FMSI 2018 Retail Branch Lobby Study - Kronos · 2018. 4. 30. · The FMSI Retail Branch Lobby Study...

WHITE PAPER

FMSI 2018 Retail Branch Lobby StudyIncluding over 715,000 Q3 2017 lobby sales and service interactions from financial institutions across North America

WHITE PAPER | FMSI 2018 Retail Branch Lobby Study

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TABLE OF CONTENTS

Introduction 3

Measuring the Right Data 4

The 2018 FMSI Retail Branch Lobby Study Metrics 5

Wait Times 5Concerned about wait times? 5Analysis 5

Assist Times 6Assist time: 2011 vs. 2013 vs. 2015 vs. 2017 6Analysis 6

Product and Service Metrics 7Analysis 7

Using a Lobby Cross-Sell Metric to Improve Wallet Share 8Analysis 8

Retail Branch Lobby Management Tips 9

Conclusion 11

Kronos FMSI Lobby Tracker 12What does Lobby Tracker do? 12How does the sign-in process work? 13

About FMSI, A Kronos Company 14

About Kronos Incorporated 14


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INTRODUCTIONWould you be surprised to know that 60 percent of your platform activities do not involve selling products? With various systems capturing product information, such as DDA systems, time/deposit systems, loan systems, and credit card systems — and in most cases, no dedicated systems for tracking detailed lobby service metrics — management has struggled with understanding the actual overall performance in the branch lobby. Furthermore, it is very common for the absence of key lobby performance indicators to go completely unnoticed. Many financial institutions have enormous potential to increase sales and branch service by better capturing, measuring, and managing their lobby sales and service interactions.

The FMSI Retail Branch Lobby Study is based on 715,000 interactions taking place during the third quarter of 2017 — on the platform side of the branch — from financial institutions all over North America. This white paper reveals key industry metrics such as the following:

• Average lobby wait times for account holders

• Average account holder assist time with lobby service representative

• Product vs. service interaction percentage breakdowns

With the data and analysis from this document, executive management teams will have a guide to help them drive the appropriate behaviors to improve branch performance and, most important, get ideas on how to measure and track this improvement.


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MEASURING THE RIGHT DATAWhen setting performance goals, management can often struggle to measure the right key performance indicators, establish realistic and achievable goals, and then manage to these numbers. Many financial institution executives have experienced these challenges around managing toward a desired outcome without serviceable metrics.

When establishing lobby performance goals, management typically starts by identifying all available performance data. With limited data available on the platform side of the branch, this initial step may prove very difficult.

The following data can be available in real-time dashboards for institutions that have implemented dedicated branch-tracking systems from business intelligence application experts like FMSI.

• Average assist time (per named service representative, per branch, per institution)

• Average account holder wait time (per branch, per institution)

• Product vs. service interaction percentage (per service representative, per branch, per institution)

• Top products sold

• Services most often provided

• Cross-sell ratio (per service representative, per branch, per institution)

• Number of account holders assisted (per service representative, per branch, per institution)

• Specific purpose for each account holder visit (customized categories chosen per institution)

Institutions can then use this data for:

• Identifying time-of-day segments (busy and slow periods)

• Identifying training or performance issues for more targeted coaching

• Recognizing top performers and branches

• Stopping poor-service occurrences through electronic alerts to management when time thresholds are surpassed


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THE 2018 FMSI RETAIL BRANCH LOBBY STUDY METRICSThe FMSI Retail Branch Lobby Study is based on 715,000 interactions from Kronos FMSI Lobby Tracker™, which include all types of service and sales exchanges between account holders and lobby service representatives taking place during the third quarter of 2017 on the platform side of the branch — from financial institutions across North America.

WAIT TIMESThe wait time is the amount of time tracked between the moment an account holder signs in electronically when they arrive at the branch and the beginning of the service representative meeting.

Concerned about wait times?Your account holders can now easily schedule a branch appointment through your institution’s website or mobile banking application. Visit www.kronos.com to learn more about Kronos FMSI Appointment Concierge™.

Also, see several other management tips on pages 9 and 10 that can help reduce or eliminate lobby wait times.

AnalysisTop 10 vs. bottom 10 vs. study averageThe variance among the three groups in Figure 1.1 can be caused by a multitude of factors, including an understaffed or overstaffed lobby, employees spending too much time with each account holder, and inefficient institution procedures. The key is to use this detailed data to help identify performance and service issues, such as the amount of time each lobby service representative spends with each account holder, per product/service (known as “assist time” in this white paper — see page 6). If these representatives are spending excessive amounts of time with account holders, wait times may be longer. Steps can be taken — such as coaching — to improve these critical service metrics.

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3

6

9

12

15

Top 10 Institutions Bottom 10 Institutions Average Overall

20172011 2013 2015

03:10 03:46

02:06

13:54

06:41

02:36

06:42

11:18

06:59

05:0804:46

07:06

Aver

age

Wai

t Tim

es (m

in.)

FMSI OLT Clients Q3 2011, 2013, 2015, 2017

Branch Lobby Wait Times

FIGURE 1.1


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ASSIST TIMESAssist time is the duration of interaction between the account holder and the lobby service representative. Whether one or multiple products/services are discussed, the data from Figure 1.2 captures the time between the moment the service representative starts the session with the account holder and the moment the session stops. Lobby reporting systems typically capture assist times at the institution level, the branch level, and the employee level.

Assist time: 2011 vs. 2013 vs. 2015 vs. 2017The overall average assist time has been trending upward. This increase can be attributed to a number of reasons, including service representatives doing a better job of cross-selling, growing pains as institutions transition to a universal employee model, and declining employee perfor-mance caused by poorly funded training programs.

AnalysisTop 10 vs. bottom 10 vs. study averageThe approximate 10-minute difference in the Top 10 and Average groups from the 2017 data (see Figure 1.2) can seem like an eternity for some busy account holders. What is causing this gap? Study the amount of time each employee spends with an account holder, per product/service,

and compare different staff members’ performances to establish benchmarks. Is one service representative’s assist time too short and producing careless errors? Conversely, is one service representative’s assist time too long and therefore an indication of “over performing” (excessive socializing)? Based on the findings, coaching programs can be implemented to guide the desired staff behavior.

0

5

10

15

20

25

30

35

40

Top 10 Institutions Bottom 10 Institutions Average Overall

20172011 2013 2015

17:58 17:38 17:1215:24

38:36

26:2824:45

33:06

26:24

21:5023:16

20:49

FMSI OLT Clients Q3 2011, 2013, 2015, 2017

Service Representative Assist Times

Aver

age

Assi

st T

ime

FIGURE 1.2


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PRODUCT AND SERVICE METRICSSeparating and tracking the number of product and service interactions in the lobby allows management to analyze the primary platform activity occurring. Lobby reporting systems typically capture these percentages at the institution level, the branch level, and the employee level.

AnalysisProduct and service split: 2011 vs. 2013 vs. 2015 vs. 2017In 2017, institutions averaged more product interactions than in 2015, 2013, and 2011, indicating they are making progress in focusing their sales efforts.

For many years the financial services industry has touted a sell, sell, sell culture. In these challenging economic times, the sales culture has never been more important. Using the product/service percentage breakdown as a key performance indicator can be instrumental in understanding your lobby performance. Set a goal, measure the trend, and manage to the behaviors to obtain the desired result. Kronos recommends a 60/40 product/service split for a high-sales-performing lobby. What is your split?

See management tips on pages 9 and 10 for suggestions on increasing your product interaction percentage.

Product Interaction Service Interaction

OverallInteractions

54%46%

A Top Client Product %

30%70%

Low Client Product %

68%32%


OverallInteractions

65%35%


51%49%


77%

23%


OverallInteractions

60%40%


49%51%


74%

26%


OverallInteractions

65%35%


51%49%


77%

23%

Q3 2017

Q3 2015

Q3 2013

Q3 2011

FIGURE 2.1 Interactions at the Institution Level


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USING A LOBBY CROSS-SELL METRIC TO IMPROVE WALLET SHARETracking, measuring, and managing a cross-sell ratio in the branch platform environment can be accomplished through on-demand sales reporting solutions, such as Kronos FMSI Lobby Tracker. When account holders arrive in the lobby, the products/services they intend to transact are recorded in the software. Then, throughout the sales process as additional products are sold, this information is also captured. The system then prepares

a cross-sell ratio. For example, in Figure 3.1, service representative #2, on average, sold approximately three times as many products as the account holders originally intended to purchase when they arrived at the branch.

AnalysisExtensive research has proved that when account holders purchase three or more products/services from your financial institution, they are much more likely to remain loyal. With such a high cost for acquiring new sales, the importance of reducing attrition is critical to the success of your organization. How are you currently measuring your cross-sell efforts? Incorporate cross-sell metrics into employee performance reviews, and watch these numbers improve as a direct result.

#1

#2

#3

.5 1 1.5 2 2.5 3

Serv

ice

Rep

rese

ntat

ives

Cross-Sell Ratio Represents Average for Month

1.54

3.05

2.1

FIGURE 3.1 Example of Cross-Sell Ratio


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RETAIL BRANCH LOBBY MANAGEMENT TIPS

Management tip #1Deploy self-directed technology — such as kiosksSophisticated self-directed technologies in the marketplace, such as Diebold’s in-branch technology and interactive kiosks, enable account holders to complete some lobby interactions. Investing in this technology can decrease wait times, reduce labor costs, portray your branch as being technologically advanced, and give access to branch services outside of regular branch hours.

Management tip #2Utilize alert technologies to prevent poor serviceA strong argument can be made that the lobby wait time is the most important metric in the service experience mix. Putting controls in place, such as pop-up alerts provided by Kronos FMSI Lobby Tracker, forewarns of excessive wait times — which prevents service issues. The process is simple: If a specified time threshold has passed, an alert box will pop up on the computer screen of the representative (including retail management), notifying him or her of a person waiting in the lobby. In addition, emails can be sent out to notify remote or traveling managers, which helps maintain accountability.

Management tip #3Channel lobby service traffic to your call centerMany of the simpler interactions that take place in the lobby between the account holder and the service representative can better be handled over the phone by the institution’s call center. This option provides account holders with convenience, as it not only saves them from waiting for a service representative, but also enables them to avoid the inconvenience and time associated with driving to the branch.

• Work with your marketing team to develop the right email and/or direct mail communications to promote this message.

• Train your branch service representatives to offer the suggestion when appropriate.

• Display signs at the branch.

• Have a dedicated call center phone and/or a kiosk in the branch.

• Publish the call center number for customer service in all website and local phone directories. Eliminate or minimize publication of branch phone numbers.


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Management tip #4Minimize privacy concernsBe aware that many current practices, such as manual sign-in sheets, create risk and privacy issues. Lobby-tracking and performance-measuring software reduce privacy exposure by providing a confidential method of recording account holder interactions from the moment an individual walks in the door until the second he or she leaves the branch.

Management tip #5Cross-sell trainingMake it a priority for your lobby service representative to uncover products/services that the account holders currently have with other financial institutions. Implement need-based training to encourage lobby representatives to uncover new sales opportunities by asking the right questions at the right time.

Management tip #6Tablet integration in the lobbyConsider the option to integrate a tablet device into the queue management system sign-in process. Compared with other self-service technologies, a tablet reduces cost of installation by 80 percent, occupies a smaller footprint, and provides a familiar web interface.

Management tip #7Utilize lobby wait-time widgetsLobby wait-time widgets allow account holders to access an estimated current branch wait time on a financial institution’s website or mobile app, helping them decide whether they have enough time to visit the branch.

Management tip #8Scheduling lobby employees to demandStaffing your lobbies based on forecasted activities is now possible with staff-scheduling software such as Kronos FMSI Staff Scheduler™. Learn more about how you can optimize your staffing costs (includes scheduling universal associates).

Management tip #9Professionalize the initial interaction with the service representativeEliminate the impersonal activity of simply selecting the next account holder in the queue without considering whether the service representative has the right skill set that aligns with the specific account holder’s need. Allow a lobby-tracking system to help predetermine this information so that the selection process is cleaner.

Sort Preference: Distance

www.fmsifinancial.com/waittimes 1

Go

LOCATIONS30005

3.31 miles | Expected Wait: 0-5 Min | 0 Visitors Waiting5195 Windward Pkwy W

0.43 miles | Expected Wait: 5-10 Min | 2 Visitors Waiting6225 Windward Pkwy

2.8 miles | Expected Wait: 10-20 Min | 4 Visitors Waiting10950 Jones Bridge Rd

3.28 miles | Expected Wait: 10-20 Min | 4 Visitors Waiting3165 Peachtree Pkwy


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CONCLUSIONManagement teams for many financial institutions have struggled with understanding the actual performance of the branch lobby. With so much potential to improve sales and service and to better utilize staff in the lobby, banks and credit unions can use the metrics from this white paper as a guide to improve their performance, including:

• Average lobby wait times for account holders

• Average account holder assist time per lobby service representative

• Product vs. service interaction percentage breakdowns

Consistently capturing and analyzing performance data, and then properly employing the resulting business intelligence, can help executive management teams drive the right employee behaviors that result in improved branch platform performance. Service, sales, and productivity metrics can dramatically improve the bottom line — and, most important, sustain, measure, and track this improvement going forward.


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KRONOS FMSI LOBBY TRACKERKronos FMSI Lobby Tracker captures the branch pulse by tracking and measuring both the account holder experience and employee performance (with iPad and kiosk integration). With over 25 unique service and sales reports, including employee productivity reports, account holder volume reports, and cross-sell reports, Lobby Tracker is the perfect performance analysis tool. Put simply, while using FMSI’s flagship product, the branch staff scheduler and reporting system, financial institutions of all sizes have been able to significantly reduce their operating expenses while improving sales and service levels.

The solution provides extensive real-time and monthly performance management reports, including an executive web-based dashboard and ranking report that consists of industry peer productivity metrics, for benchmarking purposes. In addition, the system’s branch staff scheduler utilizes teller transaction data and employee profiles to align the right number of staff at the right times — resulting in a reduction of excess labor costs and improved service levels.

What does Lobby Tracker do?Lobby Tracker is a web-based application that captures lobby performance information in real time that is then used to streamline the sign-in (arrival and wait time) process for account holders and lobby employees alike — along with providing on-demand reporting and analysis solutions for management teams.

Figure 4.1 is an institution-level dashboard with real-time information available in Kronos FMSI Lobby Tracker.

FIGURE 4.1


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How does the sign-in process work?First step — Through either a greeter or a self-service device such as a kiosk or iPad, the account holder’s name, the time of arrival, the employee he or she would like to visit, and the purpose for their visit is typically entered into the application. This entry starts

the wait-time clock in the system. The information is then immediately visible online to all lobby service representative office-terminal screens through the web-based tracking and measuring system (see Figure 4.2).

Second step — The next available lobby service representative, after considering matching his or her ability with the purpose of the account holder’s visit, will select the appropriate representative to assist the account holder in the queue and, knowing the person’s name in advance, begin assistance. As soon as the service representative does this, the wait-time clock stops and the assist-time clock begins.

The lobby service representative has the opportunity to enhance the service experience during this step by utilizing the personalized comments section in the queue management system. For example,

the greeter enters the information that the account holder, “Emma,” is wearing a red coat, so the lobby service representative knows which person is Emma and can greet her by name (see Figure 4.3).

Third step — The service representative selects from the drop-down lists the pertinent service and sales information during the consultation, such as which products they will review. All interactions are captured in the system for later analysis, and can be guided by a predetermined checklist per product/service. Once the visit concludes, the service representative closes out the entry in the system and the assist-time clock stops.

FIGURE 4.2

FIGURE 4.3


kronos.com© 2018 Kronos Incorporated. Kronos and the Kronos logo are registered trademarks and Workforce Innovation That Works is a trademark of Kronos Incorporated or a related company. For a full list of Kronos trademarks, please visit the “trademarks” page at www.kronos.com. All other trademarks, if any, are property of their respective owners. All specifications are subject to change. All rights reserved. SD0210-USv2

ABOUT FMSI, A KRONOS COMPANYLocated in Atlanta, Georgia, and established in 1990, FMSI provides easy-to-use yet sophisticated software-as-a-service solutions, including Kronos FMSI Staff Scheduler™, Kronos FMSI Interactive Dashboard™, Kronos FMSI Performance Analytics™, Kronos FMSI Appointment Concierge™, and Kronos FMSI Lobby Tracker™. The FMSI smart scheduling application gives banks and credit unions the ability to optimally schedule their team throughout the branch network and to manage staff through easy-to-read color graphics, online interactive dashboards, and succinct management reports. FMSI provides performance management information exclusively to financial institutions of all sizes, including a workforce optimization comparative data benchmarking report that allows clients to see where they rank among their industry peers. Visit the company’s website at kronos.com or call +1 877 887 3022 to schedule a complimentary online demonstration of any of our products. You can also quickly estimate your savings with FMSI’s Efficiency Calculator at www.fmsi.com/calculator.

ABOUT KRONOS INCORPORATEDKronos is a leading provider of workforce management and human capital management cloud solutions. Kronos industry-centric workforce applications are purpose-built for businesses, healthcare providers, educational institutions, and government agencies of all sizes. Tens of thousands of organizations — including half of the Fortune 1000® — and more than 40 million people in over 100 countries use Kronos every day. Visit kronos.com. Kronos: Workforce Innovation That Works™.

FMSI 2018 Retail Branch Lobby Study - Kronos · 2018. 4. 30. · The FMSI Retail Branch Lobby Study...

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