A frequent question for almost all bankers, specially in financial services, is how to balance the cost income ratio. Clients want a high touch relationship while high touch relationships are invariably costly. Which throws the efficiency ratio completely off-kilter.
The usual way to try to address this is by off-shoring, out-sourcing, process improvements etc. all wrapped up in high technology frameworks. But again, if the only contact you have with a bank is the ATM machine, then customer stickiness, additional product sales, leveraging spend patterns, relationship banking, etc. is more challenging as the relationship matures.
Just saw a report on this topic where the authors review two case studies (UBS and Swiss Re, reflecting the author's background and location!) and suggest an automation model based upon two approaches, an intimacy-driven and a personality driven approach. They also discuss key success factors that have to be considered
for the implementation of these strategies.
Here' is a nice pictorial view of their model.
Their key success factors are quite common sense but quite important to review.
- Involve Your Business Partners End-to-end.
- Don’t Persuade Your Customers – convince them.
- See Self-service as a Supplement, not as a Replacement.
- Start with Your Customers’ Processes, not with
yours.
I think the last point is the most important. Time after time, I have seen people miss out on this basic, core requirement. Go hit the client, talk to them, do not stick behind your desk and let the client come to you.
In a previous job, I used to insist that my team of business and solution development managers spend 75% of their time at their clients. They would be evaluated on that basis. Too many times, I find product development, technology development, solution development that is done on the basis of what somebody might want to purchase.
Many times investment is done in financial products or technology solely on the basis of gut feel (oh!, we invested because it sounded good / interesting / exciting....). But where's the conversation with the client? where is the money?
So before hitting the client with yet another vendor driven automation product/process, do speak to the client. They absolutely love it.
Harald Salomann, Malte Dous, Lutz Kolbe and Walter Brenner, Self-service Revisited:: How to Balance High-tech and High-touch in Customer Relationships, European Management Journal, Volume 25, Issue 4, August 2007, Pages 310-319.
http://www.sciencedirect.com/science/article/B6V9T-4PDTFHT-4/2/41f25180694be1d6c170a46d3084a61e)
(
Abstract: In recent years, many companies have infused more and more self-service technology into their customer relationships. As a result the balance between high-tech and high-touch has become a key challenge of today's customer relationship management initiatives. In this paper, we present a cross-case analysis of two companies that we identified as "good practices" in achieving this balance. From the case studies' findings we derive two possible strategies for service automation: an intimacy-driven and a personality driven approach. We also discuss key success factors that have to be considered for the implementation of these strategies.
Keywords: Customer relationship management; Self-service; Self-service technology; service automation
All this to be taken with a grain of piquant salt
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