Information contained in this report is strictly confidential and may be subject to legal professional privilege. It is the exclusive property of Australia and New Zealand Banking Group Limited, and is solely for ANZ internal use. No part of it may be circulated, copied, quoted or otherwise referred to without prior written approval of ANZ Group. ANZ Consumer Credit Cards - putting the focus on customer service delivery ? Presentation to SOCAP 2007 ANZ Consumer Finance September, 2007

P 2  ANZ credit card business – an overview  What is customer experience ?  Why is customer experience important to a business?  How can customer service delivery impact customer experience ?  How do you develop and implement customer experience ? -a case study  Learnings from our experience Agenda for today’s presentation

P 3 ANZ brand is well known in the Australian marketplace ANZ Credit Cards Whatever It Takes… ANZ credit cards … whatever it takes to deliver more convenient, simple and problem free card services Low Rate Help you take control of card debt Premium Enhance your lifestyle Prepaid Reward friends and family Low Fee Let you enjoy the now Frequent Flyer Reward you with more life experiences Rewards Real value from every day spending Platinum The exclusivity you deserve Visa Debit 24/7 access to your own money Key features: strong brand image innovative customer focus + Service Security Key statistics: 1.6M customers 2.1M cards on issue 19.5% market share

P 4 Customer experience is the internal and subjective response customers have to any direct or indirect contact with the company or organisation. For an organisation, customer experience is understanding the drivers and optimising the choices taken to manage each step of the process involved in delivering that product or service to the customer’s expectations. What is Customer Experience ?

P 5 global economic and competitor pressures combined with changing social behaviours of customer groups has led to significant differences in the way organisations need to engage with customers achieving high levels of customer satisfaction or loyalty involves clearly understanding what customers want and how they feel when they get it (or don’t get it) – this is distinctive customer experience customer experience is the articulation of the values of the organisation as shown in how every function and every person in the organisation performs their role – it’s more than just having a great product or good pricing !! Why is Customer Experience important ?

P 6 Outstanding customer experience is achieved by being distinctive where it counts and priceless on the “moments of truth” Advocacy Additional Usage Neutral Decline Defection Satisfaction Customer Satisfaction Level of Customer Engagement Dissecting a business into its core elements from product design through acquisition to servicing enables a better understanding of where attention and resources need to be directed Priceless Distinctive Essential PricelessDistinctiveEssential Product Development Advertising & Communications Acquisition Transaction Processing Account Maintenance Fraud Service recovery Retention Collections Dissatisfaction Map each part of the process based on research

P 7 1. customer services must be prepared to accept that its role is key to a successful end-to-end customer experience: it’s not just the costs associated with delivering a product or service 2. customer service standards must be designed into the features of the product and service and therefore customer services be involved from the earliest stages of product development 3. by consistently delivering to the customer service delivery standards agreed with product designers and marketers, customer services “earns the right to have their say” 4. customer services needs to be prepared to provide senior management and executive with the relevant information and insights into how the business is performing and explain what can be done differently How can customer service delivery impact customer experience ?

P 8 Defining the Customer Experience Model Developing a Dashboard that measures performance Taking action to improve customer performance defines the model, its rational, core elements and strategic intent identifies “moments of truth” – those specific customer activities that will transform the business explains how the model will lead to improved business performance identifies sources of data – creates “quantifiable and analytic” measures using subjective data presents data in a manner that assists in drawing conclusions and making decisions uses dashboard results as a benchmark to measure performance improvement identifies initiatives that align to the improvement of the key customer metrics closely tracks and monitors performance of initiatives evaluates extent to which the model is enhancing customer satisfaction and loyalty Three key elements form the basis of a customer experience program*: Customer experience is the integration of a cross-section of sources of information into a dedicated program * Bliss, 2006; Smith & Wheeler, 2003

P 9 Case Study: Customer Satisfaction Model and Dashboard Overall Satisfaction Product Features Relationship Channels Rates and Fees Customer Service Communication Valued Customer Interest Rates Fees and charges People 25% 9% 7% 17% 32% 10% 15% 10% 51% 7.650% Customer Satisfaction RatingCustomer Importance Weighting Staff Engagement Result Business Metrics Click to scorecards

P 10 Customer Service – How are we servicing our customers? Scorecard - Key MeasuresTracking/Benchmark Status ANZ Credit Cards Customer Satisfaction All Customer Service scores above 8, except on ease of getting through to the right person (7.5). Highest score on arrival of replacement card (8.8) May 07 score 8.4 Dec 06 score 8.2  ComplaintsCustomer Service related complaints decreased for the third month in a row. May=25% of total complaints Apr= 27%  EnquiriesThe dynamics of the top 15 enquiries changed in June with the increase in enquiries related to card replacement. A slight reduction in amount of calls requesting change of details Card replacement enquiries June 8% (4% May) Account maintenance requests dropped to 3% in June from 4% in May.  Customer Charter 93% of calls to and 90% of calls to were answered within 60 seconds in June Credit Cards processed all applications according to our promise May 96% & 92% respectively Apr 94% & 92% respectively 

P 11 customers have become increasingly selective, seek choice and possess very high expectations and customer service delivery is one of the key defining moments for whether they stay with you or go “earn the right” to have your say at the management table – consistently deliver high standards and the credibility will acknowledged don’t be shy in constantly using information to demonstrate customer impact – but make sure you present it in a relevant manner constantly communicate and encourage all staff to understand what the organisation stands for and show them how they contribute to organisation’s success – drive the internal culture and change management Learnings – putting service delivery in focus