Digital applications help bankers improve their customers’ experience, increase revenue

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By Amehnews

 

According to the Associated Press reports and internet research revealed that retail sales rose 2.7 percent in November and December, to $265.9 billion, but actual store visits declined 14.6 percent. We know where these shoppers went, online and mobile.

 

This digital revolution is not just happening to retailers, but in banking as well. For instance, Bank of America’s widely reported announcement that they will be closing more branches this year is because of their big investment in mobile, saying its branch banking network could drop below 5000 next year as mobile channels continue to take market share.

 

With the growth in share from digital channels bankers need to be on top of multichannel or omni-channel marketing. The bankers need to provide their customers with an easy “flowing” customer experience regardless of channel. This will require improved integration of all channels to each other and to the back office for execution. But, bank marketers and sales execution strategists will need to figure out how to get customers to purchase additional products through the digital channels.

 

There are several issues here. First, there is need for improved customer and marketing analytics. These will help the bank to better “know their customers.” But, knowledge without execution does not add a dime to the bottom line. So, to increase revenue, the bank needs to improve engagement with its customers, where both improved micro-segmentation of customers to drive towards a market of one and then at key moments of truth to deliver the right offer to the need.

 

The customers who have combined analytic solutions with marketing execution software have improved their campaign effectiveness by up to 3.1% increase in marketing response rate through more accurate targeting of offers to high-value customer segments; 20% reduction in mailing costs and 17% reduction in printing costs due to the ability to target the most attractive segment for specific offers.

 

The second is process improvement. One current roadblock is that any time anybody wants to add a new account, the person need to go into the branch and sign something. (An account agreement form) Why?

 

One idea might be a single customer account master agreement, once. The customer fills out one master account agreement, identifies themselves once, creates a token (or some kind of personal identifying factor, many to choose from such as thumb prints and/or photographs too), and then afterwards can add or subtract new accounts online or via bank’s mobile connect using their token or combination of authentication factors. Any additional risk or KYC work that is needed is done behind the scenes. The customer does not need to do come into the branch. It can all be done digitally.

This thinking around changing business processes to adapt to a mobile world so as to acquire and keep customers is not new. But, not enough has actually been implemented to truly improve the customers’ experiences. Banking leaders may want to inquire about front office digital transformation projects. Such projects can improve operational efficiency from streamlined business processes, paperless workplace, collaborative knowledge sharing and unified communication. This provides the bank with lowered cost of operations, improved quality of service, reduced product deployment costs and shortened time-to-market.

 

By combining operational efficiency with improved omni-channel integration and customer analytics, with some creative thinking about required business processes, bankers can improve their customer experience and increase sales revenue from the newer digital channels.


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