What is your bank’s TrueDigital quotient?

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The following is an excerpt from our article Create more digitally-oriented customers, written to help financial institutions improve customer digital adoption.

Just as availability does not equate to adoption, attempts are not synonymous with success.

Customers who experience unsuccessful digital attempts – that is, trying to use online or mobile banking and are unable to complete the task they intended to do – often turn to a human channel for help. This erodes the customer experience and increases the costs of serving them.

To achieve widespread digital adoption, banks need to facilitate a high percentage of attempts and ensure that those attempts are successful. Success is about starting and completing the desired action in the given digital channel. In other words, banks need to increase the digital competence of their customers.

Gallup helps customers calculate the Attempt-to-Proficiency Ratio with the TrueDigital Quotient, the percentage of actions that customers complete successfully in a digital channel.

% of digital attempts x% of successful attempts (skill) = Quotient TrueDigital

For example, let’s say 100 bank customers have opened checking accounts. Fifty customers opened their account through a human channel, while 50 attempted to open their account through mobile banking. Of the 50 customers who tried through mobile banking, only 25 were successful – the remaining 25 sought a human channel to complete the account opening. This translates to a 25% TrueDigital quotient. [50% were digital attempts (50 out of 100 customers) x 50% that were successful/proficient (25 out of 50 customers) = 25%] – 25% of the 100 new chequing account customers used digital channels to open their account.

For complex actions, such as opening an account or solving a problem, the major banks have a TrueDigital quotient of over 50%, while the worst performing ones see less than 10%.

Just like you know each customer’s account number, you also need to know the TrueDigital quotient for each customer and track their growth. This allows human channels to be proactive in initiating conversations with customers who experience unsuccessful attempts. In other words, banks must equip their frontline workers with the intelligence they need to best encourage customers to try – and try again.

Gallup helps customers calculate the Attempt-to-Proficiency Ratio with the TrueDigital Quotient, the percentage of actions that customers complete successfully in a digital channel.

This can be done through co-navigation technology or by guiding the customer through the process on their own device in the branch. Whatever the path, encouraging attempts and increasing skills must be an ubiquitous expectation in human channels. As customers attempt and successfully perform more actions digitally, they are more likely to adopt long-term digital actions and preferences – lowering the cost of service, increasing the lifetime value of the customer. client and strengthens client engagement (i.e. emotional attachment) with their financial institution.

Employees need to be digital and constantly encourage customers to try digital… and try again.

Custom graphics. Digital offerings, technology / direct, touch attempts lead to long-term success and adoption: cost savings, customer value, and customer engagement all increase.

Want to know more about our new metric, the TrueDigital Quotient?

Authors)

Anson Vuong is a senior management consultant at Gallup.

Andrew Robertson is a management consultant at Gallup.

Jessica Schatz contributed to this article.


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