Branch Technology Investments: A Case Study
A leading retail bank optimizes roll-out of a new branch technology.
- The client had begun to test a new branch technology designed to improve their banking customer service delivery but was worried that increased automation of transactions was costing them critical cross-sell and upsell opportunities.
- APT's Test and Learn for Sites™ determined that younger bank customers utilized the new technology, reducing lower value transactions at the teller and freeing up significant teller time.
- By using the findings of the APT analysis, the client was able to roll out the new bank branch technology with confidence that over $5 million worth of teller labor would be saved.
The Company:
A large and highly respected retail bank with a strong retail brand and a vast network of branch locations
The Challenge:
The client had begun to test a new branch banking 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 banking customer behavior. They also worried that increased automation of financial transactions was costing them critical cross-sell and upsell opportunities.
The client turned to APT's enterprise Test & Learn™ software to isolate the real impact of this investment prior to rolling it out to their greater network.
The Solution:
The retail bank used APT's Test & Learn for Sites™ to analyze both branch and customer metrics. Using scientifically matched control groups of sites and bank 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.
Analysis using APT's Test & Learn for Sites™ determined that customers were systematically adopting the new banking technology, increasing their frequency of interaction over time. The innovation was utilized more by younger bank 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 and upsell opportunities.
Management capitalized on the insights gained regarding adoption by customer segment to develop strategic marketing campaigns designed to ease the transition to the new banking technology and increase rate of adoption in each segment.
The 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. Strategic marketing programs suggested by the customer segment analysis are being tested and are expected to generate millions more in improved program profitability.
Next Steps:
