The Financial Brand Insights - Summer 2022

the dreaded “We don’t own the systems or teams that drive these.” “A customer of ours follows a ‘2x2x2 process’ — meaning they call or email on day two, week two, and the second month,” says Wilson. “Yet they don’t have a structure and framework in place to analyze or debate that approach across the organization.” What would they change about the process? What would be a better follow-up process and why? They don’t discuss if they have the data to measure success. If they aren’t able to obtain that sort of actionable data due to obsolete technology, they won’t be able to accomplish necessary steps, such as determining the best time to cross-sell a product or service. 3. Unclear ownership. “Onboarding is one of those things in a bank where there are a lot of cooks in the kitchen,” Wilson observes. “It’s common with most customer-facing processes that there are multiple internal stakeholders that play a role in the customer experience. With onboarding, the stakeholders include product managers, channel managers, business unit owners, and brand/marketing managers.” The marketing department often isn’t brought into the onboarding mix — surprising when you consider that marketing strategies for new customer acquisition and cross-sell are extremely important to bank success. How to Onboard Efficiently and Successfully Fortunately, there are steps that banks and credit unions can take to help turn onboarding to their advantage — each addresses the current challenges faced by most institutions. Get clear on the objectives of the onboarding process. Start with what all stakeholders need to accomplish first — is it about PFI or cross- sell goals? Measure the current onboarding processes and look for ways to optimize, or even provide better tracking and reporting of the customer journey. Map out the process the old fashioned way. Determine what can be changed, such as

onboarded fast and pivoted quickly to cross- sell? Is it to obtain PFI status? There are very few times that team members at a bank actually run through and map out the onboarding process in detail with all cross-functional stakeholders. These days this would require getting stakeholders in a room on a Zoom call and walking step-by-step, determining customer touchpoints and assigning values to them. For example, deciding if there are 10 touchpoints or communications with a new customer during the onboarding process, how you’d rate each step in terms of experience against objectives, and what data will be used to measure this. Where Banks Go Wrong: Digital teams fail to map out and walk through the onboarding process with all the internal stakeholders to determine what's missing or takes too long. Novantas found that the rate of switching primary providers is generally low, but customer needs can change, as in the case of Covid’s “digital wakeup call” to consumers. Consider this: According to Forrester, 14% of U.S. adults banked online for the first time due to the Covid pandemic . Satisfaction with their experiences was high, which indicates that they will continue to embrace online usage. What’s more, a J.D. Power survey showed that 26% of consumers plan to use online banking more than they did pre-pandemic. 2. Driven by outdated technology. The fact is, the technology at hand becomes a deal breaker for onboarding improvement initiatives. Current onboarding technology might involve multiple systems and third-party data feeds, leading to

Missed Opportunity: The marketing department often isn’t brought into the onboarding mix.

Ward further explains that helping customers set up direct deposit and creating a personalized customer profile are important. When a customer has signed up for direct deposit, and shows at least three months of deposits and paid out three to four bills online, chances are they are considering the bank their primary financial institution (PFI). 2. Digital customer. The second metric to look at is the customer’s digital activity — more specifically, paying bills online, doing transfers and other online transactions. These customers have proven to be open to other products and services. 3. Percentage of digital transactions. How many digital transactions is the customer conducting? This is a key metric reported to the bank’s board of directors since it shows how efficient the bank is. 4. Net Promoter Score. How likely are your customers to promote your brand to their friends and family? Customers who are predominately digital have a high NPS and tend to be loyal with Minutes Count: It’s crucial for banks and credit unions to reduce the time it takes to open a new account — on any platform. It could make or break the customer relationship.

channel modifications. For instance, instead of a phone call, send an email. Determine how often communication is appropriate; use your current benchmarks and test with a small sample of customers. Get help understanding your audiences and deliver relevant messaging utilizing the most effective channels for the audience. In the meantime, continuously monitor channel engagement. An outside partner like Amsive can help with workshops that help drive onboarding transformation. Identify an orchestrator for the onboarding process. Ensure this project owner has a solid understanding of each step of the process and who is responsible, and consolidates all input and output during the process. A simple responsibility assignment matrix — also known as a RACI matrix or linear responsibility chart — is a great way to get started if you don’t have a process expert in house. Conduct a competitive analysis. Understanding how other banks are optimizing their onboarding process provides insights that can be leveraged to improve your process. Life After Onboarding Once the customer is onboarded, what’s next? The important next step and key milestone is relationship expansion — the data-enabled part of the customer journey in multiple channels. Amsive excels at every stage of the onboarding process and well beyond, helping retail banks build long-term customer relationships through proven onboarding best practices, martech stack- targeted emails and messaging, and much more. Learn more at Amsive. ▪

the bank for the long-term. Key Challenges to Effective Onboarding

When you examine the state of onboarding in today’s retail banking environment, there are three fundamental issues with the process, according to Allison Wilson, Vice President of Strategy and Client Experience at Amsive, a data- centric marketing agency. 1. The lack of clear objectives. What are the onboarding objectives? Is it to get the customer





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