An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.
AMP’s chief has emphasised the financial services group’s ongoing quest to realign its operational model and employee rewards around customer experience and needs during the group’s half-yearly results announcement.
AMP reported a net profit of $523 million for the half-year to 30 June 2016, up 3 per cent on its first-half 2015 results. Underlying profit was $513 million, down 10 per cent year-on-year, a decrease due to higher claims in Australian wealth protection and volatile investment market conditions.
During his presentation to investors, AMP CEO, Craig Meller, took the opportunity to provide an update on its customer improvement efforts, which kicked off in 2013 and see the organisation building a customer goals-oriented enterprise. This is being based around a new customer lifetime management approach that is leveraging data and analytics to drive engagement.
AMP pointed to four new goals-based solutions launched during the second half of the last financial year. One is a ‘simplify my finances’ solution, called AMP Bett3r Account, which combines data aggregation and transaction banking products to automate budgeting and cashflow management.
AMP also launched a new solution for retirement income management, a cashflow management tool for reducing non-deductible debt, and ‘Protect my income’, a holistic insurance solution.
Overall, AMP said it had identified more than 3.7 million opportunities to further engage and activate its customer base through a goals-based approach.
“We have found exploring customers’ broader goals to be a powerful way of engaging customers in their finances,” Meller said during his presentation. “We are reshaping our systems, processes and focuses to help customers achieve their goals, and are building an omnichannel model to strengthen and broaden contribution.”
Meller said AMP had put the technology in place to make it easier and more convenient for customers to deal with the organisation through new digital and direct channels, complementing the strength of its traditional face-to-face approach. He noted more than 125,000 personalised interactions had been presented via the call centre and digital devices.
“At scale, this is expected to deliver improvements in advisor productivity, share of customer wallet,” he said. Other customer experience improvements have been delivered thanks to contact centre service enhancements, its new website, mobile apps, MyAmp and improved AMP Bank mortgage origination process.
AMP has also aligned 25 per cent of short-term incentives scheme for all employees to customer experience improvements, and noted Net Promoter Scores (NPS) are being used across the company to drive continuous improvements in customer experience.
In addition, AMP is extending its face-to-face advice model leveraging goals-based customer focus and infrastructure, and expects up to 30 practices, or about 100 advisers, to be operational by the year-end, with a significant pipeline of interest. This has seen a 25 per cent lift in adviser productivity and driven an increased share of customer wallet, Meller said.
Across the board, AMP highlighted its AMP Capital, bank and New Zealand businesses as particularly strong performers during the half-year. The group also said Australian wealth management had demonstrated a resilient performance given the difficult market conditions, which saw net cashflows across the division slashed by nearly half to $582m.
“While first-half claims experience was poor, we continue to focus on improving the outcomes for customers and shareholders in our wealth protection business, with actions underway to improve capital efficiency and reduce volatility,” Meller concluded.
“More broadly, AMP has made substantial progress on the implementation of our growth strategy, which will release the long-term potential of our business, deliver better outcomes for our customers while improving overall financial performance for shareholders.”