FSA highlights risks in financial incentives based on sales
Lloyds TSB, Barclays and British Gas are all in line to scrap incentives based on sales and focus on customer satisfaction following new FSA guidelines.
In September, the Financial Services Authority (FSA) issued new guidelines relating to staff that are incentivised on sales. Their concerns were with incentive schemes where advisors could earn significant bonuses and that most organisations do not have effective systems in place to control the potential risk of mis-selling arising from such incentives.
This announcement has led to companies such as Lloyds TSB, Barclays and British Gas introducing new schemes that reward good customer service. Antony Jenkins, Barclays’ new chief executive, said:
“We believe that becoming the ‘go-to’ bank is about helping people and businesses get on”. Therefore the key to Barclays’ long-term success is the level of service we provide, not how many products we sell.”
In October, at a London School of Economics speech, Stephen Hester, RBS said “We have reformed the way we pay our staff so that customer satisfaction and risk control rather than just profit determine whether or not you get a bonus and how big that bonus might be. I take to heart the sentiment that we should pay people to serve well not simply to sell well.”
How do you effectively measure customer experience though?
Bright can prove an irrefutable contribution to companies’ overall success through customer satisfaction measuring, but it has to be done in the right way.
Most common mistakes:
- Measuring at an enterprise level and not at a staff level
- No real-time feedback to staff
- Surveying too late
- Basing analysis on a too small a sample
- Customer satisfaction sits within marketing
Many financial services companies overlook the huge impact customer satisfaction (CSAT) measuring has as an operational tool. Making sure that feedback comes full circle to the department that generated the experience can have a significant impact on the company’s market position; with 30% more very satisfied customers as just one of the outputs.
The Bright approach
The Bright Navigator tool is a low cost way to measure CSAT or NPS (Net Promoter Score) in all of your channels; Telephony, Email, Web chat, Branches, Invoices, on your Website etc.
For the telephony channel an automated survey calls back a sample of your customers 10 seconds after their interaction with you. The scores given are available to managers real time and a little later to the staff member who took the call. This real-time 360° feedback creates a self-developing and self-learning organisation.
Our clients report an average 30% increase in very satisfied customers, which has a significant effect on sales and customer retention. The tool also helps you understand what (often counter intuitive) metrics drive CSAT and NPS the most. When you know what your customers care about you can use your resources where it matters and incentivise staff accordingly. It also helps your managers and team leaders focus on the staff needing the most help, optimising their coaching time. The below graph shows the “matrix” feature combining finding correlations between NPS drivers as well as identifying staff driving NPS (or not).
Find out more
If you would like a demo or find out more on how we can support you in measuring your customer experiences please contact us on 0208 296 1944 or email firstname.lastname@example.org