It all started with shopping carts ... sometimes the most effective branch enhancements are little environmental touches that satisfy simple, immediate customer needs. Take the case of the Hallandale Beach, Fla., center of the Bank of America. How was the institution going to react to all those elderly customers pushing grocery carts into the lobby?

After buying groceries at a neighboring supermarket, elderly customers at the busy Hallandale Beach, Fla., branch of the Bank of America were rolling their carts into the financial institution lobby. While banking, the seniors wanted to keep watch on theft groceries and to protect their food from the hot outdoor weather. In addition, some leaned on the carts for support while they waited in the teller queue.

Bank employees observed these behaviors. A traditional response might have been to install signs saying, "Shopping carts are not allowed in the bank." But, managers approached the situation differently--by turning these customer "problems" into bank opportunities. First, the bank built a "cart corral." As customers entered the branch, they parked their cart in these spaces, which helped to keep groceries cool and under observation.

Next, the bank gave customers the option to avoid the traditional teller queue. Rather than waiting in line to do their banking, the seniors can now sit down in a "special services" area where a banker can handle both theft teller and platform needs. Since they no longer need to stand In line, the seniors have less incentive to bring their carts along for physical support.

These examples show how financial institutions can benefit by reshaping branch environments in response to ordinary--but pressing--customer needs. In this case, the bank succeeded both in enhancing customer experience and differentiating itself from competitors.

These simple environmental changes opened the door to further efforts. Including the creation of a larger bank program to boost customer satisfaction for the valued senior-citizen segment.

Early in 2002, Bank of America, which has its headquarters in Charlotte, N.C., evaluated its 4,000 banking centers nationwide and learned that at over 500 sites, 50 percent or more of its customers were seniors. Concurrently, the bank's Florida centers were actively looking for new ways to differentiate themselves. The state branches wanted to enhance service and improve customer satisfaction continuously.

In Florida, the seniors market is growing faster than any other demographic segment. As the population ages, the rest of the country is expected to find itself in a similar demographic pattern within a few years. The current and future economic importance of the seniors market is enormous (particularly with respect to this segment's propensity for traditional, conservative bank products such as CDs).

Prompted by these population patterns, Bank of America's Innovation and Development Team launched a project to find ways to meet the special needs of the seniors' market. The goal was to create new branch environments that were safe and welcoming and that addressed both the physical and emotional needs of aging customers.

The team began with several months of research, including field feedback, in-market observation, customer focus groups and a general market scan (looking at what competitor banks were doing). Based on the initial results, a six-site test was launched. Each selected site had 60 to 80 percent senior customers. Three separate tests were conducted. Some sites involved "training only." Others had "training plus cosmetic changes" or "training plus environmental changes."

Learning about seniors' special needs

The training-only test began in January 2003. Associates were trained in two different areas: understanding the special physical challenges of the elderly and selling to seniors. The "understanding seniors" component was focused on teaching associates the sensory challenges of growing older. Associates "experienced" these challenges through sensory simulations that included walking with small, irritating objects (unpopped popcorn) in their shoes; reading while wearing sunglasses coated with petroleum jelly; handling marketing materials while wearing robber bands around their fingers; and conversing while wearing cotton balls in their ears.

Bank employees were provided with tactics to help customers overcome these physical challenges. Examples:

* Lowering the voice, rather than simply trying to talk louder.

* Extending an arm to assist a customer, rather than grabbing the customer's arm.

* Remembering to ask a customer if he or she would like assistance before touching the customer's wheelchair.

* Walking side-by-side with the customer when moving around the office.

* Remembering not to converse while seniors are walking (many are focused on where they are walking). Even those who are only mildly hard-of-hearing find it easier to understand a conversation if they can see the lips of the person who is talking.

Since Bank of America hires associates to reflect the demographics of their communities, many people going through training were seniors themselves. These associates could share their own experiences--such as relating the things that they do to compensate for changes in their sight and hearing, but weren't aware that they did!

For the sales training component, the team looked at products from a seniors' perspective, interpreting baseline product features in a manner that seniors value (including large print and Braille statements, online banking for secure access to accounts, online bill pay to save money on postage). Simple customer segmentation approaches were introduced to help associates determine whether their elderly customer was "mobile with income" (they value travel, investments, etc.) or "set income" (they value stability, money saving). Associates were made aware of the critical importance of independence to seniors and how that fact should influence their conversations.

Special branch modifications

The second test began in mid-April and involved training as well as cosmetic branch changes. Alternations included painting, carpeting and rearranging furniture. Lobbies were "opened up" for easy navigation. Where possible, furniture was moved into offices. This move accomplished two things: First, it helped to eliminate background noise, and it reinforced a feeling of privacy that is important to this customer segment. Additionally, a "special services" area was established with existing furniture to allow seated queuing for tellers.

The third test involved making major environmental changes to a branch, reflecting the reality that a kink visit serves as a "social outlet" for seniors. Several features worked to meet that social need while minimizing the impact on associates These included:

* The "community corner"--A large bulletin board offers information/ brochures on local events, health topics, and travel as well as an adjacent seating area.

* A "media wall" has books and magazines on topics such as health, travel and hobbies as well as financial information. A television runs CNN Headline News. A second sealing area is located here.

* A blood pressure monitoring device is available. Over 2,100 readings were done in the first three months of operation.

* Computers are available for bank related or personal Web access. Classes are conducted to teach customers to use the Internet. (A hundred percent of the elderly who have taken the class continue to use online banking in the branch or at home!)

* In the "convenience zone" customers are offered free coffee, use of copiers and fax machines and a bathroom.

* A "community room" (also the branch's large conference room) is available for customer use for meetings, etc.

Other changes focused on creating a feeling of security for the customer, these included:

* New chairs, designed for medical offices. They don't look clinical, but have sturdy wooden arms, a high seat and easy to maintain upholstery. All rolling chairs have been eliminated and nonskid pads have been added to other chairs.

* Automatic doors (always activated, not just through a touch pad).

* Flooring transitions. These were eliminated where possible with the goal of having no transitions in the most heavily traveled parts of the branch.

* Lighting. A standard of bright lighting to assist the elderly was adopted.

* Ramps. The need for this type of equipment was evaluated.

* A corral for shopping carts (a "shopping cart condo") was added at the banking center mentioned above.

Larger print materials. These were developed and made available where needed.

The environmental change was introduced with an informational kiosk focusing on "we changed with you in mind" (a large print brochure was used here).

The phrase "hidden in plain view" is how Joanne Shaver, the bank's vice president of innovation and development, describes the changes. "The changes aren't intended to stand out as a design element specifically for the senior citizen customer, although they are clearly visible. The changes create a feeling of a better experience. And all customers have recognized and positively embraced the changes." The opinions of elderly customers about the bank have improved, Shaver adds. A frequently heard comment from seniors is that they would bypass another bank in order to go to Bank of America, she says.

Both customer and associate feedback on the tests was positive. The associate training for the elderly is now being made available throughout the Bank of America network. The financial institution is currently conducting a component-by-component analysis of the proposed environmental changes.

"When you evaluate sites location by location and assess individual situations, you really have an opportunity to wow the customer," says Al Groover, senior process design engineer and project leader for the bank.

Some Environmental Design Pointers

Need to tweak your branch environment to more closely match the needs of a target customer segment? Here are a few suggestions.

Listen to the needs of your customers and associates. It is possible to address the needs of key segments, such as seniors, simply and with great response from customers and associates Don't view the branch set-up as something solid and immutable. Think like a retailer. Think modular. Develop a series of "mix-and-match" environmental design options that can be selected based on the specific needs of your customers.

Don't compromise on a design that addresses a real customer need. Keep pushing for the design that does the job. Look for the simple things, like Bank of America's shopping cart corral or a special services area geared for the elderly. Even if it doesn't look feasible at first, assume that it can be devised eventually. Don't give up. Who would have thought that H&R Block would be able to develop magnetic furniture that would enable an entire office to be disassembled within a few hours?

Understand the strong marketing value of the branch environment. Look at your banking center with the eye of a retailer. Don't view the branch as a "problem." Rather, think of it as a key element in your marketing mix. After all, this is where the brand meets the customer!

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Deb Stewart of Charlotte, N.C., is an independent consultant working with banks, technology companies and design firms on innovation initiatives for the financial services industry. Telephone: [phone], e-mail: [e-mail]