Three outcomes that defined the redesign
From prioritising meetings with customers who have complex advisory requirements
By deliberately targeting customers with unmet needs and financial potential
A redesigned operating model allowed for greater efficiency in resource deployment
The challenge
The company's customer service model was broken as demonstrated by the large number of expensive advisory meetings being held with low-value customers. The value-per-meeting was below industry benchmarks, and customer satisfaction had plateaued.
The commercial management team suspected massive revenue and margin erosion, but the decision-mandate sat with the individual advisor who had limited skills and tools to guide better decisions. The initial estimate from Responsive suggested a potential worth more than one billion kroner per year.
The approach
Our initial work built a detailed strategy for change and the business case to support it. We identified the value gap between advisory meetings being held and the achievable target state. This identified a realistic growth opportunity of approx. 2bn DKK annually. From there, we built out a dynamic customer segmentation model, innovated new customer service and advisory concepts tailored to each customer's lifecycle and individual situation, and designed the IT target architecture to support the future service model.
Over the course of a 24-month implementation, we developed the new service concepts, we built the vast technical infrastructure to support them, we redesigned the organisation and operating model around the new service model, and we managed the total transformation programme.
As the development and implementation phase drew to a close, we transitioned into the rollout and change phase of the programme. We piloted the new model with select regional managers, before rolling it out to the entire company and customer base.
The impact
Customer satisfaction took a substantial leap for the company's most valuable customers, yielding an 8-point improvement in Net Promoter Score.
Average financial outcomes of advisory meetings improved by 89% across customer meetings, leading to a total annual increase of 20% in new Assets Under Management.
As the new service model matured and impact settled, total company profitability grew by at least 14% on a like-for-like business volume.
Transforming our customer advisory and service model has given us a substantial NPS uplift, and been an exceptionally impactful business case.