Jyske Bank has increased its customer loyalty to three times that of Danske Bank

Via the Catglobe software, CEM Institute has helped Jyske Bank increase its customer loyalty from 21.8% in August 2010 to 34.2% in December 2011. For the sake of comparison, it should be noted that during the same period the two largest banks in Denmark, Nordea and Danske Bank, experienced the exact opposite development.

Customer loyalty is just one out of 48 touch points in the Catglobe solution. Customer loyalty is measured using a 10-point scale, where the goal for customer loyalty is customers answering 9 or 10 when asked “how confident are you that you will remain a customer with the bank in a year’s time?” Customer defection analysis performed in the Catglobe solution have identified the exact attrition points in the range between 0 and 10. In money terms, 1 percentage point on the customer loyalty score is worth millions. Therefore, this is obviously a top-priority target.

The other 48 touch points address issues like advertising impact, advisor service, product experience, image, service experience, importance, etc. All these touch points are monitored on an ongoing basis via 250 nationally representative weekly interviews (13,000 per year) plus boost interviews with Jyske Bank’s own customers. Other touch points can be added and removed at certain periods, such as touch points for pre- and post-testing of communication and campaign materials.

All touch points are accumulated into a “CEM KPI score” that expresses the company’s customer balance. The CEM KPI score is calculated dynamically, based on aspects deemed most important by the customer. One of the 48 touch points, “service experience”, is for example divided into 21 sub-areas. The customer indicates the 6 service areas that are of highest importance to him/her – afterwards, the most important areas are weighted higher than less important ones. The unique feature of Catglobe is that whenever the CEM KPI score deviates from its usual level, it is possible to instantly zoom in on the cause. Therefore, you can easily see which levers you need to pull in order to increase customer loyalty.

A precondition for Jyske Bank managing to increase customer loyalty (even in difficult times of financial crisis and economic recession) is a management that has prioritized to strengthen and harmonize their market understanding. The Catglobe solution serves as an operational decision tool and customer audit system, which allows executives and analysts to monitor the impact of their actions in terms of a variety of touch points – always in real time.