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Customer Experience in Branch: Building Best Practice Strategies

Datamonitor
October 3, 2011
7 Pages - SKU: DFMN6647832

Abstract Table of Contents Related Reports

The branch channel remains critical to the multi-channel experience. Improving the experience will help to reinvigorate a channel that is clearly still important to a wide range of consumers. Optimizing the customer experience will also help to retain customers, increase cross-selling, and help to produce more satisfied customers overall.Optimize the branch customer experience by learning how consumers use this channel for researching and purchasing products.

Tailor the functionality of branches through gaining an insight into the features that consumers view as essential to this channel.

Boost customer retention and produce more satisfied customers by understanding what consumers want from their branches.

Learn best practice in branch customer experience from a series of global case studies.

Use of the branch channel is high, with 77.4% of consumers globally having used this channel in the 12 months to June 2011. The most popular activities for consumers to conduct through the branch channel are ordering a new check book or new card, booking an appointment with an advisor, and depositing or withdrawing money.For all but three products, the branch channel is used by more consumers to purchase a product than it is to research that same product. This reveals the branch channel's strength as a channel of opening for consumers.A roughly equal proportion of consumers believe that self-service kiosks and the ability to meet an advisor without booking are essential features of the branch channel. This finding highlights that globally consumers place equal weighting on being able to conduct activities themselves in branch and having an advisor to assist them.

Does the branch channel still have a role in the banking experience?

What do consumers view as the key characteristics of a bank branch?

Which aspects of the branch customer experience need to change in order to create a more positive experience?

What are the benefits of creating a positive branch experience for FS providers and their customers?

Please note: this is delivered as a Zip file.

OVERVIEW: Catalyst; Summary; Methodology
INTRODUCTION: The customer experience can be defined for every interaction with a provider; Consumers are willing to pay a premium for a valued experience; A good customer experience can differentiate a provider from its competitors; Providers are starting to focus on customer experience management; Most banks now have in place extensive programs to monitor customer satisfaction; Good customer experience can aid consumer retention and control costs; A satisfying customer experience will help to retain customers; Customer experience can also be used to manage costs; FS providers need to improve the quality of the customer experience they provide; There is much room for improvement in the standards of service that banks provide; Emotional attributes are vital to creating a unique experience; How a bank handles moments of truth has a disproportionate impact upon the customer experience; Channels cannot be viewed independently of one another; An integrated multi-channel approach will improve the overall customer experience; There will be tangible rewards for banks that perfect the multi-channel experience; Retailers offer best practice examples for a good multi-channel experience; The customer experience should be viewed as a journey; Mapping the customer experience will identify areas for improvement; Providers must first identify what the customer experience should look like; Analyzing the customer journey will help to improve the multi-channel experience; Customer journeys will vary due to consumer preferences and the availability of channels; The branch channel remains critical to the multi-channel experience; The majority of consumers globally continue to use the branch channel; The branch channel is most used for infrequent activities and querying transactions; A significant proportion of consumers continue to use the branch channel for simple, everyday transactions; The number of consumers booking an appointment to see an advisor has seen the biggest increase; Where there has been a decline in the use of the branch channel, it has been a small decrease
STRATEGIC CONTEXT: The branch channel is most used in terms of research for loan and mortgage products; Products need different levels of support at the researching stage; There is a two-tier use of the branch channel for opening; Face-to-face opening is convenient where paperwork and identification are involved; General insurance products are less frequently opened in branch; Life insurance and pensions products are not predominantly opened in branch; The branch channel is more popular for purchasing than it is for researching products; Current accounts and savings accounts see the greatest leap between in-branch researching and purchasing; Mortgages and personal loans are more likely to be purchased than researched in branch; The branch channel is pivotal in resolving consumer complaints; Consumers are most likely to raise a complaint through the branch channel; The branch channel is where most problems are eventually resolved; Consumers demand both self-service and immediate attention from the branch channel; Consumers demand both self-service and advisors in the branch channel; Extended opening hours make the branch channel more accessible to consumers; Consumers seek a range of additional features in their branches
STRATEGY IN FOCUS: Convenient branch locations improve the customer experience and aid consumer acquisition; Convenient branch locations are essential to attracting new customers; Consumers seek out branches in order to purchase products; The high demand for convenient ATMs can be leveraged to move transactions away from the branch channel; Opening hours must fit with the location of a branch; Branch layout can aid convenience and improve the experience of visiting a branch; The branch channel should move towards a sales and advice focus; Branches must adapt to meet the consumer demand for face-to-face advice; Queues and wait times need to be managed efficiently to allow consumers to see an advisor at a suitable time; Everyday, simple transactions should be moved to remote channels or self-service kiosks; Innovation in self-service kiosks will help to shift consumers to automation; Staff are a key differentiator in the customer experience; Consumers expect staff to be polite and interested; Staff must be experts with regards to the products and services that they work with; The correct balance between staff and self-service machines will improve the customer experience; A customized branch network needs staff to cater to local consumer needs; Staff remuneration must be better aligned with customer experience outcomes; Retaining staff over the medium to long term will improve the customer experience; The design of a branch must go beyond the functional to create a superior experience; Intuitive branch designs increase efficiency and improve the customer experience; Digital signage allows consumers to have the most up-to-date information; Branch design must go beyond the functional and wow the customer; The branch experience should be tailored to the segment or community it serves; Premium banking customers will expect an exclusive customer experience; Different segments of the population will enjoy different experiences from the branch channel; Tailoring a branch to the local community will aid consumer engagement
GLOBAL CASE STUDIES: Handelsbanken: handing control back to the branch; Handelsbanken's decentralized model improves the experience of decision-making; Staff are empowered through increased autonomy; Handelsbanken leverages the branch's power for relationship building; Citibank: Smart Banking branches use technology to be more customer-centric; Citibank has used technology to make the branch channel more convenient and interactive; Citibank will cater its Smart Banking format to local needs; Frank by OCBC: tailoring branches to target a youth audience; Frank has designed retail store concept branches; Branches located on university campuses help to target the youth segment; Targeting one segment in branch helps providers to focus the customer experience; ING Direct: using physical locations to build a brand and relationships with customers; ING Direct has distinguished its cafés from typical bank branches; ING Direct uses physical locations to build relationships with its customers; FS providers can learn from ING Direct's focus on advice and relationship building; Metro Bank: bringing a retail experience to the bank branch; Convenience and service are central to Metro Bank's customer experience offering; The Metro Bank branch design is retail-inspired; Metro Bank staff target customer satisfaction scores not sales; Retailers: in-store events and services are vital to improving the customer experience; The ability to walk out working will add to the convenience of the face-to-face channel; Financial health clinics would reassure consumers and attract more customers to the branch; In-branch demonstrations and workshops add value to the customer experience; Identifying staff who are experts in a particular product reassures consumers that they are speaking to the right person
APPENDIX: Additional data; Methodology; Secondary sources; Further reading; Ask the analyst; Disclaimer
TABLES: Table: Consumers whose main method of conducting various branch activities is in branch, across 21 countries (%), June 2011 (one of two); Table: Consumers whose main method of conducting various branch activities is in branch, across 21 countries (%), June 2011 (two of two); Table: Consumers who consulted a member of staff in branch before opening various banking products, across 21 countries (%), June 2011 (one of two); Table: Consumers who consulted a member of staff in branch before opening various banking products, across 21 countries (%), June 2011 (two of two); Table: Consumers who opened various banking products through the branch channel, across 21 countries (%), June 2011 (one of two); Table: Consumers who opened various banking products through the branch channel, across 21 countries (%), June 2011 (two of two); Table: Channels used to make initial complaint, across 21 countries (%), June 2011; Table: Whether consumers had to go to/return to their branch to resolve a complaint, across 21 countries (%), June 2011; Table: Consumer descriptions of self-service kiosks for paying in checks etc. in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of the ability to meet an advisor without booking in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of printed product and service information to take away in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of dedicated premium banking areas in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of foreign exchange facilities in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of seven-days-a-week opening in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of evening opening in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of free Wi-Fi in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of refreshments during appointments in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of coin-counting facilities in branch banking, across 21 countries (%), June 2011; Table: Consumer descriptions of displays showing news in branch banking, across 21 countries (%), June 2011; Table: Influence of having a convenient branch near home or workplace on current account provider choice, across 21 countries (%), June 2011; Table: Influence of convenient cash machines on current account provider choice, across 21 countries (%), June 2011; Table: Influence of a convenient branch network on savings provider choice, across 21 countries (%), June 2011; Table: What kind of institution consumers went to when they last took financial advice, across 21 countries (%), June 2011; Table: Consumers' primary method of communication with advisor when they last took financial advice, across 21 countries (%), June 2011
FIGURES: Figure: The customer experience is influenced by three factors; Figure: Value-added increases as providers move towards an experience-based economy; Figure: The multi-channel approach to banking means that consumers expect a consistent experience across all the channels that they use; Figure: Consumers can use different channels at different stages of their journey to purchase a product; Figure: A possible customer journey for choosing, opening, and using a savings account; Figure: Use of the branch channel over the last 12 months has been high; Figure: The branch channel is most often used for infrequent activities, withdrawing money, and querying transactions; Figure: The branch channel has grown in popularity for a number of activities including booking an appointment with an advisor and transferring money; Figure: The branch channel is most commonly used in terms of research for mortgage products and personal loans; Figure: There is a two-tier pattern of use of the branch channel across products; Figure: The branch is a stronger channel of purchase than it is a channel of research; Figure: For the majority of products, more consumers purchase through the branch channel than use this channel for research; Figure: Consumers are most likely to raise a complaint face-to-face in the first instance; Figure: The majority of consumers have to go into the branch channel to resolve their complaint; Figure: Almost equal proportions of consumers believe that self-service kiosks and the ability to meet an advisor without prior arrangement are essential features of the branch channel; Figure: There is a hierarchy of factors that affect the customer experience in the branch channel; Figure: Convenience is a critical attribute in improving the customer experience of the branch channel; Figure: Convenient branch locations are essential to provider choice for both current accounts and savings accounts; Figure: The focus of branches must move towards sales and advice, with simple transactions performed at self-service kiosks; Figure: The branch channel needs to adapt in order to provide a better experience for consumers; Figure: The majority of consumers go to their primary bank when they seek financial advice; Figure: Branch staff must be experts in terms of the products they work with as well as their customer base; Figure: Rude or disinterested staff have a strong negative impact on the customer experience; Figure: The design of the branch can increase convenience and make selling and advice easier for staff; Figure: Bank branches should optimize the time consumers spend waiting to see an advisor; Figure: FS providers can improve the customer experience by tailoring the branch to the local community or a particular segment of consumers; Figure: Handelsbanken focuses on the relationship between the customer and the bank; Figure: The Citi Interactive Media Wall allows consumers to browse news and search product information; Figure: OCBC has designed its Frank branches to resemble retail stores where consumers feel comfortable to browse; Figure: ING Direct's cafés offer space to relax as well as an opportunity to find out more information about ING products

Customer Experience in Branch: Building Best Practice Strategies

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