid LESS THAN A FIFTH OF RECORDS MANAGEMENT PROFESSIONALS HAVE

HIGH CONFIDENCE IF CHALLENGED TO DEMONSTRATE ACCURACY

Source: September 18, 2013, “Records Managers Must Focus On Business Needs, Budgets, And Technology To

Succeed” Forrester report

© 2013 Forrester Research, Inc. Reproduction Prohibited 21 21

Factoring in media, format, and other considerations, how confident are you that your organization can rapidly and cost effectively retrieve records in 15 years?

42%

16%

15%

13%

12%

2%

Somewhat Confident

Neutral

Very Confident

Somewhat unconfident

Not at all confident

Don't know

Base: 397 records management professionals

Source:Forrester Research AND ARMA International Online Records Management Survey, Q3 2013

Accessibility of long term records

Agenda







Summary

› Age Of The Customer Drives Expectations Up

› But Offers Opportunity For Better E-delivery

And Adoption –

› New Channels Are More Effective Channel

› Don’t Ignore Record Management And

Retention Responsibiliteis

Thank you

Craig Le Clair

VP, Principal Analyst

[email protected]


© 2014 IBM Corporation

IBM Content Manager OnDemand

The Platform for Advanced Customer Service

and Self-service

© 2014 IBM Corporation 2


Industry Leading Solution for:

• Age Of The Customer Driving Expectations Up

• Offering Opportunity For Better E-delivery And Adoption

• New Channels Are More Effective Channel

• Records Management And Retention Responsibilities

• Drive Up Adoption Rates to Reduce Costs and Increase Customer

Satisfaction



Smarter Customer Servicing With IBM CM OnDemand

Composition

Engine

Business

Applications Archive

Indexing

.res .out

.ind

Printing

& Output

Batch Examples: •Printstreams (AFP & Metacode •Documents like PDF •Mass Data like XML

Batch Separation

of Documents

Benefits

• Competitive advantage through superior customer service

• An average saving of $3 or 2 Euro for each mailing suppressed,

• 20%-30% adoption rate for customers accessing statements on-line

allows a business to sell other services to their customers through

their customer portal

• Self-service for customers 24x7 lowers the cost to a business,

because of fewer direct customer service phone calls



Industry-leading Compression Delivers Cost Savings Massive Scale, Incredible Performance

VS.

100 1.3 MB PDF files requires storage of

1,300 MB Actual results

RESOURCES X 1

doc1, doc2, doc3, doc4, doc5…docx

100 1.3 MB PDF files

requires storage of

1.6 MB Actual results

(812:1)

Traditional ECM Systems store

documents individually – with

graphics embedded

IBM’s unique and patented

ability to dissect, compress

and archive PDF files



Industry Examples

Telco - Stopping printed statements for huge monthly savings &

storing XML of call records with statements

Bank – eBanking as top priority for 10 year ECM plan

Retirement – In production to customers within 2 weeks and

more than 50% adoption rate in the first month

Insurance – All customer communications captured and records

retention implemented with the confidence to destroy records

Healthcare Payer/Provider – Explanation of benefits and

active records management

Government – Social services communications



Socialize with mobile

• Changing Customer Set

– 50% of the population is under the age of 30

– These consumers generally do not want

mail

– It costs $3/ 2Euro to mail a statement

• eDelivery

– Allow access to via

smartphone, tablet and the

internet to statements.

– The company saves money

by suppressing mailings and

these customers are much

happier.



Quick Tips for Adoption of Electronic Delivery

Carrots

– Electronic bill presentment as amenity

– Offer discounts for electronic delivery

– Use incentives or promotions for buy-in

– Sell the environmental benefits

– Leverage social media to sell the

message

– Start sending electronic statements

proactively

– Give customer choices as to which

documents to receive electronically, and

which to continue receiving hardcopy

Sticks

– Make electronic delivery of statements

the default for all new accounts

– Charge for paper statements

– Leverage re-negotiation periods to build

this cost savings into your contracts for

corporate statements

Marketing • Electronic delivery drives customers to a

company’s website • Use messaging that your clients will readily

accept • Create a sense of value & urgency



U.S. Banks Charging Fees for Paper Bills

Bank Fee Source

Sterling Trust $30 per year http://www.sterling-trust.com/fees/

World Financial Bank (Victoria’s Secret, Ann Taylor, etc.)

$1 per http://www.creditinfocenter.com/wordpress/2010/01/04/banks-to-issue-new-checking-credit-card-fees-2/

Bank of America $8.95 per on certain accounts

http://www.americanbanker.com/issues/175_134/monthly-statements-1022290-1.html

TD Bank $1 discount http://www.mybanktracker.com/news/2012/07/02/paper-statements-feeladen-checkingaccount-perk/

US Bank $2 per month

Wells Fargo $2 per month

8



Consumer

1. Discuss customer

service and archiving

needs with SME from

IBM • Have sample print and

output stream analyzed by SME

Best Practice Project Cycle

2. Second Meeting with SME • View actual business

communications over the web

and on mobile device • Review analysis of your data in

terms of compression,

performance and expected impact on business.

• Schedule BVA with SME team

4. Complete BVA with SME

5. Review value of project

against other business

priorities • If very favorable then start

project with speed

3. Contact other companies

using similar solution to

quantify actual results from

solution



IBM Content Manager OnDemand Advantages

Unmatched compression provides cost,

retrieval, scalability and performance benefits

State-of-the-art UI with Web & Mobile Device Access

Fast deployment and ROI

Install and deploy in 1 week

Payback in one year not uncommon

Active roadmap – New release in 2014

Proven conversion services

Thousands of customers

Active User Group

Software

Increase Customer Engagement Through Transparency - Forrester Research