A deck looking at what Multi-channel means, the implications for the banking industry, why its important, how to get banks from zero to multichannel, and important considerations.

1. MULTICHANNEL STRATEGY
FOR BANKS
YAEL LEVEY
BAD ROBOT DESIGN

2. WHAT IS MULTICHANNEL

3. What is Multi-channel?
Multi-channel retailing is the use of a variety of channels in a customer's experience. There are 3
types of channels:
Static
Physical and tangible
Ads
Brochures
Newsletters
Example touchpoints:
Interactive
Constantly updated
Website
Mobile app
Tablet app
Social media
Emails
ATM
Example touchpoints:
Human
People
Contact centre
Branch
Example touchpoints:

4. 51% of smartphone owners have used mobile banking in the past 12 months
59% of multi-channel financial interactions began on a smartphone. 56% then moved to a computer
38% of multi-channel financial interactions began on a computer. 53% then moved to a smartphone
46% of customers have used a branch, ATM and online banking in the past 6 months. These customers
generate an estimated $155 in profit than people who don't use all of these 3 channels
Customers that use mobile banking also use other channels more frequently than the average customer. While
more customers are using digital channels, they aren't abandoning traditional channels at the same pace. (Gallup)
How customers are using channels
Source: Consumers & Mobile Financial Services Report 2014

5. FOCUSED QUICK
CASUAL EXPERT
⁃ Set budget goals
⁃ Buy stocks
⁃ Bill payments
⁃ Apply for a mortgage
⁃ View stock portfolio
⁃ Compare mortgage rates
⁃ See spending patterns
⁃ View account balance
⁃ View stock prices
⁃ Payments
⁃ Consultancy
Customers use different channels for different behaviours

6. Googlehttp://postoffice.co.uk
The Post Office
FOCUSED QUICK
CASUAL
EXPERT
Customers use different channels for different behaviours
Carrier 12:00 PM
Page Title
http://www.domain.com Google

7. Business areas that a Multi-Channel strategy can help
Customer
initiation
Self-servicing
Sales &
Marketing
Look & Feel
Security
Branches
Customer
Support

8. THE IMPORTANCE OF
MULTICHANNEL

9. Why is Multi-channel Important?
1.
Channels are
differentiators
2.
Channels can be
optimised for the
Customer
3.
Channels can be
leveraged to
better
understand
customers
4.
Mobile customers
are a larger
source of profits

10. Why is Multi-channel Important?
One of the biggest problems facing retail banks today is their inability to
stand out in an increasingly commoditized and competitive marketplace.
Channels can still be leveraged by banks to distinguish themselves from
the competition. While customers’ perceived importance of products and
services has remained relatively flat between 2011 & 2013, that of
channels, especially the mobile, has seen a significant improvement.
1.
Channels are
differentiators

11. Instead of focusing on creating identical apps & websites for different
devices, think about the different attitudes, behaviours & situations of
the consumers using those different devices.
Banks successful across multiple channels will build specific apps for
specific attitudes and then link those apps in one journey. Exchanging
data and making a seamless switch between channels increases the
likelihood of completing an application or sale significantly.
Why is Multi-channel Important?
2.
Channels can be
optimised for the
Customer

12. Banks are in an unequalled position to understand their customers.
They already can see product use, transaction patterns and demographic
profiles. By leveraging channel usage insight, they can develop an even
more detailed customer profile. Understanding not only what the
customer looks like, but also how they conduct their banking can allow for
improved product offers using their preferred channel.
By analysing the activity and preferences of their client base, banks can
tailor offerings to address the priorities of each individual
customer.
Why is Multi-channel Important?
3.
Channels can be
leveraged to
better
understand
customers

13. It is also important to think about the revenue and cost saving
implications of developing a cross-channel strategy.
Wells Fargo reported that customers who use four channels are 1.8
times more profitable than customers who use one.
Banks should be treating mobile customers differently as they are a
larger source of profits.
Why is Multi-channel Important?
4.
Mobile customers
are a larger
source of profits

14. MULTICHANNEL STRATEGIES

15. Multi-channel strategies so far
OMNI-CHANNEL
What:
Consistent, integrated services across all channels,
and encouraging customers to self-select channels
according to personal preference
Problem:
Consumers have little incentive to choose one
channel over another. Banks are faced with
increasing complexity and costs without the customer
experience benefits desired.
Example:
What:
Custom applications per channel and improved
service through varied channels
Problem:
Leads to banks adding layers of complexity and costs
while trying to maintain a high level of customer
service.
Example:
MULTI-CHANNEL

16. Custom applications and
improved service through
varied channels
MULTI-CHANNEL OMNI-CHANNEL
Integrated services across all
channels, and encouraging
customers to self-select
The middle ground
THE MIDDLE
GROUND
Understanding the different
attitudes, behaviours & context of
customers using different devices
Optimising channels & touch points
for those behaviours
Differentiating channel
functionality in order to incentivise
and guide consumer's choice of
channels.

17. A MULTICHANNEL ROADMAP

18. 1.
Differentiate
channel
functionality
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel
3.
Standardise
information
and align
systems
across
channels
Building a middle ground
4.
Enable
customer
journeys
across
channels
5.
Proactively
guide
consumer's
choice of
channels
6.
Formalise
the process
of evaluating
channel
performance

19. 1.
Differentiate
channel
functionality
Building a middle ground
Customers don’t demand a wide range of choice of channel. Rather, customers are often confused by the increased choice and prefer
whichever channel requires the least effort. By simplifying offerings & tailoring channels to serve specific needs, organisations can
specialise channel functionality, reducing costs & complexity and improving the overall customer experience.
This first step prioritises the main strengths of the channel on the appropriate device but also makes sure that everything can be done.
Differentiating channels requires assessing the customer’s channel preferences and aligning these against the channel capabilities,
cost to deliver and the potential for a positive customer experience.
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel
3.
Standardise
information
and align
systems
across
channels
4.
Enable
customer
journeys
across
channels
5.
Proactively
guide
consumer's
choice of
channels
6.
Formalise
the process
of evaluating
channel
performance

20. Building a middle ground
Customers should receive in-channel excellence across the major customer touch points.
The first step is for banks to meet minimum industry standards for common end-to-end sales and service transactions for each
channel, be it ATM, branch, call centre, Web and mobile.
1.
Differentiate
channel
functionality
3.
Standardise
information
and align
systems
across
channels
4.
Enable
customer
journeys
across
channels
5.
Proactively
guide
consumer's
choice of
channels
6.
Formalise
the process
of evaluating
channel
performance
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel

21. Building a middle ground
Customers need to have consistency across channels.
Once industry standards have been met in each channel, banks then need to standardise information and align systems across
channels, as well as develop a uniform look and feel, branding and messaging (e.g., product information, disclosures and terms,
product pricing and offers).
1.
Differentiate
channel
functionality
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel
4.
Enable
customer
journeys
across
channels
5.
Proactively
guide
consumer's
choice of
channels
6.
Formalise
the process
of evaluating
channel
performance
3.
Standardise
information
and align
systems
across
channels

22. Building a middle ground
Once information has been standardised and aligned across channels, the next stage is for seamless multichannel integration to become
a reality, and for banks to enable customer transactions across channels.
Customers should be able to start a sales or service transaction in one channel and complete it easily in another. If a customer filling out
an online credit card application has some questions, he or she should be able to dial the call centre and have the representative view
the application and help finish it.
1.
Differentiate
channel
functionality
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel
3.
Standardise
information
and align
systems
across
channels
5.
Proactively
guide
consumer's
choice of
channels
6.
Formalise
the process
of evaluating
channel
performance
4.
Enable
customer
journeys
across
channels

23. Building a middle ground
Banks should proactively guide customers to the channel(s) that will enable them to accomplish each task with minimum effort. Done
well, the process will guide the customer to the lowest effort channel while still satisfying the customer’s desire for choice.
To do this, banks can identify common service triggers and step in at these points to preemptively guide customers to the best-fit
channel e.g. promote appointment booking when a customer is completing a mortgage application so that customers know they can
complete in-branch with expert advice.
1.
Differentiate
channel
functionality
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel
3.
Standardise
information
and align
systems
across
channels
4.
Enable
customer
journeys
across
channels
6.
Formalise
the process
of evaluating
channel
performance
5.
Proactively
guide
consumer's
choice of
channels

24. Building a middle ground
Banks should create a formalised process to evaluate their channel performance. An exit survey could be a good assessment of
customer satisfaction with new channel experiences.
The purpose of this measurement process is to continually reassess and improve channel functionality that will lead to reduced costs
and duplication of efforts as well as a better customer experience.
1.
Differentiate
channel
functionality
2.
Meet
industry
standards
for common
end-to-end
sales &
journeys for
each
channel
3.
Standardise
information
and align
systems
across
channels
4.
Enable
customer
journeys
across
channels
5.
Proactively
guide
consumer's
choice of
channels
6.
Formalise
the process
of evaluating
channel
performance

25. BUSINESS CONSIDERATIONS

26. CONSISTENT CUSTOMER DATA
All channels should have a common, consistent set of
customer data. This is achieved through use of a single
customer data warehouse & repository for product info.
For instance, there should be a single content management
system, and data should be integrated across channels,
business units and products.
To enable multichannel consistency, bank staff in all
channels must have a comprehensive view of the customer.
They should be able to track customer interactions across all
channels. Call centre and branch staff should have access to
customers’ activity on the bank’s Web site, and should be
able to make the same offers to customers that they have
seen online.
A single, common marketing engine provides targeted and
consistent customer messages across channels.
This prevents frustrating disjointed or repeated messages
coming to customers from different channels.
A common application engine across products and channels
will ensure that all channels are requesting and capturing
the same customer information.
This results in less work for customers, and minimises
complications for the bank when customers start an
application in one channel but complete it in another.
IT Considerations
COMPREHENSIVE VIEW OF THE CUSTOMER
TARGETED CUSTOMER MESSAGING CAPTURING CUSTOMER INFORMATION

27. Other business considerations
Retail branches serve as the primary sales channel for many
banks.
A multichannel approach will shift this balance, with
branches likely to experience a reduction in customer traffic
& sales volumes.
Banks should ensure that investments can be made across
channels and products, and that investment in each channel
maintains parity with peers.
Any upgrades and investments made in one channel will
need to be integrated within the context of multichannel
strategy.
Performance measurement & incentives are often set around
sales targets through a specific channel.
Each channel needs to have targets, but a line of employees
need to work toward driving customer interest regardless of
which channel is used to complete the transaction.
SHIFT IN ROLE OF BRANCH NETWORK INTEGRATED CROSS-CHANNEL INVESTMENT
MODIFICATIONS TO PERFORMANCE MEASUREMENT

28. THE FUTURE?

29. The Future of Banking?
Contextual
Customer-Centric
Less intrusive
authentication
Social connectivity
Crowdsourcing
Hyper-
personalisation
Frictionless
Customising financial data and
personalising interfaces for
varied consumer segments
A renewed focus on simplified
authentication (using multiple
forms of biometrics and
contextual assessments, from
proximity and voice-vetting to
login patterns)
Further social media integration
e.g. Facebook Banking
Offering service alternatives
through proximity awareness
Actionable notifications that
prompt users through their
mobile device to move money
or pay bills to avoid fees or to
better manage their current
account spending
Continuous assessments of
financial wellness that prompt
the consumer to take a specific
action after a transaction, like
filing a taxi receipt as a business
expense
Delivering daily or on-demand
personalised information around
the customer’s financial health
and aggregated account status

30. THANK YOU
YAEL LEVEY
@YAELLEVEY