30 Hoosier Banker June 2015 What are you doing right now? Besides reading this article, what else are you doing? Listening to music? Keeping your eye on emails using one of your three online-access devices ‒ tablet, computer or smartphone? What else is running behind the scenes on your devices? Facebook, the Bass Pro Outfitters website, a CNN broadcast? Believe it or not, much of everything you do every day is gathered, monitored and even predicted, thanks to the online tracking cookies planted on the electronic devices we’ve all grown to rely upon. Depending on your viewpoint, you might feel “big brother is watching,” or that all the data gathered and used strategically about you helps give you what you want, when you want it. Regardless of where you fall on that spectrum, data about the behavior of consumers is powerful. Moreover, collecting it does not require a community bank to buy anything new in order to be a lot smarter about what its customers need or want. For example, have you ever looked at the average amount and frequency of ATM withdrawals by your community bank’s customers? At what times, days and locations do most of their withdrawals happen? A trend analysis done in a simple Excel spreadsheet over time might indicate that your existing customers could be accessing a competitor’s ATM in an area you weren’t aware was increasing in popularity. Furthermore, you may learn that your best customers are being charged a fee to use that ATM, thus causing them to perhaps question a relationship change to save $3 per transaction. You might also learn that your best customers are regularly withdrawing funds at or near their daily limit, which could indicate an opportunity to raise their limit to better serve their needs. All of this data tracking and reviewing leads to understanding the details of your customers’ behavior and preferences that count in today’s competitive marketplace. What about reviewing the types of transactions happening within your community bank’s Internet banking solution? Are there customers who aren’t using an automatic function to transfer to savings each month? A simple phone call or email to those customers, letting them know how to set up an auto-transfer each month, might open an opportunity to discuss what their real needs are. For them, it could mean the ability to save for a new car or put money away for college. For your bank, knowing for sure can mean the difference between making a new sale or establishing a new long-term relationship—or not. When was the last time your community bank reviewed how many new customers signed up for Internet banking, and compared those numbers against those who signed up and actually began using the service? Perhaps a large gap indicates more customers may need a little more handholding or education about the service. What percentage of your bank’s existing customers is accessing your Internet banking solution? Compare that to the types of transactions that are happening in your branches. Then find out how many of those transactions happening face-toface or at your drive-thru could be handled online. You might be surprised to learn there is an opportunity to teach your customers how to make the most of their banking relationships to save them time and money. Remember, “online” relationships aren’t taboo and do not necessarily replace quality, face-to-face relationships ‒ they are often enhancements to robust, long-term financial partnerships. Data digging doesn’t need to be intrusive nor an employee’s full-time job; it simply needs to be looked at and interpreted. Often trends tracked over months, quarters and years reveal some of the biggest “aha” discoveries that may help your community bank anticipate what to stop doing and, more important, what to do next. t Putting Data to Work Knowing your customers’ details matters in today’s competitive marketplace About the Author Chris Lorence is executive vice president and chief marketing officer of the Independent Community Bankers of America. He has been named a Forbes 50 “most influential” chief marketing officer. The author can be reached at chris.lorence@icba.org. FEATURE
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