Interaction by Interaction | Lloyds Improves Customer Satisfaction

Anticipating customer needs to “help Britain prosper.”

As the number one digital bank in the United Kingdom (UK), Lloyds Banking Group knows a thing or two about what makes for positive customer experiences during challenging and prosperous times. This leading UK provider of financial services treats data as an asset, where data is at the centre of their business. The bank is transforming customer experience and deepening its customer relationships, becoming an advisor by anticipating and tailoring engagement based on digital interactions and behaviours, and understanding the signals along the customer journey.

In 2009, Lloyds Banking Group formed as a result of the HBOS and Lloyds TSB merger.

The Group’s main business activities are retail and commercial banking, general insurance, long-term savings, protection, and investments. The Group’s activities are delivered through a number of the UK’s best-known financial brands, including Lloyds Bank, Bank of Scotland, Halifax, Scottish Widows, and AMC. This range of distribution channels make it the largest digital bank in the UK.

With a purpose to “help Britain prosper,” Lloyds Banking Group is in a unique position to reach every family, business, and community in the UK to help improve economic and social issues they face. And whether customers are facing thriving or unprecedented times, banking interactions are never linear. To transform and deepen relationships, Lloyds Banking Group has chosen Teradata Vantage Customer Experience (CX) to capture customer behaviors across all digital touchpoints in order to anticipate customer needs and deliver highly personalised communications in real-time that keep them as the number one digital bank in the UK.

Lloyds Banking Group by the numbers

26M

total customers

16.4M

digitally active customers

10.7M

mobile banking
app customers

75%

of products
originate digitally

Lloyds Banking Group touches nearly every household and community in the UK. Their mission is aligned with their purpose and focus on people, businesses, and communities prospering by:

• Lending with mortgages, credit cards, personal, and business loans.
• Insuring homes, motors, and protection.
• Investing pensions.
• Financing capital markets and private equity.
• Offering risk management with interest rate hedging, currency, and liquidity.

The Group centralises data across multiple lines of business, removing silos that otherwise prevent the bank from creating a comprehensive view of customer interactions within the bank.

Whether it’s through digital, call centre, mobile, tellers, loan officers, mortgage advisors, and investment managers, customer interactions with the bank are unified on a modern analytics platform that can scale to meet demands—a critical step when over 60% of all customers are digitally active, 40% of all customers use mobile banking, and 75% of products originate digitally. The Group can focus on orchestrating every action to better understand and improve customer journeys and create value.

Connecting data from previously disparate silos, Lloyds Banking Group identifies, visualises, and quantifies the points of friction, leakage, and failure. This allows the bank to see when interactions increase and highlight that paths are not linear.

“Traditionally what we've done is look at a product's completion process. Therefore, the person has gone through step one, two, three to do that. Actually, people go through steps one, two, back to one, then to three, back to two, back to one again, off out somewhere else. And you can see a lot of looping going on, and that's quite inefficient while it's happening.”

Simon Howarth, Chief Subject Matter Expert for Information Management

Teradata helps Lloyds Banking Group to understand customer journeys across numerous departments and touchpoints, sensing customer pain points that lead to opportunities.

This allows the bank to create highly personalised and timely communications through their website and mobile app.

The biggest benefit is the ability to actually be able to really tune the campaign.

“The biggest benefit is the ability to actually be able to really tune the campaign. To actually understand and get closer to that individualisation of campaigns and get to the point where you want as high a conversion rate as you can do. You want to avoid hassling people, and you want to be seen to be actually adding them benefit. You don’t want them to have received the third credit card letter through the post in the last month. It's reliant on the data underneath. But having the data underneath and having that ability to be really targeted, I think is the big thing.”

Simon Howarth, Chief Subject Matter Expert for Information Management

More customer insights lead to solving more complex customer needs.

Lloyds Banking Group’s customer satisfaction net promoter score (NPS) of 63 is up 3% since 2017. Remarkably, overall complaints have decreased 13% in 2019 (Lloyds Banking Group Annual Report 2019).

Building on their successes, Lloyds Banking Group continues to focus on improving the customers’ digital banking experience. Garnering customer insights from data, they provide customers with a greater understanding of their transactional activity and ability to achieve their financial goals, while developing more personalised products and services to keep Lloyds Banking Group a leader in the marketplace.

That is a bank built for the future.

See the journey from the customer’s point of view.

Predict customer needs and optimize experience through true customer 360 and real-time personalization.

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Lloyds Banking Group's answer:

16.4M digital customers

Transforming the customer experience across digital interactions reduces complaints and increases customer satisfaction. Using Teradata Vantage, Lloyds Banking Group unifies customer data to anticipate and predict customer needs.

Lloyds Banking Group