ARCHIVED - Brief Case Studies of Exemplary Practices

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TD Canada Trust

This case study focuses on client service standards developed for TD Canada Trust - Personal Banking. TD Canada Trust currently deals with over 9 million clients from the general public. Services include personal banking needs such as; deposits, cheques, account management, loans, mortgages etc. The main point of access, 70 - 80 %, is through Automated Banking Machines (ABMs). Other points access include; tellers (in person), phone (automated banking services and contact with agents), fax, mail, electronic mail, and the web site (information, requests, and on-line banking).

TD Canada Trust has developed a separate division, Strategy and Information Division within the Marketing Department, to track and report on client satisfaction and related standards.

Service Standards in Use

Service standards for TD Canada Trust are internal. Most of the information is proprietary and therefore not covered in this report. Through surveys, consultations and focus groups TD developed a list of 15 Service Standards (unavailable). They include such elements as:

• Using the client's name throughout contact.
• Smiling.
• Maintaining eye contact (internal studies have shown a strong correlation between eye contact and client satisfaction).
• Giving undivided attention to the client.
• Always asking for permission before putting a client on hold.
• Complete the clients request on the first contact "One and done".
• If a client must be transferred, the agent transferring must make contact with the second agent, make introduction, and only then hang up (warm transfer).

Service Standards vary between points of access, qualitatively as well as quantitatively. Though wait time is integral to web access and in-branch service, web access is expected to be far more expedient. When we examine phone service, though it is not as imperative to physically smile, the same pleasant demeanour is expected as with in-branch service.

Clients banking from the branch are randomly selected to complete surveys. These surveys are collected each day, 6 days a week. If a client has participated in a survey they will not be included again for a least 6 months. TD processes, roughly, 400 000 surveys each year. Surveys for telephone and ABM transactions are collected separately.

There is a completely separate tracking system in place to deal specifically with any complaints. A number of people who have submitted complaints are contacted and surveyed.

The corporate philosophy is to examine what factors influence client satisfaction, what the branch can do to meet enhance these factors and to integrate these ideas into daily operations.

Exemplary Practices

TD Canada Trust has developed many exemplary practices with respect to its service standards. These practices have evolved though numerous consultations and surveys both internal and external. TD Canada Trust has allocated significant resources to the development of these practices and has found a significant link between client satisfaction, employee satisfaction, and profitability. They have developed other standard as well but they are proprietary and so are not covered in this case study.

• A message from the CEO was sent to all employees underlining management commitment to the client-centred initiative. One of the obstacles to implementation of Services Standards was employee buy-in. Some of the employees where cynical about corporate follow-through. The initial reaction was that the new initiative was simply a "flavour of the year". Strategy and Information staff conducted a number of employee consultations and surveys to research ways to overcome the obstacle. Part of the effort to influence employee buy-in was a message sent to all employees, from the CEO, explaining the importance of client-centred service standards and the companies commitment to creating a client-centred environment.
• Employee training is seen as integral to developing and maintaining the client-centred approach. Employees are trained, through workshops, on what the service standards are and how to maintain them. If reports indicate below average standards at any branch, there is a remedial workshop in place to help employees get back on track.
• Performance pay is partially dependent on meeting service standards. As incentive, service standards are linked to performance pay, not only for managers but also for front line employees. Employee performance evaluations have a section, worth 35%, based solely on meeting service standards.
• Consultations and surveys are on going. Consultations with and surveys of customers and employees are carried out regularly by outside, independent consulting firms, to assess their satisfaction and expectations with respect to service standards. Outside consulting firms are contracted to conduct reviews of service standards. These studies have found a correlation between employee satisfaction, client satisfaction, and profitability. This focus on client/employee satisfaction has led to the average growth in client satisfaction.
• Importance of any given point of access, with respect to service standards, is weighted based on the amount and type of client interaction. When examining client satisfaction for the purposes of determining performance pay, each access point is weighed according to the amount of personal contact with the client. The ABMs account for 70-80% of client access but since this interaction is through a machine, it is weighted at only 5%. However, in the case of transactions completed with the teller (in person), which account for 10-20% of client access, that transaction is weighted at 65%. This type of approach is especially significant when reviewing managerial performance. Whereas the teller may be evaluated against client satisfaction at the counter, the manager will be evaluated against a branch composite, which includes tellers, phone contact, ABMs, mailings, Internet, and emails, each weighted according to amount and type of contact.
• Reports from each branch are compiled and presented to upper management on a quarterly basis. To insure continued efforts in client satisfaction and for timely detection of any positive/negative trends, each branch prepares quarterly client satisfaction reports. The reports are compiled and forwarded to the Board of Directors for review, any needed action is determined at that point.

Lessons Learned

The following are main lessons learned throughout the implementation of the TD Canada Trust's client-centred approach to customer service:

There is a strong correlation between employee and client satisfaction.

1. By comparing results from its many employee and client surveys, TD Canada Trust has determined that there is a strong correlation between custom and employee satisfaction. This has highlighted the importance of such programs as pay incentive being partially dependent on client satisfaction results and the implementation of the employee recognition program.

   Documentation of service standards and procedures for developing and integrating these standards is essential to the initiative.

2. With the recent reshuffling of TD and Canada Trust infrastructure after their merger, it has become evident that documentation is a real necessity of any client satisfaction initiative. Much of progress each Bank had made with respect to service standards was lost in the reshuffling. It is also important in helping to maintain the continuity of the program locally, regionally, nationally, and globally. With the redefining of employees' roles and responsibilities, any documentation from the individual initiatives was found to be an invaluable source of information for a smooth continuation of the program in the newly formed TD Canada Trust. This same necessity to document holds true for smaller reshuffling, which is part of any organizations day to day operations.

Contact

For more information on the services provided by the TD, please contact:

Janet Hawking
Senior Vice President - Strategy and Information
Marketing Department
TD Canada Trust
Phone: 416 308-5394

 

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