Branch Technology Investments
A leading retail bank optimizes roll-out of a new branch technology
The Company
A large and highly respected retail bank with a strong retail brand and a vast network of locations
The Challenge
The client had begun to test a new branch technology designed to improve their customer service delivery and efficiency in a select number of branches. Feedback from consumer intercepts seemed positive overall, but management was concerned that they did not fully understand the impact on customer behavior. They also worried that increased automation of transactions was costing them critical cross-sell opportunities.
The client turned to APT's enterprise Test & Learn software to isolate the real impact of this investment prior to rolling out to their greater network.
The Solution
The retail bank, working closely with APT, used the APT Suite to analyze both branch and customer metrics. Using scientifically matched control groups of sites and customers, the team excluded other factors that influenced performance in the test subset of branches and isolated the impact of the technology on transactions by type and channel as well as on labor hours. Then, the team segmented that impact, examining differences in program impact by branch and customer characteristics.
The analysis using the APT Suite determined that customers were systematically adopting the new technology, increasing their frequency of interaction over time. The innovation was utilized more by younger customers, reducing lower value transactions at the teller and freeing up significant teller time. The team showed that adopting customers still had high-value teller interactions on other occasions, minimizing impact on cross-sell opportunities.
Management capitalized on the insights gained regarding adoption by customer segment to develop specific marketing campaigns designed to ease the transition to the new technology and increase rate of adoption in each segment.
Results
By using the findings of the APT analysis, the client was able to roll out the new technology with confidence that over $5 million worth of teller labor would be saved. Marketing programs suggested by the customer segment analysis are being tested and are expected to generate millions more in improved program profitability.
|
