The Need for Dual-Focus Marketing Plans.

Technology has great promise to liberate bankers from the humdrum of routine transaction processing so that they can truly provide customers with high-value service.

A couple of interesting facts have emerged over the past few years as banks have witnessed both the hyping of the Internet and the bursting of the dot-com bubble. First, there has been a gradual slip in customer satisfaction. Second, there has been a sharp increase in teller turnover. Is there a correlation here? Perhaps.

Looking more deeply into the determinants of customer satisfaction as measured in the ABA Client Satisfaction Index (www.clientsatisfaction.com), it is clear that the most potent attributes in bringing about happy customers are those associated with personal service-that is, person-to-person contact. Automation is perceived by customers as a valuable capability to save time, but, in the minds of a significant majority of customers, it does not replace the value of a human being when complexity enters the service equation, as it inevitably does.

Two distinct attitudes

Focus group research points up an interesting dichotomy facing today's strategically minded bankers. Across virtually all demographic groups-young/old, professionals, ordinary workers, small-business customers, consumers-there are two distinct attitudinal segments.

* Those who love the Internet and want more service capabilities put there,

* Those who do not trust automation, especially the Internet, and want to go to their branch to deal with people they know and trust.

While at first it may appear that banks should choose between these two segments (haven't we all been taught that you can't be all things to all people?), a deeper analysis turns up an interesting conclusion. Even the group that loves the Internet appreciates and uses face-to-face service when emergencies arise. And moreover, these customers fully expect emergencies to arise and, when they do, these customers want to deal with professional, friendly, accommodating and well-trained bankers.

Additionally, the group that dislikes the Internet now will most likely begin to use it as their fears wane. Almost all automated banking services follow this same diffusion of innovation as word spreads about the convenience. This will take time, but it cannot be ignored.

Managing the transition

What is troubling for bankers is this: As automation continues, more and more of the routine transactions will be done on a self-service basis, But, at the same time, the more complex and valuable services, such as planning, resolving problems, giving advice will be expected from live bankers.

The growing level of dissatisfaction among banking clients appears to be centered on this issue. To control costs and help fund the migration to automation, many banks are taking costs out of their traditional branches. This translates into lower compensation for tellers and platform bankers and higher turnover. The higher turnover increases training costs, which generally cannot keep up, so the consequence is often the perception by customers of a service decline. How many times have you heard customers say, "Gee, I don't recognize anybody here anymore, and nobody recognizes me either."

We are in a very important transition in banking. Technology has promise to liberate bankers from the humdrum of routine transaction processing so that they can truly provide customers with high-value service. But we have to manage this transition. We have to put in place programs to enrich the jobs of our front-line bankers so they see the value of becoming a professional.

Bankers need to build a dual-track marketing plan. One track is the careful migration of simple functionality to automation and self-service. On the other track is the re-engineering of the face-to-face service that customers have with their bankers - whether they are tellers, CSRs, branch managers, private bankers, commercial lenders or whatever. In the end, this latter track is where real value will be created.

L. Biff Motley is president of Motley & Associates, New Orleans.