ANZ Consumer Credit Cards - putting the focus on customer service delivery ?

1. ANZ Consumer Credit Cards- putting the focus on customer service delivery ? Presentation to SOCAP 2007 ANZ Consumer Finance September, 2007

2. Agenda for today’s presentation • ANZ credit card business – an overview • What is customer experience ? • Why is customer experience important to a business? • How can customer service delivery impact customer experience ? • How do you develop and implement customer experience ? • a case study • Learnings from our experience

3. ANZ brand is well known in the Australian marketplace • Key features: • strong brand image • innovative • customer focus • Key statistics: • 1.6M customers • 2.1M cards on issue • 19.5% market share ANZ Credit Cards Whatever It Takes… Security Visa Debit 24/7 access to your own money Low Rate Help you take control of card debt Premium Enhance your lifestyle Rewards Real value from every day spending + Service Low Fee Let you enjoy the now Platinum The exclusivity you deserve Frequent Flyer Reward you with more life experiences Prepaid Reward friends and family ANZ credit cards … whatever it takes to deliver more convenient, simple and problem free card services

4. What is Customer Experience ? Customer experience is the internal and subjective response customers have to any direct or indirect contact with the company or organisation. For an organisation, customer experience is understanding the drivers and optimising the choices taken to manage each step of the process involved in delivering that product or service to the customer’s expectations.

5. Why is Customer Experience important ? • global economic and competitor pressures combined with changing social • behaviours of customer groups has led to significant differences in the • way organisations need to engage with customers • achieving high levels of customer satisfaction or loyalty involves clearly • understanding what customers want and how they feel when they get it • (or don’t get it) – this is distinctive customer experience • customer experience is the articulation of the values of the organisation • as shown in how every function and every person in the organisation • performs their role – it’s more than just having a great product or good • pricing !!

6. Advocacy Additional Usage Level of Customer Engagement Neutral Decline Defection Satisfaction Customer Satisfaction Outstanding customer experience is achieved by being distinctive where it counts and priceless on the “moments of truth” Dissecting a business into its core elements from product design through acquisition to servicing enables a better understanding of where attention and resources need to be directed Essential Distinctive Priceless Product Development Advertising & Communications Acquisition Transaction Processing Account Maintenance Fraud Service recovery Retention Collections Priceless Distinctive Map each part of the process based on research Essential Dissatisfaction

7. How can customer service delivery impact customer experience ? • 1. customer services must be prepared to accept that its role is key to a • successful end-to-end customer experience: it’s not just the costs • associated with delivering a product or service • 2. customer service standards must be designed into the features of the • product and service and therefore customer services be involved from the • earliest stages of product development • 3. by consistently delivering to the customer service delivery standards • agreed with product designers and marketers, customer services “earns • the right to have their say” • 4. customer services needs to be prepared to provide senior management • and executive with the relevant information and insights into how the • business is performing and explain what can be done differently

8. Customer experience is the integration of a cross-section of sources of information into a dedicated program Three key elements form the basis of a customer experience program*: Developing a Dashboard that measures performance Taking action to improve customer performance Defining the Customer Experience Model • identifies sources of data • – creates “quantifiable • and analytic” measures • using subjective data • presents data in a • manner that assists • in drawing conclusions • and making decisions • uses dashboard results • as a benchmark to • measure performance • improvement • identifies initiatives that • align to the improvement • of the key customer • metrics • closely tracks and • monitors performance of • initiatives • evaluates extent to which • the model is enhancing • customer satisfaction and • loyalty • defines the model, • its rational, core • elements and • strategic intent • identifies “moments • of truth” – those • specific customer • activities that will • transform the business • explains how the • model will lead to • improved business • performance * Bliss, 2006; Smith & Wheeler, 2003

9. Case Study: Customer Satisfaction Model and Dashboard People 6.7 Relationship Valued Customer 32% 7.0 Overall Satisfaction 7.5 51% Customer Service 7.0 9% Communication 8.0 10% 7.5 Channels 8.0 7% Business Metrics Rates and Fees Fees and charges 7.0 15% 7.0 25% Interest Rates 10% 7.0 Product Features 8.0 17% Click to scorecards 7.6 Customer Satisfaction Rating 50% Customer Importance Weighting 6.0 2006 Staff Engagement Result

10. Customer Service – How are we servicing our customers?

11. Learnings – putting service delivery in focus • customers have become increasingly selective, seek • choice and possess very high expectations and • customer service delivery is one of the key defining • moments for whether they stay with you or go • “earn the right” to have your say at the management • table – consistently deliver high standards and the • credibility will acknowledged • don’t be shy in constantly using information to • demonstrate customer impact – but make sure you • present it in a relevant manner • constantly communicate and encourage all staff to • understand what the organisation stands for and • show them how they contribute to organisation’s • success – drive the internal culture and change • management