Delivering a better branch experience

An innovative customer research project unveils retail banking customers’ expectations, how well banks are meeting those expectations, and the implications of performing – or not performing – up to those expectations.

How well a bank meets the expectations of their customers has far-reaching financial implications. But with the rise of new channels, the addition of in-branch amenities, and an increase in banking options, banking executives need to know what the customer really wants from the branch experience.

The customer research study reveals that overall, customer service, even more so than product selection or in-branch amenities, is the most important driver of a positive branch banking experience. The top reason customers switch banks is poor customer service. The customer service attributes ranked highest include, in order of importance:

Fast cashier service

Focus on five: customers expect to wait in queue less than five minutes and they expect transactions to take less than five minutes. Also, customers respond negatively when the number of customers in queue exceeds five people.

In the study, 29 per cent of respondents state that a waiting time of more than five minutes was unacceptable and only 36 per cent say that they would remain in a queue if the waiting time was longer than ten minutes. Customers are also concerned about the number of customers waiting in the teller lines. Almost 30 per cent state that they would either not join a queue or abandon the queue if more than five customers were waiting.

Convenient and long hours

Branch locations and hours of availability are a major factor in determining where a customer banks. They expect bank locations to be conveniently located near their homes and places of business. Urban banking customers place special emphasis on longer hours and weekend openings.

Error-free banking

One in eight customers cite account mismanagement or bank errors as a top reason for switching banks. About a third of the respondents indicate that they had found an error in a banking transaction at least once in the past year and 12 per cent found an error more than once in the same time period.

Availability of multiple channels

While 66 per cent of customers prefer service from a human cashier, they also want the choice of conducting transactions at self-service channels, such as an ATM. They do not, however, place high importance on the availability of newer banking channels, such as the internet or banking kiosks. These customers do not feel that banks are meeting expectations in cashier availability, and shortfalls exist in staffing all till stations to ensure minimum waiting time in the queue and fast service at the till. Customers also like to see associates conduct transactions while they queue.

Quick service branch layout

Customers prefer branch layout and features such as prominent signage that facilitate speed of service versus other branch amenities such as coffee bars and lounges. They want to enter, complete a transaction, and exit the branch as quickly as possible and without confusion. They also prefer to be self-directed and greeters at the entrance who direct customers to appropriate lines or self-service areas are not viewed favourably.

Impact to the branch

The study’s findings unequivocally show the primary importance of providing superior customer service. The failure to consistently meet customer expectations for service has a real financial impact, expressed through changes in customer retention, growth in assets, and advocacy. Nearly half of all customers will give their bank only two chances to fail before considering switching. The list of negative experiences included slow cashier service, long queues, and longer than acceptable transaction times at the till.

A strong correlation exists between the amounts of time a customer queues and their likelihood to remain a customer. Other top reasons customers cited for switching banks included rates and service charges, inconvenient locations or opening hours, and bank errors and mismanagement.

Behaviour management technology

Brickstream, a leader in customer behaviour measurement technology, has a suite of products designed for branch banking. When these solutions are implemented in the branch, there is access to key data that describes how customers move throughout the branch, how many are in the queue, how long they wait and the overall length of the cashier transaction. The opportunity now exists to initiate branch or even bank-wide enhancements that will increase customer satisfaction rankings, and ultimately, the bottom line.

Brickstream’s solutions are powered by BehaviorIQ ™, which delivers the only customer behaviour measurement technology that continuously captures, transforms, and analyses branch customer activity. The suite of products includes fourth-generation staffing solutions, front-line service management, real-time service management, branch layout and design testing, and service resource planning and optimisation.

Further information
Brickstream Corporation
Tel: +1 404 745 3005
Fax: +1 404 745 9952
Email: info@brickstream.com
Website: www.brickstream.com