A Hybrid Approach To Banking: How To Satisfy All Your Customers
There was once only one way to bank.
You had to physically go to your local branch to complete your transactions. You had an actual conversation with a person and then waited while the teller performed your transaction.
Today, there are many more options. Not only can contemporary customers choose from a wide array of banks, they also have numerous options in terms of how they interact with the bank of their choice.
Statistics suggest that when customers are selecting a bank, they're increasingly choosing mobile banking. Since 1992 bank branch visits have declined by 45.3 percent, reports FMSI. Projections suggest that this transition from brick and mortar to mobile banking will only continue. A KMPG/UBS study forecasted that mobile banking usage will double, from 800 million people to 1.8 billion people by 2019.
What does this mean? Your customers are divided.
Contemporary customers are segmented into three groups.
1. The Traditionalists
This group likes banking as it always has been. They are more than content to do banking the way they feel it should always be done - face-to-face.
America's seniors make up the most staunch traditionalists. Not only are they less inclined to use technology for banking needs, they also often don't see a need to fix what's not broken. For them, the traditional methods of banking aren't broken.
2. The Hybrids
This group wants the best of both worlds. While they aren't ready to forego the classic approaches altogether, they see the benefits of mobile banking options. As a result, they rely on a hybrid approach to banking, mixing face-to-face with mobile.
The majority of the members of this segment are Baby Boomers. Unlike their parents, they believe in the value of technology and embrace it. They aren't, however, eager to fully embrace it as a one-and-only method of banking just yet.
3. The On-The-Gos
This group wants to forego the antiquated practices of the past completely. These customers want a totally digital banking experience.
Typically, these individuals are millennials. They're tech-savvy, constantly connected and like to multi-task. To them, going to the physical bank branch seems both illogical and unnecessary.
Build targeted solutions
As businesses evolve, they typically drop outdated practices. When customers are segmented, however, you can't discontinue services when some customers are still using them. Because customers are split, you'll need to offer services using more than one delivery method. This makes customer satisfaction decidedly more complicated than it was in the past… but it's possible.
After a bit of research, you can strategically develop your plan. Your strategic plan should divide customer wants and needs based on segmentation.
Your goal is to create a user experience that seamlessly walks customers through their banking journey, no matter their preferences.
For example, your brand could offer customers a choice between video tellers (for the “hybrids”) and in-person tellers (for the “traditionalists”). And to give both hybrids and traditionalists more face time with tellers, consider cash recyclers to speed up transactions at the window. These additions, along with others, can help you retain your relevance.
Before investing in new technology, consider solutions that may address the needs of more than one of your customer segments.
For instance, you can likely satisfy the tech desires of your hybrids with aspects of the all-digital service you offer to your on-the-gos.
And remember, the banking industry is in a continual state of change. Revisit your plan regularly to ensure your services and technologies are evolving with your customers' needs.
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