John Stone IMedia Financial Summit Oct 2009

Using Telepresence to Attract and Retain Customers

John Stone III

Founder, President

Discussion

• Considering Channel Strategies• Enhancing The Human Touch• The Role of Telepresence Technology• Key Issues to Consider

The Situation

• Over the last ~25 years banks have emphasized direct channels for delivery efficiency

• Direct channels drive profitable operations and customers appreciate the speed and convenience

• However, at key moments, customers seek more personal service and advice for important transactions

Lifecycle Key Moments

Key moments span credit and investment plus deposit needs for individuals and small businesses

Retention/ Reduced Churn

DepositServices

7 Million customers

DepositServices

7 Million customers

CardServices

3 Million customers

CardServices

3 Million customers

InvestmentServices

0.8 Million customers

InvestmentServices

0.8 Million customers

Small Business Services

0.2 Million customers

Small Business Services

0.2 Million customers

2.0m

0.56m 0.1m

0.5m

Key moments introduce cross-selling opportunity and drive retention and profitability

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5-20-10

01020304050607080

Profit from Price PremiumProfit from Refer-ralsReduced Operat-ing CostsProfit from Cross-salesBase Profit

Cross-selling impacts (Illustrative)

Telepresence as a Digital Strategy

• An immersive ‘visual presence’ • Demographic-ready• Enhance the branch experience• Permission approach for the online channel• Extend relationship management and product/

service expertise• Leverage efficiencies and scale• Benefit from brand enhancement

What’s involved?

• Unified Communications• Distance Collaboration• Purpose Built vs Standard Desktop• Expert call routing

Case Study Issues

• Working with a top 10 retail bank client, we identified a range of issues to consider :– Product-Channel Alignment – Customer Experience– Operational Alignment– Technology

Product-Channel AlignmentExample Service Demographic

FitTransactional

Fit

Adolescent new account YES YES

Student education loan YES YES

New partners account YES YES

Small business set up MIXED MIXED

Investment Plan MIXED MIXED

Retirement Plan MIXED MIXED

Customer Experience

• Will at home customers be comfortable using a 2-way video channel?

• Is bandwidth at home sufficient or reliable enough? Systems easy to use?

• Will the customers perceive this as “personal” service or another way for the bank to cut cost?

• Are technologies ready for an immersive experience at a reasonable cost?

Operations

• Does telepresence fit existing operations?– Location in branch to ensure privacy, use?– Environmental issues– e.g. lighting, seating– ATMs an appropriate channel Privacy? Availability?– Hours of operation impact the service profile?– What security issues must be considered?

Technical

• Are technologies ready?– Network bandwidth - voice and picture sync/latency– Microphone and camera quality– Large screens and definition– Multi-party networking– Support materials and knowledge in live environment– Delivering to mobile devices

Telepresence: a Solution for PNB

• Demographics support active adoption• Technologies are ready (if configured well)• Brand impact attracts new customers• Leverage for expansive networks• Position as ‘new value’, not a replacement or

cost-avoidance• Piloting solutions will validate fit and synchronize

with existing processes and infrastructure

Thank You