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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, juny 2012

Gartner | Agenda Overview for Banking and Investment Services, january 2013

image: i95dev | Applying Gartner’s Nexus of Forces to Retail, march 2013

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 don’t own or rent them. You can’t 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.

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 past—manufacturing strength, distribution power, and information mastery—have each been commoditized and are now easily accessible to every company (and, let’s 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 we’ve 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. It’s 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.

The rise of the Chief Customer Officer

CCOs will play an increasingly critical role for firms—not 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.

Successful CCOs will move their company

 

Source: Forrester Research | The Rise of the Chief Customer Officer, january 2011