differentiation strategies through self-service retail delivery options (credit union conference...

National Association of Federal Credit Unions l www.nafcu.org

Timothy Fikse Financial Deployment

NCR Corporation

Solutions to Serve Tomorrow’s CU Members

Self Service Channels

Member Retention

Relevant Marketing


How well do you know your members?

How they choose to get information and make decisions How they select companies across multiple industries Direct to consumers …say it’s important to access

products and services across different industries in a similar way using multiple channels.

87% of consumers

BuzzBack Reaseach 2010


Consumers are changing

Scheduling appointments

Food shopping

Printing Boarding Pass

Paying Bills

70% of consumers

Less Loyal

Digitally Enabled

Time Starved

…say that no matter how hard they try, they never seem to have enough time to do all the things they need to.

by research firm Yankelovich Inc

Looking for better, new ways to interact


What happened to consumer loyalty?

“As all too many banks will queasily admit, there is a yawning gap between having a customer focus and demonstrating a customer focus day in and day out.”

“78% of consumers said when they do a lot of business with a bank branch it’s important for them to be recognized as a valued customer.”

Consumers are loyal

to

experiences not

companies…


Evidence for a new way of thinking

What makes a consumer choose a financial institution?

Convenience will continue to evolve as consumers’ expectations increase


Give your members what they want

What makes a member a “satisfied” banking consumer? J.D. Power and Associates

Imagine what could happen if these channels were

converged


Preference

How do I choose to interact?

Mobile/Phone

Internet

Branch

ATM & Kiosk

88% of consumers

…say they are more likely to choose a company that enables them personalize interactions across multiple channels.

BuzzBack Reaseach 2010


Presence

Where it’s available?

Home

On-the-go Roaming

Building

• Branch • Hotel • Store • Casino • Airport • Hospital


Growth of Channels in the Financial Industry

Number of Interactions with US Financial Institutions

# o

f In

tera

ctions (

billions)

Source: Tower Group, ATM & Debit News & internal NCR estimates

20

40

60

80

100

120

140

Branch ATM Call Center Mobile Online Banking

Past

Present

Future

2000 2005 2010 2015 2020

Call Center

Online Banking

Mobile

ATM

Branch

New channels augment existing channels


Tomorrow will require new way of doing business

B2B

B2C

C2B Consumer to Business Consumer centric and delivering channel efficiency

Preference

Presence


Optimizing a seamless member experience

Assisted/Branch

ATM/Kiosk Internet Mobile

Cx-banking Drive lower cost

Increase dialogue

Increase response seamless transition across all channels


Creating a Multi-Channel Experience

Converged Channel

Grow Revenue

Risk and Regulation

Consumer Confidence

Manage Cost


Understanding your challenges

Rising costs of attracting new members, as well as keeping the ones you have

Shrinking budgets and resources

Marketing campaigns taking too much

time to create and launch

Delivering personalized, orchestrated marketing across all channels

“43% of consumers are more likely to choose a financial institution that offers multi-channel self-

service.”

“Consumers are multi-channel creatures and they

will no longer tolerate inconsistent experiences

across a financial institution’s delivery

channels.”


Risk mitigation and fraud

management

Challenges you may face

Capture market share/ reduce churn

Converged channel

integration

Deepen consumer intimacy

Expand wallet share

Improve consumer

loyalty

Regulatory compliance

Multichannel consumers are 20% less likely to defect to another supplier

– Jupiter Research

64% of financial institutions see strong

to very strong improvement in retention after consumers become online banking users and then online bill payers

-Aite Group

Reduce failed consumer

interactions


Wells Fargo Investor Day Presentation

Multi-channel consumers buy more, are more profitable

Carrie Tolstedt, Senior EVP Community Banking

More multi-channel …

… means 1.8x more products,

… and 1.5x more profits


Cross Channel eMarketing – What is it?

Online Banking

Call Center

Mobile

Branch

Email

ATM

Single orchestration engine that delivers integrated, relevant, cross-channel marketing campaigns based on consumers' presence & preference

ATM / Kiosk

Email

Online Surveys / Banner Ads

Mobile (SMS)

Call Center

Digital Signage

On-Demand Printing

Social Media Channels

Do you offer a seamless multi-channel experience for your members?


Your Account Overview is…

Your Account Balance is…

Good Afternoon, How may I help

you?

Good Afternoon, How may I help

you?

Please Select Your Language

Dear Valued Customer,

Good Evening Andy, can we help you get started with a new

HELOC?

Andy, your mortgage payment has been

received.

Hi Andy, Are you

interested in a new HELOC?

Thanks for coming into the branch Andy, the loan

officer will be right with you!

Hi Andy, don’t forget Jill’s graduation next

month. Would you like to view our new

student accounts!

Welcome Back Andy, your mortgage

payment is due in 7 days!

ATM

eMail Online

Mobile

Call Center Store

Personalization based on presence & preference


A view of the Past……or Present?

Sales & service

objectives

Fulfilment in channel

Telephony

Member Contact

Sales & service

objectives


Branch

Member Contact

Sales & service

objectives


ATM

Member Contact

Sales & service

objectives


Web

Member Contact

Sales & service

objectives


Mobility

Member Contact

Channel-Specific Consumer Paths & Transactions

Telephony Web Branch ATM Mobile


Telephony

Web

Branch

ATM

Mobile

Consumer Contact

Selection based on presence and preference

Consumer view of channels

Consumer Profitability

Likelihood to buy more products 1.8X 1.5X


Reach the members you want, how they want to be reached

Better Information – Better Targeting

- Personalize your campaigns based on what your members tell you

- Two-way dialogue lets members take immediate action

- Know their buying behaviour – real-time feedback lets you respond in the best possible way

“77% of consumers said, companies should let me

decide how they can contact me.”

- N. American Technographics Media “91% of surveyed executives indicate that creating a differentiated ATM experience through customer personalization will be very important to their ATM strategy in the next five years.”

Creating a dialog with your members when they're ready to listen and then respond

eMarketing should see each member as an individual with unique preferences


Delivering results for your business

20%-70% email open rates

Reduce time to create and

execute campaigns from 3 weeks to 1 day

A/B and multi-variant testing for real-time results and optimized

campaigns

50% reduction in cost and 50% increase in conversion for ATM based

campaigns

What if you could……

60% increase in email campaign conversion

vs. traditional campaigns

98% reduction in cost executing email campaigns vs. traditional

direct mail


Putting your ATM network to work

Every member is unique, so should your marketing message

ATM users are in a financial mindset – and more likely to convert

• “Not-on-us” transactions – reach

consumers you don’t know

• Gather valuable new contact

information

• Convert members and non-

members – there and then

• Maintain accurate member

information records


How do you decide on a provider?

SaaS and Managed Hosting

Services – allowing You to focus on your

business

Strong Business Foundation

Market presence & position

Financial Industry Focus Complete solution across

multi-channels Documented productivity

gains

Continued Innovation – Strong R&D focus

Converged channels Security, payments

Bundled consultancy services to help you

with direction, development and

analysis – all in one


Are your IT resources over-stretched?

Provider should have outsourcing offer (SaaS) as an option

SaaS requires minimal resources, minimal risk and low monthly fees

• Lower initial investment – no CAPEX required

• Fast time to market

• Scalable –should meet your needs today, and tomorrow

• Flexible – should be able to change as your channel strategies evolve

• Compatible – should be easy to integration with all major CRM solutions

Transitional outsourcing program: hosted solution until your IT team is ready to bring in-house if desired


eMarketing – what it means for your credit union

Engage your members in magic moments of opportunity

Break the silos between virtual and physical channels

• Reduce costs and deliver relevant messages on your members’ preferred channel

• Personalized, channel-appropriate communication based on your members’ preferences

• Reduce time to market with SaaS deployment

• Increased campaign conversion, product sales and revenue growth

A single solution for all your channels - mobile, online, email, social,

ATM “Banks need to personalize and transform the customer relationship… A personalized relationship program is a true differentiator, which cannot be

easily copied by the competition, and protects

margins.”

http://www.ey.com/global/content.nsf/International/Home


Thank-you!

Timothy Fikse [email protected] 678-808-6782

mailto:[email protected]