Making the case for improved online customer service is easy. Online banking customers now prefer it almost 3-to-1 over telephone support (see Table 1, below). Done right, e-service
can increase customer satisfaction, decrease support costs, and lead to increased sales. What’s not to like?

The problem is that costs are front-loaded and benefits are difficult to measure. Bottom line: You’ll spend hundreds of thousands or more in anticipation of future, largely hidden, returns. That’s a tough sell in any environment, but especially in the low-margin financial services arena.

What’s a banker to do? Start by demonstrating the reach of your website to both online banking users and other bank customers. This requires an effort to persuade non-online banking users to register so you can track them over time to measure the entire impact of self-service.

Next, continually add self-service tools and content to improve the online experience. You can do this in baby steps if need be. For example, add one capability each quarter, such as an online tutorial
on how to pay bills. If resources are tight, look for college interns or
tap in-house volunteers to do the work.

Table 1

Service Channel Preference

percent of respondents preferring each channel, n = 2000

Source: Vividence survey of online banking customers, Mar. ‘04 and Sept. ’03;
Question: “Which would you prefer to use most often?”, n = 2,000 both years

Another option is to outsource the entire process, including live tech support if desired. Experts such as SafeHarbor, the company powering much of Washington Mutual and SunTrust’s self-service capabilities, can provide speedier implementation and state-of-the-art knowledge. In any event, the day of the annually updated two-page FAQ are over. Customers expect and deserve more dynamic help as they attempt to do business with you in cyberspace.

-- Jim Bruene, Editor & Founder