Let me start this blog by confessing that I have never worked in the wealth management function of any bank. I remember that earlier high net worth clients (HNC) used to get a dedicated "relationship manager" (RM) to ensure quick and efficient service. Of late, in the last few years, the RM has got substituted with more appealing term - Wealth Manager (WM).
Banks have gone about slicing their customers based on relationship value into 2-3 levels of HNC. As the relationship value increases, a higher level of WM is assigned to the client. The attempt of all banks seems to be to retain and enhance the relationship value of the clients by getting a higher "share of wallet".
Banks should not be inward looking when dealing with HNC. For example, the very definition of HNC should not be based on existing relationship value but on potential value. It does not matter that the customer hsa a small balance in the savings account if you know that the customer is a high potential / high profile client. So, some amount of local knowledge and some amount of research would be required while defining clients.
When dealing with HNC, many banks make a classic mistake of looking at things from their own perspective rather than the client's. What does the client seek from the bank? Given below are some of the key expectations of HNC:
1. Recognition without introduction
2. Exclusive service in terms of speed & treatment
3. Security & confidentiality of personal information
4. Information on opportunities to increase wealth based on risk appetite
5. Solution for all banking requirements - domestic & international
6. Advisory services
Without identifying the needs of the HNC, wealth management cannot make much progress. Many banks make a mistake of not securing the customer's confidential information. Also, a lack of coordination between marketing, sales and service departments can prove disastrous.
A classic mistakes some banks do is try to target all segments of customers and increase its numbers of customers. While this may look exciting in the short run, it results in confusing the customers about what the brand stands for. A bank needs to create exclusive zones / branches / channels for its HNC. If it tries to mix up the HNC with ordinary customers, the HNC might feel delineated and upset.
The other interesting fact is that most HNC do not come themselves to the branch but send a representative who could be a domestic servant, a driver etc. The banks should have an ability to 'spot' such proxies and serve them well. An error or oversight here could have indirect repercussions.
Many banks are happy to have large savings balances from the HNC as it helps reduce their cost of funds. However, if the bank does not attempt to educate the customer or give options to improve his earnings, it can boomerang in the long run. Similarly, banks should always feed information to the HNC on opportunities to increase wealth. Exclusive offers, special schemes, off market deals etc. which are not ordinarily available to regular customers should be offered. The customer should be made to feel that the bank is working for him and is interested in increasing his wealth.
Banks with strong research capabilities stand a better chance of impressing its HNC with their timely information, insightful analysis etc. The bank should be in a position to Suo Motu offer specialist advice to the HNC on every significant event that occurs which can impact the HNC's portfolio.
Wealth management is not every bank's cup of tea. Unless the bank is prepared to work smartly towards it and does everything necessary to stay clued on with the customers needs and the latest developments in the market place, it may have a wealth management function only on paper.
I would love to hear your views on this blog. Please feel free to leave a comment on the blog or send me a mail at vish.sesh@gmail.com and I will quickly respond.
Saturday 13 November 2010
Wednesday 10 November 2010
Call center basics
Most banks have realised the importance of having a call center to address customer requirements. Banks do realise that servicing customers at branch can be an expensive affair for the bank and inconvenient for the customer. Many have either set up or are planning to set up a call center.
There are several basics to be kept in mind while setting up a call center and I try to capture a few of the important ones below.
1. Should ideally be accessible 24 x 7 - If not, should be available during normal working hours.
2. Should ideally be centralised but not necessary. Centralisation helps in managing costs and standardising output.
3. If centralised, should have at least 2/3 locations to manage disruptions
4. Should have adequate staff to cater to incoming calls. Optimising is required.
5. Staff well trained on
- Different products & technologies used
- Customer handling skills
- good listening / comprehension skills
6. Multi lingual staff capabilities
7. Top notch technology which can give
- On line status of accounts
- Status of deliveries
- Current offerings
- Single view of customer's various accounts
- ability to divert customer to correct desk depending on status, need etc.
- recognise the customer based on number
- authentication of customer
- speed in capturing requirements
- trail information of all past calls to / from customer
- ability to assign and track tasks till completion
- Recording calls for audit / training purposes
Banks have to take a hard look at the services that they would like to continue at the branch and those that they wish to migrate to the call center. While some essential services need to be done physically at the branch, there are many opportunities to innovate and migrate most of the activities to the call center.
Although, servicing of customers is the key activity of call centers, it is also used by banks for recovering loans, reminder management, selling products, market research activities etc. While inbound calling forms the bulk of the activities of call centers, outbound calling is also resorted to on 'need basis'.
One of the key challenges in the call center would be to ensure that customer calls are closed, to the satisfaction of the customer, with high level of speed and efficiency. In general, customers desire to have a quick resolution and an end to the call. The whole process at the call center should be designed to make this happen. For example, the IVR (Interactive Voice Response) system should follow the 'KISS' principle (Keep It Simple and Short). Customers would get irritated if there are too many options or if they are not clear. Also, there should be no loops or dead ends.
The staff capacity should be managed so as to keep the 'wait time' to the minimum. Of course, this can be adversely impacted by sudden or unexpected surges of call volumes. If the customer finds the wait time unreasonably long, it will result in dropped calls and increased 'walk ins' by irritated customers in the branches. Also, if the wait time is too long, it may result in more calls coming in during 'office hours' when customers call call from their place of work without worrying about the call duration. This results in bunching of calls and a vicious cycle of delays.
Keeping the staff energetic, enthusiastic and motivated can be a challenge esp. if they are dealing with complaints or delinquent customers. A lot of counselling and hand holding may be required with regular breaks interspersed with recreation. Staff should be encouraged to share experiences and learning. Replay of recorded conversations is a useful method of imparting and enhancing call handling skills.
Staff should also be trained to identify / prevent potential frauds. The processes should be robust to ensure this is continuously monitored and improvised. Data security is a challenge and steps must be taken to prevent data thefts. This can be done in a variety of ways like preventing data copying facilities, non-use of pen & paper in the work stations, non-use of mobile phones at work stations etc.
If managed well, a call center can enhance the bank's efficiency and profitability significantly. It can also enhance the bank's reputation and help it sell and recover more.
I would love to hear your views on this blog. Please feel free to leave a comment on the blog or send me a mail at vish.sesh@gmail.com and I will quickly respond.
There are several basics to be kept in mind while setting up a call center and I try to capture a few of the important ones below.
1. Should ideally be accessible 24 x 7 - If not, should be available during normal working hours.
2. Should ideally be centralised but not necessary. Centralisation helps in managing costs and standardising output.
3. If centralised, should have at least 2/3 locations to manage disruptions
4. Should have adequate staff to cater to incoming calls. Optimising is required.
5. Staff well trained on
- Different products & technologies used
- Customer handling skills
- good listening / comprehension skills
6. Multi lingual staff capabilities
7. Top notch technology which can give
- On line status of accounts
- Status of deliveries
- Current offerings
- Single view of customer's various accounts
- ability to divert customer to correct desk depending on status, need etc.
- recognise the customer based on number
- authentication of customer
- speed in capturing requirements
- trail information of all past calls to / from customer
- ability to assign and track tasks till completion
- Recording calls for audit / training purposes
Banks have to take a hard look at the services that they would like to continue at the branch and those that they wish to migrate to the call center. While some essential services need to be done physically at the branch, there are many opportunities to innovate and migrate most of the activities to the call center.
Although, servicing of customers is the key activity of call centers, it is also used by banks for recovering loans, reminder management, selling products, market research activities etc. While inbound calling forms the bulk of the activities of call centers, outbound calling is also resorted to on 'need basis'.
One of the key challenges in the call center would be to ensure that customer calls are closed, to the satisfaction of the customer, with high level of speed and efficiency. In general, customers desire to have a quick resolution and an end to the call. The whole process at the call center should be designed to make this happen. For example, the IVR (Interactive Voice Response) system should follow the 'KISS' principle (Keep It Simple and Short). Customers would get irritated if there are too many options or if they are not clear. Also, there should be no loops or dead ends.
The staff capacity should be managed so as to keep the 'wait time' to the minimum. Of course, this can be adversely impacted by sudden or unexpected surges of call volumes. If the customer finds the wait time unreasonably long, it will result in dropped calls and increased 'walk ins' by irritated customers in the branches. Also, if the wait time is too long, it may result in more calls coming in during 'office hours' when customers call call from their place of work without worrying about the call duration. This results in bunching of calls and a vicious cycle of delays.
Keeping the staff energetic, enthusiastic and motivated can be a challenge esp. if they are dealing with complaints or delinquent customers. A lot of counselling and hand holding may be required with regular breaks interspersed with recreation. Staff should be encouraged to share experiences and learning. Replay of recorded conversations is a useful method of imparting and enhancing call handling skills.
Staff should also be trained to identify / prevent potential frauds. The processes should be robust to ensure this is continuously monitored and improvised. Data security is a challenge and steps must be taken to prevent data thefts. This can be done in a variety of ways like preventing data copying facilities, non-use of pen & paper in the work stations, non-use of mobile phones at work stations etc.
If managed well, a call center can enhance the bank's efficiency and profitability significantly. It can also enhance the bank's reputation and help it sell and recover more.
I would love to hear your views on this blog. Please feel free to leave a comment on the blog or send me a mail at vish.sesh@gmail.com and I will quickly respond.
Subscribe to:
Posts (Atom)
