Situation

Progressive banks want to maximize growth by opening new deposit accounts while ensuring that customers are able to enjoy the benefits of the full range of the bank’s financial services.

Challenge

Several BI clients were not satisfied with the number of new accounts being opened for each new customer. The following problems were identified as possible causes:

• Individual productivity was not being measured. Only New Accounts per New Customer by Branch was being measured.

• There was no basis for incentive/rewards programs to encourage New Accounts.

• The process did not encourage employees to develop new customers. Measurement and recognition was at the branch level, versus the individual level.

• Because associates were not motivated/encouraged/paid to explore and understand the customers’ full range of financial product needs, customers only opened the accounts they thought they needed, and were not provided information on the bank’s complete range of financial products and services.

• These banks had a low “average new products per new customer” metric, and a wide CSR productivity spread.

Intuitively, some associates open more new accounts per new customer than others. Without information about the number of new accounts opened by each person, the ability to identify and provide effective training is not possible.

Opportunity

The Retail Banking executives wanted to maximize customer product penetration for both new and existing customers. To accomplish this, CSR training completed was evaluated and it was agreed that more was needed. Motivation to explore and guide customers to select the products that would best serve their financial needs was also identified as a need. To accomplish these objectives, product and sales training programs were implemented, complimented by CSR mentoring programs, as well as rewards and recognition programs. To support these performance programs, new product accounts opened by CSR and by Branch needed to be measured.

Solution

Business Intelligence, Inc. (BI) implemented Banking Performance Analytics, which includes a New Accounts Productivity model.

After several quick modifications, based on user input, the New Account Productivity model was completed, automated, and delivered. Because the bank’s IS organization was working with BI on the project, there was no transition time/cost for the IS organization to assume ongoing support responsibilities.

Summary

The New Accounts Productivity analysis identified that CSRs averaged between 1.7 and 4.0 products per new account opened. An incentive plan was implemented to recognize high productivity CSRs with motivating rewards and recognition. The measurement also motivated low productivity CSRs to learn more about the products, as well as learn how to help customers identify and select more products when they opened their accounts, thereby increasing their productivity and incentive compensation.