The Rapid Change of Delivery Channels:
Why Omni Channel Optimization is Key

Bill Goedken, MBA CPA CMA CGMA Best Practices, idea5 Discoveries, Strategic Planning 0 Comments

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The Consumer Experience:

Consumers are fickle.  Consumers constantly change their minds.  Consumers want it now, fast, and for free.  OK, what else is new?  If you just built a nice new branch and now are wondering why your bank’s customers are not beating down the doors to “experience” your new facility we have news for you – the electronic experience has taken over.

Now for our soap box – we at idea5 have been preaching this for the last 10 years.  New data strongly suggests that not only are electronic delivery channels the more dominant channel for consumers today, but the trends of the preferred methods of “banking” from physical to electronic are accelerating.

Delivery Channel Preferences – A Definitive Study

Each year, the American Bankers Association performs a very comprehensive survey of consumers and their preferred methods of banking.  One of the questions is: “What is your #1 most preferred method of doing banking?”  As you can see by the chart below, Branches were the #1 preferred method in 2008, but in 8 short years PC and Mobile based banking has risen rapidly to take the top spots.

Other Observations:

  • The branch is NOT dead. The physical branch is NOT dead, just different. Consumers still want some type of physical branch structure, and the majority of them – in all age groups – will NOT do banking with any financial institution if they don’t have at least some type of physical presence.  Branches are now smaller, and staffed with more experienced folks with multiple roles rather than just tellers.
  • Robust websites + bill pay = Loyal Customers. We at idea5 have found that robust websites that appeal to the consumer, as well as a larger percentage of your customers using your bill pay feature, equals higher retention of your customers.
  • Omni Channel is now the rage. The term “Omni Channel” is used to look at the pattern many customers use for their banking needs. As an example, in a given month, a typical consumer may have 4 visits to the Bank Website, have 6 mobile experiences, and visit the branch network only once.  This “flow” is their Omni Channel experience, and each touch point allows your bank to cross sell and enhance their experience with your customer service and brand.

So What Can Your Bank do?

  1. Do your homework on market intelligence.  We at idea5 have the latest demographic, census, economic and competitive information of your local market area.  We can spot the trends that will affect your bank now and in the coming years.
  2. Do Strategic and Tactical Planning.  Infrastructure on delivery channels takes a lot of planning and resources to do it right.  Given the rapid changes, more emphasis should be placed on making your website and mobile experiences productive, informative and safe.
  3. Don’t try to do this alone.  A common mistake we see is the bank “thinks they can do it themselves.”  Given the rapid changes taking place, seek out professionals to help you with the changes happening in your market.

Call us at idea5 to help you optimize your delivery channel experience!
Bill Goedken, CEO or Andy Neid, Chief Customer Experience Officer | 402.934.1606

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