DIGITAL TOOLS TO ENHANCE THE RETAIL EXPERIENCE

Transcription

1 DIGITAL TOOLS TO ENHANCE THE RETAIL EXPERIENCE ENABLING THE UNIVERSAL BANKER

2 01 IN TODAY S ENVIRONMENT, THE ONLY SUSTAINABLE WAY FINANCIAL INSTITUTIONS CAN CREATE REVENUE IS BY SELLING MORE TO THE CUSTOMERS THEY ALREADY HAVE. 1 ADRENALINE WHITE PAPER SERIES UNIVERSAL BANKER S TOOLBOX Today, 65% of consumers interact with their financial institutions through multiple channels, with only 15% using the branch alone. 2 The rise of ATMs, debit cards, direct deposit, online and mobile banking means that today most banks customers don t often have the need to go into a branch. While this shift has provided more convenience and efficiency for the customer, banks are losing a valuable touch point with their audience. 1 Jim Marous, Publisher of Retail Banking Strategies, The Financial Brand Retail Banking Insights, McKinsey & Company 2014

3 02 DIGITAL TOOLS TO ENHANCE THE RETAIL EXPERIENCE 03 WHY WE NEED the universal banker MORE THAN EVER BEFORE 45 % decrease in branch transactions 84 % 18 % decrease in teller productivity 124 % increase in labor cost per transaction increase in salaries & benefits Since the consumer is able to do most of her everyday transactions on her own, when she does come into the branch, it means there is an issue, question or need that can t be addressed within her everyday banking channels. In fact, this creates a real opportunity for a branch to be a problem-solver and foundation-builder for the consumer, but it also means that the level of expectation and expertise needed to address all of a customer s needs is quite high. Thus, the rise of the universal banker. A universal banker is a bank employee who is trained, capable, flexible and prepared to provide both customerservice functions and higher-level counsel to customers, addressing numerous requirements simultaneously. And in today s fast-paced, get-it-now environment, universal bankers must be nimble, knowledgeable and respectful of his customer s valuable time. The universal banker s world is where skill and training meet efficiency and competence. According to FSMI, since 1992 branch transactions have declined by 45.3%, salaries and benefits have increased by 84.2%, labor cost per transaction has increased by 123.6%, and productivity (defined by transactions processed) has decreased by 17.9%, all resulting in the average cost per transaction doubling from $0.48 to $ In this challenging environment, the need to enhance employees ability to sell and provide valuable advice has never been more critical. The best cross-trained employee must not only have preparation and skill, but comprehensive tools that can maximize engagement with customers in a bank environment intentionally designed with both form and function in mind. One of the most powerful tools at the universal banker s disposal is the tablet. This one device brings together multiple pieces of information into one place, where the customer can directly interact with all of a bank s products and services, alongside a knowledgeable partner who can help guide them to the most customized solutions to their financial needs. discuss his financial situation. It was a place where the customer s most private financial decisions were made, just down the street, with someone whom he knows and trusts and considers a confidante, an advisor and maybe even a friend. In this environment, it was easy for a customer to feel a connection to their bank, and for a bank, or at least a banker, to have a relationship with a customer. The transactions were relatively straight-forward, the customers were familiar, and bankers and customers interacted regularly. As a consumer, you felt you had a personal bank and a banker, and as a banker, you had a loyal customer you understood and enjoyed serving. As the population grew and urban centers multiplied, people began to have less and less connection to their banks. Consumer time demands multiplied as quickly as bank branches, and consumer conveniences like drive-through windows, ATMs, and direct deposit drew them further and further away from having oneon-one contact with bankers. At the same time, banks were adopting technologies to keep up with the rapid pace of technological change. Where a banker once knew her customer personally, she now relied on data, spreadsheets, and computer systems to give her information on what a customer might need and how she could help provide financial services to him and thousands of other customers like him banking through that branch. Flash forward to today. In the past 12 months, 85% of consumers have visited a branch, 74% have used online banking, 74% have used an ATM, 35% have used telephone banking and 28% have used mobile banking. 4 Over 80% of a retail banking customer s interactions take place in self-service channels, yet a majority of retail banking customers have visited a branch in the past 6 months 5 and the vast majority of new accounts are still opened there. The reason is simple: people want expert advice. 4 Consumers & Mobile Financial Services 2013, Federal Reserve Board 5 Do Bank Branches Still Matter? Micah Solomon, Forbes 2014 HOW TABLET SALES ENABLEMENT IS AN IMMEDIATE SOLUTION TO THE BIGGEST SELLING CHALLENGES FACING THE FINANCIAL INDUSTRY TODAY benefits of tablet use: EXECUTING CONSULTATIVE SELLING IN THE BRANCH ENVIRONMENT DIFFERENTIATING THE CLIENT EXPERIENCE WITH INSIGHTS, IDEAS, AND THOUGHT LEADERSHIP K NOW YOUR CUSTOMER In the early days of banking, the local hometown bank was the financial hub around which all of a customer s activities took place. The customer relied on the local bank for all of his transactions and financial needs coming in to deposit checks, withdraw money, open accounts, and FSMI Teller Line Study INCREASING ACCOUNT PENETRATION BY CROSS SELLING WITHOUT PRODUCT PUSHING ADDING MORE VALUE DURING REGULAR FINANCIAL REVIEWS AND POLICY RENEWALS

4 8 % THE SOURCE OF SALES NEW ACCOUNTS OPENED IN BRANCH hadn t considered it at all 33 % were considering it but needed prompting Where Do SALES COME FROM? 59 % Customer already planned to open the account without prompting Thinking of opening + prompted after receiving something from bank Thinking of opening + prompted after talking to someone Not thinking of opening + prompted after talking to someone Not thinking of opening + prompted after receiving something from bank WHEN YOU RE NOT USING YOUR TABLET, keep it plugged in or on a charging dock so that it s charged and ready to go when you need it. had already decided USE A COVER TO TILT THE TABLET at a comfortable angle for viewing and tapping, without blocking eye contact between you and the customer. CONNECT A BLUETOOTH KEYBOARD to the tablet, for customers who are faster or more comfortable with physical keys than digital ones. DISABLE THE KEYBOARD S CLICKING and other sounds so the tablet is quiet when the customer is using it. THE SALES VALUE OF the engaged customer HOW LIKELY ARE YOU TO DO ANY OF THE FOLLOWING IN THE NEXT 12 MONTHS? FULLY ENGAGED CUSTOMER Sign up for a new service to support an existing account, like online banking and overdraft protection 36.9 % Add an additional account, like a new checking or savings account 30.6 % Increase the overall balances of your existing account Switch an account from another bank over to your primary bank 26.0 % Obtain financial planning advice from your primary bank 34.5 % Open an investing account with your primary bank ACTIVELY DISENGAGED CUSTOMER BASIC RULES OF TABLET ETIQUETTE 49.6 % THE COUNSEL- SEEKING IN-BRANCH CUSTOMER IS A precious commodity. According to a Gallup U.S. Retail Banking Survey, 33% of 25.4 % new accounts were opened in branch by customers who were considering it but needed prompting, and 8% were opened by customers who hadn t considered it at all. An additional 13% had considered opening an account or buying a service, but did not. 6 These scenarios represent pivotal opportunities for the universal banker to deliver on-point advice and relevant options that speak directly to that customer s situation. LEARN TO USE GUIDED ACCESS MODE to keep the customer inside the app they re working with. If they tap the home button by accident, it won t take them back to the home screen. IF YOU HAVE ACCESS TO A DISPLAY with an Apple TV connected to it, ipads have a feature called airplay that will mirror the ipad screen content on the larger display. This is a great way to see what your customer sees, so you can walk them through what they re doing step-bystep, without hovering over them. The same survey highlights the differences between satisfied verses engaged customers. 45% of satisfied customers said they would consider their bank or credit union the next time they needed a product or service, yet it increased to 83% among customers who were both satisfied and engaged. Additionally, engaged customers were more likely to open a new account, add new products and services and/or obtain planning advice than those just satisfied. But how can bankers do that when they may not really have a direct connection like in days past? That s where technology can help. 6 Gallup U.S. Retail Banking Survey 2013 HUMAN INTERACTIONS REMAIN IMPORTANT IN a multichannel world Average number of web interactions per week MULTICHANNEL IS THE NORM 65 % Multichannel Customers Branch Only Web Only Call Only ATM Only MORE DIGITAL MEANS MORE HUMAN INTERACTIONS, NOT LESS Percent of customers interacting with branch or call center 30 % 43 % 51 % 54 % 12 % 42 % 21 % 25 % 27 % 64 % 56 % 29 % 57 % 31 % 58 % 32 % 58 % 33 % 59 % 35 % Branch Call 76 % 59 % 36 % 57 % 40 % 15 % 10 % 5 % 5 % 81 % The Future of U.S. Retail Banking Distribution, Mckinsey 6 Gallup U.S. & Co, Retail February Banking 2014 Survey % 88 % 90 % 91 % 94 % 95 % %

5 DIGITAL TOOLS TO ENHANCE THE RETAIL EXPERIENCE the TOP DIGITAL TOOLS for ENGAGING EXPERIENCES DIGITAL COLLATERAL Another item that is a must-have for the universal banker is digital collateral. Every industry, including banking, has undergone a revolutionary process of shifting away from a paper-based business model to a digital one. Instead of handing a customer brochures and documents that outline benefits of a bank s products and services, having them in a digital format that can be easily accessed and stored in a customer s CRM and sent to them digitally fulfills the customer expectation for on-demand information she can interact with and access any time, on any device. The purpose of digital collateral is to generate awareness. It gives the universal banker an opportunity to display products and services and showcase customer options and benefits. These tools can assist in selling, serving as a sales-aid to create and deepen conversations with customers through education and interactivity, which can finally drive action. This can be in the form of opening account, purchasing a product or service or a customer for trackable follow-up. Digital Collateral will: DRIVE SALES EFFECTIVENESS REDUCE COST, IMPROVE EFFICIENCY ENSURE CONSISTENCY & COMPLIANCE ENHANCE CUSTOMER ENGAGEMENT DIGITAL PRESENCE DIGITAL DATA Digital data is only useful when used meaningfully. More than just stat tracking a customer s banking balance and activities, it can provide a snapshot of their financial lives that moves along with them. Useful digital data systems like Customer Relationship Management (CRM) allow bankers to know information about a customer, even if they ve never met face-to-face. For example, a banker can see when a customer carries a high balance in a checking account and how she may be better served putting some that money in a higher-yield instrument like a CD or a Money Market account. CRMs and similar types of flexible digital data platforms get smarter with time. So while they may begin as lean document tracking through transactions, they grow to become a robust interface through every interaction. This allows the universal banker to make meaningful recommendations that respond and adapt to the customer s changing circumstances. Digital Data creates: PRE-SALES PREPARATION MEANINGFUL INTERACTIONS MORE ENGAGED CUSTOMERS ANTICIPATION OF FUTURE NEEDS IMPROVED CLIENT CONVERSATIONS Digital Presence provides: THE LATEST DATA AND INFORMATION FRESH, MEANINGFUL CONTENT SELF-GUIDED RESEARCH FOR CUSTOMERS WAYS TO SHARE AND TAG CLEAR WAYS TO ACT Having updated digital collateral doesn t just mean scanning in brochures, however. All of a bank s materials must also relate seamlessly with the institution s digital presence. Just as customer s have an experience when they walk into a bank branch, they also engage with a brand digitally. Does the bank s website provide fresh content that s relevant to a customer? Is it easy for her to get what she wants? Does it provide the latest research and data in the financial industry? Can the customer easily find a way to take action? A bank s digital presence is built from the ground up. It develops from the numerous touch points that the customer has with her bank. Put simply, it is how a customer experiences a bank brand not what the bank wants to say to her, but what she wants to hear from the bank. A bank s digital identity is how the bank delivers on its customer s expectations. The best way to achieve a cohesive, organic identity is to know who your customer is, ask her what she wants, listen to what she says, and develop products and services that speak to her around her needs and expectations.

6 08 $ Mortgages DIGITAL TOOLS TO ENHANCE THE RETAIL EXPERIENCE OF ALL INDUSTRIES SURVEYED: Checking MAX Checking Checking Chooser Swipe Smart Product Overview and SOURCE: Transforming the Advisory Experience, Profitable Channels 2014 Digital Insurance Next Steps FINANCIAL LAGS IN TABLET ADOPTION Medical Devices Manufacturing Retail Technology Pharmaceutical Packaged Goods Services Insurance Financial Services 0 % 20 % 40 % 60 % 80 % 100 % Rollout Pilot Planned TECHNOLOGY CAN MAKE US CLOSER More than 90 percent of organizations across industries report that mobile devices are vital to driving sales and improving employee productivity, resulting in 84 percent of them investing in mobile/tablet sales applications this year. 7 In general however, digital adoption in the financial sector has been slower than other industries, and the industry is playing catch-up. Today, nearly everyone has a powerful mobile device at their disposal at all times. Access to technology is ubiquitous we have what we want, right at our fingertips, almost instantaneously. Most bank customers who do come in to the branch have done their homework prior to arriving. 59% have already decided exactly what account they want to open. As a universal banker, it s up to you to stay ahead of the curve so you can quickly analyze her needs and provide answers and solutions on the spot. To do this, bank branches are arming their universal bankers with tablets to allow him to address and respond to customer needs and expectations. These tablets can be empowering vehicles to spark conversations, enable mutual understanding and facilitate collaborative decision-making. WE RE IN THIS TOGETHER In today s competitive banking atmosphere, developing a relationship with the customer is the lifeline of a bank s marketing efforts. People buy from those whom they think understand their needs and concerns. A bank s customer is looking for customized solutions made just for him products and services that speak to his issues and solve his problems. Embracing technology tools like tablets can help ensure that there is no disconnect between a customer s expectation and a bank s delivery, helping to facilitate conversations around a shared visual space and allowing the customer to directly interact with solutions tailored for him. This fluid and flexible customer experience allows the banker to have everything he needs at her fingertips, leading to a streamlined customer experience. But this hands-on experience must not be clunky. Everything you need must be easily accessible and in a streamlined form, ready for the client to interact. To facilitate this, many bank brands have developed an app for tablet and mobile use. This is powerful software that pulls in data from multiple sources to provide the bank customer with information and options customized to suit his needs. When using a tablet, the universal banker is sharing their expertise through up-to-date research and information on which customer relies to make informed-decisions about their personal finance and clear ways to act on their options. This level of engagement expedites decisionmaking and fosters trust, which is the key to relationshipbuilding. Rather than technology standing between the bank and the consumer, embracing the transformative power of technology actually deepens relationships with customers. HOW TO CONNECT WITH CUSTOMERS BE MOBILE Your reach goes beyond the teller lines and outside the branch. Mobile devices make it possible to stay up to date with the latest in the industry, and find new ways to help your customers wherever you are, whenever you have a moment. Tablets make it easier than ever before to jump right in. BE INFORMED Keep up with the latest news in your industry by bookmarking all of your go-to publications in your tablet s browser. To make it even easier to read your favorite sites when you have some downtime, tap the Share button and tap on Add to Home Screen to add an icon right alongside your favorite apps. BE SHARING When you find something that your coworkers (or even a customer) might find useful or relevant, tap the Share button to it to them. Include a short summary of why you think they ll find it helpful or interesting. WHAT YOU LL NEED A DASHBOARD An Dashboard shows you an overview of all of the most important information that you ll need to get your work done. The exact features can be heavily customized from one person to another, but the most important thing to know is that they can save you a lot of time and energy when you re ready to take action but need to choose the best place to start. DOCUMENT MANAGEMENT Document management systems keep all of your sales materials fresh and compliant, with zero effort on your part. They re connected to a central server that syncs updates to every tablet, so everyone is working with the latest documents. MOBILE APPS Make some time to familiarize yourself with all of the features of your bank s mobile apps even the ones your customers will be using. Teaching others what you know is a great way to establish trust and rapport with your customers. 7 Transforming the Advisory Experience, Profitable Channels 2014

7 THANK YOU ADRENALINE IS AN EXPERIENCE DESIGN AGENCY THAT CREATES AND IMPLEMENTS BRANDS AND RETAIL ENVIRONMENTS Find out more at adrenalineshot.com DIGITAL TOOLS TO ENHANCE THE RETAIL EXPERIENCE GINA BLEEDORN Executive Director