According to recent CFC channel preference data, over 30% of customers prefer to do either all or most of their banking online. This group—as our data shows—tends to be more educated, have higher incomes, be slightly younger, and have a strong sense of competence around financial matters. In short, it is a highly attractive segment of customers, but one that is also difficult to serve well.
In 2008, National Australia Bank decided to target the growing segment of self-service customers. To do this, NAB launched UBank—a direct banking platform offering high yields on accounts, superior website functionality, and, most importantly, almost instant, 24/7 access to customer support.
As we show in our case study, the success of UBank depends upon three key lessons:
1) Leverage the strength of the web for research, transparency and contact: The web is the default research tool for everyone, and an increasingly dominate communication tool through video and web chatting. UBank has incorporate these strengths into its online experience—enabling customers one-click connection to customer support via Skype.
2) Build products not to compete with other online banks, but to live up to the increasingly high expectations of customers’ web experiences: To serve its highly-selective target segment, UBank designs its web experience with the understanding that they are in competition with internet giants—like Google, Apple, and Amazon—for creating compelling customer experiences.
3) Challenge traditional notions of “remote” customer contact: Knowing that customer contact is a value commodity for a direct bank, UBank has radically innovated the contact center as it becomes the heart of their customer contact strategy.
View our complete case study of UBank here. For related resources, see some of our recent blog posts on the online experience, channel preference, and customer migration.
The Role of Branch of Online Growth
Preparing for Multichannel Competition
Branch Staff Skills in a Multi-Channel World
The Cost of Reluctant Innovation
on December 20, 2011
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[...] Managing Remote Customer Relationships [...]
on January 24, 2012
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[...] outside the branch–from understanding customer channel preferences, to designing powerful remote experiences, to building products that capture attention and increase [...]
on February 15, 2012
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[...] The branch is viewed as the home of customer relationships– Many senior executives remain unconvinced they can effectively manage relationships through non branch channels. Indeed, the Council’s data does suggest that customers who use technology-only tend to feel less committed to their banks. Accordingly, serious concerns remain around on-line relationships becoming too transactional, losing the depth otherwise assured by in-person interactions. As a result, banks must focus on creating a unique experience online. [...]