For most banks, the online channel only proliferates costs without creating revenue. Across the industry, it is almost a given that customers–whether craving in-person interaction or the psychological assurances of the branch’s physical presence–only buy products in the branch. The graphic to the left comes from our recent survey of customer channel preferences and shows that customers still view the branch as superior to the web for sales–although the branch is by no means perfect. Yet our recent research also shows a different story emerging that should trouble banks that are under-investing in improving online sales: once the experience of online sales begins to rival the branch, online sales will experience a rapid surge.
To help our members assess their own web functionality, processes, and philosophy, CFC is researching channel innovations through a combination of case studies and customer behavior analysis.
This case study shows how by improving its experience internally and externally, a large European bank transformed its web sales into a real revenue engine. The transformation required two key insights:
- A Focus on Accountability: The website is held to specific P&L goals, immediately creating expectations for it to drive profit. The contribution of web sales to overall revenue goals requires that the website be a functioning element of the business—rather than just a service provided to customers.
- A Focus on Customer Ease: Rather than situating the website as simply a marketing and research tool, the bank formats it to reflect the customer buying process. By focusing on ease of customer experience and the ability to quickly and naturally locate information—rather than overcrowding space with offers—the bank created a site that reflected customer preferences.
We invite our members to read the full case study of Mendel Bank’s (a pseudonym) online transformation here. To see how customers rate the quality of different channels for specific tasks, and how channel usage decisions are made, download our study “Channel Strategy: Replacing Consistency with Quality.”
Related Posts:
The Role of the Branch in Online Growth
Rethinking Retail Channel Strategy
5 Profiles of Channel Preferences
Understanding Customer Channel Preferences
on July 27, 2011
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A focus long overdue in the banking sector, though I think the customer ease & the revenue accountability often becomes confused, i.e. most will focus on one & neglect the other. The ideal is achaeving both.
on August 9, 2011
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Hi Jeremy,
Thanks for your comment. I’m glad to hear that you agree–and your perspective on keeping customer experience and revenue concerns in balance. We’re working on a couple case studies on exactly this problem that we will release in the coming weeks. I hope you’ll find them useful, and I’d love your thoughts as they arise.
Best,
Brian Ballentine
on October 19, 2011
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[...] For further background on building a more compelling on-line offering, members can access The Future of Internet Sales and previous blogs on personalizing the on-line experience and managing channels from cost to profit. [...]