(June 08)

Think back to when you were a child.  My parents often took me to “family-friendly” restaurants.  As a restaurant, they were pretty basic.  Now when I take my children out for dinner, I have choices.  I can take them anywhere from Max & Erma's to PF Changs.  And yet, just because its family-friendly doesn't mean I lose the experience of a nice dinner, a themed environment, or good customer-service.  Odds are because it was such a positive experience, I'll go back with or without my children.

Now, consider your banking experience when you were younger.  Most children often accompanied their parents on their weekly bank visit just to get the lollipop.  But anymore, do you even get the lollipop?  The financial industry has been slow to catch on to the idea of retail banking - creating a destination where your staff can create relationships and cross-sell.  The retail and restaurant segments have embraced the “store as destination.”  Industry leaders such as NikeTown and The Disney Store, for example, have leveraged their brands and created their success by focusing on the consumer experience. 

Obviously many retail leaders have gone to the extreme in trying to keep up with the demand of increasing consumer expectations.  Umpqua Bank, for instance, targets a specific demographic with a product line and branch design that is directed at the target.  Bank branches do not need to go this distance to be effective or even stand out from their competition.  Finding something in between traditional and extreme is effective in achieving the retail experience.

Dialog Banking and the Customer Experience
Dialog Banking is a current trend that meets the needs of most retail-driven financial institutions.  This delivery system can be more traditional or stepped up to offer a “Super CSR,” a Customer Service Representative cross-trained to perform multiple functions - performing a basic transaction to signing up customers for loans.  This moves away from the typical hand-off from one employee to another, creates another level of trust, and allows more time for your CSR to connect with the customer.  With developing automated technologies and product delivery channels, banking is no longer focused on the transaction.  Today, banking isn't just about quick and efficient service.  It's about building relationships.  Why else would they come back?  The bank down the street offers the same rates, hours, and online banking options.

Other trends include online banking, ATMs, and grocery store branches.  These service delivery options are about providing your customer with a choice of convenience or the customer experience.  For instance, hotels make a choice when they design their facility.  The Ritz-Carlton chose to be consumer-centric, differentiating themselves based on customer service.  But, if you are looking for an inexpensive overnight stay, you may select The Courtyard by Marriott.  For a family vacation, you would probably prefer a full-size Marriott for the amenities and customer-service so you can enjoy time with your family.  Consumers get to, and want to, choose.  So, create a branch that attracts your targeted demographic and give them a choice to make.

In Scranton, Pennsylvania, Fidelity Deposit and Discount Bank built a 4,000 square foot branch featuring Dialog Banking.  For years prior to this new location, one customer visited twice weekly to conduct business while her teenage daughter waited in the car.  The day the new branch opened, her daughter accompanied her mom into the branch.  Now she comes in every visit and sits in the waiting area, sampling the cookies and coffee.  She appreciates the experience.  She didn't just get the lollipop, she was given a choice.  Is she closer to becoming a future customer?  The branch environment itself can help reinforce the enhanced relationship building opportunities of Dialog Banking. 

Creating the customer experience isn't just about developing a cool new branch.  An abundance of research goes into designing an environment that appeals to your target market.  The environment must connect with the customer on an emotional level.  Design inspiration is drawn from the brand, regional influences, demographics, and the subculture and personality of the financial institution.  These variables, which are unique to each financial institution, leverage your brand and result in an individual proprietary look for each bank. 

In Athens, Ohio, a small-town with a strong college background, Hocking Valley Bank renovated and added on to their main office.  The design was inspired by the bank's history while also incorporating Dialog Banking. 

“Dialog Banking is truly a benefit to all walks of life.  Our business customers love the ease of the transaction and even our senior citizens appreciate the friendly interaction and extended customer service instead of discussing their finances across a barrier,” explained Hocking Valley Bank's Vice President Tammy Bobo.

Since incorporating this delivery system, staff scheduling and cash management have become easier for Hocking Valley as well.  In an overbanked community, Dialog Banking has helped differentiate them from the competition and has attracted new customers.  Coupled with other marketing campaigns, deposits are up 13% from a year ago since the renovation. 

“We've created a destination.  We have customers come in to do some quick transactions but stay to enjoy the environment, drink coffee or catch up on the news,” says Bobo.  “Customers have commented that this is something they expect to see in New York, but because the overall branch design incorporates elements from our history and community, they find it very comfortable.”

The Effects of Real Estate
Trends in real estate are changing.  Not only has the market had a strong influence, but open air malls, now presented as consumer-centric “lifestyle centers,” are becoming the new standard.  Even renovating has proven to be a cost-effective solution.  It used to be that financial institutions could only purchase out parcels in a mall setting.  With the trend increasing toward open air malls, banks can now occupy lease space, avoiding the investment of purchasing land.  In fact, end caps in strip centers have become very popular.  They can be customized for financial facilities to accommodate a drive-up. 

Becoming part of the “lifestyle center” atmosphere, however, does increase the need to step up the customer retail experience.  With your branch in line with brand focused stores like Anthropologie, Crate & Barrel, or eateries such as Bucca di Beppo, the traditional branch will not attract retail shoppers.  Further, higher design expectations are being implemented in many of the new development guidelines for these centers.  The developers themselves have discovered the power of the consumer experience.  This type of location is your chance to showcase your products and services in a retail environment with exemplary customer service.

It is clear that over time, consumer expectations have reached an all-time high.  The retail and restaurant industries have responded to this demand.  The financial industry is beginning to embrace the opportunity.  Obviously, at the end of the day there needs to be long term positive financial impact to change the course of your existing business practices.  With a thoughtful approach, retail strategies can be developed that will enhance any business plan.  Retail, branding, and creating a destination should be a part of your plans.  The transaction at the branch is becoming secondary while the connection with the customer is primary.  Isn't it time to connect? 

 

 

 

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