With the rise in demand for omnichannel communication and real-time support services, video banking is fast becoming one of the most effective ways for banks to keep their customers engaged and informed. Implementing a video banking service alongside an effective appointment scheduling system has also been proven to increase sales and loyalty figures!
Video banking has been around for a number of years now; however, the service has experienced a sharp growth in demand during Covid-19.
In Qudini’s recent survey of 2,000 US consumers, we discovered an overwhelming demand for virtual appointments (AKA video banking). An impressive 62% of respondents said they would find the service useful from their banking provider, compared to 45% for all other retail store types. For comparison, 38% of respondents said they would find in-branch appointments useful right now.
Find out why your bank should offer a video banking service to your customers and how you can create a streamlined video banking customer journey below.
What is video banking?
Video banking is when a banker or customer services consultant talks directly with a customer over a video call or video chat. The customer books a video banking appointment by visiting the bank’s website or app, selecting a time-slot that suits them, then attends the video call through Zoom or another third party video tool and chats directly with the banker. This allows customers to easily access support services like mortgage advice, financial health checks or finding out more about a bank’s products or offerings without having to visit a branch. It is also beneficial for banks, who can increase sales, boost productivity and reduce unnecessary spending.
Find out more about video banking and virtual appointments
How video banking can increase sales
Here are some of the many ways video banking can contribute towards higher sales figures:
Customers find video banking useful
Numerous studies have found that customers who use video banking find it useful and engaging.
A survey in December, 2019, by Phoenix Synergistics found that while only 17% of consumers at the time had used video banking service with their financial institution, almost nine in ten (89%) found the service valuable.
And this technology is becoming more and more widespread, according to RBR’s Teller Automation and Branch Transformation 2019 report, which found video banking technology is increasingly being adopted to extend banking services both within and beyond the branch as institutions seek to boost customer access and cut costs.
It also allows your brand to create a more personalized customer experience, as your bankers or customer services team are in direct, one-on-one contact with your customers.
According to Boston Consulting Group, “For every $100 billion in assets a bank has, it can achieve as much as $300 million in revenue growth by personalizing its customer interactions.” As we explored in our blog on six rules for retailing in a recession, if retailers can find a way to increase their customer offering, they have a great opportunity to increase ROI.
Customers can easily learn about new products
Banks need to use video banking software to remain competitive. Sure, part of keeping up with your competition is by investing in new digital channels, but video banking is one of the best ways banks can communicate new products, offerings and features with customers.
Data from a massive global survey of 56,000 consumers in 11 countries by Bain & Company found that anywhere from a quarter to half of all banking purchases go to financial institutions that are not the consumer’s primary bank. The UK has the highest average “defection” rate, at 51%, compared to 38% in the US.
Why? Because their primary banks aren’t communicating with customers in the way they would like.
More than three quarters (78%) of consumers receiving direct offers from a competitive institution say they would have been willing to stick with their primary provider if they had been give an equivalent product offer, and digital channels are the most common means of making these purchases.
The majority of consumers are still avoiding branches
In October, 2020, Qudini interviewed 2,000 consumers throughout the US and asked them how often they normally visit banks – both now and before the pandemic.
Before Covid-19, 91% of the shoppers within our survey said they usually visited retail banks. One in ten (9%) said they did so often, while 40% said they did so sometimes and 24% said they did so rarely.
As a result of the Coronavirus outbreak, 48% of retail bank customers are visiting these types of branches less than before, while 43% are visiting them the same as before. Only 9% of customers are visiting these types of branches more than before.
A major reason why consumers are avoiding bank branches is the lines to enter the branch or to receive service. 66% of consumers agreed with the statement that “A long waiting experience would make me less likely to return to a retail bank”.
Almost one in five (17%) will only tolerate a wait of up to 3 minutes, while 22% will wait between 3-7 minutes and 21% will be willing to wait between 8 and 10 minutes. In total, this means that more than half of retail bank customers (48%) will only wait up to 10 minutes for service.
A great way to keep these consumers engaged is with a video banking service. Prominent retail bank, NatWest, has been offering a highly effective video banking service to its customers for a number of years now. Find out more about the NatWest video banking customer journey here.
How to create the best video banking customer journey
Create a seamless appointment booking process
In order for your video banking customer journey to be successful, the appointment booking process needs to be fast and intuitive – and that means finding a high quality retail banking appointment scheduling software provider.
The best booking systems will integrate with your existing websites and apps, and allow for a high level of customization such as branding to create a seamless customer journey – they should also integrate with video streaming tools like Zoom.
Customers should also receive regular SMS and email reminders about their video banking appointments to prevent no-shows and increase engagement.
Personalize the customer journey
One of the best aspects of video banking is that you can easily connect your customers with the most relevant bankers or customer support members based on their level of expertise.
For instance, if a customer is looking to buy a new house and needs to talk about their mortgage, you can pair them up with someone who specializes in that field, increasing sales and customer satisfaction rates as a result. This can be a little more challenging in a bank branch, where expertise and availability is restricted to that branch alone.
To connect consumers with the right expert, you can ask customers questions through the online booking platform, such as the problem they’re looking to solve or the product they want to know more about.
Banks can personalize the experience further by providing customers with access to banker profiles showcasing your team’s expertise, or allowing customers to know the name of the person they will be talking with before the appointment takes place.
This level of personalization is something that modern consumers crave, as it saves them time and provides them with relevant, helpful support.
Post appointment follow up
The best-in-class appointment booking systems can integrate with your CRM to create a streamlined post appointment follow up process.
This means your bankers and customer services team can easily follow up with customers using the contact details provided in the booking process while adhering to data protection laws. This way customers can easily book a follow up appointment, access useful information about products or offerings, or stay engaged with your brand.
Promote your video banking service across channels
There are loads of ways to promote your video banking service. Here are some of the most effective:
- Website – place prominent call to actions on your homepage, in the nav bar, in the contact us section and on relevant product pages throughout your site.
- App – allow customers to easily book video banking appointments through your app by giving it a banner on the homepage.
- Social channels – many booking systems make it possible for customers to access appointment time-slots directly through their social channels.
- In branch – create posters, flyers, brochures, window displays, service desk signs and digital signs that advertise your video banking service.
Offer digital lessons
To help answer more general enquiries or frequently asked questions, many retail banks are hosting regular digital webinars or lessons. These digital lessons are real-time events hosted by your in-house experts, and can cover anything from making the most out of your banking app, to effectively using an online banking platform, to money saving tips. After all, you can still connect with customers if you’re using a video banking system during the covid-19 pandemic.
Video banking offers banks the opportunity to create a streamlined, effective and convenient way to connect with their customers, and when done right, it can drive sales and customer loyalty. With the right system, banks can gain customers during times of economic downturn and upturn.
Read our whitepaper about the types of appointments banking customers want to get a deeper insight into how you can meet the consumer’s needs.