transforming the customer experience in retail branch banking (credit union conference session...
DESCRIPTION
The pressure is on the financial industry to efficiently provide their customers with the same presence, preference and easy access to everyday services that can be experienced across other industries such as retail, travel and hospitality. How do credit unions create the right road map to incrementally improve their branch experience, all the while, delighting customers and cementing profitable long term relationships? In this 2012 Strategic Growth Conference session, check out the latest trends and how to integrate innovative technology solutions into your credit union’s roadmap! More info at: www.nafcu.org/ncrTRANSCRIPT
Bob TramontanoVP Marketing
Transforming the Customer Experience in Retail Branch Banking
NCR Confidential 2
The retail banking ideal Empowered staff. Engaged customers. Differentiate with relationship banking.
• Class leading operational rigour• Consistent Experience delivery• Facilitate customer event cycle• Technology supported
Empowered Staff
• Using multiple channels • Loyal to their ‘bank of choice’• Valuing the branch experience• Technology enabled
Engaged Customers
• Increased return per employee• Increased product uptake• Increased customer retention
Profitable Relationship banking
NCR Confidential 3
Global retail banking industry challengesDriving new customer engagement and profitability models
• Confidence in US banks down by 55%
• Confidence in European banks down 50%
• Global consumer confidence in banks down by 44%
Economic Crisis
• 38% of US customers changed bank due to service in 2010-11
• 5% vulnerable & planning to change due to service issues
• 32% of customers rate customer satisfaction as poor - average
Customer Satisfaction
• Basel 3 capital regulation
• Changing consumer banking regulations
• Money laundering, Payment card data security regulations, worldwide fraud increase
Regulation & compliance increasingthe cost of banking operations
NCR Confidential 4
Offering customers, Presence and PreferenceNew customer expectations across the multi channel ecosystem
We are seeing new banking preferences - established & adopted by all demographics as technology
proliferates
Do customers appreciate why the branch experience is so valuable in helping them manage their long term financial plans?
NCR Confidential 5
The retail branch ‘experience’Still the cornerstone of successful multi-channel customer engagement strategies
Job
Finance
Home
Events – a constantrevenue source for retail
banking
Every day, each customer, regardless of wealth ages, progresses, meeting newer, more complex challenges across job, home, family &
finance.
Family
1 Source Accenture July 20102 Source Finextra May 20103 Source NCR Research 20114 Source CapGemini 20115 Source Ernst & Young 2011
•NAMER average of 28 customer visits per annum by 2015
•Branch generates 80% of retail banking revenue, despite high adoption of new complimentary channels eg Online, mobile
•Customers use branches to conclude the purchase of 4 out of 5 banking lifestyle products, despite originating the application using alternative channels
The Statistical relevance of branch
•Re-energise your biggest, controllable, brand asset
•Re-frame branch engagement for service at lower cost
•Embed relationship banking & high value product sales
•Unlock profit from unused customer opportunities
Adopting new transaction channels, creates opportunity
The value of the branch experience is unique
Alternative retail banking channels such as Online, Mobile and ATM networks compliment & support the branch experience.
They offer increased presence and preference to the customer to routinely bank how they want, whenever they want ensuring their
branch visits have purpose
Moving your customers from impulse to action.
NCR Confidential 6
Branch experience tomorrow – Contemporary design & visually advanced solutions?
NCR Confidential7
In branch experience
Re frame the branch experience
Connect to the branch
Or Solutions which deliver great banking experiences wherever, whenever
NCR Confidential
Personalised offers
Best in class products
Basic customer need – branch location & facilities
8
In Branch
•Enable efficient access to basic services•Enhanced Sales Process
Connecting to the branch
•Replicate in-branch customer intimacy
Enterprise control
•Manage consistent banking experience•Close the intimacy gap
Provides basic borrowing & deposits
Branch TransformationIncremental improvement & consistent delivery of the customer experience
Bank of Choice
Bank of choice accumulatesCorporate experience
•Adoptive customer base•Great process consistency•Conducive environments
NCR Confidential
World Class Customer Satisfaction Levels……Banks with Customer Satisfaction Index >75% - generate $250m more revenue than poorer peersOnly 9% of US customers hold 4+ of their bank’s products
Customer Influence –Power to drive FI delivery strategies
Reference SourcesErnst & Young 2011, Gartner 2010, McKinsey 2010 9
UPS – World No 1
•2011 Customer Satisfaction Score - 85%
•2010 Net Income - $3.5 billion & rising
Starbucks – World No 1
•2011 Customer Satisfaction Score - 80%
•2010 Net Income - $1 billion & rising
Apple – World top 5
•2011 Customer Satisfaction Score - 87%
•2010 Net Income - $14 billion & rising
NCR Confidential
Solve it – Create simple, relevant corporate-wide metrics, underpinned by technology
Future Metrics – Customer FocusedImprove Process, Improve Service & Grow Revenue
Comprehensive customer satisfaction measurement %
% Personnel time devoted to sales & service
Product uptake per Household
The problem – Eradicating complex legacy metrics, which control staff behaviour
10
Legacy Metrics developed to control staff actions, achieve targets
Do they promote the right behaviours?
Competing channels
Over simplistic customer satisfaction scoring
Sales driven bonus, without customer satisfaction qualification
Hit “sales per day” target
Staffing levels driven by sales
NCR Confidential
•Staff Consistency •Adherance to process
Branch Location
Trained Staff
Teller Cash Recycler
11
Deploying “In branch” solutions supports differentiationThe practical impact on key drivers
Impact
Financial Kiosk
• Customers’ choice – Human or Kiosk• Free Personal Bankers - build relationships
Intelligent Deposit
• 24/7 teller, consistent speedy service• Free your tellers to engage with customers
Teller Cash Recycler
• Serve customers, encourage dialogue• Less distraction, develop relationships
Intelligent Deposit
Financial Kiosk
• 100% Customer Satisfaction Target • Increase product uptake • Free more personnel to engage
NCR Confidential
•Intimacy Gap•Humanisation
12
ATM
Online Banking
Mobile Banking
APTRA Interactive Teller
APTRA Self Scheduler
• 100% Customer Satisfaction Target • Increase product uptake• Free more personnel to engage
Deploying “connecting solutions” closes the intimacy gapThe practical impact on key drivers
Impact
APTRA Self Scheduler
• Reduce no shows to less than 15%• Increase sales conversion by 20%
APTRA Interactive Teller
• 24/7 ‘Live’ service and sales to customers• Immediate & effective staff deployment• Reduce your teller headcount by 40-50%• Provide up to 95% of teller services• Faster teller experience for customers
NCR Confidential
•Staff Consistency •Adherance to process
Asset Manager
Core Systems
CRM
APTRA eMarketing & Relate
APTRA Vision
13
• 100% Customer Satisfaction Target • Increase product uptake• Free more personnel to engage
Enterprise solutions manage consistency of customer experienceThe practical impact on key drivers
Impact
APTRA Vision
• Equip mobile managers to see down time• Maintain Customer Satisfaction index score
APTRA eMarketing & Relate
• Turn your ATM network into a sales force• Learn and act on your customers’ multi
channel sales approach preferences
NCR Confidential
Consumer Experience Banking design – Achieve successful deployment & adoption
RELEVANCE
•Success metrics•Staff & customer communication
USEABILITY
•Segment solutions, •Refresh commoditised solutions
•Customer engagement locked down?
•Embarking on Physical re-design?
•Want to influence an entire network?
Simple rules when deploying solutions
•Useability – does it make a difference?
•Relevance - Does it have a purpose?
Simple considerations for best customer adoption
•Customer collaboration & Scalability
•Simple UI changes eg ATM, Kiosk,
•Scalable redesign – eg meet & greet areas
NCR Confidential
Human to Human Assisted Self Service Mediated Self Service
Choice, within well choreographed process Embedded 24/7 Choice, across channelsIdeal, but not scalable, reliable
Lowering costs Maximising resource, still personal Full customer adoption
The evolution of the customer’s banking experience, to self service adoption
NCR Confidential
• Harness knowledge and vision of multiple channel stakeholders
• Prioritize pain points to affect definable metrics.
• Discovery workshops to convert visions
Create priority roadmap. Incrementally improve
• % FTE Time spent on service & sales• Customer Satisfaction• Product uptake per household
• Recommendations demonstrating real revenue, efficiency & customer experience benefits
16
The right partnership methodology – Collaborative roadmap design