Key note presentation i gave at the Future of Finance 2.0 conference in Munich, 22/23 June 2017 The key message was that in all the current driver towards digital transformation and fintech/insurtech/regtech we should never forget to keep the human in the center of our thinking. Otherwise our innovation efforts will be pointless and lossmaking

1. Technology driven, but human-centric
FUTURELAB
The future of finance is human!
122/06/2017

2. FUTURELAB
Somecredentials
Stefan Kolle
All nice & well … but I still need to grow!
Allow me to introduce myself
Welcome

3. We make Customer-Centricity happen. Profitably.
Industry solutions
A structured approach for automotive firms to embed the
customer perspective in every aspect of their business, from
customer journey development to POS training.
Automotive
An approach for financial retailers, insurers and asset
managers to capture the attention of mass-affluent & high-net-
worth customers.
(Mass-affluent) Finance
A structured approach for telecommunication firms to embed
the customer perspective in every aspect of their business.
Telecommunications
One of the strongest customer strategy teams in EMEA World-class credentials
To make the world a more
customer-friendly place (for fun & profit)
Our Purpose
Why we exist
We help you make customer experience happen.
Profitably.
Our Promise
What we deliver
Strategic Programmes
Tactical interventions
• Increase customer value
• Manage multi-channel journey
• Improve employee effectiveness
• Improve commercial impact
• Align departments, processes and
systems around the customer.
• Develop a customer mindset
• Transform the organisation
• Challenge the industry
Our Activities
What we do
Strategy Experience Customer VoiceCulture Enablers
Design
Develop customer
programmes based on
current and future
needs.
Implement
Translate ideas into
processes, KPI’s,
trainings, that ensure
implementation.
Accellerate
Enthuse all
stakeholders so they
(pro-)actively
contribute.
Sustain
Ensure continued
momentum and
innovation across the
business.

4. Technology driven, but human-centric
FUTURELAB
The future of finance is human!
422/06/2017

5. 22/06/2017 5.
Is that so?
A difficult question

6. 22/06/2017 6
Remember these? ...Or these? How about these?
My pain
I’ve been a technology preacher all my life

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22/06/2017 722/06/2017
My pain
I’ve heard a lot of buzzwords. Even made some up.

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22/06/2017 8.
My pain
And finally the future is here!

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22/06/2017 9.
Silly Question
What is this?

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22/06/2017 10.
The future is here
My car can drive itself

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22/06/2017 11.
The future is here
Marty McFly would be happy with these

12. FUTURELAB
App scans car ads to generate car loan quotes
There is an app for everything, even loan quotes
The future is here

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22/06/2017 13.
My pain
What is next – pre-cog delivery?

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22/06/2017 14.
Challenge
But... is this what I wanted?

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22/06/2017 15.
Challenge
But... is this what I wanted?

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Challenge
What do you tell a shopkeeper in Cuba?

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22/06/2017 17
My pain
This is madness!

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LowTech
Affinity
HighTech
Affinity
What Service?
HowService?
High ValueLow Value
High Value
High Tech Affinity
Low Value
High Tech
Affinity
High Value
Low Tech Affinity
Low Value
Low Tech Affinity
Service Design
It all goes too fast
We can’t keep up
What we thought
was not exactly true...

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22/06/2017 19.
It all goes too fast
We become suspicious
It’s a chatbot
It’s a human!

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It all goes too fast
We can’t manage
… ???

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22/06/2017 21
It all goes too fast
As failures keep on piling up...

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22/06/2017 22
It all goes too fast
We have a serious trust crisis on our hands

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22/06/2017 23
http://www.information-age.com
It all goes too fast
With financial industry taking the biggest hit...
http://bankinnovation.net

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22/06/2017 24.
Challenge
CEOs (and CFOs) have the toughest balancing act ever

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22/06/2017 25.
Question 2.
How do you convince and align?

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22/06/2017 26.
Question 3.
And with everyone running into the same direction...

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22/06/2017 27.
Question 3.
...How DO you differentiate?

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So… what about that “human-centric” approach?
Answering the difficult question
22/06/2017 28.

29. FUTURELAB
1. Design tech around people, not people around tech
2. Put the customer back into financial conversation
3. You have (human) assets – use them
I have a variety of solutions, but will limit this presentation
Three main ways to human-centric technology

30. FUTURELAB
1. Design tech around people, not people around tech
2. Put the customer back into financial conversation
3. You have (human) assets – use them
I have a variety of solutions, but will limit this presentation
Three main ways to human-centric technology

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Solution One
The experience counts at every step of the journey

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Customer Experience Management
Is about managing emotions at each step of the journey

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This can provide you with a radically new perspective
Case: An Automotive Brand
Pre-sales Sales After Sales
The Traditional Perspective
Search Evaluate Try Select Wait Search*** *** *** ***
* * * = Confidential
22/06/2017 33
The Customer’s Reality

34. THECUSTOMERPERSPECTIVE
Case: Lexus
Use advanced DB management to create delight moments
Lexi the dog

35. Case: Touring
Immediate policy after payment to eliminate stress
Am I insured? I did pay for it…

36. 22/06/2017 36
Case: ING
After news about a sad event, send an agent with pre-filled docs
Please accept our condolences

37. FUTURELAB
(cc) miguelb
Who decides on the layout of the customer invoices?
Real life case: what can you contribute?

38. FUTURELAB
1. Build your tech around emotion.
2. Manage every step of the journey.
3. Tech should help going through the steps easier,
not harder.
I have a variety of solutions, but will limit this presentation
Design tech around people, not people around tech

39. FUTURELAB
1. Design tech around people, not people around tech
2. Put the customer back into financial conversation
3. You have (human assets) – use them
I have a variety of solutions, but will limit this presentation
Three main ways to human-centric technology

40. The problem I have always had with customer experience thinking
Being human-centric is NOT about the fluffy stuff
“Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go WOOOOOWW!!”
FUTURELAB

41. “Why should I allocate precious
budget to experience?”
It is about hard cash.
FUTURELAB

42.  spend more
 negotiate less
 stay longer as customers
 are more open to upselling
 are easier to service
 upgrade quicker
 are ready to refer to others
 increase staff morale
 etc.
Customers who are
so happy that they
recommend...
Experience is about making money
You know it very well: human emotion = money

43. Personal experience in 15 industries … and counting
5:1
The worst I’ve ever seen
6000:1The best I’ve ever seen
FUTURELAB
Experience is about making money
Happy customers are most profitable

44. Human happiness…
do you spell it with
€ or €€?
Why focus on Customer Experience?
Suddenly every executive likes customer experience
FUTURELAB

45. FUTURELAB
Customer Value
Word-of-mouth effect (+/-)
Total Customer Value
Promoter
9-10
Detractor
0-1-2-3-4-5-6
Passive
7-8
___________
___________
___________
___________
___________
___________
___________ ___________ ___________
___________ ___________ ___________
___________ ___________ ___________
___________ ___________ ___________
FUTURELAB
How to build a (simple) business case
Let’s calculate
• Car margin € 1.000
• Average life: 5 years
• Avg. service visit margin: € 50
# Purchases over life time
Purchase margin of car
Value service visits over life time
Value

46. FUTURELAB
# Purchases over life time
Customer Value
Purchase margin of car
Word-of-mouth effect (+/-)
Total Customer Value
Promoter
9-10
Detractor
0-1-2-3-4-5-6
Passive
7-8
___________
___________
___________
___________
___________
___________
___________ ___________ ___________
___________ ___________ ___________
___________ ___________ ___________
___________ ___________ ___________
1
€ 1.000
€ 200
2
€ 2.000
€ 500
4
€ 4.000
€ 1.000
€ 1.200 € 2.500 € 5.000
Value service visits over life time
FUTURELAB
How to build a (simple) business case
Let’s calculate
• Car margin € 1.000
• Average life: 5 years
• Avg. service visit margin: € 50
Value

47. FUTURELAB
Word of Mouth Impact at a Global Luxury Car Brand
How many customers
did you stop from
choosing us?
How many customers
did you bring us?
1 4

48. FUTURELAB
# Purchases over life time
Value service visits over life time
Customer Value
Purchase margin of car
Word-of-mouth effect (+/-)
Total Customer Value
Promoter
9-10
Detractor
0-1-2-3-4-5-6
Passive
7-8
___________
___________
___________
___________
___________
___________
___________ ___________ ___________
___________ ___________ ___________
___________ ___________ ___________
___________ ___________ ___________
1
€ 1.000
€ 200
2
€ 2.000
€ 500
4
€ 4.000
€ 1.000
€ 1.200 € 2.500 € 5.000
€ -2.500 € 0 € 10.000
€ -1.300 € 2.500 € 15.000
FUTURELAB
How to build a (simple) business case
Let’s calculate
• Car margin € 1.000
• Average life: 5 years
• Avg. service visit margin: € 50

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Case: Vodafone
Calculate CLV to prevent churn of valuable customers

50. FUTURELAB
Calculate CLV to know how
much to invest
Recommends to 5 people
Convinces 1.9 potentials
CLV (incl. WoM): €12,146
Detracts to 3 people
Keeps out 1.5 potentials
CLV: -€ 8,521
Talks to 3.2 people
Change minds of 0.75 potentials
CLV: €4,588
Personal bank CLV calculation

51. I approve of this
message
Why focus on Customer Experience?
Because it makes money.
FUTURELAB

52. FUTURELAB
1. Make a business case for customer delight
2. Calculate how much profit word of mouth
brings to you
3. Prioritise investment into moments of high
emotion = word of mouth: reduce negative,
build on positive
I have a variety of solutions, but will limit this presentation
Put the customer back into financial conversation

53. FUTURELAB
1. Design tech around people, not people around tech
2. Put the customer back into financial conversation
3. You have (human) assets – use them
I have a variety of solutions, but will limit this presentation
Three main ways to human-centric technology

54. FUTURELAB
33%
61%
55%
51%
2003 2004 2005 2006
A person like yourself or a peer
Edelman Trust Barometer 2006When forming an opinion
of a company, how
credible would the
information be from …
%
Academic 62
Doctor or similar 62
Person like yourself/peer 61
Financial Analyst 58
NGO Rep 58
Accountant 53
Lawyer 36
Regular employee 33
CEO 29
Union 19
Entertainer 17
PR person 16
Blogger 15An extract from our old report
People used to trust their peers more than advisors...

55. FUTURELAB
Source %
In-store Sales Associate 49
In-store demonstration 36
Word-of-mouth from family & friends 33
Newspaper Coupons 25
Internet 21
Product/Company Information 16
Retailer information 14
Other 14
Magazines 4
TV 4
Radio 3
Source: CMO Council’s Retail Fluency Report, 2005
Most influential information sources in
purchasing electronic goods? (TOP 3)
An extract from our old report
And much more than the media...
2006

56. 22/06/2017 57
New data has come in
In 2017 a peer is the ONLY credible source left.
2017

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They won’t even trust you (let alone or your CEO)…
22/06/2017 58.
But they will trust your employees

58. FUTURELAB
Paleolithic
(stone) age
“hunter-
gatherer”
-2,000,000
-3000
Copper tools
Industrial revolution
-300
Information
Age
-50
Because 3000 years of technology cannot undo 2,000,000 of hardwiring
TRIBAL – VERBAL – DISTRUST OF BIG TRIBES
But why?

59. 22/06/2017 60
Your people Your knowledge Your fans
Solution 3
What assets can you use?

60. Use your people
Your employees influence your business massively
Would you recommend the bank to friends /family?
32% No 28% conditionally
Would you recommend the bank as an employer?
39% No 30% Yes
N=25,000 (out of 59,000)
FUTURELAB

61. FUTURELAB
“you know what those
idiots did at work”?
FUTURELAB
Use your people
Would your people recommend? Act?
1 employee
1st degree: 150
2nd degree: 22,500

62. FUTURELAB
Knowledge is understanding what they REALLY care about
You HAVE the data

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Use your knowledge
Some of your customers LOVE tech. Others don’t.
I value relationships. I
love my bank agent. I will
always prefer going to
the branch to opening an
app.
I don’t have time to talk.
I will always prefer
digital tools to meetings
or phone calls.
Case: Personal banking

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Breakthroughs that tech can only help to deliver
Use your knowledge

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If it doesn’t spread … it’s dead.
Use your fans

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Are you likely to
recommend?
YES !!
Do you actually
recommend?
WELL...
THE ACTIVATION CHALLENGE
What goes wrong ?
22/06/2017 67
Use your fans
Do you know if they really talk? To how many?

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Help spread
the word
Give stories
to tell
Give tools to
foster
relationships
Use your fans
Each persona has their own strength

68. FUTURELAB
Calculate CLV to know how
much to invest
Recommends to 5 people
Convinces 1.9 potentials
CLV (incl. WoM): €12,146
Detracts to 3 people
Keeps out 1.5 potentials
CLV: -€ 8,521
Talks to 3.2 people
Change minds of 0.75 potentials
CLV: €4,588
Personal bank CLV calculation

69. FUTURELAB
FUTURELAB
Let them tell your story
Case: if Insurance (Finland)
FUTURELAB
852 customers available 9 AM to 8PM for
phone conversations (and outside of those
hours online) with customers thinking to join the
company.

70. FUTURELAB
1. Make sure your employees are happy, and
empower them do their job in making
customers happy
2. Use your data and knowledge to create better
experiences
3. Leverage your existing relationships: use your
promoters
I have a variety of solutions, but will limit this presentation
You have assets – use them

71. FUTURELAB
Are you realizing the full potential of your customer relations?
Questions- want this presentation? sko@futurelab.net

72. FUTURELAB
http://tinyurl.com/65969kg
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@FLB_StefanKolle
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