Customer-Centric Innovation… Can Operational Excellence and Client Focus Go Hand-in-Hand?

Viewpoints: An Inside Look at Innovative Business Models

The desire for increased productivity is a key driver of innovation, but it can sometimes seem at odds with another important business imperative: customer-centricity. WFS spoke with Jason Rushforth, senior vice president of CDC Software, about whether innovation, productivity, and customer-centricity can coexist.

WFS: Jason, a lot of the push for innovation is focused on operational efficiencies and productivity. Is this a mistake?

JR: Not at all. There’s no question that financial services firms need to focus on operational excellence and innovative ways to do more with less. But at a time when many financial services firms are struggling to regain trust and rebuild customer relationships, they need to make sure they don’t lose sight of their customers in the process. After all, even the most productive and innovative firm will fail if it has no customers.

WFS: How can FS firms keep the customer in their line of sight as they look to innovate and increase productivity?

JR: It’s a matter of recognizing that the internal (tools, processes, etc.) and the external (the customer experience) are not two separate issues or fronts for innovation – they’re in fact inextricably linked. How you operate internally impacts how customers experience your firm externally. Therefore, a firm has to consider how a given innovation will affect the customer: if it cuts costs internally, will it do so at the expense of customer service? Will a measure introduced to increase employee productivity end up short-changing the customer?

WFS: Is it possible to innovate in a manner that benefits both the firm and the customer?

JR: Unquestionably. If a financial services firm takes a customer-centric approach to innovation, it can reap countless benefits. A natural starting point, of course, is to truly listen to customers. What do they value? What opportunities for improvement in your firm do they see? It sounds obvious, but many firms overlook the power of their customer base as a source of innovative ideas. Secondly, firms need to consider the customer experience itself as a key area to which innovation can – indeed, must – be applied. A firm that does not differentiate itself through a distinctive customer experience quickly gets locked into the death spiral of price competition, especially in the increasingly commoditized world of financial services. Innovations in the way you reach, build relationships with, and deliver service to your customers can pay off many times over, because this locks in a clear competitive advantage.

This is not to say that internal efficiencies cannot also be the focus of customer-centric innovation. A call-center agent who is able to access and apply customer information more quickly and effectively, for example, is not only more efficient and productive, but also capable of delivering faster and better service to the customer. Similarly, more rapid client on-boarding benefits both the customer and the firm. Such innovations are clearly a “win-win.”

WFS: What kind of technology support do FS firms need to be able to undertake these kinds of innovations?

JR: When it comes to delivering an innovative customer experience and improving front-office operations, client relationship management software is the core system, so it’s no surprise we’re seeing many financial services firms taking a long, hard look at their existing CRM systems right now. It’s in this context of innovation that you see very clearly that the differences between CRM systems don’t come down to a simple checklist of features – it’s far more about the system’s underlying infrastructure and overall flexibility. FS firms looking to innovate need CRM that is flexible and malleable enough to model whatever unique and innovative new process or strategy the firm desires. And it has to be able to do so quickly and cost-effectively: an innovation that takes years to implement may no longer be innovative when it’s complete! We’re seeing increased value placed on attributes such as ease of customization and integration, ability to support complex or unique processes, incorporation of existing Microsoft technologies and tools, and the like. Firms are realizing that innovation is not just about a great idea, but the ability to implement it.

Jason Rushforth is senior vice president at CDC Software, providers of Pivotal CRM for Financial
Services, an innovative suite of customer relationship management solutions. To learn more, visit www.pivotal.com/financialservices.