Financial Services

Moments of Truth NPS

Benchmarking

Proposals for a unique multi-client

feedback programme

20th September 2016

2

This proposal covers the following areas

Introduction

to this

document

1 The Moments

of Truth

programme in

a nutshell

2

The H2 2016

prospectus

3

We are pleased to publish proposals for a continuation of the programme in

H2 2016 and a re-defined package for 2017 and beyond.

The 2017

prospectus

4

3

Introducing this document

This prospectus sets out our plans for:

1. The H2 2016 wave (W6) of our established, bi-annual Moments of Truth NPS Benchmarking programme

2. Our plans for a significantly redefined programme for 2017 and beyond

The H2 survey wave is a continuation of the existing programme, utilising the previous methodology, with results

available to subscribers in December

The 2017 programme design has been refreshed, and incorporates feedback received from providers at the

inaugural subscriber workshop held in September. Key developments include:

• 30,000 interviews per year, quarterly fieldwork bursts, based on Moment of Truth experiences in the preceding 3

months

• Data available for analysis ‘on demand’ through a bespoke online reportal, quarterly infographics and annual

subscriber presentation

You are invited to review both elements and contact us to discuss participation in either or both studies

This programme has been supported by leading financial organisations in the UK

The Moments of Truth NPS

Benchmarking programme

‘in a nutshell’

5

Introducing the Moments of Truth benchmarking programme

Unique multi-client programme

launched by BDRC in Q1 2014

c.70,000 interviews already

conducted with a nationally

representative sample in UK

Focused on the delivery of 20+

key Moments of Truth in FS

Tracking market level trends

and brand

performance over time

Fully disclosed branded TNPS &

RNPS benchmarks

Pinpoint the most impactful

drivers of performance that

significantly influence NPS

6

The programme is expanding outside the UK

Launched in

Australia in 2015

Launched in NZ

in late 2015

Developed and

launched in the UK

Currently being

developed in

Singapore

Currently being

developed in

BDRC Americas

7

The programme is highly valued by subscribers

The breadth of customer experiences covered in the survey is one of its key

strengths and being able to benchmark TSB’s performance across these has been

extremely valuable for us.

Mark and Karen are a pleasure to work with and the debrief sessions are a

great opportunity to all get together and discuss the findings from the most

recent survey.

Nicola Hayden

Market Insights

“ “

The H2 2016 Moments of

Truth NPS Benchmarking

prospectus

PLEASE RESPOND BY: 30TH SEPTEMBER

9

The programme is statistically rigorous and allows for stakeholder input and customisation

15,000 x online consumer interviews

Toluna panel as our online sample source

A large, nationally

representative

sample of UK adults

Data rim-weighted to UK National rep

Key Drivers Analysis, data analysed and presented at a syndicate meeting

in London. Option for tailored, on-site presentations

Key Drivers

Analysis

undertaken on

final data set

Option for subscribers to provide customer sample boosts of known

contactors to increase sample sizes

Subscribers able to include their own confidential questions within the

survey content

Options for

subscribers to

provide additional

content

10

Used a mobile banking

app

Used online banking for

any reason

Changed personal

details

Opened or transferred a

savings or ISA account

Opened / switched a

current account

Applied for product

/ service via OLB

Lost or stolen

debit / credit card

Opened or transferred

an ISA

Taken or renewed

build/cont. insurance

Visited a high

street branch

Suspected fraud on

current account

Contacted by

telephone

Applied for a

mortgage

Contact about

existing mortgage

Closed mortgage

Reported a

bereavement

Debit card / credit

card trans decline

Made a complaint

Discussed repayment

difficulties

Experiences are proposed for benchmarking in H2 2016

We actively welcome subscriber suggestions for new or replacement Moments of Truth.

We establish the recency of each experience to provide more focussed time horizons that can be

anything from 12 months to less than one week, where sample size permits.

In H2 2016, we propose the Moments of Truth summarised below.

New additions are shown in green. Experiences in red are proposed for removal in for H2 2016.

Application for credit

declined

Opened or switched a

credit card

NEW: Used an overdraft facility on your current account (authorized or unauthorized)

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Projected sample sizes by brand for selected Moments of Truth

Moment of Truth

Used OLB for any reason 1159 1246 1305 994 1283 1188 871 427 256 304 35 335 191 12

Visited a branch 1289 1121 1293 969 1212 1149 978 391 187 298 30 n/a 201 25

Contacted by telephone 476 432 492 344 421 429 386 140 174 133 18 191 66 6

Used a mobile banking App 668 549 511 362 562 689 394 184 92 165 6 152 81 3

Opened/transferred an NISA 116 279 159 295 109 64 95 37 16 19 142 25 21 10

Changed personal details 227 189 220 146 214 229 154 79 41 59 11 30 24 4

Opened a savings account 101 212 162 271 157 105 78 121 26 19 58 55 19 18

Open/switched current acc. 93 181 261 183 126 132 80 156 35 27 10 54 22 1

Made a complaint 122 110 118 73 111 120 71 25 18 38 6 12 17 1

Existing mortgage contact 80 148 132 147 69 80 66 18 24 26 15 15 11 14

Total sample size per brand

in Q1 2016 programme 2553 2453 2768 2299 2408 2366 1730 1130 601 674 122 608 420 78

Sample size is 50+ Sample size is 0-49

Figures from Q1 2016

Tier 1 Providers Tier 2 Providers

(Some sample boosts may be required)

12

Each transactional Moment of Truth NPS rating will be supplemented by a short battery of questions designed to establish the circumstance and nature of the engagement.

Key themes are identified within Promoter & Detractor verbatim comments. ALL verbatim comments will be supplied to subscribers.

Results will be delivered at a syndicate presentation hosted at BDRC’s offices in central London.

This offers an excellent opportunity to network with peers from other participating organisations and discuss the findings and implications as a group.

Each Moment of Truth NPS rating is supported by additional insight and context

13

As a core part of our proposal, we will apply Key Driver Analysis (KDA) to the NPS Benchmarking data set.

KDA uses multiple regression to identify the specific parameters of a service experience that drive a particular

action or outcome. Some of the questions that driver analysis will answer in this programme are:

Advanced Analytics will provide further insight into the drivers of NPS

Within an experience which service elements

drive promotion and detraction?

To what extent does the channel

drive NPS?

How do the different transactional

experiences impact on Relational NPS?

Is there a link between recency or experience

and NPS outcome?

How do these outcomes vary by brand? Does customer ease impact on

transactional NPS?

14

Key milestones for the H2 2016 survey wave

Deadline for

participation and

questionnaire

feedback

w/e 30th Sep

H2 2016

fieldwork soft

launch

w/c 24th Oct

Topline results

available to

subscribers

w/c 21st Nov

H2 2016

fieldwork

completes

w/c 14th Nov

Final report

available and

presentation

w/c 12th Dec

Scripting and

testing of

survey

w/c 3rd Oct

Optional, tailored subscriber presentations will be delivered on an agreed date after the syndicate presentation.

Subscribers wishing to supply a booster sample of contactees (email addresses) for inclusion would need to

provide that to BDRC by Wednesday 12th October.

The 2017 Moments of

Truth NPS Benchmarking

prospectus

PLEASE RESPOND BY: 31st OCTOBER

16

Quarterly data collection to allow regular, dynamic assessment of Moments of Truth,

collecting 7,500 interviews at the end of each quarterly period

An innovative, flexible, on-going benchmarking monitor of Moments of Truth service

delivery across financial services in the UK

Questionnaire to be refreshed on a bi-annual basis but content and structure to remain largely

unchanged from that agreed in H2 2016

Options remain for sample boosts (panel or client supplied),

confidential question placement, on-site tailored presentations etc.

Online, anytime access to the latest results – subscribers will have the ability to access the

most up to date results (uploaded each quarter) and generate tailored reports through an

online reportal

Quarterly dashboard updates and annual syndicate presentation to provide deep dive

analysis of the results

Evolving the Moments of Truth NPS Benchmarking programme in 2017

17

Projected sample sizes for Moments of Truth

In response to subscriber feedback, the 2017 programme will focus on service delivered in a narrower time

horizon ‘last 3 months’ rather than a 12 month period as was the case previously

Using the results from Q1 2016, this will generate the following projected sample sizes per MoT (without taking

into account the further changes / improvements to the programme):

Note: MoTs in grey are candidates for removal in 2017 and additions in green

NEW: Used an overdraft facility on your current account (authorized or unauthorized)

Experience Experienced in the last 3 months Annual sample size

% experienced 7,500 30,000

Used Online Banking for any reason 99% 5,190 20,760

Visited a high street branch for any purpose 87% 4,150 16,600

Taken out or renewed buildings or contents insurance 36% 1,030 4,120

Used a mobile banking service via an app 96% 2,300 9,200

Contacted your bank or building society by telephone 75% 1,580 6,320

Applied for new products or services using online banking 62% 730 2,920

Contacted your bank or building society to change personal details 45% 410 1,640

Transferred an ISA 51% 460 1,840

Opened or transferred a new savings or ISA account 50% 440 1,760

Opened / switched to a new credit card 46% 400 1,600

Made a balance transfer between credit cards 65% 540 2,160

Opened or switched a current account 48% 360 1,440

Reported a lost or stolen debit card / credit card 40% 280 1,120

Had a debit card/credit card transaction declined 73% 460 1,840

Made a complaint about a product or service 69% 420 1,680

Contacted your mortgage lender about your existing mortgage 65% 330 1,320

Had an application for credit declined 62% 260 1,040

Applied for a mortgage 41% 120 480

Reported the death of a relative/friend 37% 110 440

Closed a mortgage 36% 70 280

Discussed repayment difficulties on a lending product 68% 130 520

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12. 840 470 120

13. 570 750 50

14. 470 280 50

15. 390 390 10

16. 380 250 70

17. 300 200 40

18. 240 970 150

19. 240 130 100

20. n/a 1,460 10

21. n/a 880 140

22. n/a 670 150

1. 5,540 4,440 1,310

2. 5,110 3,270 850

3. 4,910 4,690 1,460

4. 4,820 3,400 650

5. 4,730 2,760 700

6. 4,600 4,970 1,470

7. 3,460 2,160 540

8. 2,260 1,430 290

9. 1,350 930 260

10. 1,220 920 150

11. 1,200 950 200

Based on projections of Q1 2016 data

Current

account

Savings

account

Mortgage

account

Projected annual sample sizes at brand level

Current

account

Savings

account

Mortgage

account

This does not take into account the prioritisation changes we will

be imposing on the programme in 2017 and moving forward

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Moments of Truth programme 2017

Further improvements and changes to the programme moving forward include:

Prioritisation of lower incidence journeys (allowing more respondents to rate their

experiences of niche MoTs)

Cap on sample sizes at brand level (without compromising confidence levels) to allow

smaller brands to be permitted to the benchmark e.g. regional building societies

A reduced list of Moments of Truth (to allow a deeper

exploration of each MoT)

A special assessment of the experience of customers with permanent

or temporary impairments or disabilities across key contact channels

20

An interactive reportal will allow

access to the most recent results

quickly and efficiently

Results will be crystallised into a

one-page infographic, distilling

findings into key headlines

A full deep dive of analysis across

the year, and a chance to discuss

results with your co-subscribers

ONLINE INTERACTIVE REPORTAL QUARTERLY INFOGRAPHIC ANNUAL SYNDICATE PRESENTATION

New deliverables for 2017

21

• Dashboards using predetermined data to monitor

quarterly tracking KPIs

• Interactive functionality with pre-defined filters to allow

users access to specific information such as individual

brands, MoT, time horizon etc.

• Fieldwork updates

• Generate

bespoke reports

A flexible ‘one-stop shop’ to provide subscribers with a more hands on experience

QUARTERLY INFOGRAPHIC

• Easily shared across the business

• Succinct document to distil main

headlines for key stakeholders

• Visual representation of findings to

be used for PR purposes (or

evidence for CMA requirements)

• Can be designed according to brand

logos / guidelines (as required)

Infographics are a useful tool to distil key headlines in a user-friendly way

ONLINE INTERACTIVE REPORTAL

New deliverables for 2017

22

Fulfilling the CMA’s new remedial requirements

The CMA’s recent Retail Banking market investigation report states that there will soon be a requirement to

compel banks to publish data about how much their customers like them, and how they perform on a

number of different service metrics

The CMA’s requires an independent polling company to survey a robust sample of each bank’s customers to

enable banks to publish the results on their websites – including details of how they compare to their peers

This included 3 foundation measures as shown below:

BDRC’s Moments of Truth programme can provide the required evidence to

fulfil the CMA’s requirements

Source : Fairer Finance Source : CMA

23

Subscription fees will be based on market share and customer incidence within the programme

All packages will include:

• 30,000 interviews distributed evenly across 4 quarterly survey waves (7,500 interviews

per quarter)

• Log in access to the reportal data any time

• Quarterly dashboard report from BDRC

• Annual syndicate workshop

• Annual syndicate presentation

Optional extras:

• Back data related to previous subscriptions to be included in online reportal

• Hierarchy set up with controls on content for various users of the online reportal

• Analysis tools allowing any cross-breaks and down-breaks to be added to the reports

• Additional info-graphics

Moments of Truth programme in 2017

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Key milestones for 2017

Subscription confirmations : By Monday 31st October 2016

Questionnaire circulation and sign off : January 2017

Survey set up and testing : February 2017

Survey soft / full launch : March 2017

Subscriber portal launch : March 2017

Quarterly infographic : Mid April 2017

Q2-Q4 fieldwork : June, September, December 2017

Q2-Q4 infographics : July, October 2017, January 2018

Subscriber workshop : October 2017

Annual presentation : January 2018

Contact us for further information

Karen Troubridge

karen.troubridge@bdrc-continental.com

+44 (0) 207 400 1006

+44 (0) 796 126 9019

Associate Director

Mark Long

mark.long@bdrc-continental.com

+44 (0) 207 400 1016

+44 (0) 796 645 4958

Director

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1. DEFINITIONS

In these conditions:-

1.1 “the Client” means the person, firm, company or organisation to whom the proposal is

addressed.

1.2 “the Company” means BDRC Continental Ltd (and any of its subsidiaries) whose

registered office is at Kingsbourne House, 229-231 High Holborn, London WC1V 7DA.

1.3 “the Contract Date” means the date of confirmation of contract.

1.4 “the Information” means all data produced pursuant to the provision of the Service,

including but not limited to completed questionnaires, electronic media, the findings of

the survey and the survey report or presentation.

1.5 “the Service” means the provision by the Company to the Client of the research and

the information, details of which are set out in the proposal.

2. FORMATION OF THE CONTRACT

2.1 These conditions shall form the basis of the contract between the Company and the

Client. Notwithstanding anything to the contrary in the Client’s standard booking

conditions, these conditions shall apply except so far as expressly agreed in writing by

a person authorised to sign on behalf of the Company. Any variation to this contract in

terms of techniques or sample shall not affect any of the other terms of this contract.

2.2 No servant or agent or the Company has power to vary these conditions orally.

2.3 Unless otherwise expressly stated in writing, all quotations and estimates by the

Company are invitations to treat. The Client’s confirmation of commissioning is an

offer which will be accepted by the Company posting its confirmation of contract.

2.4 The signature of the Client or its representative of this confirmation of contract shall

constitute acceptance by the Client of these conditions. In the absence of signature

by or on behalf of the Client of these conditions, the agreement of the Client by e-mail

will constitute acceptance by the Client of these conditions.

2.5 The Company will provide the Service to the Client at the request of any representative

of the Client unless otherwise instructed in writing by the Client.

2.6 The construction, validity and performance of these conditions and this contract shall

be governed by English Law.

2.7 These conditions supersede all previous terms and conditions of contract issued by

the Company.

2.8 These general conditions shall be subject to such special conditions as may appear in

the letter.

2.9 In the event of any conflict, or apparent conflict, between the special conditions and

these general conditions, the special conditions shall prevail.

2.10 All notices to be served hereunder shall be served by first class pre-paid post,

facsimile message or e-mail at the registered office or principal trading address of the

intended recipient.

Notices shall be deemed served when they would ordinarily have been received in

normal business hours according to the means of transmission of such notices.

2.11 All proposals and fees are valid for a period of three months unless otherwise stated. If after

this period no major part of the project has started, the Company reserves the right to

reappraise the fees.

3. CANCELLATION

3.1 The consent of the Company to cancellation or variation of the contract shall not in any way

prejudice the Company’s right to recover from the Client full compensation for any loss or

expense arising from such cancellation or variation on an indemnity basis.

3.2 Subject to any special conditions appearing in the proposal, the Client may terminate the

contract by giving not less than 1 month's prior notice of termination.

3.3 In the event of termination of the contract prior to completion of the Service, the Client will

be liable to pay that proportion of the fees (as set out in the survey confirmation email) as

represents all work carried out, expenses incurred and financial commitments entered into

by the Company as at the date of termination of the contract in accordance with clause 3.2

above, such proportion to be calculated by the Company at its sole discretion.

4. PRICE

4.1 The fees set out in the proposal shall apply only in relation to the techniques and sample

description set out therein. Any alterations to techniques or sample proposed by the Client

may, at the sole discretion of the Company, result in increased fees being payable.

4.2 The provision by the Client of inaccurate information in relation to the Service may result in

an increase in the fees set out in the proposal.

4.3 The fees are quoted exclusive of VAT which will be added to all invoices at the rate

applying at the appropriate tax point, except as varied for export clients.

4.4 If, through any currency fluctuation, the sterling equivalent of the cost to the Company of

any obligations incurred in respect of overseas work for the Client exceeds the cost

reflected in the proposal, the Company shall be entitled to charge for such obligations at the

exchange rate which is in operation at the time remittance is made abroad.

5. PAYMENT

5.1 Unless the proposal makes specific provision for phased payments, the fees payable in

respect of the Service will be invoiced as [50% upon commissioning and 50% upon delivery

of the information]

5.2 Invoices in respect of the Service are payable within 30 days of the date of the invoice.

5.3 The Company reserves the right to charge interest on overdue invoices at 3% per annum

above the base rate from time to time in force of HSBC PLC.

5.4 The Client shall not be entitled to set off against any amount payable under this contract

any amount due by the Company to the Client under any other agreement.

5.5 Without prejudice to any other rights of the Company, if the Client shall fail to make punctual

payments of any monies due under any agreement between the Company and the Client,

the Company may at its option, either withhold the provision of the Service and/or the

information, until the total indebtedness of the Client to the Company has been discharged,

or cancel this contract.

27

5.6 The Company reserves the right at any time at its discretion to demand security for

payments before continuing with the provision of the Service or delivering any of the

information to the Client, notwithstanding any subsisting agreement to provide credit to

the Client or any provision to the contrary contained in these conditions.

6. COPYRIGHT AND CONFIDENTIALITY

6.1 The copyright in the information and research design shall be and shall remain owned

by the Company.

6.2 All of the information is confidential to the Company. To the extent that the information

is given to the Client, the Client undertakes to take all reasonable precautions to

maintain the confidentiality of the information and not to allow access to the

information other than to:-

6.2.1 those of the Client’s employees who have reasonable need to have access

to same; and

6.2.2 professional advisers to the Client (such as advertising agencies and P.R.

Consultants) but only on the specific understanding that such professional

advisers do not pass on or use any of the information for clients of theirs

other than the Client.

6.3 In the event of the Client wishing to publish all or any part of the information, the Client

must obtain the prior written approval of the Company and must acknowledge the

Company as the source of the published material, such approval not to be

unreasonably withheld.

6.4 The information (in whatever form) shall at all times remain the property of the

Company which may, at its discretion, destroy all or part of same after one year

following the date of delivery of the information.

6.5 Any Research Plan or Research Proposal submitted to the Client by the Company

before contract is agreed, is submitted on the understanding that it is for the Client's

consideration only and that it will not be shown to any third party. The Client shall not

be entitled to use such plan or proposal if the contract is not awarded to the Company.

6.6 Where the Company's name is associated with any public presentation or with any

widely circulated document relating to the information, the Client agrees that the

Company shall have the right to publish relevant results and information about the

research with its own interpretation, if the Company considers such publication

necessary to correct a misleading impression or to protect its reputation.

7. CARRYING OUT OF SERVICE

7.1 In the event that the Company shall be commissioned to conduct a survey requiring

interviewees to examine or use any products, the Client shall indemnify the Company

against any action by any interviewee or third party relating to the description,

presentation or use of such products whether or not the Client is the manufacturer,

distributor or agent for such products.

7.2 Any alteration to techniques or sample sizes from those set out in the proposal, proposed or

acquiesced to by the Client, may result in the delivery of the Information being delayed.

7.3 The Company reserves the right to sub-contract all or any part of the Service, including but

not limited to the research described in the proposal, to recognised suppliers, but subject to

the appropriate quality controls and to the prior notification to the Client of the intention to

sub-contract.

7.4 If the Company is required by the Client to sub-contract any part or parts of the Service to a

named sub-contractor or one or more named sub-contractor, no warranty can be given by the

Company as to the quality of accuracy of such part or parts of the Service.

7.5 The Company will use its reasonable endeavours to deliver the information on or before the

date stated as the Delivery Date in the proposal but time of delivery of the Information shall

not be of the essence unless otherwise specifically stated.

8. NON-SOLICITATION

8.1 The parties each undertake with the other that during the period commencing on the Contract

Date and ending six months following the date of delivery of the Information, neither party

shall canvass, or solicit for direct or indirect employment, any personnel of the other party, or

proceed with any approach made by or on behalf of any such personnel, unless the prior

written consent of the employing party is obtained.

9. QUALITY OF SERVICE

9.1 The Information will contain material derived from sample surveys carried out in accordance

with accepted market research methods and as such, are subject to limits of statistical error.

9.2 The Company shall use all reasonable endeavours to ensure the accuracy of the Information,

but no warranty is given as to the accuracy of any data provided by interviewees.

9.3 All warranties or other terms implied by statute or otherwise shall not apply to this contract,

including but not limited to those implied by the Supply of Goods and Services Act 1982 and

the Consumer Protection Act 1987.

9.4 The Company shall not be liable for any consequential or indirect loss suffered by the Client

or any third party in relation to the contract and the Client shall indemnify the Company in

respect of any claim of any person in respect of such consequential or indirect loss.

9.5 The entire liability of the Company under this contract shall not in any event exceed the fees

payable under this contract, save in respect of the Company’s liability for death or personal

injury resulting from negligence, where liability shall not exceed the company's insured limit.

10. FORCE MAJEURE

10.1 The Company shall not be liable for any delays in or failure to provide the Service arising from

circumstances outside its control, including but not limited to changes in government policy (in

the country where the research is undertaken), lockouts, fire, accident, adverse weather

conditions, war, terrorism, civil unrest, or postal or railway strikes.

11. WAIVER

11.1 The failure by a party to enforce in any instance the performance by the other of any provision

of the contract shall not be construed as a waiver of the first party’s rights to future

performance of such or any other provision of the contract.