1. Moving Beyond Customer Satisfaction Melanie Gurney Senior Manager Quality, National Customer Relations (NCR) October 2004

2. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20042 Agenda NCR Evolution Current Experience Complaints Management Process Initiatives – ‘Building Trust’

3. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20043 Evolution NCR Evolution TimeStructure & Process Pre 1998 No complaints management process (CMP) or strategy No CMP in place for dealing with escalated complaints No quality customer service measures in place Ad hoc/ reactive approach to complaints management primarily in frontline areas 1998State based Customer Relations Units (CRUs) established A system for capturing complaints introduced – ‘COLTS’ Service levels in place but only monitored within the CRUs

4. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20044 Evolution NCR Evolution TimeStructure & Process 1999‘Complaints Is a Gift’ program rolled out nationally to essentially reduce the number of complaints escalated to the Ombudsman’s office 2001Restructured CRUs along product lines i.e Retail, Cards etc Customer Advocate role introduced as part of the Customer Relations function 2002‘Ask Once’ service promise publicised NCR started to encourage and enable branch staff to take responsibility for routine complaints

5. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20045 Evolution NCR Evolution TimeStructure & Process 2003Formalised and published the complaints management process for Business and Consumer Banking Started work on building the ‘Ask Once’ principles into the CMP in an effort to build trust with our customers Introduced quality management into the National Customer Relations complaints management processes Established Ask Once Coordinators in frontline areas to support and enable staff to improve their customers’ experience and resolve complaints at the first point of contact Relaunched the Complaints Culture Survey to understand organisational culture and staff attitudes about complaints

6. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20046 Evolution NCR Evolution TimeStructure & Process 2004Formalised strategy for Complaints Management – Driving Ownership Continued work on bringing the ‘Ask Once’ principles to life in terms of complaints management Developing a Bank wide Problem Resolution Strategy incorporating complaints management Implementing a new CRM centric complaints management system Customer Advocate role separated from National Customer Relations to create a greater level of independence

7. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20047 Experience Current Experience At Westpac we know that of our customers who have a problem with us at any one time: A third reportedly tell us about it without lodging a complaint Of these reported problems, about 50% will be logged and resolved through our complaints management process This equates to 83,250 complaints in 2003/4 up from approximately 60,000 in 2002/3 86% of complaints through the Branch network are resolved at first point

8. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20048 Process Complaints Management Process Two Tier structure Multiple Channels – In-person, telephone, mail and e-mail ‘Ask Once’ Complaints Management Process (CMP) CMP built on ‘Complaint is a Gift’ Principles CMP geared to minimising hand-offs Clearly defined KPIs that are reviewed and reported monthly 80% of routine complaints managed at the first point of contact 80% of complaints resolved within 5 business days or as agreed with the customer 80% customer satisfaction post complaint 2004 Onwards – Driving to Service Excellence - Proactive V’s Reactive

9. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 20049 Trust Initiatives – ‘Building Trust’ ‘Ask Once’ – Our Way Forward Customer Feedback Brochure Improving Customer Relations – Gift Program Complaints Culture Survey Post Complaints Survey Customer Feedback System within a Customer Relationship Management (CRM) System Customer Service Education Best Practice Program & Systemic Issues Register Building Trust - One of the 10 management implications revealed through the Consumer Emotions Study to Move Beyond Customer Satisfaction …… Aligns with Westpac’s values: Teamwork, Integrity and Performance

10. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200410 ‘Ask Once’ ‘Ask Once’ - Our Way Forward Customer Front Line The experts with the information CardsLoansInsrLegalFraudMrktgEtc... Advice Only IssueResolved Commonsense Decisions Own the issue Own the decision Own the RCE Deliver advice Coach for decision never provide decision Customer Relations

11. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200411 Feedback Customer Feedback Brochure Introduced in October 2003 Increased the channels and opportunities to receive customer feedback Intent – to welcome all forms of customer feedback - suggestions, compliments as well as complaints Positioned in branches in customer facing areas Communicates our internal and external dispute resolution processes Not a survey, provides space for free form comments Staff recognition – To date more compliments recorded than complaints Feedback reported and published monthly

12. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200412 ICR ICR - Gifts Recognises the customer as an individual Seeks to restore and regain their trust in our organisation following a failed customer experience Impresses customers Aims to build the customers sense of self worth and higher levels of overall satisfaction Empowers staff – Available across the network Actioned once a complaint has been fully resolved for the customer On-line facility that takes approximately 3 minutes to action Three tiered gift structure

13. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200413 Survey Complaints Culture Survey Re-established in 2003 2003 – 247 respondents Highlighted critical areas to address about our organisational culture Provided the basis for our 2004 business plan 2004 – 700 Responses

14. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200414 Survey Post Complaints Survey Demonstrates our genuine interest in our customers and our commitment to customer satisfaction Reinforces the ‘Complaint is a gift’ philosophy Personalised and linked to a customers’ complaint Revised in 2004 to include a question on customer recommendation Provides customers with a follow-up opportunity in the event that their complaint has not been dealt with to their satisfaction Reported monthly at executive and staff levels

15. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200415 Feedback Customer Feedback System New improved complaints tracking system introduced and currently in pilot Comprehensive Customer Feedback System to record all forms of customer feedback Part of our CRM package Allows for individualised settings based on staff skill and area of service Prompts entry of customer critical data for managing customer feedback effectively System utilises prompts to help staff guide a complaint to successful resolution Serves as a mode of communication that all staff can access to provide a seamless experience for customers Serves as a record of a customer’s relationship with us for future reference

16. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200416 Education Customer Service Education Clearly defined complaint management education Ad hoc and outdated programs from training resources removed Up to date policies & procedures On-line mandatory complaints management program launched – 1C1C1S Implemented the NCR Quality Management Program Implemented a Letter Writing Program within NCR Relaunching the ‘Complaint Is A Gift’ program Systems training will incorporate the ‘Complaint Is A Gift’ principles as well as dealing with the technical and emotional aspects of complaint management

17. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200417 Issues Register Best Practice Systemic Issues Register & Best Practice Program Systemic Issues: Aggregate data to understand current customer experience Analyse and filter data to identify trends and root causes Act to fix the major causes of customer dissatisfaction Best Practice Program: Basic framework for frequently asked questions Easily accessible for frontline staff Links to relevant information and resources within the organisation to enable effective and timely resolution at first point

18. Presentation Title & Date SOCAP – ‘Moving Beyond Customer Satisfaction’ – Oct 200418 Questions????? Questions?