The bank is poised to pursue $26 million in value by shifting more than 50 branch activities to alternative channels.

The Challenge

Increasing use of lower-cost channels without diminishing customer experience

The management team was concerned about the bank’s relatively low multi-channel adoption and sustained usage rates. The bank needed to identify opportunities to migrate activities to lower-cost delivery channels without either negatively affecting customer experiences or diminishing sales and service opportunities. 

The Solution

A multi-channel strategy built on fact-based analysis

To develop a compelling multi-channel strategy, the bank worked with a team from West Monroe Partners that combines extensive experience in retail banking operations with strong expertise in building effective customer experiences across channels. The project team collaborated with the bank’s channel leaders and other stakeholders to assess current channel ownership and usage patterns and to identify opportunities for improvement. Based on data from a recently completed ActivityTrak study, the assessment identified 56 of 567 branch activities as targets with alternative channel potential.

Further customer and market segmentation analysis enabled the bank to develop a detailed multi-channel strategy for improving adoption, usage, and customer experiences. The analysis used customer engagement models and management metrics and reporting to quantify benefits based on strategic alignment, customer experience, execution risk, and implementation timelines. It also incorporated West Monroe’s knowledge of best-in-class approaches for achieving multichannel adoption and sustained usage. The project team then forecasted future transaction levels for all channels and developed segment-specific customer engagement strategies for managing behavioral changes and mitigating related risks. This detailed analysis provided the bank with input necessary for building a business case for approval by leadership, complete with a detailed roadmap for introducing the new strategy. 

The Impact

Lower costs with enhanced sales capacity

This comprehensive analysis identified $26 million of potential economic value for the 56 targeted channel adoption opportunities. This included $16 million in savings due to branch labor cost reductions. When implemented, the recommended changes would also create $10 million of incremental sales capacity in the branch channel. Just as significantly, the project produced fact-based insights helped the bank’s executive committee prioritize investments for enhancing the institution’s physical and digital network capabilities to capture those economic benefits. The bank is now able to move forward with a practical plan for optimizing its multi-channel delivery strategy

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