August 2006

1. Multi-channel Customer Experience Consistently servicing the customer's choice Dr. Adir Shiffman Director, Global Reviews August 2006

2. You Can Leave After This Let me commence by giving away our 6 years of learning. Here are five causes of poor experience that we keep seeing: • No understanding of the real customer need • For example, no one wakes up wishing they had a mortgage • No understanding of the real customer value • This is what determines long-term profitability • Viewing the channel experiences as discrete • To the customer there is a company not channel/service silos • Forcing the customer to fight to be heard • This is where consumer advocacy is a huge benefit • Flying on a foggy day without instruments • Lack of insight into the real experience

3. It’s No Longer Your Choice • Consumers now dictate their preferred channel • It’s up to you to meet their needs • If you don’t they will create problems! • The internet is becoming more significant • And has made it easier than ever to churn • And to share negative (and positive) sentiments (i2.0) • Today I will show you: • Where consumers are going for different needs • Real performance results of real companies • The latest insight around email • Some funny and crazy stuff that goes on

4. Where Would You Go • You saw an ad for a low rate mortgage and want to learn more about it • Your health insurer has become too expensive and you want to investigate some others • Your friend told you to check out a bank’s $20 bonus for opening their high yield saving account • You know which credit card you want, but now just need to apply for it • You want to book a flight to the Gold Coast • You’re worried your son’s been downloading movies and want to check internet usage

5. Channel Preferences

6. Channel Preferences • Phone is critical across all consumer needs • An astounding number of people prefer email for complaints • The branch still serves a vital role

7. Complaints Handling

8. Complaints Handling Hi there, I have had <a problem with your company> and have previously tried to raise this matter. I would like to now make a formal complaint, and need to know how to do this. Thanks (name) Dear Mr. (name), Please refer to link below for further information regarding complaints/feedback/suggestions. http://www.bigbank.com.au/About_Us/0,,1038,00.html#Four Hope this assists and have a pleasant weekend ahead. Yours faithfully, <name> Customer Feedback & Resolutions <Big Bank with spelling mistake in name>

9. Complaints Handling Hi there, I have had <a problem with your company> and have previously tried to raise this matter. I would like to now make a formal complaint, and need to know how to do this. Thanks (name) Dear (name) Thank you for your enquiry on the complaints process. As a customer of Bank of New Zealand you have the right to expect quality service and support at all times. If you have a complaint or problem, we want to know so that we can fix it. All our staff are committed to treating complaints seriously and reaching resolution as quickly and fairly as possible. Here are the ways you can go about letting us know: Step 1: Talk to us at your nearest Bank of New Zealand branch. A quick chat with a staff member at a Bank of New Zealand branch is often all that is required to resolve your concern. If a solution cannot be found, ask to speak to the Branch Manager, who will take personal responsibility for ensuring your complaint is investigated promptly. Alternativley you can call a Customer Solutions Advisor on 0800 ASK BNZ (0800 275 269) any time, 24 hours a day, 7 days a week. If a solution cannot be found, ask to speak to the Team Leader, who will take personal responsibility for ensuring your complaint is investigated promptly. Step 2: Contact Complaint Resolution … Step 3: Banking Ombudsman We sincerely hope that your complaint has been resolved by this stage. If not … http://www.bankombudsman.org.nz If there is anything else we can help you with you can send us another message, call us on the numbers below or visit your nearest branch of Bank of New Zealand Kind regards <name> Customer Service Representative Bank of New Zealand Bank Smarter Phone - 0800 275 269 or +64 4 494 9098 from overseas Fax - 0800 329 269 or +64 4 470 3071 from overseas

10. 9 7 6 Setting Expectations Up Front

11. Top 10 Savings Goals • Travel 35% • Nothing in Particular 23% • Just Parking the Money Temporarily 19% • Children (education, future, etc) 17% • Purchase a House (Home) 16% • Retirement 15% • Investment (incl. property) 15% • Car 07% • Renovations 06% • Boat or Caravan 02%

12. InvitingContact

13. HardSell

14. A Reply is Not an Answer “All you need in this life is ignorance and confidence; then success is sure.” Mark Twain Too many operators are alumni of “Mark Twain School of Excellence”

15. A Response with No Answer

16. A Pitch with No Effort Phone experience of five banks – Savings Accounts

17. 9 7 6 News Just In.Email Matters.

18. Email Online Consumer Monitor, July 2006 Acceptable Response

19. Email Online Consumer Monitor, July 2006 Missed Expectations

20. Email Online Consumer Monitor, July 2006 Too Long

21. Email Online Consumer Monitor, July 2006 All About Expectations

22. Email Online Consumer Monitor, July 2006 Tipping Point

23. Email Online Consumer Monitor, July 2006 Trust Issues

24. 9 7 6 Performance:Latest Results

25. Email Top Performers 60 companies benchmarked across airlines, credit cards, energy, ISPs, mortgages, savings, and water. • BigPond (ISPs) 74.8% • Freedom Air NZ (Airlines) 72.0% • ActewAGL (Water) 69.6% • Sydney Water (Water) 69.0% • Vodafone (Mobile) 65.6% • ActewAGL (Energy) 65.6% • HSBC NZ (Savings) 65.5% • HSBC AU (C Cards) 64.6% • Suncorp (Savings) 64.5% • Virgin Money (C Cards) 64.3%

26. Email Bottom Performers 60 companies benchmarked across airlines, credit cards, energy, ISPs, mortgages, savings, and water. • <Withheld> (Savings) 48.0% • <Withheld> (Mortgages) 47.4% • <Withheld> (Water) 47.1% • <Withheld> (C Cards) 46.9% • <Withheld> (ISPs) 46.0% • <Withheld> (ISPs) 45.4% • <Withheld> (ISPs) 43.0% • <Withheld> (C Cards) 38.8% • <Withheld> (Savings) 37.0% • <Withheld> (ISPs) 35.7%

27. Telephone Top Performers 35 companies benchmarked across airlines, credit cards, energy, ISPs, mortgages, savings, and water. • BigPond (ISPs) 65.5% • ANZ (C Cards) 65.1% • ANZ (Savings) 59.7% • Virgin Money (C Cards) 59.7% • nab (Mortgages) 59.1% • Westpac (Mortgages) 58.8% • ING Direct (Savings) 58.1% • St George (Mortgages) 57.4% • Commonwealth Bank (Mortgages) 56.9% • HSBC AU (Mortgages) 56.6%

28. Telephone Bottom Performers 35 companies benchmarked across credit cards, ISPs, mortgages and savings. • <Withheld> (C Cards) 50.9% • <Withheld> (Savings) 49.6% • <Withheld> (ISPs) 49.4% • <Withheld> (ISPs) 48.7% • <Withheld> (ISPs) 47.3% • <Withheld> (Savings) 46.9% • <Withheld> (ISPs) 46.8% • <Withheld> (ISPs) 46.6% • <Withheld> (C Cards) 46.4% • <Withheld> (ISPs) 40.8%

29. Experience and Business Growth • BigPond consistently delivers the best ISP sales experience across all channels (and most other ISPs are very weak) • And BigPond continues to accelerate above the industry • When iinet acquired Ozemail we saw a sharp drop in the both companies’ service levels across phone and email • Integration issues were reported and have caused major challenges • ANZ cards delivers a great experience over the web and the telephone (although definitely not via email) • And ANZ is one of the main two banks growing the cards business • Since contestability, energy companies have improved • An example of business reality driving service levels

30. Products Can Beat Experience “A terrible product will often overpower a great experience. A great product will overpower all but the most terrible experience.” Global Reviews Axiom

31. 9 7 6 The BigFINALE!!!

32. Times you Pray For Attrition (phone) • A bank, when asked why an interest rate changed:  • “Uuuuuum er…I…pretty much…I feel sick…um…they just change it when they feel like it…or something to do with the economy…I'm really not feeling very well today…um… well that's why I think it would be”.  • “I'll give you my direct line so you can speak to me on a better day” • A bank, offering sign up options for a new account • “…or you could toddle in to one of our branches” • An ISP operator, on being asked about changing over to their service • “Unless you change your home phone over too, our plans aren't really very good'

33. Times you Pray For Attrition (phone) • On being told the by a customer that they were seeking faster broadband, the ISP operator responded that ADSL2+ would be available in their area in two months and said: • “I know you want it faster asap but call back in July”. • An energy company operator asked about swapping to green energy • 'I'll just talk, and I'll ramble on with whatever I can, and if you have any questions at the end let me know” • A bank, on being asked about a competitor’s offer • “Actually, I think you should swap to them, they sound a lot better”

34. Five Keys • Your products are often not that different • Consumers view many services as commoditised • Needs-based selling should always occur • This alone can avoid many subsequent problems • When you hear hooves, think horses not zebras • To improve performance start with obvious obstacles • Email is now a core channel • Just ask anyone who has ever been ignored! • Gut feel is for gastroenterologists • Make evidence-based decisions

35. Know Your Customers “Furious activity is no substitute for understanding.” H.H. Williams (US Judge)

36. Base Decisions on Facts “The greatest obstacle to discovery is not ignorance - it is the illusion of knowledge.” Daniel J Boorstin (Historian, Librarian of Congress)

37. www.globalreviews.com