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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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…
National Association of Federal Credit Unions l www.nafcu.org
Evidence for a new way of thinking
What makes a consumer choose a financial institution?
Convenience will continue to evolve as consumers’ expectations increase
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
Presence
Where it’s available?
Home
On-the-go Roaming
Building
• Branch • Hotel • Store • Casino • Airport • Hospital
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
Tomorrow will require new way of doing business
B2B
B2C
C2B Consumer to Business Consumer centric and delivering channel efficiency
Preference
Presence
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
Creating a Multi-Channel Experience
Converged Channel
Grow Revenue
Risk and Regulation
Consumer Confidence
Manage Cost
National Association of Federal Credit Unions l www.nafcu.org
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.”
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
Cross Channel eMarketing – What is it?
Online Banking
Call Center
Mobile
Branch
ATM
Single orchestration engine that delivers integrated, relevant, cross-channel marketing campaigns based on consumers' presence & preference
ATM / Kiosk
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?
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
A view of the Past……or Present?
Sales & service
objectives
Fulfilment in channel
Telephony
Member Contact
Sales & service
objectives
Fulfilment in channel
Branch
Member Contact
Sales & service
objectives
Fulfilment in channel
ATM
Member Contact
Sales & service
objectives
Fulfilment in channel
Web
Member Contact
Sales & service
objectives
Fulfilment in channel
Mobility
Member Contact
Channel-Specific Consumer Paths & Transactions
Telephony Web Branch ATM Mobile
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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
National Association of Federal Credit Unions l www.nafcu.org
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.”
National Association of Federal Credit Unions l www.nafcu.org
Thank-you!
Timothy Fikse [email protected] 678-808-6782