Carlisle & Gallagher Consulting Group (CG) study finds 1 out of 3 consumers experienced a problem at their bank that was not completely resolved. CG surveyed 1,002 U.S. consumers online, conducted qualitative phone interviews with 20 financial services executives at the top 10 U.S. financial institutions, and evaluated best-in-breed customer service organizations, including Zappos, Amazon, Apple, Disney and Southwest Airlines, to uncover the important drivers for financial institutions to be successful in managing customer complaints.

1. Are Two Calls Too Many
in the Eyes of the Customer?
Financial Institution Customer Complaint Management
INSPIRED TO HELP YOU SUCCEED
www.carlisleandgallagher.com
@InspiredByCG

2. Summary of Findings
KEY QUESTIONS
 Company culture drives great
customer service
 Customer experience is defined by
the first problem interaction
 Most complaints are about core
banking products: checking, debit
card, credit card and mortgage
 Banks are not listening close
enough to customer suggestions
1. What is the customer’s current
view toward customer service?
2. What products are frustrating
customers most?
3. How do customers want to
resolve issues with their financial
institutions?
 Complaints remain private between
customers and their banks
 Even loyal customers will bolt if a
bank can’t fix problems
2
INSPIRED TO HELP YOU SUCCEED
4. Can excellent complaint
resolution overcome the most
severe issues and strengthen the
relationship between the
customer and the financial
institution?
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

3. Research Snapshot
Household Income
Age Distribution
Overall mix of respondents reflects a
higher income base
4%
17%
18-34
Less than
$49,999
35%
$50,000 to
$99,999
46%
33%
SURVEY
METHODOLOGY
Segmentation is a slightly older
demographic
$100,000 to
$249,999
24%
35-54
Over 55
responses
 All respondents live in
the U.S.
 18 years of age or
41%
$250,000 or
more
 1,002 survey
older
 Online survey
 Participants were
Primary Financial Institution
62% use a National or Large Regional Bank as their primary financial institution
recruited from an
online research panel
 Required to have a
43%
Top Five National Bank
19%
31%
Smaller Bank
Large
Regional Bank
7%
Other
3
INSPIRED TO HELP YOU SUCCEED
 Targeted 50% of
respondents to have
$100K+ household
income
Cross-Industry Research
Analyzed five best-in-breed customer
service organizations including:
Zappos, Amazon, Southwest Airlines,
Disney and Apple
problem with a
financial institution in
the last three years
Conducted interviews with 20 financial
services executives at the top 10
financial institutions in the United
States
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

4. Customer Expectations Shaped by Experiences Outside of
Financial Services
Our research highlights
Four New Cultural Norms of Excellent Customer Service
Positive Peer
Pressure
4
INSPIRED TO HELP YOU SUCCEED
Anticipatory
Customer Service
Culture of
Advocacy
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
Employee
Enablement

5. Top 10 Financial Institutions Aspire to Become Great Customer
Service Firms
Banks are investing in improving their customer experience
W H AT F I N A N C I A L I N S T I T U T I O N S
TOLD US…
Our CEO said we need to build a real social media
approach and we’ve set about to do it; we’re
chipping away at the silos.
We can’t always give them the answer they want.
We’ve built a pretty good
engine to address
executive or escalated
complaints but the average
complaint by a walk-in at
the branch… those get
lost in the system or are
never reported.
Customers want products to be simple and right now FI products are not very simple.
The world we live in is our
biggest obstacle.
Consumers today expect
instant gratification.
5
INSPIRED TO HELP YOU SUCCEED
The regulatory environment does not always allow
us to help our customers.
We know we are being compared to Amazon and
Zappos so we have to get better.
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

6. Banks Are On a Journey to Become Great Customer Service Firms
Quality of Service Compared to
Great Service Companies
% of Total Respondents
As Good
35%
Not as
Good
Much
Weaker
47%
18%
Q18: Thinking about great customer service companies
across all areas of business, how would you compare the
customer service quality of your primary financial
institution.
The bar is high,
and good isn’t good
enough. Banks need to
exceed expectations
to be considered
great at customer
service
65%
said that their
primary bank
is not as good or
weaker than great
customer service
companies
6
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

7. One out of Three Customers Experienced a Problem that was Not
Completely Resolved
Two or more interactions were required to resolve most customer problems
62% of problems were completely resolved ...
18%
“PROBLEM”
DEFINED IN
SURVEY
Problem Resolved
20%
Problem Not Resolved
Problem Partially
Resolved
62%
An instance where you
must contact your
financial institution in
order to address:
 Inaccuracy
 Fee you do not agree
with
 Concern with the
… of those resolved, 72% of problems
required two or more interactions
7%
28%
5 or more interactions
3-4 interactions
2 interactions
7
INSPIRED TO HELP YOU SUCCEED
 Mishandled funds
 Other concern
Is Not:
22%
43%
speed of a loan
application
1 interaction
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
 An inquiry to
question a
transaction
 To gather information
on a product (e.g.
mortgage, domestic
wire)

8. Banks’ Core Products are Missing the Service Mark
Topped by erroneous fees and missing or misapplied payments
Key Problem Areas
Q22. What type of product was involved with your problem?
38%
14%
12%
12%
Checking
Credit Card
Mortgage
Debit Card
Investing in
core products
Top Service Problems Across Product Lines
Erroneous Fees
Missing or Misapplied Payments
14%
Fraud
8
15%
12%
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
will reduce
customer
problems

9. Poor Complaint Management Yields Bad Experiences for
Customers
Future relationships depend on the customer experience
Resolved in
1 Interaction
Resolved in
2 or More Interactions
Not
Resolved
First call resolution can
lead to more business
Inquiries requiring additional
interactions have a
negative impact
Not addressing customer
concerns can lead to less
business and terminated
relationships
22%
4%
10%
1%
24%
36%
63%
74%
More Business
9
INSPIRED TO HELP YOU SUCCEED
66%
No Impact
Less Business or Ended Relationship
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

10. Banks Aren’t Learning from Customer Problems
Customers provided ideas for resolution, but banks didn’t listen
Customer Suggestions Ignored by Banks
(when problems were not resolved)
Q45. Did you provide recommendations on how the problem could be solved?
Listen:
Checking
60%
Credit
Card
68%
Mortgage
customer
complaints
hold hidden
value
63%
Debit
Card
10
75%
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

11. Banks Treating Customers Like a Friend or Foe
Impact of Bank’s response on customer satisfaction
I have
higher
confidence
in my bank
since I
know the
problem
will be
resolved
quickly
I feel like a
valued
customer
I implicitly
trust the
bank and
my
relationship
with it is
now
stronger
38% 51% 22%
Resolved in
1 Interaction
Resolved in
1 Interaction
Resolved in
1 Interaction
Banks have
ONE SHOT
to earn customer
trust and confidence
17% in 24% in 10% in
Resolved
Resolved
Resolved
2+ Interactions 2+ Interactions 2+ Interactions
Q47: How many interactions did you have with the financial institution to resolve the problem?
Q56: How has this problem and the financial institution’s response impacted your overall satisfaction with it?
11
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

12. Challenges Remain
Identifying challenges as heard from financial institutions and consumers
Customer demands
continue to increase
Regulatory requirements
will become more intrusive
Banks struggle with a
comprehensive
view of the customer
12
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

13. CG Recommendations
Solving customer complaint management in today’s world of instant gratification
Manage customer expectations
The Bar
is High
Core
Products
Reign
You Get
One
Shot
Listen
& Act
13
• Cultivate behavioral and attitudinal customer insight
• Communicate the type of service level that customers can expect
• Share problems and solutions with transparency
Invest in core products
• Deliver customer lifetime value through core products
• Evaluate people, process and technology in the retail bank
• Find the things that drive the most pain; spend time and money to fix them
Create the feel of first touch resolution for the customer
• Implement a rapid resolution team
• Anticipate your complaints
• Drive a culture of customer advocacy
Learn from your customers
• Develop an active and robust listening program
• Value your complaints over your compliments
• Enable employees to take quick action
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.

14. Contact Us
212 South Tryon Street, Suite 800
Charlotte, North Carolina 28281
704.936.1600 | @InspiredbyCG | www.carlisleandgallagher.com
Patricia A. Sahm, Ph.D.
Customer Experience & Channels Practice Lead
patricia.sahm@cgcginc.com
516.238.6275
14
INSPIRED TO HELP YOU SUCCEED
©2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.