The Strategic Value of the Chief Experience Officer

Time and Focus: The Key to Managing Client Expectations

Recent studies highlight key factors driving client satisfaction and loyalty across different generations in the financial services sector.

A 2023 study by Bain & Company reveals that digital-native banks (neobanks) have become increasingly popular among both younger and older generations. Their success is driven by simplified offerings, easy digital onboarding, and competitive pricing. Millennials and Gen Z, in particular, have been drawn to these platforms because of their desire for personalized experiences and a frictionless digital journey. Older generations are also adopting neobanks, but traditional banks still maintain a significant portion of their loyalty. However, to retain this loyalty, banks must innovate and improve their digital services, as customers today expect seamless experiences across both digital and in-person interactions and not just in traditional banking alone but in expanded financial services.

A PwC customer loyalty survey also highlighted the importance of human interaction, especially in financial services. More than 55% of consumers noted that personal, human interactions are still critical to their loyalty, particularly when addressing complex or emotional financial matters. However, younger generations tend to prefer an integrated experience that combines digital ease with access to human support when needed. Gen Z and Millennials are more likely to try new brands if they offer better digital experience.

There is much to consider when implementing a client engagement model for your business – and most of it resides in client expectations.  It is particularly challenging when your client base is intergenerational and represents a spectrum of socio-economic environments. This is why we firmly believe in a client engagement organization led by a Chief Experience Officer (CXO). From streamlining onboarding processes, adding personalized value-added services, and improving problem resolution, these executives have the experience and the understanding of crafting a model that combines the best of the digital offerings with the tangible results of collaboration with clients.

The Value of a CXO in Business Growth

The CXO of a firm is responsible for ensuring that the client’s journey is consistent, seamless, and exceeds expectations at every touchpoint. While many companies focus heavily on operational efficiency or product development, firms that make client experience a priority tend to see more long-term growth. A CXO works across departments to align the entire organization’s processes with client satisfaction, which in turn drives loyalty, referrals, and revenue.

Having a dedicated person or team that is setting aside focused time to manage client service delivery is critical. Ensuring that every interaction, from sales to post-service support, meets or surpasses client expectations can transform a company’s reputation and help it grow.  It cannot be overstated, however, that unless the sales, product/service delivery (operations), and the client experience teams are jointly aligned with the same goals, the client’s experience (along with your internal teams’) will be fraught with miscommunication, resentment and endless blame likely resulting in the loss of personnel and, ultimately, client business.

Unique Nuances of Successful Client-Centric Firms

Several financial institutions have built their reputations on delivering exceptional client experiences, and they serve as great examples of how the collaborating with clients can create competitive advantages by providing:

• Proactive Engagement: Successful firms are known for their proactive approach to client service and are reaching out to clients before potential issues arise. They provide educational content, market updates, and tailored advice to keep clients informed and engaged.
• Personalization at Scale: While easier said than done, firms excel at delivering personalized experiences despite their large client base. They leverage technology to customize communication, offering clients targeted advice based on their unique financial situations.
• Empowerment tools: By implementing robust and appropriate “self-serve” tools, firms have gained traction by empowering clients with simple, accessible tools that demystify data and allow clients to easily and quickly see the status of their service portfolio.

There are many examples of high-performing businesses that turned around by prioritizing client experience including:

1. Prudential plc. In 2024, Prudential plc undertook a comprehensive digital transformation to enhance customer centricity. By leveraging data and artificial intelligence, the company aimed to offer more personalized, proactive, and efficient services. This shift not only improved customer experiences but also drove sustainable growth across global markets. Priscilla Ng, Prudential’s Group Chief Customer and Marketing Officer, emphasized the importance of harmonizing AI capabilities with a human touch to deliver exceptional customer experiences.
2. Allianz, a leading global insurance company, recognized the need to simplify its product offerings to enhance customer satisfaction. In 2018, the company undertook a strategic shift towards simplicity, aiming to make its services more accessible and user-friendly. This move was contrary to the industry trend of hyper-personalization but was driven by a deep understanding of customer needs. The initiative led to improved client engagement and operational efficiency, demonstrating the effectiveness of a client-centric approach (Harvard Business School Research 2021)
3. Banco Bilbao Vizcaya Argentaria (BBVA), a multinational Spanish banking group, invested heavily in digital transformation to enhance client experience. By focusing on cloud computing, data analytics, and artificial intelligence, BBVA aimed to create a data-driven, engaging, and differentiated customer experience.  This client-centric strategy led to significant growth in digital sales and customer acquisition, underscoring the benefits of aligning services with customer expectations. (Accenture 2023)

These few examples are particularly notable for one thing: they are large, well-established organizations with time and resources.  For companies that don’t have the bandwidth for a full-time CXO, are just launching, experiencing significant growth, or responding to unmet client expectations, there may be a need for a more rapid response than the firm is prepared for.  This is where a Fractional CXO—a part-time executive who focuses on client experience—can add immediate value.

The Immediate Impact of a Fractional CXO

1. Building a Best-in-Class Business-as-Usual (BAU) Client Service Model A well-executed BAU client service model is the foundation of a trusted client relationship, particularly in financial and insurance services, where clients expect stability, reliability, and responsiveness. A Fractional CXO brings targeted expertise to establish efficient processes, streamline client interactions, and embed high standards of service delivery into daily operations. With a fractional leader focused on building and maintaining this structure, firms can ensure consistency and accountability across all touchpoints, reinforcing client loyalty and satisfaction.

Key Benefits:

• Reduced Client Attrition: Consistent service quality minimizes client frustration and attrition
• Operational Efficiency: Improved processes and accountability lead to a more streamlined client service model
• Resource Optimization: Enables existing teams to focus on delivering quality service without sacrificing strategic planning

2. Strategic Focus Beyond Daily Operations While BAU operations keep client needs met on a daily basis, long-term success requires a proactive, strategic approach to client experience. A Fractional CXO provides dedicated attention to the client experience strategy without requiring full-time resources. By guiding strategic projects, identifying growth opportunities, and fostering innovation, a Fractional CXO allows internal teams to focus on their day-to-day responsibilities while ensuring the firm stays ahead in client service trends.

Key Benefits:

• Scalable Growth: With a strategic approach, firms can anticipate and plan for future client needs, making scaling more sustainable
• Competitive Differentiation: Strategic client service initiatives, such as personalized experiences or enhanced digital offerings, can differentiate the firm in a crowded market
• Innovation and Agility: The Fractional CXO can pilot and adapt new ideas quickly, allowing firms to remain agile in response to industry changes

3. Enhancing Cross-Product Management In financial and insurance services, clients often interact across multiple products and services, making a cohesive client experience essential. A Fractional CXO can create alignment between product and service lines, ensuring that clients experience a seamless, integrated service regardless of the products they utilize. By mapping the client journey and standardizing service levels, the CXO enables firms to anticipate client needs, eliminate inconsistencies, and reinforce trust.

Key Benefits:

• Unified Client Journey: Clients experience a consistent, cohesive service across all products, fostering stronger relationships
• Cross-Selling and Upselling Opportunities: A streamlined client experience across products naturally supports additional sales and service opportunities
• Reduced Friction Points: Enhanced communication and process standardization eliminate common service disruptions across product lines

4. Tailoring Support Based on Client Sophistication Not all clients require the same level of support. High-performing financial and insurance services firms often serve a range of clients from sophisticated institutional investors to high-net-worth individuals who require tailored guidance. A Fractional CXO can implement tiered support models, ensuring that clients receive the right level of service based on their needs and sophistication. This approach optimizes resources while delivering a personalized, effective client experience.

Key Benefits:

• Resource Efficiency: High-touch support is allocated to clients who need it most, preventing resource strain
• Improved Client Satisfaction: Clients receive the appropriate level of support, whether they are sophisticated investors needing detailed insights or clients needing reassurance
• Stronger Client Relationships: Tailored support reinforces the value clients feel, driving loyalty and long-term relationships

By providing targeted leadership, a Fractional CXO can help firms define or improve processes that ensure client satisfaction, which is particularly valuable during times of growth or transition. Whether it’s overhauling the online service suite, improving resolution times, enhancing communication, or refining product delivery, a Fractional CXO can prioritize and execute initiatives that bring measurable results in a short amount of time.

Additionally, having this focus on client experience allows other leadership roles to remain concentrated on their core areas of expertise, ensuring the overall business runs efficiently while simultaneously creating the necessary connections throughout the delivery chain to:

• Provide Executive level discourse with clients
• Define and implement the model structure – ensuring all internal groups are connected and in agreement
• Collaborate with clients to understand their needs and address concerns before they escalate
• Provide training and support to employees, ensuring they have the tools to deliver high-quality service consistently
• Establish and track performance metrics to measure client satisfaction and adjust processes as needed to improve outcomes

How can we help you?  Contact us to hear how we can help you meet your goals.