ABA Banking Journal 5/08 - (Page 44)
RETAIL BANKING a difference? Results from a bank test of a digital communication network show that they do • Messages delivered are dynamic, with the capability to display attention-getting graphics and videos. • A DCN can leverage regional and branch-specific conditions, such as customer demographics, localized news, promotions, and educational content. • Digital communication networks can be centrally monitored, ensuring system-wide, brand-compliant messages. This represents a major advantage over static signage, which is plagued with questions of timely branch-level compliance and slow delivery of messages. • A DCN can enrich product/service presentations. Delivery of the right message to the right customer at the right time is key to relevancy. • A digital communication network enables measurement of message impact. • A DCN eliminates the time lag between a consumer’s exposure to a message and his or her arrival at the place of purchase. • The DCN’s agile nature enhances its ability to make timely changes to messages in response to changing products and services, rate-sensitive information, Do DCNs make T he importance of the customer experience at a bank is well recognized, and has led many institutions to evaluate a variety of methods to enhance the branch environment. One approach involves the installation of digital (flat screen) signs or digital communication networks (DCNs). Think of these as having your own broadcasting network, where you can display productand service-related content that helps to convey messages about finances, bank services, or other broad industry topics, as well as community events, weather reports, and “meet the manager” information. Such centrally managed networks can be expensive to deploy and maintain, however. Prior to making such an investment, most banks require an evaluation of the benefits. Here are seven key benefits: By Steven Keith Platt, director and research fellow, Platt Retail Institute, Hinsdale, Ill., and Dr. Jean-Charles Chebat, ECSC Research Chair of Retailing and professor of marketing, Ecole des Hautes Etudes Commerciales, Montreal. as well as promotional, consumer, and environment-related factors. The Platt Retail Institute working paper summarized here reports the results from a test of the impact on consumer attitudes and behavior resulting from exposure to a digital communication network. The test objective was to provide detailed analytics relating to consumer response to a DCN message, and to establish a model for measuring the tangible and intangible attributes of a bank DCN. As will be shown, the results determined that the returns are substantial. Project details The target bank (not TCF Bank, pictured above) is based in the Midwest, has more than 200 branches, more than $40 billion in assets, and 6,700 employees. The bank initiated its DCN pilot in 2000. Initially, 12 branches were enabled. By the end of 2005, the bank’s DCN was deployed to 60 branches, extended to 117 locations at the end of 2006, and reached 140 installations by the end of 2007. Full deployment to all locations is anticipated by the end of 2008. 44 MAY 2008/ABA BANKING JOURNAL Subscribe at www.ababj.com
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