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Eight Most Valuable Banking Experiences

A whopping 94% of banking executives surveyed in a project known as The Relationship Experience agree that retail banking is either completely or partially commoditized. More importantly, over 80% of them feel that customer experience innovation is the key to solving the commodity quagmire. If that’s the case, how can banks create experiences that truly resonate with customers?

To find out, BAI and Strategic Horizons LLP developed something known as the Customer Sacrifice Index. Unlike customer satisfaction, which measures the difference between what customers expect and what they get, customer sacrifice measures the gap between what customers actually want and what they settle for. If you understand where customers make the greatest sacrifice, you can take positive steps to reduce or eliminate it.

The study found high levels of customer sacrifice across eight specific banking experiences. Presumably, organizations that find ways to improve these experiences stand the greatest chance of creating differentiation. Following is a list of the eight experiences with the greatest customer sacrifice index scores, as indicated in parentheses.

1. Bank rewards me for size/length of business (100)
2. Branches are open evenings and weekends (99)
3. Staff can negotiate fees and rates on their own (96)
4. Decisions about my account are made locally (84)
5. The bank offers excellent, in-person service (72)
6. Branch staff has been there a long time (70)
7. Branch staff knows about all products (68)
8. The staff at the branch knows me (66)

Looking at the list, two things immediately stand out. First is the fact that most of these involve customer interactions at the branch. If the project scope included all customer experiences, then this observation is significant; it suggests that the greatest gains in customer experience can be made in the branch as opposed to other channels. In other words, it’s harder to create a differentiated customer experience on the telephone, online, or at the ATM. Of course, if the project scope was limited to branch experiences, as I suspect it was, the same conclusion could not be drawn.

The second thing that stands out is the absence of certain branch experiences from the top eight. A few years ago, much was being said about “innovative” branch designs featuring: lounge areas where customers could sit and read; computers with free Internet access; large screen televisions displaying financial news; coffee, tea or other beverages; play areas for children; and so on. Among these, it was interesting to see that coffee/beverages had a customer sacrifice index of 45, while the rest scored no higher than 35. I dare say this proves the fact that bells and whistles are no substitute for knowledgeable, tenured staff that know their clients and are empowered to serve them.

Posted by Nelson T. on December 4, 2006 3:10 PM

Comments (2)

Bill Claxton :

I don't know about large surveys about valuable bank experiences, but I have a few that would definitely rate as an innovative experience:
1) Does my local branch have action figures of my favourite bank personality.
2) Does my local branch have 18% cream available for my coffee, while i wait for service.
3) Are mascots and entertainers to keep my kids occupied while I do my thing.
4) Does the teller avoid technology faux pas like swiveling the monitor back and forth to show you what they are doing.
5) Does the web site enage me to stay a little while longer with interactive displays, or just show me the money?
6) When I ask the teller if I can see the vault they actually say yes for a change.
7) That they don't giggle when they look up my bank account.
8) Most importantly. A manager does not frown with they tell you the best interest rate they can give you on a checking account is less than 1 percent :(

Now that's innovation at it's finest. Anyone else have an opinion? What about you NelsonT

Posted by Bill Claxton

Nelson T. :

LOL... great suggestions!

Washington Mutual actually introduced "Action Teller Dolls" back in 2002. According to WaMu's press release:

"The quirky Action Teller dolls have become a symbol of the bank's corporate culture and the philosophy that a great customer experience depends on bank tellers and other front line employees."

So your ideas are certainly feasible! Personally, I like the idea of vault tours. :)

Posted by Nelson T.

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