Extending Hours
Fast-growing and highly respected, leading US retail bank understands impact of extending hours
The Company
Leading US retail bank, fast-growing and highly respected
The Challenge
The client was investigating the impact of extending hours in two markets. The hours change was promoted through an intense marketing campaign focused on convenience banking. Management was hopeful that the change would increase market share and drive profits, but it was unclear whether or not the real and tangible costs associated with extended hours were being paid back through incremental revenue. Field management was unable to disaggregate whether extended hours were attracting new customers or simply spreading out current customer transactions over a longer period in the day.
The client looked to APT’s enterprise Test & Learn software to determine the effects of the program.
The Solution
With the help of the APT Suite, the bank conducted a Test & Learn analysis to determine the impact by site and by market. Analysis of test branches, after adjusting for inherent natural noise in the retail network, revealed that the program was only successful under certain conditions. APT models found that extended hours were most successful when hours were increased by more than a certain threshold level and when executed in suburban communities with sufficient numbers of key target demographics segments (particularly commuter populations). Models were constructed to determine the best markets to target for further roll out, and the optimal number of hours for each site within those markets.
Furthermore, the APT Suite allowed management to understand changes in customer behavior caused by extending hours. Branch contribution growth was quantified by two driving factors - new customers opening checking accounts drove the greatest revenue lift and current customers deepened their relationship by purchasing higher margin investment & mortgage products which contributed most to improving branch bottom lines.
Results
The bank expects that a targeted rollout will result in significant increase in transaction volume and revenue.
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