DIGITAL DISRUPTION 3rd Annual SalesScape Symposium - NEXT GEN SALES, SERVICE, AND MANAGEMENT - IN AND OUT OF THE BRANCH - Novantas

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3rd Annual SalesScape Symposium

DIGITAL DISRUPTION
NEXT GEN SALES, SERVICE, AND MANAGEMENT – IN AND OUT OF THE BRANCH
                   September 18 – 19, 2017 | NYC

                            novantas.com
TABLE OF CONTENTS

                           TABLE OF CONTENTS
                            3   Welcome to the 3rd Annual SalesScape Symposium

                            4   SalesScapeTM Comparative Analytics Data Insights

                            7   Infographic: Banking Reaches a Digital Inflection Point

                            8   Replacing Lost Sales Conversations with Multi-Channel
                                Appointment Setting

                           12   Accelerating Digital Migration: Necessary, Tough
                                and Rewarding

                          16    Branch Role Chaos: Call to Action on Staffing

                          19    Digital Investment: Success Driver or Bottomless Pit?

2 | SALESSCAPE SYMPOSIUM 2017
THIRD ANNUAL SALESSCAPE SYMPOSIUM

WELCOME TO THE 3 ANNUAL                                RD

 SALESSCAPE SYMPOSIUM
   D
              igital disruption is moving the banking industry world-
              wide towards a multi-channel sales model, and impacting
              the way banks serve customers. The purpose, function
              and format of the branch is changing, while the bank tries
   hard to build lasting customer attachments in a constantly evolving
   virtual world.

   The bar is not just rising, its moving entirely. To lead effectively, you
   not only need to be thinking long term about the changing roles of
   your people, their skills, and incentives, but also about the role of
   management in the digital age. We see a radically new set of man-
   agement skills and processes needed to manage local and distribut-
   ed workforces.

   At this year’s SalesScape Symposium, you will be part of a highly
   interactive discussion that brings together actionable data and in-
   sights from thought leaders in a series of presentations, small group
   discussions and hands-on activities. Over the course of two days,
   we’ll cover the transition from traditional branch-based sales, ser-
   vice and management to the new remote, market- based delivery sys-
   tem enabled by digital advancements.

                                                                        SALESSCAPE SYMPOSIUM 2017 | 3
SalesScape         ™

  Comparative Analytics Data Insights
Novantas’s SalesScape Comparative Analytics Data Insights is an ongoing
information series highlighting key workforce productivity trends and
metrics in the banking industry. In these four excerpts we have captured
trends in sales performance, as well as new consumer and household
acquisition over 2014–2017 for super regional and regional banks.

4 | SALESSCAPE SYMPOSIUM 2017
Novantas                  SALESSCAPE
                                                                                                                                   SALESSCAPE™ COMPARATIVE ANALYTICS DATA INSIGHTS

                                                          Product Sales per 1,000 Consumer Households on Book More Than 90 days
                                                                                                                                                                               -20.3%

                                                                                       -12.6%
                                                                                                                                      -0.3%

                                                             16.94     17.11      18.44    16.11               16.70    16.04    15.64     15.59       17.15   17.95      20.69    16.49

                                                                             Overall                                      Regional                             Super Regional
                                                                                        Legend
                                                                                            2014                2015                 2016          2017H1
                               Novantas SalesScapeTM Comparative Analytics

Novantas SalesScapeTM Comparative Analytics

THE DIGITAL EVOLUTION INFLUENCES SALES PERFORMANCE FOR SUPER REGIONAL BANKS
With customer migration to digital channels on the rise, banks are finding it more challenging to deepen customer
relationships through in-branch sales. The data reflects that new sales to the existing customer base has decreased
from 2016 to 2017H1. As the graph shows, a shift has occurred over the past 6 months where super regional banks
(1,000 – 2,000 branches) have seen a marked decrease at 20%, while regional banks (
SALESSCAPE™ COMPARATIVE ANALYTICS DATANovantas
                                           INSIGHTS                                         SALESSCAPE

                                               US Household Acquisition (New Households/branch/month)

                                                                                                                                    +0.6%

                                                             +1.8%

                                  21.96      20.74      19.95    20.30                           +7.7%         29.88   27.58   25.30    25.44

                                                                            14.43   14.23   14.43    15.54

                                                   Overall                            Regional                         Super Regional
                                                             Legend
                                                                 2014        2015                2016        2017H1
     Novantas SalesScapeTM Comparative Analytics

Novantas SalesScapeTM Comparative Analytics

NEW HOUSEHOLD ACQUISITION STARTS TO REBOUND…SLOWLY
Consumer household acquisition has gained slight momentum after a fall off from 2015 acquisition rates. While
Super Regional banks (1,000- 2,000 branches) had an especially tough 2016, falling off 8% from 2015 rates, regionals
(
BANKING REACHES A DIGITAL INFLECTION POINT
                                          2017 Omni-Channel Shopper Survey

                                                               2016                                     More
                                                                                                      Attached
                                                                         10%
                                                                                                                                        Branch Traditionalist

 The majority of U.S. shoppers                                           16%

                                                                                                        Branch Attachment
                                                                                                                                        Channel Mixer
are now in segments that either                     36%
                                             47%
don’t use bank branches, don’t                                 2015
                                                                                           25%                                          Innovation Seeker

 care much for them...or both.                                                   29%
                                                                                                                                        Internet Ready
                                                          5%
                                                               14%                                                                      Thin Branch Ready
                                                                                 11%                    Less
                                                                7%                                    Attached

                                           Being perceived as convenient is key to getting
     ON                                                into consideration set
   AVERAGE                                                                                                  30%

   CONSUMERS
                                                                                     28%
                                                                +8%       26%                                                       -27%

     ONLY                                  Digital
                                         capabilities
                                                                20%
                                                                                                                                 18%

   CONSIDER
                                                                                                                                               16%
                                         are now the
                  BANKS                  #1 driver of
                                          perceived
             PRIOR TO                    convenience

             PURCHASE                                            Leading Online/Mobile

                                                                     Legend
                                                                        2014                 2015
                                                                                                                            Branches Near Me

                                                                                                                                    2016

     In a digital world, consumers expect to open their new accounts digitally

79%        shop digitally
           (in part)                54%              shop digitally
                                                     (exclusively)                         33%                              want to open new
                                                                                                                            accounts digitally

                                                                                                    SALESSCAPE SYMPOSIUM 2017 | 7

                Read the full report atContact us at research@novantas.com
                                        novantas.com    or contact us at research@novantas.com
Replacing Lost Sales Conversations
   with Multi-Channel Appointment Setting

BY ANDREW HOVET

With the continuing decline of branch visits, a robust appointment
setting process for both customers and sales associates is now an integral
component of retail sales.

As bank customers are increasingly         implemented comprehensively and inte-       through multiple customer contact
shopping online for financial products     grated into new branch sales tactics, can   points, which can help generate more
— surfing for better interest rates and    substantially improve new-to-bank and       quality face-to-face sales conversations.
deals — as well as doing more and more     existing customer sales. And it can raise   The inbound component involves multi-
of their transactions via online and       account opening rates as more people        ple calls-to-action and a digital appoint-
mobile banking, banks are faced with a     choose to begin applications in digital     ment setting tool that allows digital
dual quandary. Can banks find new ways     channels as opposed to the branch.          shoppers to schedule a branch visit for
to draw customers and prospects into                                                   a sales consultation. The outbound
sales conversations at the branch? How     FEWER IN-PERSON AT BATS; LOWER              component includes proactive outreach
can banks limit the drop-off when cus-     ONLINE BATTING AVERAGE                      to existing customers (or to prospects
tomers try to open via a digital channel   What we mean by “multi-channel”             with contact data), to suggest sales con-
but fail to complete?                      appointment setting is an integrated        versations based on their likely needs.
    Enter multi-channel appointment        combination of both inbound and             While neither of these approaches
setting. This simple digital tool, if      outbound appointment management             is revolutionary, uniting them with a

8 | SALESSCAPE SYMPOSIUM 2017
REPLACING LOST SALES CONVERSATIONS WITH MULTI-CHANNEL APPOINTMENT SETTING

common multi-channel appointment              aggressively as they did in the past.)       ber support, and digital appointment
platform where both customers and                  Declining branch visits are chang-      setting. As most product sales still hap-
bank associates can create, modify and        ing the shopping behaviors of consum-        pen in a branch, helping clients book a
monitor their appointments is the next        ers. According to the 2016 Novantas          pre-scheduled visit to the branch may
step where banks should be heading.           U.S. Shopper Study, overwhelmingly           be the best way to limit abandonment in
    Why is this a critical move now?          consumers prefer to research financial       the buying process.
With the declining check usage, increas-      products using digital channels in                Offering multi-channel appoint-
ing adoption of ATM/mobile image              whole or in part (See Figure 1). This        ment setting gives existing customers
deposits, and mobile banking prolifera-       shopping behavior has created a major        and prospects an alternative route to
tion, teller transactions have been on a      disconnect in the “purchase funnel” (i.e.,   closing the deal on a new loan or deposit
multi-year downward trend with no sign        in the Awareness          Consideration      product, should the online process
of abating. According to data compiled                Purchase process). Specifically,     frustrate or stymie them. Completion
by Novantas SalesScape™ benchmark-            awareness and consideration are being        statistics for online applications are
ing, teller transactions continue to          formed via online research and shop-         telling, revealing major drop-off rates.
decline at about 4% per year. This trend      ping. Yet purchase and fulfillment are       For new checking accounts, the average
is clearly eroding the opportunity to         still largely occurring in the branch        booking rate for customers who start an
leverage teller referrals for generating      — whether due to purchaser preference        application online is between 10 and 40
sales opportunities. Additionally, with       or fulfillment process limitations. The      percent, depending upon the bank and
the fallout from recent and well-publi-       migration to shopping digitally has          where you start counting. If measured
cized overreach in branch selling tac-        many implications for banks — which          after the applicant has completed enter-
tics, banks may be even more hesitant         is why banks need to step up their use       ing personal information, around three
to push products at the teller line. (Don’t   of digital tools that can help clients       in ten applications result in a funded
expect to hear tellers ask “would you like    through the purchase funnel — includ-        account; if measured earlier in the
to apply for a credit card?” as often or      ing online chat, click-to-call 800-num-      process, completion rates are far lower.

FIGURE 1: U.S. Shopper Preferences
Customers overwhelmingly prefer to shop for financial products digitally, yet purchase still largely occurs in the branch, either
because of preference or due to failure in the digital process.

         How do you prefer to shop?                                      How do you prefer to apply?
                                                                                              Branch

                          13% Branch

                                                                                                        Fail, go
                                                                                                        to branch
                            25% Both

                                                                                              Digital

                                                                                                        Drop out
                                                                                                        or fail
                          54% Digital

Source: 2016 Novantas U.S. Shopper Study

                                                                                                          SALESSCAPE SYMPOSIUM 2017 | 9
REPLACING LOST SALES CONVERSATIONS WITH MULTI-CHANNEL APPOINTMENT SETTING

With the option of an in-person alter-
native to complete their application,
banks give online shoppers an in-person
                                                           Giving customers and sales
parachute — a chance to pull the ripcord                   associates multiple options to
and still land at one of their branches to
complete the purchase of a new product.      schedule branch appointments is a large step
MAKING IT WORK
                                             forward in shoring up declining branch sales.
Reviewing publicly available materials,          1. Within digital account opening          an invitation for customers to come in
we see several examples of North Amer-              (DAO), to support customers             for an annual financial review with a
ican banks that have deployed digital               who want to “bail out” of the           trusted advisor. At one point in 2016,
appointment setting to help smooth the              digital process;                        Citizens had contacted over 327,000
seam between preferred digital shopping          2. Within product pages as a simple        of its customers, resulting in 82,000
and the cross-over to in-branch purchase.           call-to-action to bridge online shop-   appointments booked. Proactive appoint-
     An early adopter was Bank of                   ping over to in-branch buying;          ment setting takes advantage of the
America, which began offering “Bank              3. Within the secure digital banking       excess capacity of branch sales associ-
by Appointment” to its digital banking              environment (online/mobile bank-        ates and generates additional sales and
customers as early as 2013. Bank by                 ing) for customers who need either      referral opportunities. The Checkup
Appointment now enables mobile and                  sales or service support, with auto-    initiative dovetails with ongoing efforts
online banking customers to schedule                mated pre-fill of customer contact      by Citizens to retool and reduce the
same-day appointments at branches with              information;                            size of many of its 1,200 branches, as
specialists in retirement, investment,           4. On the Branch Locator pages,            they move from transaction centers into
home loans and small business, as well              right along-side the branch phone       advisory centers.
as everyday banking. Mobile users can               number; and                                  Similarly, PNC Financial has been
automatically add in-branch appoint-             5. On the Contact Us page.                 using this tool to help customers bridge
ments to their smartphone-based cal-             One of the major benefits of               between the digital and physical worlds,
endar. BofA customers booked 317,000         multi-channel appointment setting is           and along the way improve its organic
digital appointments in the fourth quar-     that it allows banks to collect contact        growth. About half of PNC’s customers
ter of 2016 — 65% more than the same         information for new-to-bank prospects,         are primarily digital and over 40%
quarter in 2015. This equates to roughly     which can then be used to help pull the        of transactions are non-teller. PNC
one appointment per branch per day. In       customer through the sales funnel. If          is using technology investments to
an industry that averages only a couple      the prospect does not show up for the          reduce the size of its new branches
of daily product sales per branch, one       appointment, the branch associate can          — down to around two-thirds the tradi-
more digital appointment may be the          reach out to reschedule. Additionally,         tional square footage — while maintain-
difference between declining sales and       the bank can potentially leverage digital      ing these physical outlets as a place to
sustained growth.                            channels to re-market to the prospect.         close transactions and engage custom-
     Canadian banks are moving in the                                                       ers. Proactive appointment setting is a
same direction. Bank of Montreal offers      MOVING FROM ONE-WAY TO                         big piece of this strategy, as PNC was
a similar integrated application through     TWO-WAY                                        able to make 350,000 appointments in
its mobile and online banking platform,      Giving customers multiple opportuni-           half a year, with 25-30% leading to new
which allows customers to book a real-       ties to request and schedule a branch          products sales.
time branch appointment. TD Canada           or phone appointment is a large step                While calling for appointments
Trust and CIBC also use these capabil-       forward. Linking that to proactive             may represent a new sales skill for
ities to bridge the gap between online       customer outreach to generate branch           retail branch associates, it is superior to
shopping to in-branch advice.                appointments is another large step.            asking associates to sell over the phone.
     Equally important to having             Two-way appointment setting allows             Clearly, “selling an appointment” is eas-
appointment setting is the effective         both sales associates and customers            ier than selling a product, and having a
integration of the capability into digi-     to book appointments in the branch,            face-to-face appointment in the branch
tal channels. In our work with clients,      giving way to a better opportunity for         gets the associate onto their home turf,
we have observed that many digital           a two-way dialogue between the branch          where they are most comfortable having
appointment setting deployments are          personnel and the customer or prospect.        a sales conversation.
not being fully leveraged. There are             A public example of this multi-chan-            Additionally, selling an appointment
at least five areas where banks should       nel approach is Citizens Financial and         has fewer regulatory concerns than
deploy prompts for appointment setting       its “Citizens Checkup” program. As             phone-based product sales. From a sales
in both online and mobile experience:        described to investors, the outreach is        process perspective, pre-scheduled

10 | SALESSCAPE SYMPOSIUM 2017
Multi-Channel
Transition Customers to Branch                       Appointment                 Setting
                                                                           Pull Customers      into Branch
                                      REPLACING LOST SALES CONVERSATIONS WITH MULTI-CHANNEL APPOINTMENT SETTING

FIGURE 2: Multi-Channel Appointment Setting
A comprehensive, integrated multi-channel appointment-setting strategy should include multiple calls-to-action, as well as
connectivity to branch associates for scheduling and conducting sales conversations.

Transition Customers to Branch                                                                 Pull Customers into Branch

Source: Novantas

appointments also provide branch           all the right pieces together holistically       • Defined sales practices for setting
associates the ability to prepare for a    will yield the best results. A compre-             and conducting pre-scheduled
quality sales conversation. In short,      hensive and integrated multi-channel               appointments, including customer-
proactive appointment setting provides     appointment-setting strategy should                oriented services or assistance.
an opportunity to increase branch          include the following components                 For banks that track drop-off from
sales productivity and effectiveness.      (see Figure 2):                              various points of the online application
Also, linking inbound meeting requests         • Digitally     enabled     customer     process, the value of integrated multi-
with outbound meeting offers to                   appointment setting throughout        channel appointment setting will be
consumers perusing a bank website                 online and mobile channels,           demonstrable. If only a fraction of
can tie together the virtual and the              available in both the public as       online drop-offs instead take up an
physical worlds for a bank’s existing             well as secure (online/mobile         in-person appointment, pull-through
customers who are shopping on the                 banking) environments;                rates (depending on the difficulty of
bank website. While it may feel like           • Consistent use of appointment-         the application process) could as much
“Big Brother” to some — getting con-              focused “calls to action” in all      as double.
tacted by the bank after reviewing its            digital and direct marketing;             With the change in customer
website — several banks are already            • The ability for both customers         preferences toward digital channels,
marketing digitally to existing cus-              and bank associates to schedule       the use of multi-channel appointment
tomers based on their online shopping.            (and re-schedule) appointments        setting is one capability that banks
Proactive outreach for an in-branch               on a common platform, regardless      can simply and easily implement.
appointment is the logical next step to           of originating source;                It can help customers in migrating
helping meet customer needs.                   • Integration of digital marketing,      across the digital divide, and ensure
                                                  contact management, and appoint-      for the bank more face-to-face quality
KEY COMPONENTS AND                                ment management platforms;            sales conversations.
ADDED BENEFITS                                 • Proactive outreach via a calling
While a number of North American                  plan to existing customers to                     Andrew Hovet
banks have embraced successful                    schedule in-branch appoint-                       Director of MDS, New York
appointment-setting programs, putting             ments; and                                        ahovet@novantas.com

                                                                                                     SALESSCAPE SYMPOSIUM 2017 | 11
Accelerating Digital Migration:
Necessary, Tough and Rewarding
BY LEO RINALDI AND ANDREW HOVET

In the next phase of customer migration from branch to digital, every
aspect of face-to-face and voice-to-voice interaction needs to be mapped
and evaluated for digitization.

The smart phone era — heralded with         full set of transaction metrics or a formal   not just about economics and technol-
the iPhone’s launch in 2007 — has           companywide plan. In the early going,         ogy. Considerations must also include
accelerated in earnest what prior bank-     this sparked enough true channel substi-      the promotion, education, incentives,
ing innovations only suggested: true        tution to permit cost-saving reductions       and segment tailored approaches that
consumer substitution of transaction        in teller staffing across the industry.       are needed to usher customers and staff
volumes to electronic channels from the          Now many U.S. branches are               through delicate transitions.
branch. As a result, digital migration      approaching feasible staffing mini-               Winning banks will pull all of this
is now a key cost reduction lever for       mums, and resulting staff productivity        together in a holistic digital migration pro-
banks. Additionally, research indicates     improvement has slowed. To reach the          gram that includes four major components:
that great self-service experiences can     next level of meeting customer expecta-           • Measurement. The bank needs a
enhance customer loyalty by providing       tions and further improving efficiency              detailed map of migration rates
convenience, immediacy, and reduc-          banks must go further and automate                  across all channels for all transac-
ing customer effort. But progress on        even more branch services such as                   tions, service, and sales — not just a
migration is uneven, and the stakes are     softer inquiry or informational services.           few areas, but the total picture.
getting higher, creating a mandate for      Simultaneously, they must look at                 • Segmentation. Channel-based treat-
action in 2017.                             accelerated branch consolidations and               ments must be tailored for major cus-
     The banks that have proactively        closures, which is potentially far more             tomer groups, especially remaining
harnessed this channel substitution         disruptive to customer relationships.               heavy users of branch and call cen-
trend are gaining ground, taking the             At this point, executives must ask,            ter services.
lead in slashing branch transaction bur-    “Do we have a thorough plan to digitize           • Prioritization. For solid planning,
dens as more of their customers switch      more of the branch experience as the                all migratable channel activities
their daily banking activities to mobile/   physical network shrinks? Do we have a              must be analyzed and financially
online banking and advanced ATMs.           plan for originating online the relation-           quantified, clarifying tradeoffs and
However, it is becoming clear that          ships that were otherwise originated in             potential rates of return on various
many others are mired in passive, par-      the branches being closed?”                         digital investment options.
tial programs, with real implications for        In this more comprehensive phase             • Execution. A customer-centered,
future competitiveness.                     of digital migration, every aspect of               cross-functional program is need-
     Many banks have concentrated in a      face-to-face and voice-to-voice cus-                ed to assure smooth, appealing
few high-visibility areas (e.g., ATM and    tomer interaction needs to be mapped                transitions and wide consumer
mobile deposits), proceeding without a      and evaluated for digitization. And it is           acceptance, participation, and

12 | SALESSCAPE SYMPOSIUM 2017
ACCELERATING DIGITAL MIGRATION: NECESSARY, TOUGH AND REWARDING

      retention as additional layers of           an equally sharp increase in branch                  First, the substitution effect is
      digital self-service are rolled out.        reductions (Figure 1: Mandate for Further       real with image deposits leading the
                                                  Transaction Automation). This sets the          way. With new technology such as ATM
THE ROAD AHEAD                                    realities of minimum branch staffing on         digital imaging, mobile phone cameras,
Digital migration would be much more              a collision course with aggressive produc-      and OCR software, banks can now digi-
manageable in a forgiving setting of high         tivity assumptions, with the bank stuck in      tally receive checks for deposit, directly
banking profitability. But the current            the middle. In fact, our research indicates     displacing teller activity and branch
and foreseeable environment is one of             that teller productivity improvement has        visits. Customers are rewarded with new
pressing conditions and hard choices.             hit a period of diminishing returns, with       convenience and enjoy expanded service
Recently hovering at a roughly 9% return          staff reductions out-pacing declines in         outside of branch hours, not to mention
on equity, industry profitability is down         branch transactions.                            better availability. With such a powerful
sharply from a 13.4% average prior to the              The only way out is additional trans-      precedent in place (substitution with an
2007-08 housing crash.                            action automation that will further lower       appealing customer benefit), the stage is
    In turn, banks are eager to reduce            the branch workload. However, remain-           set for accelerated digitization.
branch-related expenses, and staffing             ing branch transaction volume will                   Second, the financial urgency is
in particular, as transactions go digital.        be more difficult to migrate (Figure 2:         real. Branch reductions can be a primary
Novantas research reveals that over the           Breaking the Barriers to Further Migra-         source of cost savings, needed not only
past five years, the industry has engi-           tion). This challenge is coming at a time       to improve profitability, but also to fund
neered a 20% decline in average teller            when more aggressive branch consol-             critical transitions to digital channels
staffing per branch in full-time equiva-          idations and closures will be needed to         and offerings. Accelerating channel
lents, from 379 FTEs per 100 branches             wring out the overhead associated with          substitution paves the way, but must be
in 2011 down to 302 FTEs per 100 units            obsolete physical capacity.                     managed correctly. Yanking the rug out
in 2016 — a roughly 4%-5% decline per                  To be sure, variations on this call to     can provoke customer defection rather
year. In contrast, branch counts have             action have been floating around for 20         than growth, with a direct impact on core
come down by a lesser 1%-2% annually              years, with pundits repeatedly hailing an       deposit formation.
during the same period.                           impending industry inflection point in               Third, the competitive urgency is
    Looking out over the next five years,         branch usage that has historically never        real. While most banks now offer remote
we expect banks will need an additional           materialized. But this time around, it          deposit capture via mobile and ATMs,
20% proportionate staff reduction, plus           appears to be different:                        the largest banks have led the way

FIGURE 1: Mandate for Further Transaction Automation
Staff efficiency and branch consolidation will need to accelerate, and consumer digital migration will be essential to progress.

                                                              U.S. Branch Count
                                -1% to -2% CAGR
                                                                                                 -2% to -4% CAGR

               379
                                  -4.5% CAGR              Tellers per 100 Branches
                          365
                                       331
                                                  312        302                                -4% to -5% CAGR

              2011       2012          2014       2015       2016      2017E      2018E         2019E       2020E       2021E
* Teller FTE as of second quarter of the year
Source: Novantas SalesScapeTM Comparative Analytics

                                                                                                                   SALESSCAPE SYMPOSIUM 2017 | 13
ACCELERATING DIGITAL MIGRATION: NECESSARY, TOUGH AND REWARDING

FIGURE 2: Breaking the Barriers to Further Migration
Following early substantial progress with deposit migration, remaining branch transactions will be more difficult to migrate.

     58% Deposits                                                                    29% Withdrawals/Check Cashing
      • Small businesses have large volumes                                            • Check cashing not enabled on ATMs
        of checks and cash                                                             • Long hold times may degrade ATM experience
      • Large dollar deposits may be riskier to
        accept remotely

                                                                                                    4% Payments
                                                                                                     • Timely acceptance of loan
                                                                                                       payments is critical

                  7% Other                                                                      2% Transfers
                 • Large variety with small volumes                                         • Large external transfers have fraud risk

Other category includes Account Maintenance, Admin Corrections, Card Maintenance, Checking Inquiry, Close Account, Fee reversals, New
Accounts, Stop Payments, Portal Inquiry
Source: Novantas SalesScapeTM Comparative Analytics

and seen both better customer acqui-              migration and channel substitution,             analytic teams to measure transaction
sition rates and lower branch usage.              banks will need a holistic migration pro-       activity across channels. We believe
In contrast, other banks have taken               gram that addresses critical questions          many others must and will follow.
a “build it and they will come” pos-              and capabilities in the four major areas            The bank needs a deep under-
ture, with weak change management                 of measurement, segmentation, prioriti-         standing of different customer seg-
support. The result: weaker customer              zation and execution (Figure 3: Keys to a       ments, their transaction patterns, and
channel shift and lowered returns                 Holistic Digital Migration Program).            their likely migration rates. A particular
on automation technology investment.                  The bank must develop sophis-               focus is needed on behavioral drivers:
Meanwhile, the proactive players race             ticated measurements of migration               where is channel migration stalled; what
ahead, realizing more digital migration           rates across channels over time for all         is preventing further switching; and
benefits that permit further investment           transactions, service, and sales. Many          what will motivate significant change.
in additional initiatives.                        activities were traditionally measured              For any transaction type, a small
     Finally, migration efforts are one           separately within different channel             percentage of customers will generate
key element of a broader repositioning            silos, depriving management of a                the majority of transactions. Even among
of the bank for an increasingly digital           full customer-centric view across all           these customers, some will be using
future. These investments are more than           channel touchpoints.                            digital channels sparingly; others have
just tactical moves to capture near term              In order to set effective migration         never used them at all. Some will need
efficiencies, enhance customer experi-            targets, it is critical to see how customer     face-to-face technology education; oth-
ences and maintain customer loyalties.            behavior is changing and moving from            ers may respond to promotion and/or
Migration programs also build long term           one channel to another by transaction           incentives. Small business customers will
digital capabilities and cultural changes         type. For example, a year-over-year             need a separate and distinct plan, given
that are core to reinventing the everyday         view may indicate that deposits are still       their importance and different needs. So
banking experience.                               migrating to mobile, but ATM deposits           the actions a bank must take will differ by
                                                  are stalled. Some of the largest and most       segment.
STEPS IN MANAGING THE MIGRATION                   advanced institutions in the field of               To prioritize properly, the bank
To reach this optimal zone in digital             digital migration now have dedicated            needs a comparative analysis of poten-

14 | SALESSCAPE SYMPOSIUM 2017
ACCELERATING DIGITAL MIGRATION: NECESSARY, TOUGH AND REWARDING

FIGURE 3: Keys to a Holistic Digital Migration Program                                       when it reformats, combines or closes tradi-
For a solid digital migration program, banks need to develop capabilities in four            tional branches. Novantas research shows
key areas: measurement, segmentation, prioritization, and execution.                         that the closure attrition impact is much
                                                                                             lower for multi-channel or digitally-centric
                        Migration rates by channels for all transactions, service and sales customers than for branch traditionalists.
                                                                                             Increasing digital adoption across transac-
                        Customer-level movements across channel by transaction type
 MEASUREMENT                                                                                 tion, service, and sales dimensions will
                        Dedicated analytics teams to measure activity across channels        support not only the reduction of FTE
                                                                                             staffing requirements, but will also allow
                        Deep understanding of transaction behavior by segment                for the large, “chunky” cost take-outs
                        Barriers to further segment migration; what will it take to overcome provided by branch closures.
 SEGMENTATION           Segment migration scenario.
                                                                                                DIGITAL MIGRATION PRIORITIES
                                                                                                The levels of branch consolidation
                        Business cases and ROIs for potential digital investments               and staff operating efficiency needed
                        Key assumptions, incentives                                             for future digital-centric competition
PRIORITIZATION          Best path of projects over time                                         simply cannot be achieved without
                                                                                                extensive customer channel substitu-
                                                                                                tion. Once executives understand this,
                        Cross-functional migration project roadmap, with project office         they will place digital migration high
                        Branch-level migration targets by transaction type                      on their list of corporate priorities.
   EXECUTION                                                                                         Most of the early action in digital
                        Training, incentives, metrics, customer feedback loops
                                                                                                migration has centered on deposit activ-
Source: Novantas                                                                                ities, but deposit migration is just the
                                                                                                beginning of a long journey to digitize all
tial rates of return on various automa-              A better sense of digital priorities       aspects of the banking experience. New
tion investments. Often priorities are          will emerge as this migration investment        technologies are unlocking a large num-
set without an apples-to-apples business        analysis is completed across the full spec-     ber of opportunities across transactions,
case analysis. Specifically, all migratable     trum of transactions, service, and sales.       service, and sales.
channel activities must be analyzed and              Finally, the bank needs a cross-func-           In fact, the “shopping” component of
financially quantified. Current transac-        tional migration execution program.             bank sales has already substantially gone
tion volumes and associated costs must          A “migration project office” is needed to       online, and as sales fulfillment improves,
be determined. For example, if customers        influence and track substitution behav-         even more change is in store. In combi-
are checking current balances by calling        iors and resulting staffing levels. Great       nation, this expanded array of revenue
the contact center or visiting their branch     execution begins with a realistic plan.         and efficiency initiatives will generate
banker, the total cost of this service can      Channel migration is challenging because        self-funding for additional digital invest-
be computed.                                    it requires teamwork and coordination           ments and simultaneously transform the
    Then a realistic projection of              across areas such as retail, digital, market-   bank into a true omni-channel organization.
migration rates to automated channels           ing, and real estate.                                The catch is proactive management
is needed. In many cases, the bank has               For example, many banks are retool-        of customer migration. Coordinated
already provided digital options for cus-       ing branch formats to reduce space for          efforts across functions (e.g., marketing,
tomer activities, but activation and usage      teller lines while providing more ATMs          finance, and staffing) are needed to set,
rates still lag. Here, incremental outlays      and digital stations for self-service or        measure, and achieve migration targets.
may be required — e.g., marketing, com-         assisted-service. These reformats are           To accelerate the journey, many banks
munications, employee incentives — to           challenging to execute without disrupting       are in need of a holistic planning exer-
accelerate customer transitions.                the customer experience, and the level of       cise in 2017 that begins to address the
    Also, a bit of creativity helps in evalu-   synchronization required is similar to the      specifics of this challenge.
ating the best way to support a particular      complexities of a new store opening or a
digital migration objective. For example,       product launch. Yet even more of this type                  Leo Rinaldi
instead of encouraging customers to use         of activity is necessary if the full benefits               Director, New York
mobile banking to check their account           of migration are to be realized.                            lrinaldi@novantas.com
balances, perhaps real-time alerts and               An additional benefit of digital
balance updates could be provided fol-          migration is that customers begin to relax                  Andrew Hovet
lowing transactions, negating the need to       their general sense of branch dependence,                   Director of MDS, New York
“look-up” information.                          becoming less likely to leave the bank                      ahovet@novantas.com

                                                                                                             SALESSCAPE SYMPOSIUM 2017 | 15
Branch Role Chaos:
                Call to Action on Staffing
BY DARRYL DEMOS AND DALE JOHNSON

Retail banks must start preparing now for local branch sales in a
digitally-eroded environment, which will require new standards for
staffing analytics and planning.

As consumer digital migration drains             Building on this assumption, it            shows that universal bankers mostly
ever more branch traffic, banks have been    seemed logical to reorganize branch            help with transaction and low-end sales
working through a delicate transition with   staffing around “universal bankers”            productivity. The more important metric
branch staffing.                             who both serve and sell. The goal is to        — overall financial return on branch sales
    Amid all the pressing questions          improve efficiency by reducing the FTE         staff — has continued to deteriorate.
— sales, service, headcount, skills,         commitment to teller activities while          Today roughly two-thirds of all branches
etc. — executives drew comfort from          preserving sales capacity.                     fail to generate sales returns sufficient
the assumption that they at least had            Based on a recent Novantas study           to cover their fully loaded staffing costs.
a rough idea of how consumer branch          of 12,000 U.S. branches, roughly one of             The problem goes from bad to worse
usage would shake out. Ultimately, it        every eight units across the industry          when considering the future locus of
has been thought, branch servicing           now makes prominent use of universal           sales: digital vs. branch. For years it was
would decline but not disappear, and         bankers. At least 50% use some form of         thought that consumers would never
branches primarily would become sales        flexible staffing.                             trust ATMs with deposits, let alone
centers, a place where the majority of           But even as more banks (and con-           mobile phones. Now digital deposits are
customers will continue to go to orig-       sultants) jump on the Universal Banker         the norm, both ATM and mobile. What
inate checking and savings accounts          train, it is increasingly at risk of running   guarantee is there that branch account
and apply for loans.                         off the tracks. For starters, our analysis     origination will stay the norm, simply

16 | SALESSCAPE SYMPOSIUM 2017
BRANCH ROLE CHAOS: CALL TO ACTION ON STAFFING

because 90% of accounts open in branch-                   chaotic transition. Each bank must                      Warning signs have emerged, as
es today? All the evidence points to the                  be able to delve within its network to             revealed by Novantas research:
obvious answer — nothing. Counting on                     understand the scope and shape of sales                 When tellers assume additional
branches to remain the focal point of                     potential in each locale. This knowledge           responsibilities with sales, they mostly
simple sales is naïve at best.                            becomes the foundation for a potentially           succeed with low-value checking and
    In a not-so-distant future scenario,                  extensive suite of market-tailored sales           savings accounts. The needle barely
branch sales volume may be cut in half                    staffing configurations.                           moves with business deposits and
by online account origination, with the                                                                      loans, consumer loans and mortgages.
greatest impact on simple sales. Most                     WARNING SIGNS                                      Meanwhile credit card origination,
banks will be fighting for segment, geo-                       In a post-recession era of slack              the low-hanging fruit for tellers,
graphic or product niches, often using                    consumer demand and digital disrup-                visibly declines amid all the other
multiple strategies within a network.                     tion, banks have had two main branch               distractions. Overall there is little or no
The use of specialists will become crit-                  priorities. One is to deepen relation-             improvement in sales returns relative
ical in tapping high-value opportunities                  ships and sell more to each customer,              to staffing expense.
for customer acquisition and cross-sell.                  supporting growth by capturing “share                   When experienced branch sales
    The upshot is that the branch staff-                  of wallet.” The other is to tightly econ-          staff is asked to assume teller respon-
ing challenge is much more profound                       omize distribution in tandem with                  sibilities, the pros are distracted from
than many bankers realize. To meet                        declining transaction activity.                    the critical priority of high-value
evolving customer preferences and                              The universal banker concept                  customer acquisition and relationship
boost the critical metric of return on                    never cleanly fit the bill. But it seemed          expansion. Transaction productivity is
sales force, banks will need a new retail                 like a way forward for banks looking to            improved, but again, not sales returns
sales strategy and workforce. For many,                   preserve sales capability while aggres-            relative to staffing expense.
universal bankers are an interim step on                  sively reducing branch headcount.                       Rather than trying to perfect what
a longer path, but the universal banker                   Roughly five years into the trend,                 now appears to be an inherently limited
role as we know it today — transaction                    adoption has been substantial, with                arrangement, banks already employing
service and sample sales — is dead in                     even more in the offing. But there also            the universal banker model should view
the future.                                               is enough data to evaluate progress so             it as a transition step. Others still on the
    Adroit use of local market analyt-                    far (Figure 1: Impact of Universal Bank-           sidelines should probably skip it. Even
ics will be essential in managing this                    ers on Product Sales per FTE).                     bigger productivity challenges are in
                                                                                                             store and the time to prepare is now.
                                                                                                                  Radical changes are coming in
FIGURE 1: Impact of Universal Bankers on Product Sales per FTE                                               account origination. Coping measures
While universal bankers improve product unit sales per FTE, most additional                                  will not suffice. While 85% to 90% of
volume is of low value. Economic returns do not improve.                                                     retail products are sold on-site today,
                                                                                                             this ratio could be cut in half over the
                                                                                                             next five to seven years, matching the
                 Baseline with traditional branch = 9.0                                                      recent rate of decline in teller transac-
                   product sales per FTE per month                                                           tions. In turn, the coming serious dig-
     CONSUMER CHECKING                            +0.75 units
                                                                                                             ital erosion of the branch sales foun-
                                                                                       Deposits — most       dation, especially simple sales such
CONSUMER SAVINGS & MMDA                                                  +0.55 units   volume is low-value
                                                                                       checking and
                                                                                                             as checking and savings accounts, will
   CERTIFICATES OF DEPOSIT                                               –0.15 units
                                                                                       savings               cannibalize the fundamental benefit of
       BUSINESS DEPOSITS                                          +0.2 units
                                                                                                             the universal banker.
                                                                                                                  This hollowing out of branch sales
          BUSINESS LOANS                                          –0.2 units           Loans — most          points to role chaos ahead. In the not-
         CONSUMER LOANS                                           +0.2 units           categories flat,
                                                                                                             so-distant future, specialists may have
         HOME MORTGAGE                                            –0.2 units           credit card
                                                                                       origination falls     to carry most of the load in high-value
             CREDIT CARDS                                        –0.17 units
                                                                                                             sales conducted face-to-face. They will
                                                                                                             have to gin up business across broader
                      NET                                  +0.98 units
                                                                                                             territories     encompassing       multiple
                                 New level of 9.98 sales per FTE                                             branches, with branch sales generalists
                                                                                                             becoming a backstop for technology
                                                                                                             assistance, complex servicing and the
                                                                                                             remaining simple sales that slip through
Source: Novantas study of 12,000 U.S. branches via SalesScape                                                the digital net.

                                                                                                                           SALESSCAPE SYMPOSIUM 2017 | 17
BRANCH ROLE CHAOS: CALL TO ACTION ON STAFFING

FIGURE 2: New Standards for Staffing Analytics and Planning
In setting staff capacity, configuration and goals, the top priority is to align resources with the emerging picture of sales
opportunity in each locale.

                                                  OLD STAFFING MODEL                           NEW STAFFING MODEL

                                           Service first — Focus on wait times          Sales first — Zero-based staffing;
                   DECISION LOGIC          and session times as drivers of the          local market goals matched with
                                           customer experience                          bank segment strategy

                                           Internally focused — Detailed                Customer facing — Optimize
                      ACTIVITY             tracking of investments and                  roles, practices and activities to
                     ANALYTICS             operations; expense dynamics only            support the sales agenda

                                           Historical trends — Projections
                                                                                        Market “fair share” — Plans and
                                           based on “+/–” last year’s results
                     PLANNING                                                           expectations based on local market
                                           used for capacity plans and sales
                                                                                        potential, competitive ≠ stance
                                           goals

                                           Skills sometimes considered for              Skills actively factored into sales
                    INDIVIDUAL             scheduling — Contact center                  plans — Individual performance &
                       SKILLS              approach                                     experience specifically considered

Source: Novantas

ANALYTICALLY GUIDED                                There are important management             diverge at points, the analytics should
TRANSFORMATION                                 implications in this transition:               source from the same fact base.
All retail banks have serious work to do           Staffing and performance manage-               Nothing is more valuable than data
in preparing for a digitally-eroded envi-      ment are not separate activities and           on actual sales performance in a market,
ronment for local branch sales. But many       need to be interlinked. New strategic          by segment, to plan the future transition.
compound the difficulty by clinging to         staffing analytics consider both oppor-        Old-school benchmarks calculated at
traditional practices and metrics instead      tunity-based goals and local team              the bank level do not help to pinpoint
of looking ahead. Scheduling-led staffing      performance in setting optimal staffing        local strengths and deficiencies, nor the
tools are prevalent in the industry and        targets. New data sources and analytical       corresponding granular changes needed
still have a place, for example, but are       tools will be needed to reach this level of    to better manage this transition. The
wholly inadequate to the task of staffing      detailed planning.                             appropriate calibration of targets will
transformation in a chaotic setting.               Opportunity analytics need to be           need to be understood branch-by-branch.
     The number one priority is to estab-      driven from the bottom up. The bank                Role chaos in the branches is just start-
lish a market-led transition. Historical       needs a statistical understanding of how       ing and the universal banker role is not the
performance, service benchmarks and            1) market characteristics; 2) network pres-    end game. A shift in mindset and invest-
back office productivity metrics will          ence; and 3) branch-specific format and        ment — from efficiency to effective cus-
not suffice (Figure 2: New Standards for       customer composition contribute to sales       tomer interaction and economic returns
Staffing Analytics and Planning).              of specific products.                          on the sales force — will be required as
     Each local market plan should start           Linkages are needed between the            banks transition through evolving staffing
with a clean sheet of paper, with the          analytics that drive network planning          models over the next five years.
top entry being sales opportunity. How         and those now needed for staff planning.
much? What type? What is the likely            Too often they are driven by people in                       Darryl Demos
range of scenarios two years from now,         different silos and not connected. We are                    EVP, New York
five years from now? What sales staffing       seeing more of a trend in combining these                    ddemos@novantas.com
configuration (generalist, specialist, etc.)   two teams, but that is not enough. The
will best capitalize on this emerging          bank needs a clear set of analytics that                     Dale Johnson
opportunity, and what is the organiza-         can be used across these domains. While                      Director, Chicago
tion’s migratory path?                         site selection and staffing decisions will                   djohnson@novantas.com

18 | SALESSCAPE SYMPOSIUM 2017
Digital Investment:
  Success Driver or Bottomless Pit?
BY PAUL KADIN

Digital channels are increasingly influ-        budgets on account of weak online sales        dominance in digital features and func-
ential in revenue growth and customer           fulfillment, for example, overlooks the        tions, but rather about: 1) assuring that
profitability in banking. Translating that      growing importance of digital channels         the bank’s digital channels and products
general sense into specific business            in winning shopper attention and driv-         achieve at least competitive parity in
cases for development and resource              ing purchasers to the branch.                  the areas consumers care about most; 2)
allocation has been difficult, however,              A better approach is to evaluate the      incorporating a small number of novel
given the complexities of online and            financial contributions of digital within      and convenient features; and 3) bringing
mobile channels and loose linkages with         the context of all the bank’s channels and     these features together in an easy-to-use
tangible performance improvement.               capabilities. Approaching the question in      design with strong curb appeal. With this
     The uncertainty has left senior lead-      this way, there are three anchors for busi-    tenable goal accomplished, the bank’s
ership in an untenable position. Mindful        ness case development: 1) boosting pri-        task is then to promote digital offerings
that digital channels will continue to          mary relationship acquisition by cultivat-     aggressively, driving home the message
force changes in the operating model            ing an association with “leading online/       that the bank is making its customers’
and revenue/expense equation, execu-            mobile banking” among consumers; 2)            lives easier through innovation.
tives at most regional banks are actively       harnessing digital channels for cross-sell;        One typical approach starts with
soliciting cases for new or expanded            and 3) facilitating further transaction        shoring up functional gaps in desktop
digital investment that are worthy of           migration (branch to digital, call center      banking (redesigning as well if usability
presentation to their boards.                   to digital), permitting corresponding cuts     is poor or the look is outdated). Then the
     But these same leaders are casting a       that measurably lower the total cost to        bank may want to roll out a new feature,
skeptical eye on resulting internal propos-     serve (yes there are further possibilities).   for example, a snazzy smartphone app
als and funding requests, many entailing                                                       with video check deposit, swipe-balance
significant outlays. Thinking back on           LEADERSHIP EQUATION                            and other features. While in evidence
earlier waves of digital investment initia-         The first of these investment cases,       elsewhere, such features are still new to
tives that delivered lackluster results, they   cultivating association with the attribute     many consumers and easy to promote in
grapple with the question of how things         “leading online/mobile banking,” follows       an online ad or even on a billboard.
are going to be different the next time         through on what Novantas analysis                  Addressing these and other gaps
around. Despite years of investment and         is now clearly showing: this attribute         helps to address the fundamental ques-
persistent analyst predictions, for exam-       drives primary checking acquisition.           tion that shoppers ask in an overcrowded
ple, online account opening is still a weak     It has to do with meeting early-stage          banking market where competitors are
tool in landing new business, damaging          shopper expectations so that people            many and standout differentiation is
the credibility of many early advocates         will move beyond general awareness of          rare: “Which bank provides the easiest
for heavy digital investments.                  a candidate provider and give it active        and most convenient way to get the
     The digital channel planning chal-         consideration for new business.                services that I need?” Importantly, there
lenge is real, yet often made more diffi-           Boosting primary checking acquisi-         are both functional and perceptual com-
cult by constricted calculations that omit      tion through a strengthened perception         ponents in answering this question, both
customer/market considerations and              of leading online/mobile banking is not        of which require ongoing attention.
cross-channel ramifications. Crimping           a winner-take-all game; it is one many             Even at this stage of the digital
digital marketing and developmental             banks can play. It is not about absolute       revolution, however, many bankers

                                                                                                            SALESSCAPE SYMPOSIUM 2017 | 19
DIGITAL INVESTMENT: SUCCESS DRIVER OR BOTTOMLESS PIT?

over-rely on the traditional drivers of        capabilities? Our research firmly sug-        not generating sufficient results within
perceived convenience:                         gests otherwise. There is evidence that       online and mobile banking today.
     Share of branches. While local branch     association with this attribute is fully           The biggest barrier is the lack of a
presence continues as the prime influ-         attainable by regional banks and even         cohesive strategy that pulls the neces-
ence in shopper selection of a new bank,       super-community banks as well.                sary combination of levers: customer
this trend is now tapering, reflecting             Winning credit for online/mobile          analytics, offer engine, display options
the increasing digital orientation of the      capability requires substance and voice:      and digital fulfillment. A successful dig-
customer base. As previously reported,         targeted investment to deliver essential      ital cross-sell investment plan will com-
our research shows that two of every           functionality plus appropriate marketing      bine interrelated success elements from
five retail banking customers are now          support to promote consumer awareness         marketing, analytics, product design and
“thin-branch ready,” embracing digital         of the digital value proposition. It does     the digital channel itself.
channels for transaction services and,         not require superiority. Specific research         In the Novantas experience, the best
increasingly, when searching for new           methodologies can be used to identify         foundation for digital cross-sell strategy is
banking products and providers. Branch         competitive gaps and prioritize correc-       a customer segment- and lifecycle-based
density is less and less of a requirement.     tive investments.                             prioritization of needs-based opportunity,
     Share of voice. Local marketing and                                                     providing an organizing principle for the
media spend will remain important in           CROSS-SELL CONNECTION                         scope and staging of investments. The
reinforcing customer perceptions of con-            Digital cross-sell is becoming a         best cross-sell opportunities typically
venience. But branch-related messaging         critical driver of customer lifetime value.   spring from the household cash manage-
is giving way to a multi-channel con-          While banker-customer interaction in          ment relationship, as anchored by the
struct, reflecting digital’s growing role in   the branch has traditionally supplied         primary checking account.
customer perceptions and satisfaction.         both the relationship prelude and                  The challenge is understanding
     The newly ascendant third main            fulfillment destination for account origi-    evolving core customer needs through a
driver of perceived convenience —              nation, precious little customer face time    multi-channel lens, and then finding the
leading online/mobile banking — is             is available via branches these days. By      most effective ways to digitally promote,
highlighted through our Shopper Study          overwhelming proportions, online and          present and fulfill relevant offers. We
research program. We collected data            mobile banking now represent the most         mention this first because although there
on thousands of recent and prospective         common everyday touchpoints with              are defined progressions of execution
purchasers across dozens of U.S. mar-          most customers, with many transacting         capabilities needed to support online
kets, and then correlated respondents’         at the branch less than once a month.         and mobile cross-sell, customer-focused
reported perceptions and behaviors with             One excuse for denying this trend is     strategies take precedence.
various local market supply-side factors       the supposition that affluent, high-value          With that said, our multi-bank
such as branch and ATM share, media            customers (with large representation          research indicates that regional banks
spend and direct mail volume.                  from older age groups) remain wedded          are generally falling behind the national
     We found that banks designated by         to the branch, both for high-touch service    banks and direct players in fleshing out
survey respondents as having “leading          and rep-facilitated account origination.      the execution capabilities needed for
online/mobile banking” had a distinct          But contrary to common perception,            effective digital cross-sell (Figure 1: Three
advantage in winning new-to-bank pri-          our research shows that higher-income         Stages of Digital Cross-Sell Capability).
mary checking accounts versus banks            customers are actually less interested             While Stage 1 players have little or
that only scored well on share of branch       than others in conducting routine trans-      no ability to route marketing messages
and share of voice. For a large or mid-size    actions in the branch. Moreover, higher       through digital channels, for example,
regional bank, a typical research finding      income customers are increasingly             a select group of Stage 3 players have
is that a five percentage-point increase in    likely to shop for credit cards and other     developed        integrated      messaging
shopper association with leading online/       well-understood products online, posing       through all digital channels (e-mail, text
mobile banking wins one additional per-        serious limitations for branch-centric        message, web site, etc.). In the mobile
centage point of origination share.            cross-sell strategies for these products.     space, Stage 1 players can only partially
     This presents a powerful opportu-              The situation poses one of the great     replicate the functionality of the bank’s
nity. For a bank currently pulling a 6%        sales challenges in banking, which is         public web site, while Stage 3 players
share of primary checking account churn        somehow harnessing impersonal digital         have replicated the full functionality of
in a given market, advancing to a 7%           channels to recreate the rapport and          the site for mobile-specific access.
share represents a potential 17% increase      one-on-one context that had been almost
in origination volume.                         exclusively relied upon for relationship      TRANSACTION MIGRATION
     Is this potential advantage restricted    expansion. Yet most regional banks are        A third business case for digital invest-
to only the largest banks having the           not doing nearly enough to advance            ment is transaction migration — shifting
resources to build out best-in-class           digital cross-sell — and they certainly are   even more daily banking activity to alter-

20 | SALESSCAPE SYMPOSIUM 2017
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