Creating Revenue in the Last Mile of Connection to the Customer

by Chris Stone, President/CEO of StreamServe

Over the past few years, banks, insurance companies and brokerage service firms have focused on cost-cutting and adapting to a faster pace of change. While monitoring costs continues to be critical to survival, now the focus is turning to growth.

Even if a firm's goal is to build revenue through customer acquisition, the largest growth will come from extracting more revenue from existing customers. In the University of Mannheim and SAP's 2005 EMEA Retail Banking Study conducted this year, 87 percent of financial services company CEOs saw current customers as the key to aggressive growth. Yet a shocking 93 percent admitted that they attempt no cross-sell during customer interaction.

Financial services firms understand the value of their customer base but neglect this “last mile” of communication between themselves and their customers largely because the infrastructure is geared to process data, not to present information.

The desire for an effective, dynamic and personalized customer communication strategy is strong. What’s been missing is the ability to convert internal information systems into interactive, customized communication channels that create and present documents in any format the customer prefers.

A growing number of sophisticated financial institutions worldwide are using a groundbreaking technology called Enterprise Document Presentment (EDP) to create this last mile communication that leverages customer account statements for greater revenue opportunities. 

The quality of experience in the last mile between the institution and the customer is the most significant factor influencing customer relationships. The clearer and more intuitive the presentment, the more effective the communication will be.

EDP enables more effective communication with customersas well as partners and suppliers -- through the automated creation and presentment of documents in any format and channel -- including print, email, mobile or Web-based.

An EDP system complements existing enterprise systems and expands the usefulness of the existing infrastructure. It extends the lifespan of legacy systems that are otherwise unequipped to meet a financial institution’s sophisticated document presentment needs. EDP achieves this without requiring any change to, or replacement of, current systems.

This important technology offers financial institutions the ability to interpret and analyze all structured data systems, and to distribute documents through multiple channels using only one layout template.

EDP can significantly increase the revenue per customer through greater satisfaction and retention. It delivers greater control over the customer lifecycle by offering multiple cross-sell opportunities, leading to increased revenue per customer. It also improves compliance by extracting data from historical documents to meet regulatory requirements more easily.

Reinforce the Brand to Millions of Customers

Most statements delivered through print, electronic and banking terminals lack consistent organization, look and feel, and brand image. If you are reading this column, you likely are in the financial services industry. Take a look at your own recent bank statement. Chances are it is simply a transaction summary. If your financial institution changes your statement, the onus is on you to adapt to different levels and forms of information. It does not reflect your spending or savings goals or interests. And nowhere will you see your firm’s brand reinforced.

EDP makes the account statement an individual document tailored specifically to the person receiving it. EDP is the only technology that delivers the means to efficiently craft and present well-designed, personalized information and branded documents all across that last mile.

An EDP system generates consistent account statements adapted not just for the individual, but also for that person’s preferred delivery vehicle. Are you addicted to your Blackberry? That is where you can view your statement.

The competitive advantage of being able to give customers personal documents expands marketing activity deep into the customer base through flexible channels for ongoing offers and targeted campaigns. Did you just deposit your tax refund? The financial institution can offer you investment advice such as purchasing a certificate of deposit or opening a new home equity line on your next statement.

This level of personal communication leads to a familiar and positive customer experience across all channels, and supports and reinforces the firm's customer satisfaction and brand awareness efforts.

A Netherlands Bank Builds Revenue through Improved Customer Satisfaction

A leading financial institution in the Netherlands focused on retail banking, corporate banking and asset liability management sought a way to provide timely and meaningful customer communication to an international customer base. Their challenge was complicated by the need to integrate multiple systems and create documents in a variety of formats and languages.

The firm wanted to improve customer satisfaction and its opportunities to sell additional services by increasing the frequency and accuracy of communication. They also wanted to reduce the cost of creating, producing and distributing customer-facing documents.

With EDP the firm’s customers receive bank statements a day after a transaction, rather than every other week. In addition to lowering postage costs, the firm has been able to send direct, personalized communications more frequently, which enables them to make more frequent and highly targeted marketing offers.

By streamlining the creation and distribution of enterprise documents, EDP shortens the time and the steps needed to implement marketing campaigns. It also reduces costs by consolidating information into fewer documents, and enables a shift to electronic and telephonic delivery.

Build the Bottom Line

EDP is creating new revenue opportunities through financial institutions’ greatest assets: their customers. It strengthens customer loyalty and retention through personalized communication and messaging on key documents. By presenting one “face” to the customer, EDP delivers on a financial institution’s brand investment. For any financial institution, it is the vital last mile connection for creating competitive value and building revenue.