Customer Interaction Technologies: The New View of Customer Relationship Management
Delivery channel integration drives adoption of
technologies and customer interaction strategies
by Dawn Kehr Correspondent
Originally designed as a single application platform used to manage sales contact databases and business processes, the goals and definition of customer relationship management (CRM) have changed dramatically. Within the last few years, CRM has experienced revitalization, as a component of an overarching strategy that all financial institutions should consider when deciding to integrate a bank's various delivery channels: a process that will allow them to better interact with customers in real time.
There are essentially three categories of CRM technology expected to influence IT spending through 2008: knowledge technologies, customer interaction technologies and core systems. Citing a 2004 TowerGroup report, DM Review reported that investments in CRM technology were expected to reach $7.1 billion within the next three years. Core systems were expected to make up the largest segment of investment at 50 percent, followed by customer interaction technologies at 40 percent and knowledge technologies at 6 percent respectively.
The statistics seem to show that as more banks look for ways to integrate their delivery channels, the transition from the data repositories, business intelligence and decision support systems that were the basis for CRM in the 90s have made way for a new concept: a term Jerry Silva, senior analyst with the TowerGroup, calls customer interaction management (CIM).
In an interview with Hewlett-Packard's 24x7 newsletter, Silva said that banks tend to think of channel integration in one of two ways: either as a business process or from a data management perspective. The CIM model allows for both business process and data gathering to be considered together, based on existing technologies banks already use.
He explained, "Essentially, the CIM hub takes channels as they're architected today and organizes them in a more logical fashion. It starts with best-of-breed products at the front office, where there is still a lot of specialized technology and functionality. For everything else that's common to all of the channels, the business process can be combined into a single repository."
A third piece to the hub considers data management as an online interaction with a bank's existing CRM data warehouse and is orchestrated through existing ATM and point of sale (POS) processing systems.
While channel integration and the CIM model of customer relationship management is just beginning to take shape, new customer interaction and knowledge technologies are available which stand to revolutionize customer service at the branch.
A September 2004 FinanceTech article, "Branch 'Bots' Make Banking Better", depicted how branches are experimenting with smart cameras, cash dispensers, wireless terminals and teller-assist stations.
An example of a system using a combination of smart cameras and sensing technologies is BehaviorIQ developed by Brickstream Corp. With its network of video cameras and infrared sensors, the system captures real-time customer behavior data that helps banks reduce customer wait times, assists branches in matching staffing needs to customer load, accelerates teller processing times, reduces customer complaints and allows banks to test marketing strategies or assess the effectiveness of branch layout and design.
For banks that want their tellers to mingle with and directly interact with customers, wireless technologies are the answer. Because they are not tied to their terminals behind the counter, tellers can better assess customer needs: directing them to bank personnel most qualified to answer their questions, or redirect them to automated channels.
The self-service kiosk has also proven to be fertile ground for experimentation in customer service advancement. Some branches have installed small self-service kiosks at teller windows to manage automated deposit and withdrawal transactions, just as ATMs do. However, kiosks have advantages in that they give the customer the ability to speak to a teller directly should a question arise, and they reduce chances of teller error because cash is rarely, if ever handled.
As channel integration matures, as Windows-based platforms replace the OS/2 architectures of today's ATMs, and as check imaging enters the mainstream, tomorrow's ATM technology will be able to offer services not traditionally promoted by banks. However, some analysts and manufacturers believe in order for the technology to benefit the customer, banks will need to prepare carefully and decide how they will use these innovations.
"There's a huge opportunity to deploy new technology on ATMs," said Ben Ensor, senior analyst with Forrester Research. "The hard part is deciding which ones to do."
Jim Merrell, director of global product marketing for Diebold Inc., said, "Some banks view offering non-bank services as diluting their brand, while others see it as an opportunity to expand their offerings. It depends on the bank."
Besides being able to offer and sell an array of features and services, analysts and banking professionals believe ATMs will be the bridge between new modes of customer communication and a bank's CRM data warehouse.
Silva says, "Personalization will be a big area of interest. Call me by name, remember the language I speak, my favorite amount of money to withdraw: it may sound trivial, but it makes a difference." He said personal alert technology through ATMs would also make it easier for customers to follow the status of services they may have purchased, such as loans. "These alerts could be little pop-up reminders … But this must be coordinated across delivery channels otherwise the customer will become annoyed if this same message continues to appear in other areas after it was broadcast already."
So, while customer behavior management and wireless technologies will impact branch interactions in the near future, channel integration and using existing platforms, like ATMs, in innovative ways will give banks the ability to see the bigger picture: that proving consistent information across all channels will allow banks to leverage each and every customer encounter in the most efficient manner possible.
Source Technologies
Founded in 1986, Source Technologies provides integrated solutions for managing financial transactions and other secure business processes. Products include MICR printers and consumables, secure disbursement software, and the groundbreaking concourse™ self-service banking kiosks. Source Technologies has created over $400 million in economic value for customers in the last ten years.
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