KQ Article

In fall of 2004, we introduced you to the Collaborative. We mentioned that we borrowed the idea from the healthcare industry and that we weren’t quite sure how it would turn out.

The first Collaborative tackled the attrition of new customers within the first 90 days of earning their business. We introduced the 12 banking executives who would join us on our journey.

We used this publication to keep you apprised of progress and findings discovered along the way.

And we were excited to share results. Across the 12 banks and credit unions of the participating Collaborative members, new customer attrition decreased by 7 percent –13 percent. Improved employee morale was also unanimously reported.

We were on to something.

We eagerly launched the next Collaborative, which focused on improving the banking experience for small businesses. And again, we had exciting year-end results to share: improved new customer and member acquisition, along with increased account values and broader interest in financial products.

The third and most recent Collaborative shared our model for better understanding what occurs emotionally when customers experience problems. Our research found that with a more conversational, authentic approach in which control of the interaction is shared, resolution can be so powerful that it results in a more loyal customer.

Each Collaborative has revealed many nuances of the topics at hand. But we also learned some valuable lessons from the Collaborative experience itself. Here are three such lessons.

1. Let customer conversations go where they go.

All the Collaboratives so far have involved an intense period of in-field customer research. We hosted focus groups, panels, interviews, role-playing and more to ensure we understood the customers’ perspective and the situations comprising their experience.

We’ve been impressed by  consumers’ willingness to participate, and by the consistency of their responses. They typically show up eager but skeptical. But as they witness our genuine desire to understand their points of view, they become increasingly willing to share and to help.

And while we use carefully devised methodologies and processes when interviewing subjects, we are cautious not to sacrifice authenticity for process. We listen closely to what each consumer is saying and focus our followup questions on what he or she might be implying. We go where consumers want to go — and because of that, they share openly and enthusiastically.

We also concluded that customers and members:

• See transactions, products and quality as table stakes.
• View relationships as the value that could lead them to disregard price.
• Crave and respond extremely well to real, authentic interactions.

2. Put your convictions to the test.

Across all three Collaboratives, I can think of instances when we considered ideas that seemed so off the mark, I was actually embarrassed we were pursuing them. And, almost without fail, those oncequestionable elements passed our testing with flying colors.

We developed tremendous respect for our processes, particularly those that involved consumers and measurement. We are sticklers about getting everyone involved in front of the customer. The emotions consumers use to tell their stories convey much meaning, most of which gets lost through the filter of secondhand accounts.

In addition, when we were ready with the first version of our new design, we put it in front of the target population as we, the designers, sat behind two-way mirrors and listened with bated breath. Sometimes we needed time to recover from the candid feedback received, but it was always constructive — and always taken into account.

It’s a good thing to feel passionate about our ideas. But we must be careful not to be blinded by our own assumptions. Instead, strive to see what is really there.

3. Trust the power of membership.

It’s amazing what can be accomplished when a group of strangers commits to a cause. For each Collaborative, interested bankers from credit unions and banks nationwide submit applications to get involved. In the end, new members are chosen by Collaborative alumni.

Most new Collaborative members have already connected via e-mail or over the phone by the time they meet in person. Members assume that everyone on the team is committed, informed, bright and interesting. They simply “expect to connect,” to borrow a phrase from a favorite author. With so much mutual respect in the room, the ramp-up to full productivity happens fast.

I highlighted the benefits of this early camaraderie, but these benefits are enjoyed throughout each journey — and beyond each conclusion. Some of my best friends are people I worked alongside in a Collaborative. I hear weekly of reunions and other exchanges occurring within and across the Collaboratives. This is clearly meaningful, life-changing stuff for all who have been involved.

While I was expecting each Collaborative to shed insight on the specific topics at hand, it was a pleasant surprise to discover that the nature of the Collaborative itself imparted valuable lessons of its own. These learnings have led us to make important changes to our thinking and our processes, and they’ve been instrumental in helping us develop relevant new products for our clients. We look forward to more exciting journeys — and more learning — ahead.