Northeast Touche User Group

June 14, 2013

One Hundred Club, Portsmouth New Hampshire
Who are we
Dedicated & experienced
professionals
Holistic thinking
Collaborative network
Locations include York, Maine
Las Vegas, NV
Los Angelas, CA
Denver, CO
Seattle WA
Jackson, MS
What we do
Design, develop and deliver a holistic customer
experience that leads to increased sales,
profitability and loyalty
Banking is changing fundamentally
What are your customers stories they tell themselves
06/13/13 3 RudigerMerz
In most organizations,
change only comes in two
flavors: trivial and traumatic.
- Gary Hamel , Wall Street Journal Sept. 29, 2009
6
The internet has evolved
06/13/13 6 RudigerMerz
No instructions.
No keyboards.
No limits.
The consumer is in control
Data grows exponentially
Branches are transforming
9
Channels explode
The internet evolves
The consumer is in control
Data grows exponentially
Branches are transforming
Marketings role must evolve
Challenges or Opportunities
Consumers are now in control
How well are we influence the story they tell about our Bank or Credit Union?
Perception
80% of CEOs
believe that their
brand provides a
superior
customer
experience
Reality
Only 8% of their
customers
agree
Source: Bain & Company
WHAT your Customers expect.
What do your customers and prospects actually
experience?
The path to smarter marketing
What are your customers stories they tell themselves
06/13/13 3 RudigerMerz
The problem is never how to
get new, innovative thoughts
into your mind, but how to
get the old ones out.
Dee Hock
The traditional Buying Model lacks insights on why and
how your customers are buying from you.
Awareness Knowledge Consideration Purchase Satisfaction / Loyalty / Advocacy
Todays smart customers move outside the traditional sales
funnel and channels enabled by new devices, smart apps
and ubiquitous interfaces anywhere, anytime.
20
Source: based on McKinseys Consumer Decision Journey Model, 2009
Initial
Brands considered
Moment of
Purchase
Trigger
Loyalty / Advocacy Loop
Post Purchase Experience
1
2
4
3
Active Evaluation Process
Smart Marketers move aggressively beyond pure push-
style communication and learn to influence customer
touchpoints.
Source:RegionalBank;proprietaryanalysis
Consideration Evaluation Purchase
42%
27%
11%
31%
38%
18%
5%
11%
21%
22%
24%
50%
Bank-drivenmarke/ng
AdverGsing
DirectmarkeGng
OnlineMarkeGng
Events&Sponsorships
Branchmerchandising
Salespersoncontact
Consumer-drivenmarke/ng
Word-of-mouth
Online/Socialresearch
O-linereviews
PastExperience
BranchInterac/on
What is your strategy for success?
Meeting customer expectations and your business objectives.
22
Quick check: Where does your bank/CU stand on strategy?
23
Your Strategy is implemented through your touchpoints.
24
Products Retail
Stores Print +
Radio Ads, Direct
mail forms and
Doc
APPS, Mobile
M2M devices,
Corporate Web,
Social Media
Products
Sales
Call Center
Service
Word-of-mouth
Support
CUSTOMER
EXPERIENCE
Human
Digital
Brand
Static
25
Banks and CUs need to engage the customer across
all stages of the customer lifecycle.
IdenGfycustomerexperienceteam
members
Trainandempower
Organizeself-directedteams
DenereporGnganddecision-making
structure
Owning the mile around your branch: A path to Smarter Customer Acquisition
Optimize your integrated marketing mix
Social/
Mobile
email
Display
Direct
Mail
SEO/
SEM
Landing
Page
Re-targ-
e/ng
Li[sresponserate
L
i[
s
r
e
s
p
o
n
s
e
r
a
t
e
L
i
[
s

r
e
s
p
o
n
s
e

r
a
t
e
Drivesvolume
Drives
volume
Drives
volume
Drives
volume
Improves
target
messaging
Increase In campaign lift
Higher response rate increase due to better
target messaging
Decrease in cost of acquisition
50%
23%
30%
Understand the impact of different channels on the
customer journey.
Source:GoogleAnalyGcs
The path to Smarter Customer Retention, Growth and Advocacy
The bucket is leaking. You determine how much.
30 Source:HarlandClarke,2011
0
8
15
23
30
Attrition Attrition with on boarding
Banks Credit Unions
21% 9.5% 16.5% 13%
31
Onboarding enables retention. Retention creates increased
Cash-flow from longer lasting Customer Relationships.
RetenGon
CustomerBehavior
(NoOnboarding)
CustomerLife-Time
Value
16%AOri/on
84%Reten/on
$921
Source: Regional Bank Customer Analysis; Customer Life-Time Value measured in NIBT (net income before taxes; including cost of capital)
applying Discount Cash Flow Analysis
RetenGon
CustomerBehavior CustomerLife-Time
Value
8%AOri/on
92%AOri/on
$1704
No Onboarding With Onboarding
Grow Product Cross-Sell with relevant, integrated multi-
channel Onboarding Program
Right Product. Right Time. Right Channel. Right Customer.
32
Welcome
Email
PersonalURL
h`p://karenmarryat@bhb.com
Welcome/
SaGsfacGonCall
AccountOpening
Day1 Day2 Day7 Day
15
Day
30
Day
60
Day
90
Day
45
WelcomeLe`er
Cross-Sell
Le`er
Email
LandingPage
Discover Engage Grow
Not all Customers are created equal. A Value Driven
Consumer Onboarding Program optimizes ROI.
33
Welcome
Day 1
Acquisi/on Onboarding
NewsLe`er Webinar/Event Surveys
Email DirectMail SalesCall
Engage
Day 30
Grow
Day 60
Grow
Day 90
Grow
Day 120
Acquire
HighValue
LowValue
Current
Customers
The Intelligent Consumer Onboarding Program further
optimizes resources to preferences
Right Product. Right Time. Right Channel. Right Customer.
34
Welcome/Engage
First 29 Days
Acquisi/on Onboarding
Engage & Grow
Day 30 - 120
Acquire
PURL
Email
Mail
Personal
URL
Call
BANK
Mail
Email
Branch
Online
Banking
Product1
BANK
Mail
Email
Branch
Online
Banking
Call
Product2
BANK
Mail
Email
Branch
Online
Banking
Product3
BANK
Mail
Email
Branch
Online
Banking
Call
Product4
Purchase
Branch
Online
Banking
Call
Center
Next Best Product Model Personalized Welcome Real-time Cross Sell
Onboarding drives significant Results
35
+9.5%
Cross-Sell
Li[
+54%
Deposit
Li[
+217%
Loan
VolumeLi[
9.5%
eStatement
SignUp
+261%
Credit
CardLi[
+100%
Source:ZionsBancorporaGon;ResultsagainstControlGroup
+20.5%
Cross-Sell
Li[
+70%
Deposit
Li[
+321%
Loan
VolumeLi[
9.5%
eStatement
SignUp
+92%
Credit
CardLi[
+200%
Consumer Onboarding Results
Business Onboarding Results
+317%
Onboarding is a journey to build lasting competitive
advantages. Not a project.
36
Shorten the distance to the front
Keep the Play Book simple
Balance the Mind and Heart
Improve continuously;
So dont miss the train.
element |elmnt|
noun
An environment naturally suited to or
associated with an individual
Customers are beginning to expect......
Team of five working on cutting steps from 8 to 7
Reality kicks in......
Things to consider
Brand translation
Space modification
Lifestyle and environmental
engagement
Technology
Brand extensions
Translate your brand
Shift to service
Customer voice-listen
Switch from reactive to proactive
service
Personality
Communicate
Lost Customer Condence
Restore confidence
Authentic relationship building
Engage customers/engage employee
Look different
Customers like to shop
Customers choices, comfort, invitation
Change Movement
All Blend Together
Transactions leaving
Experience Objective
Touchpoints
Store for me - not bank for you
Kitchen = help yourself
Movement = choices = empowerment
Change / stage / grab attention
Play area for customers
Un-office the offices
Action
Looks unique
Customers like to shop - not to bank
Inviting
Changeable = Interactive
Look / feel / colors / lighting / smell
Enable customers to feel comfortable
Hospitality - retail like
Something unexpected
Ability to give tours
Stand up / sit down = choice
Inspire thru information, energy words
Different: Inspiring, engaging & Clever
Whats new
Interactive
Movable
Storage
Engaging
Gift cart
Charitable display
Current offering
Different: Inspiring, engaging & Clever
Inform
Fun
Creative
Engaging
Change
Signature elements
A kit of parts that allow you the
opportunity to define your space and
extend your brand promise in the
physical environment.
Elements are modular and designed to
fit in any space
Designed to meet the ever changing
needs of the company
Space modification
Technology is allowing customers/
prospects the ability to bank
without visiting the branch.
Branches will no longer be
transaction centers.
We need to be proactive in how we
treat the branch.
Space is the 2nd biggest asset the
bank have
BLUE HILLS BANK, WESTWOOD 06/7/2013 DESIGN DEVELOPMENT
DUEL ROUND TABLE TELLER CONCEPT
N
CASH
ATM
C/D
C/D
ADA BATH
ADA BATH
JAN
REF
BREAKROOM
TOWER
CONFERENCE
55 lcd
TOWER
VESTIBULE
ATM
N/D
CSR
34
42
coffee
MANAGER
ASSIST. MANAGER
acrylic
blue
wall
concierge
tile
carpet
42" dia
w/o matt
f
e
a
t
u
r
e

w
a
l
l
community wall
bubbler
closet
check
desk
FLOOR PLAN
display/ storage wall
display/ storage wall
display/ storage wall
data
elect.
carpet w/
cushion back
or cork
printer
below
check desk
display
video teller w/
blue acrylic
kids
3-d
interactive tech wall
demountable walls
with glass barn doors
white board
tile wall
possible location
for 3-d calendar
tech
lockers
drop down/sliding or
folding glass doors
mule safe w/
coin storage
storage for door
storage options
see through
glass screen feature/
storage below
COPY
app tree
DUEL ROUND TABLE TELLER
1/8"=1'-0"
1
Lifestyle and environmental engagement
Emotional engagement
Changeable
Movement
Shopable
Whats your story?
Technology
Smart ATMs
Video Teller Systems
Cash Recyclers
Digital messaging & Touch
Mobile app
BLUE HILLS BANK, WESTWOOD 06/7/2013 DESIGN DEVELOPMENT
DUEL ROUND TABLE TELLER CONCEPT
N
CASH
ATM
C/D
C/D
ADA BATH
ADA BATH
JAN
REF
BREAKROOM
TOWER
CONFERENCE
55 lcd
TOWER
VESTIBULE
ATM
N/D
CSR
34
42
coffee
MANAGER
ASSIST. MANAGER
acrylic
blue
wall
concierge
tile
carpet
42" dia
w/o matt
f
e
a
t
u
r
e

w
a
l
l
community wall
bubbler
closet
check
desk
FLOOR PLAN
display/ storage wall
display/ storage wall
display/ storage wall
data
elect.
carpet w/
cushion back
or cork
printer
below
check desk
display
video teller w/
blue acrylic
kids
3-d
interactive tech wall
demountable walls
with glass barn doors
white board
tile wall
possible location
for 3-d calendar
tech
lockers
drop down/sliding or
folding glass doors
mule safe w/
coin storage
storage for door
storage options
see through
glass screen feature/
storage below
COPY
app tree
DUEL ROUND TABLE TELLER
1/8"=1'-0"
1
Mobile Apps
Brand extensions
Product differentiation is dwindling
Out service the big boys!
Every bit matters
Unique and memorable
Concierge service
Commercial / Small Business
Deliver the unexpected
Wealth management
Account acquisition
Second chance
MugShot!
Invite drive up clients into the branch
Engage weekly through the use of QR codes
Extend the brand beyond the branch
Be unique
Foursquare
Engage via social media
encourage game play
Reward frequently
Announce winners via all social
networks
Become a Mayor
Monthly winners
Awarded to the bank Mayor on
a specific day each month
Announce via Facebook
Cool gifts (worth playing for)
Have a great weekend!