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ROI Archives - POPi/o

Oct 09
7
Young people sitting on floor against wall looking at electronic devices

Omnichannel ROI? Look For Insights Not Common Metrics

By | Blog, Video Banking | No Comments

It’s been nearly a decade since omnichannel became the go-to digital transformation buzzword, and organizations have worked hard to upgrade their consumer experience accordingly. According to the Aberdeen Group, between 2012 and 2017, the average company doubled the number of channels it uses to interact with consumers.

Omnichannel is a simple concept: increase convenience by offering a choice of access channels. If those new channels are digital, and they usually are, the consumer experience will improve. In turn, efficiencies will increase, costs will shrink and revenue will grow.

Young people sitting on floor against wall looking at electronic devices

Oh, if only omnichannel were that simple. For most organizations, the reality of offering additional access channels has been quite different.

For example, your financial institution probably invested significant resources in your mobile banking app, and even though you’ve met your adoption and rating goals, costs keep going up, not down. Or maybe you’ve added texting, online chat or social media messaging, but in some cases, they have created friction instead of streamlining your workflow by not delivering a seamless experience that meets the needs of the agent and the consumer.

If your bank or credit union is missing the return on investment that digital service channels were supposed to bring, you’re not alone. Many financial institutions struggle to effectively satisfy the needs of today’s demanding consumers while reducing costs and driving revenue.

Where’s the digital disconnect?

The problem lies in financial institutions using common metrics to measure omnichannel ROI, instead of tracking metrics that measure consumer engagement. Moneythor, a digital banking firm based in Singapore, uncovered this common error while researching how financial institutions track ROI earlier this year.

After analyzing annual reports and investor reports of 24 banks around the world, the fintech was able to divide digital metrics into two categories: common metrics and insightful metrics. Common metrics only report usage of digital channels. Insightful metrics, on the other hand, report engagement measures that allow financial institutions to measure how each digital channel contributes to financial success.

Common metrics like adoption rates are important, but the truth is they don’t add much value to your bottom line. To accurately measure ROI, you must instead measure digital engagement and digital users’ activities on each platform. For example, don’t base your success on how many times your digital banking app has been downloaded or how many logins you get each month. Instead, track average session time, number of monthly digital sessions per user, click-through rates, response to digital marketing campaigns, satisfaction ratings after digital channel use and how each digital channel generates revenue-producing activities like loan applications or new accounts compared to transactions.

Using these advanced metrics, financial institutions can then determine how and even why their consumers use each digital channel. Digitizing and automating operational processes won’t automatically deliver ROI. Financial institutions must also develop ways to measure, track and report the actual value generated by each digital channel. This holistic view will allow them to focus on the functions that deliver the most value, and prioritize optimization that reduces friction, improves the consumer experience and drives even more revenue.

Mar 22
4
Young businesswoman doing work with laptop next to her

Data Shows that Video Banking Generates Positive ROI

By | Blog, Video Banking | No Comments

They say you can’t put a price on great service but try convincing your boss of that when you’re pitching a new digital service channel. The bottom line is undeniable: ROI matters.

Video banking delivers ROI, and our users’ 2018 data proves it.

Most people think of video banking as just another way to process routine account transactions, but that’s not true. Last year, the most frequent use of POPi/o Video Banking was lending.

Let that sink in for a moment. More than one-third – 36% to be exact – of customers who contacted their credit union or bank using video banking did so to apply for or fund a loan. And these weren’t just consumer loans, either. Twenty-six percent of our financial institutions utilize video banking as a way to process business loans.

Asian businessman leaning on restaurant table looking at smartphone

All that consumer and business loan activity means a direct source of new interest and fee income, and a chance to grow your market share. And as rates continue to rise, your ROI and income will grow along with it.

Okay, so surely the second most common use of video banking was routine transactions, right? Yes, but just barely: 16% of consumers used video banking for account service. However, following right behind at 15% were consumers who opened new accounts.

When you put together the loans and new account activities more than half of all consumers using the video banking channel last year contributed a quantifiable business value to their financial institution. Why is video banking such a great channel for profitable account activity? Because it’s more than just a channel that supports face-to-face conversation. POPi/o Video Banking includes key workflow capabilities that provide a complete service experience. For example, consumers can use video banking to easily upload supporting documents to complete loan applications, like IDs and paystubs. Video banking even supports eSignatures, which means consumers can go from application to funding in just one call.

That level of video interaction delights consumers, and our data shows it. POPi/o Video Banking scored 4.7 stars out of 5 with our financial institutions’ customers, which include more than just millennials and Gen Z. Video banking is also popular with retirees who have limited mobility, customers who speak English as a second language and middle-aged executives who travel for work.

The most popular channel for video banking is mobile – 63% of POPi/o financial institutions have deployed video banking into the mobile channel because it gives them the greatest reach. However, surveys show that most consumers prefer to use more than one channel to access their financial accounts, so our financial institutions also work toward also implementing video banking online and/or in a branch.

Another interesting point revealed in our 2018 user data was that the average video banking call is only a little more than five minutes. That’s a perfect length that allows your representatives and your customers to have a complete, yet efficient, service experience.

If you’d like to learn more about our 2018 user data and how POPi/o Video Banking can produce positive ROI for your credit union or bank, please request a demonstration here.