2018金融行业态势_重塑客户价值英文版_41页_1mb

Summary of "The Customer Value Gap: Re-Calculating Route" by Oliver Wyman (2018)

Core Content

This report by Oliver Wyman examines the evolving landscape of the financial services industry and highlights the growing gap between customer value expectations and the current offerings of traditional financial institutions. It explores how the rise of Big Tech has shifted the focus of innovation from product-centric models to solution-based approaches that better meet customer needs.

Main Points

• The Customer Value Gap: Financial services firms are increasingly unable to meet the evolving needs of their customers, particularly in the mass market segment. This gap is more pronounced than in other industries, where customer value is being redefined by innovative, data-driven solutions.

• Big Tech's Influence: Over the past decade, technology companies have not only grown rapidly but have also redefined how value is created for customers. They have systematically solved major customer problems, offering convenient, personalized, and integrated solutions that are reshaping the expectations of consumers.

• The Flywheel Effect: A key concept in the report is the flywheel effect, where continuous innovation and improvement in customer experience lead to exponential growth. This is driven by data and algorithms that enhance the customer journey, creating a self-reinforcing cycle of growth and engagement.

• Mass Market Segment: This segment, defined as households with less than $100K in investible assets, represents a large portion of consumers in North America and Europe. Their financial prospects have deteriorated over the past decade, while their options and expectations have grown. This makes them a critical target for financial services innovation.

• Regulatory and Trust Considerations: Despite the growing threat from Big Tech, traditional financial services firms still have a key advantage: customer trust. However, this trust is being challenged as consumers demand more personalized and convenient solutions.

Key Insights from Big Tech

• Focus on Big Customer Problems: Big Tech companies like Amazon, Netflix, and Google have started by solving significant customer problems, such as access to information, convenience, and affordability, and then expanded their offerings to create a broader ecosystem of solutions.

• Active Solutions: These are integrated, evolving solutions that provide a seamless customer experience. They are not just about the product but about the entire experience and outcomes that customers seek. These solutions are built using data and algorithms, and they are often sourced from an ecosystem of partners that prioritize the customer.

• Digital Scale Advantage: Big Tech has developed a data-driven approach that allows them to scale rapidly and efficiently. Unlike physical assets, digital assets can be recombined and reassembled quickly, with low incremental costs, creating a powerful competitive edge.

• Customer-Centric Operating Models: The success of Big Tech is rooted in their relentless focus on customer needs. They build powerful algorithms that allow them to tailor solutions to individual preferences and improve continuously through a test-and-learn model.

Key Information

• Financial Services Growth Lag: Financial services growth has significantly lagged behind that of Big Tech. While the industry has improved in internal efficiency, it has struggled to create new customer value and top-line growth.

• Erosion of Historical Foundations: Traditional sources of value such as risk-free returns on deposits and insurance premiums have declined, making it harder for financial services firms to sustain growth. This trend is also observed in the insurance sector.

• Customer Value Framework: The report introduces a framework that categorizes customer value into functional and experiential dimensions. Functional value includes the basic utility of products, while experiential value is about the overall customer experience, including trust, recognition, and emotional connection.

• Bonding Scores: Providers that deliver both high functional and experiential value score higher in customer bonding, which is a measure of customer loyalty and satisfaction. This is critical for long-term growth and attracting top talent.

• Digital Transformation: The pace of digital innovation has accelerated, with cloud computing and mobile apps becoming essential tools for customer engagement. Financial services firms must adapt to this new reality or risk being left behind.

Conclusion

The report argues that financial services firms must re-evaluate their approach to customer value creation. They need to shift from product-centric models to solution-based ones that are more integrated, personalized, and data-driven. While the threat from Big Tech is real, financial services firms still have the opportunity to close the customer value gap by leveraging their existing trust and adapting to the changing expectations of their customers.

Key Takeaways

• Big Tech's Lessons: Focus on customer problems, create active, integrated solutions, and build a flywheel of growth through continuous innovation.
• Mass Market Needs: This segment is in dire need of better financial solutions that are tailored to their unique challenges and evolving expectations.
• Digital Shift: The rise of digital tools and platforms has fundamentally changed how value is created and delivered. Financial services must embrace this shift to remain relevant.
• Customer Bonding: Delivering both functional and experiential value is essential for building strong customer relationships and fostering long-term growth.