Signs You Need a Branch Refresh
Revitalize your retail spaces to create a new kind of branch experience that matches the consumer buying journey.
The Business Case for Branches
Return on Experience (ROE) looks at the value of a consumer’s interaction with an organization. People value experiences that help them achieve their goals, provide information or education, and answer issues the consumer could not solve on their own.
That is the definition of the branching channel! However, often branches don’t reflect the welcoming and informative experience that consumers are seeking.
Financial institutions continue to prioritize digital transformation to meet the needs and expectations of consumers. This transformation shifted the role of the branch to being more than the transaction hub, it is now an opportunity zone.
Critical to success is:
- Attracting people to the branch for purposes other than a transaction,
- Engaging visitors about other opportunities and experiences available to them,
- Promoting important messages about the financial institution and how it meets their needs, and
- Converting their attention and engagement to actions in the buying journey.
Additionally, the branch is the physical embodiment of the brand. For most financial institutions it is the only “real life” experience of the brand and therefore plays a key role in both bringing the brand to life and reinforcing the online user experience of the brand.
"In Real Life Experiences"
Consumers like physical, “in real life” experiences. These experience provide important input in the buying journey and reinforce the consumer’s emotional connection with a brand. That’s why retailers are transitioning their spaces into experience zones.
As an example: consumers can buy sports shoes and equipment online, so why do sports equipment retail stores still exist? People who want to experience the product, learn from experts, and get real-life feedback on product choices value in-person experiences. To meet this consumer expectation, sports retailers are adding mini golf ranges, batting cages, climbing walls, and running tracks to their retail spaces. By doing so in-store, the offering is elevated from a transaction to an experience.
Financial institutions can do something similar – and without heavy liability insurance covering a fall or loose baseball! Your institution has a wealth of expertise and information that can help guide consumers and visitors to the best options for their financial life.
- Budgeting
- Understanding debt
- Saving and investing
- Financial literacy for children
- Small business financial strategies
- And more…
Resetting consumer behavior from a transactional mindset to considering the financial institution as a resource for valuable information and experiences requires an integrated strategic plan. The plan must include the branch function and design, marketing communications strategy, staff training and buy-in, and management tracking.
Perception is reality
Another important reason to refresh the branch network is the reality that the public views financial institutions as important institutions in their community. People like to be “near” their money. Even if they don’t think about accessing it physically but choose online and mobile payment options, it’s important for consumers to know they can access their money locally.
News travels quickly when branch closings and consolidation are announced. In the current climate when announcements about network changes are frequent, it is important to reinforce the commitment of the institution to its consumers and the public.
When the branch network is looking old, worn, or below standard it communicates a negative message to staff, consumers, and the community. By using refresh techniques, an impact can be made without the cost of a full remodel or new build.
The Bottomline Impact
Improved branch experience and thoughtful engagement zones can help financial institutions improve the deposit/loan performance and profitability of the branch. Consider several trackable performance indicators to create benchmarks for your network:
- Increased Share of Wallet – product/service count per consumer and other calculations can be tracked to show the increase due to the staff’s transition to consultative interactions.
- Net Promoter Score (NPS) – NPS tracks pre- and post-activity satisfaction using a simple question: “How likely are you to recommend or refer us to your family and friends?” Increasing NPS shows greater consumer satisfaction and improves loyalty to the institution.
- Lifetime Value – lifetime value can be calculated before and after the transition to track the improvement in the branch and create benchmarks for ongoing measurement.
improve your network
Assessing the network for profitability, branding, and functionality will help prioritize which branches need a refresh. An ongoing strategic facilities plan integrated into the overall institution business plan will provide an integrated effort across the organization to improve consumer and staff experience and reflect the institution’s investment in the community.
Contact us to learn more about assessing your network and what refreshing your branches can do for your institution.
