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Let Customers Have it Their Way
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thelight
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thelight,
User Rank: Apprentice
2/25/2014 | 7:00:53 PM
re: Let Customers Have it Their Way
Great Article..
There was a blog over at celent on this topic that said banks can learn from airlines. (http://bankingblog.celent.com/... I would like to state that some airlines can learn from banks. Here is my recent airline experience that highlights how some airlines can learn about customer service from banks:

While stuck at the Dallas airport last week (storms) here are the capacity
and performance calculations I ran while waiting in a huge line to check my
baggage (freezing rain so no outside check in).

Time wasted using utilization law:

I was wondering how much accumulated time my
fellow travelers wasted standing in line W=X*S (or also known as U=X*R)

X= counted 60 people in line

S= length of time I waited 30 minutes.

W=time of all requests.

For these 60 people the airline wasted 1800 minute of total customer time. If you look at the arrival rate for the whole day this would be an even bigger number for the daily waste.

LittleGÇÖs Law:
I next wondered how fast people were entering my line every minute with all the flights and flight cancellations. I got a surprise for an answer:

L = A*W or A=L\W (L number of customers in
the system, W average time in the system & A the arrival rate is what I want to know)

We had only 2 check in clerks (the airlines were not prepared for storms). I observed (will post my iphone video so you can see the line):

50% of travelers check in bags taking 4
minutes each (BF 1)
50% of travels arrange a new flight (east
coast was shut down) 8 minutes each (BF 2)

So with 2 check in clerks the average person was 6 minutes at the counter. (B1+B2)\2. The business functions had about the same amount of people requesting them. Many people had weather related flight cancellations, I knew from the loud complaining there were a lot and that they came about the same rate as baggage check in's. So with 60 customers in line, the total work processing time was 60*6=360 this meant it would take 6 hours to service the entire lineGǪHowever for the half hour I was there the line stayed constant at about 60 people. So
L=60
W=6 minute service time
A=L\W

A new customer entered the line almost every 10 minutesGǪsurprise you guessed it they could never empty the queue and more people could potentially miss flights due to the line.

In sum, limited resources = big queues!! I have never waited a half hour for a bank teller. I generally apply these formulas to banking website applications but they work anywhere so have fun the next time you are stuck in a line.

Daniel Sidman
BankTechAsia
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BankTechAsia,
User Rank: Apprentice
1/23/2014 | 12:20:22 AM
re: Let Customers Have it Their Way
I'm on the same page with you folks. There has to be a proper balance.
Kelly22
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Kelly22,
User Rank: Author
1/22/2014 | 8:01:33 PM
re: Let Customers Have it Their Way
I agree with you on that, as I see those same ads whenever I shop online and also find them annoying. If I buy a pair of sneakers, I'm not going to buy another pair because of a pop-up ad I see the next day.
Ivy Schmerken
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Ivy Schmerken,
User Rank: Author
1/22/2014 | 7:46:54 PM
re: Let Customers Have it Their Way
Privacy is very much a thing of the past in the retail world. My personal email inbox is framed by ads from web sites that I recently browsed. The online company that I bought tennis sneakers from pops up in ads on unrelated web sites that I visit. I realize this is not banking but retail site regularly use data to profile customers to the point that it's annoying. I don't think banks should go this far.
Ivy Schmerken
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Ivy Schmerken,
User Rank: Author
1/22/2014 | 7:39:53 PM
re: Let Customers Have it Their Way
You raise a key point. Customers need to look at fees being charged. There are plenty of competitors in banking and outside such as online brokers (Fidelity, Charles Schwab, TD Ameritrade) that offer checking accounts and access to ATMs as well.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
1/22/2014 | 6:53:00 PM
re: Let Customers Have it Their Way
Customers of any business prefer the "a la carte" option to chose products any way they want them (without having to buy a bundled package). But, keep in mind, increasingly, customers expect to have the same 'a la carte' selections available at "prix fixe" cost.
Kelly22
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Kelly22,
User Rank: Author
1/22/2014 | 6:07:11 PM
re: Let Customers Have it Their Way
Good last point there. Personally, I'd also choose privacy over something like anticipatory shipping, but I think most consumers need to find a balance between the level of personalization they want and the amount of data they're willing to share.
Byurcan
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Byurcan,
User Rank: Author
1/21/2014 | 2:32:11 PM
re: Let Customers Have it Their Way
Yes, your last point is the rub: People love having tailored, personalized products but don't like giving up data that would allow a company to do that. You must have it one way or the other. Personally, I'd choose privacy.
BankTechAsia
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BankTechAsia,
User Rank: Apprentice
1/21/2014 | 9:43:06 AM
re: Let Customers Have it Their Way
I agree, there are many strategies that bank can adopt from the retail sector.
Amazon's big data is so comprehensive that they claim they are now able to ship your product before you even order it. They call it "anticipatory shipping".

We need to have some form of "anticipatory banking" instead of random telesales guys calling up and pushing financial products that we don't want or need.

There's a slight oxymoron though, consumers want more tailored products yet there's a big paranoia going on about how much of their data is being collected.
kgordon597
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kgordon597,
User Rank: Apprentice
1/20/2014 | 6:22:22 PM
re: Let Customers Have it Their Way
We are constantly hearing about how important it is to build Big Data stockpiles, but the real value lies in being able to filter and apply data toward strategic goals. The use of customer data has become more of a requirement to ensure consumer expectations and product preferences are being met, before they even ask. The only way to ensure that happens is by collecting data and implementing it into business decisions.
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