Solving The Omnichannel Dilemma The Digital Consumers Path To Purchase A Financial Product

Transcription

1 A Forrester Consulting Thought Leadership Paper Commissioned By Deluxe Corporation July 2015 Solving The Omnichannel Dilemma The Digital Consumers Path To Purchase A Financial Product

2 Table Of Contents Executive Summary... 1 The Empowered Customer Is Changing Financial Institutions... 2 The Discover Phase: Relationships And Familiarity Are Important When Becoming Aware, Yet Digital Plays A Key Supporting Role... 4 The Explore Phase: Accommodate Customer Preferences... 5 The Buy Phase: Combine Online Tools With The Human Touch... 7 Understand Drivers Of Satisfaction To Improve Customer Experience And Conversion... 9 Key Recommendations Appendix A: Methodology Appendix B: Endnotes ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting. 2015, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to [1-TW44HA]

3 1 Executive Summary Customers today have the expectation that any desired information or service will be available on any device, in context, at their precise moment of need. This digital mind shift forces all industries to meet exponentially increasing customer demands and creates an environment in which only nimble, customer-obsessed firms will succeed. No industry is insulated from this shift including financial institutions. Financial organizations, however, must remain keenly aware of the unique journeys in which prospects proceed along the purchase pathway for each of their products. Influences that play a role in the Discover phase, in which prospects become aware of providers, can shift as they segue into the Explore phase to conduct more in-depth research. The resulting path that leads to the Buy phase, where prospects become customers as they apply for loans or open accounts, has enough nuances that require financial institutions to weave the proper mix of human connection and digital along the way to ensure that customers are satisfied and stay loyal. In seeking to understand how customers are proceeding down the purchase pathway for four different financial products, Deluxe Corporation commissioned Forrester Consulting in November 2014 to conduct an online survey of 3,597 adults in the US who had done one of the following in the past 12 months: Opened a checking account, savings account, IRA, or certificate of deposit (CD). Applied for and obtained a new mortgage, refinance, home equity loan, auto loan, credit card, or personal loan/line of credit. In the course of this study, Forrester found that empowered customers have new expectations for the financial purchase process, set by digital experiences and generational considerations. They seek more from digital channels and set a higher bar for satisfaction, yet still seek personal connections at key points along the customer journey. KEY FINDINGS Forrester s study yielded five key findings: choose. Recommendations from family and friends were among the top two drivers of awareness for providers of checking products (27%) and mortgages/home equity loans (26%). Additionally, prior experience with the financial provider was among the top three drivers for how customers select the providers of mortgages (23%) and auto/personal loans (28%). Online search greatly supports awareness of new providers. For customers who do not have an established relationship with an existing provider, online search is a top three driver of awareness of checking products (29%), credit cards (26%), and mortgages (39%). Online search is also the primary source of awareness for auto/personal loans (39%). Customers seek information through digital channels and multiple tools when researching in the Explore phase. Those seeking information turn to online channels over others for credit cards (45%), mortgages/home equity loans (41%), and auto/personal loans (36%). Additionally, customers purchasing checking products utilize online channels to research (40%) right alongside turning to branch personnel (43%). At the Buy phase, the more complex the product, the more likely customers purchase through human touchpoints. Completing the application process online leads for credit cards (65%), but customers turn primarily to branch personnel to complete the application or approval process for checking products (69%), mortgages (41%), and auto/personal loans (41%). Younger customers are the least satisfied with their purchase experience driving a generational trend toward more transparent and simpler processes. Eighteen- to-24-year-old purchasers of financial products are the age group least satisfied (77%) and least likely to recommend (71%) when compared with their older counterparts. Coincidentally, all customers expressed lower levels of satisfaction with more process-intensive financial product applications, such as those for mortgages, home equity loans, and auto/personal loans. These trends help explain why customers express the desire to reduce paperwork and shorten application times, while increasing transparency by providing more clarity on rates and online access to application status. Recommendations from family and friends coupled with previous experience with a provider greatly influence which providers customers consider and

4 2 The Empowered Customer Is Changing Financial Institutions The increasingly mobile and empowered customer disrupting industries and paradigms is now a common refrain. As customer expectations rapidly rise, consumers gravitate toward companies that can deliver the best experiences at the drop of a hat. These expectations extend beyond disposable consumer goods and web services they extend to every entity that an individual interacts with. This means that every organization has to be customerobsessed and deliver any and all desired information or services on any appropriate device, in context, at a person s precise moment of need. Financial institutions are no exception to this transformed world. Instead of resting on a traditional reputation of being change-resistant, financial institutions now find that they must become increasingly agile and deliver superior customer service. This is specifically due to: Customers rising expectations, which are set by nonbank experiences. Customers experiences today are not just shaped by their interactions with financial institutions they are shaped by everything they do digitally, including online shopping experiences, social networking sites, video on-demand services, and instant access to products and services such as ride-sharing. Companies in these spaces are raising the bar for digital experiences as they continuously exploit digital technologies to delight their customers and reset consumer expectations in the process. Furthermore, these expectations will continue to increase as every new generation of consumers becomes more digitally native than the last, raising the bar when companies seek to grow their customer base. 1 Accelerating use of mobile, which drives demand for mobile banking services. Although the penetration of online use has started to level out in North America, the number of mobile and tablet connections continue to grow fast. Forrester s Consumer Technographics data indicates that the shift to mobile is generational with the proportion of consumers who are regularly connected to the Internet via their smartphone increasing as age decreases (see Figure 1). This correlates to the growing trend of consumers conducting financial activities on their mobile and tablet devices, with 29% of US and 37% of Canadian online adults using mobile banking. 2 FIGURE 1 More Than One-Fourth Of US Adults Have Made The Mobile Mind Shift, With Generations Z and Y Leading The Way 44% 44% 30% 27% 15% 10% 4% US online adults Gen Z (18 to 24) Gen Y (25 to 33) Gen X (34 to 47) Young Boomers (48 to 57) Old Boomers (58 to 68) Golden Generation (69 and older) Source: Forrester Research, Inc.

5 3 RE-THINK THE PURCHASE PATHWAY FOR FINANCIAL PRODUCTS Customer-obsessed financial institutions must take a fresh look at how their customers interact with them. Specifically, they must understand how rising expectations and increased reliance on mobile revises the purchase pathway how customers now engage with financial institutions in this new paradigm and how it has changed from traditional models is critical. By surveying 3,597 online adults in the US who either opened a checking or savings account, applied for a credit card, applied for a mortgage or took out a home equity loan, or took out an auto or personal loan, this study evaluated how the customers proceeded down the purchase pathway. The key steps in the path include the Discover, Explore, and Buy phases, in addition to an evaluation of post-purchase satisfaction (see Figure 2). While activities vary across different financial products, some key themes emerge at each phase in the customer journey. FIGURE 2 Re-Think The Purchase Pathway For Financial Products EXPLORE: DISCOVER: I need to purchase a financial product. What providers should I consider? Now that I have a short list of providers, how will I compare products and pricing? BUY: SATISFACTION: How satisfied was I with the experience? I know which provider and product I want; what s the best way for me to apply? Source: Forrester Research, Inc.

6 4 The Discover Phase: Relationships And Familiarity Are Important When Becoming Aware, Yet Digital Plays A Key Supporting Role All customers must go through a process to discover the brand or product category that can meet their needs. It is at this phase where financial institutions establish their initial impressions with potential customers, in addition to offering their products and services. Customers value trust and reputation when seeking to purchase financial products and services. As such, existing relationships and recommendations from friends and family are incredibly powerful in driving awareness of the financial services firms they would consider making their purchase from (see Figure 3). The study found that: Both local presence and trusted recommendations drive awareness for checking products. Recommendations from family and friends (27%) and passing a local office or branch of a financial institution (20%) are the top two ways customers become aware of the providers of checking products. FIGURE 3 Recommendations And Familiarity Drive Awareness For Most Financial Products How did you become aware of the provider of this financial product? (Select all that apply) Products Checking (N = 362) Credit card (N = 364) Top Four Reasons Cited 1) Family member/friend recommended the provider 2) Walked or drove past the provider s branch/office 3) Have used the provider for the product in the past 4) Had existing checking/savings account with provider 1) Received direct mail offer from provider 2) Received communication from the provider 3) Through an online advertisement 4) Have used the provider for the product in the past 27% 20% 17% 15% 40% 19% 12% 9% Familiarity propels mortgage and auto/personal loan awareness. Customers of mortgages and home equity loans were more likely to become aware through a prior relationship with the financial institution through a checking/savings account (32%) than other products, with recommendations from family and friends (26%) and prior experience with mortgage/home equity loan (23%) following closely. Auto and personal loans mirror this pattern, with 28% becoming aware through prior experience with a previous loan and 22% becoming aware through an already existing checking/savings account. Customers become aware of credit card providers through less personal channels. Unlike purchasers of the other financial products examined in the study, those who sought to purchase a credit card were less likely to become aware of a provider through reputation and personal contacts. Instead, direct marketing (via mail or ) was the primary way they became aware of the credit card provider. Mortgages/ home (N = 1,066) Auto/ personal loans (N = 722) Base: US online adults 1) Had existing checking/savings account with provider 2) Family member/friend recommended the provider 3) Have used the provider for the product in the past 4) Received direct mail offer from provider 1) Have used the provider for the product in the past 2) Had existing checking/savings account with provider 3) Received direct mail offer from provider 4) Family member/friend recommended the provider 32% 26% 23% 15% 28% 22% 12% 11% Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014

7 5 Although recommendations and familiarity due to existing relationships drive overall awareness in the Discovery phase, online channels namely, search play a key role for all financial products when prospects become aware of new providers. By maintaining a strong online presence, financial organizations can drive awareness to acquire new customers whose relationships have yet to be established through an existing account. This study s results (see Figure 4) confirmed this, as results indicated that: Online search plays a key supporting role for prospects seeking checking accounts. Although those who purchased checking products stated that they are most likely to become aware of a new provider through a recommendation from family or friends (45%), 29% still stated that online search drives their awareness, followed closely by passing the provider s branch (28%) and receiving offers by direct mail (23%). Many online channels remain crucial for awareness of credit cards. Direct mail is most important in driving credit card awareness among new providers (49%), but both marketing and online search play large secondary roles (31% and 26%, respectively). Both recommendations and online search are equally important for driving awareness of new providers of mortgages and auto/personal loans. Recommendations from family and friends (42%) are rated only three percentage points higher than online search (39%) for driving awareness of mortgage/home equity loans. The trend mirrors for auto/personal loans, where online search is nearly equal to family and friend recommendations (39% and 38%, respectively). FIGURE 4 Many Customers Are Likely To Become Aware Of New Providers Through Online Channels Products Checking (n = 362) Credit card (n = 364) Mortgages/ home (n = 1,066) Auto/ personal loans (n = 722) What are the most likely ways you would become aware of a new provider? (Select all that apply) Base: US online adults Top Four Reasons Cited 1) Family member s/friend s recommendation 2) Through an online search for providers 3) Walking or driving past the provider s branch/office 4) Receiving direct mail offer from provider 1) Receiving direct mail offer from provider 2) Receiving communication from the provider 3) Through an online search for providers 4) Through an online advertisement 1) Family member s/friend s recommendation 2) Through an online search for providers 3) Receiving direct mail offer from provider 4) Through an online marketplace site 45% 29% 28% 1) Through an online search for providers 39% 2) Family member s/friend s recommendation 38% 3) Receiving direct mail offer from provider 21% 4) Receiving communication from 17% the provider Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November % 49% 31% 26% 16% 42% 39% 22% 18% The Explore Phase: Accommodate Customer Preferences In the Explore phase, customers are gathering information and making comparisons between providers offerings in order to make an informed decision. Time spent in this phase varies per product type, but customers tend to perform more research before purchasing financial products and services due to their complexity. This is the phase where financial institutions must be particularly sensitive to the fact that customers are becoming increasingly mobile and fickle. As customers research and explore products, the information, calculators, and tools must be available to customers through the touchpoint that they prefer to engage with, and they must be relevant and contextual. For example, product comparison tools on a smartphone must be mobile friendly, with ease of use and quick, instant, and relevant information. Providing information across multiple touchpoints is also important, because customers use different methods to research different financial products. And the human element talking to a banker in the branch or over the phone is crucial to reinforce trust and provide the

8 6 guidance and advice that customers want when looking to buy a financial product. Ultimately, all of these points demand that financial institutions accommodate an always on customer with the right context at the right time. The data in this study shed further light on how customers research and explore different financial products, and found that: Customers go online to research all financial products. Going online via desktop or laptop is the top research method for credit cards (45%), mortgages/home equity loans (41%), and auto/personal loans (36%). Researching online is also a close second among customers researching checking accounts (see Figure 5). The human element plays an important role for most products. While customers primarily seek information through digital channels, 29% still seek information in person at a branch for mortgages/home equity loans, and 24% go to a branch for information on auto/personal loans. Furthermore, speaking to a representative at a branch is the primary research method for customers learning about checking products (see Figure 5). FIGURE 5 Customers Gather Information On Financial Products Both Online And By Speaking To Representatives In Person Products Checking (N = 362) Credit card (N = 364) What methods did you use when researching your options? (Select all that apply) Top Three Research Channels 1) Branch: in person 43% 2) Online (desktop/laptop) 40% 3) Customer service: phone 11% 1) Online (desktop/laptop) 45% 2) Customer service: phone 9% 3) Mobile 7% Rates matter, but tools and calculators are also important. Customers primarily want information on rates when they are researching credit cards (49%), mortgages/home equity loans (56%) and auto/personal loans (58%), but various calculators and tools play a role as well. For example, payment and fee calculators are highly sought after for mortgages, and product comparison charts are important for customers researching checking accounts (see Figure 6). FIGURE 6 Calculators And Tools Follow Closely Behind Information On Rates When Customers Seek Information Online Which types of online information or tools did you utilize in your research? (Select all that apply) Information on provider s current rates Checking (n = 168) Credit cards (n = 190) Mortgages /home (n = 621) Auto/ personal (n = 321) 34% 49% 56% 58% Product comparison chart 41% 28% 39% 26% Payment calculator 12% 5% 52% 53% Closing costs, points, fees calculator 15% 11% 52% 25% Affordability calculator Product recommendation tools based on needs Estimates on time provider would take to open account/approve loan Educational content on the application process 11% 9% 41% 37% 24% 14% 26% 16% 14% 15% 25% 22% 18% 8% 24% 16% Mortgages /home (N = 1,066) Auto/personal loans (N = 722) 1) Online (desktop/laptop) 41% 2) Branch: phone 37% 3) Branch: in person 29% 1) Online (desktop/laptop) 36% 2) Branch: in person 24% 3) Branch: phone 18% Base: US online adults who researched online Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014 Base: US online adults Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014

9 7 The Buy Phase: Combine Online Tools With The Human Touch Customers who reach the Buy phase are ready to make their purchase and now need to navigate the sales process. Along with the actual rates and prices, perceived value and ease of experience with the application process are crucial factors that allow financial institutions to improve engagement and drive cross-sell. the provider of their mortgage/home equity loans (85%) and auto/personal loans (84%). For checking accounts and credit cards, reputation was the top reason for selecting a particular provider (77% and 73%, respectively). Yet both the reputation of the provider and the existing relationship with the provider were among the top three reasons for choosing the provider of the financial product they purchased (see Figure 7). It is vital to maintain key customer experience tenets throughout the purchase pathway. When establishing a trusted reputation and building a relationship with customers at the Discover phase, financial organizations must maintain this bond consistently to the point when prospects finally select a provider to purchase the product. As prospects make these decisions, reputation becomes critical in some cases, even more critical than interest rates and fees. The study found that: Although rates are important for all financial products, reputation and relationships are also critical when customers finally choose a provider. Interest rates are the primary reason customers selected FIGURE 7 Reputation And Existing Relationships Can Be As Important As Interest Rates When Selecting A Provider When selecting the provider of your [product], how important was each of the following? (Those answering 4 or 5 on a 5-point satisfaction scale) Interest rate(and/ or APR) Checking (N = 362) 46% Credit card (N = 364) 62% Mortgages/home (N = 1,066) 85% Auto/personal loans (N = 722) 84% Reputation of the provider 78% 73% 77% 73% Existing relationship with provider 50% 36% 60% 52% Online reviews of the provider 35% 34% 39% 33% Recommendation of a friend or family member 46% 23% 43% 32% Recommendation of a professional 24% 16% 44% 31% Base: US online adults Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014

10 8 Even more than in the Discover and Explore phases, how customers apply for products in the Buy phase varies significantly, depending on the product purchased (see Figure 8). To treat them as a single experience would ultimately underserve customers. Customers in this study indicated that: Checking products need the human connection. An overwhelming 69% of those purchasing checking products do so in person at the local branch, with online applications trailing at a distant second (19%) (see Figure 8). to applying for the loan, most US customers turn to human touchpoints. Much like purchasers of checking products, mortgage/home equity loan and auto/personal loan customers primarily complete the Buy phase in person. Completing the process online or over the phone are key channels used to apply for mortgages and loans (see Figure 8). Credit card customers stay online throughout the purchase process. As in the Discover and especially the Explore phases, credit card customers follow through online, with 65% of credit card customers applying online via their desktop or laptop (see Figure 8). Both mortgage and auto/personal loan customers lean toward completing the approval process in person, with some completing it online. When it comes FIGURE 8 In-Person Contact Coincides With Online Applications For The Buy Phase For Financial Products Please select the method that you used recently when [opening/applying for] the [product]. (Select one) All other methods Online By phone In person at a local branch or office Checking (N = 362) Credit card (N = 364) Mortgages/ home (N = 1,066) Auto/personal loans (N = 722) 3% 19% 11% 11% 13% 5% 41% 24% 41% 8% 31% 69% 9% 65% 30% 20% Base: US online adults Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014

11 9 Understand Drivers Of Satisfaction To Improve Customer Experience And Conversion Every phase along the purchase pathway is an opportunity for financial institutions to establish meaningful interactions with customers in order to entice them to consider future purchases and establish loyalty. Conversely, a poor experience at any phase along the pathway may lead customers to disengage and seek a better experience with a competitor. Along with every other industry, generational factors drive the expectations of customers of financial institutions, and subsequently drive their satisfaction with these institutions. For example, younger customers who are more mobile and accustomed to instantly accessing content when and where they want it are also more fickle and more likely to express dissatisfaction with cumbersome processes. These digital natives not only have high expectations, but they raise expectations for older cohorts as well both as they age and as they influence older generations. 3 The study found that: 18- to 24-year-old customers expressed a lower level of satisfaction with the application process (77%) and were the least likely to recommend the provider (71%) compared with older generations. Satisfaction with the application process, in particular, correlates to age (see Figure 9). Customers are less satisfied and are less likely to recommend more process-intensive financial products. The application process for mortgages/home equity loans had the lowest satisfaction among the financial products studied (82%), while providers of auto/personal loans are least likely to be recommended to a friend or family member (75%). Meanwhile, the credit card a financial product that is largely explored and applied for online, and usually the easiest of all products to apply for has the highest satisfaction and is most referred (see Figure 9). Both satisfaction and likelihood to recommend the provider trend downward for younger customers. The FIGURE 9 Generational Differences Affect Satisfaction And Likelihood To Recommend How satisfied were you overall with the process of applying for the product? (Those answering 4 or 5 on a 5-point satisfaction scale) How likely are you to recommend your provider to a friend or family member? (Those answering 4 or 5 on a 5-point satisfaction scale) By age group By product type By age group By product type 18 to 24 77% Checking (N = 362) 87% 18 to 24 71% Checking (N = 362) 80% 25 to 34 84% 35 to 44 84% 45 to 54 88% % Credit card (N = 364) 90% Mortgages/home (N = 1,066) 82% Auto/personal (N = 722) 84% 25 to 34 80% 35 to 44 83% 45 to 54 82% % Credit card (N = 364) 75% Mortgages/home (N = 1,066) 79% Auto/personal (N = 722) 78% Base: US online adults Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014

12 10 These trends lead to rising expectations, and financial organizations must make a dedicated effort to match them. Experiences along the purchase pathway are the gateway for satisfaction with brands in general. They can also provide some key insight into why prospects may drop out during the process. Difficulties in finding relevant information in the Explore phase or not providing suitable support during the Buy phase resonate in customer perception of financial institutions as a whole. So making efforts to understand how to improve the experience can increase conversions and overall customer satisfaction. The study found that: A shorter, less intensive application/account opening process would improve the purchase pathway for all financial products. For checking, credit cards, auto/personal loans, and especially mortgages/home equity loans, both a reduction in paperwork and a shorter process for applying/opening an account are the top factors that would both simplify and improve the purchase process (see Figure 10). Many seek more information and increased online access. Transparency in the application process is key, with 14% of customers who purchased a checking account saying they wanted to better understand the steps in the application process before they applied. And 10% of those applying for credit cards said they wanted more clarity on rates indicating they had difficulty in uncovering vital information easily. Mortgage/home equity loan and auto/personal loan customers wanted the ability to go online to check their application status (23% and 14%, respectively) (see Figure 10). FIGURE 10 Customers Seek A Simpler Purchase Process What would have improved the process for you? (Select all that apply) Products Checking (N = 362) Credit card (N = 364) Mortgages/ home (N = 1,066) Auto/personal loans (N = 722) Base: US online adults Top Three Research Cited 1) Less paperwork 18% 2) Shorter process to apply/ 17% open account 3) Better understanding of steps in process 14% 1) Shorter process to apply/ 13% open account 2) Less paperwork 12% 3) More clarity on rates and fees 10% 1) Less paperwork 34% 2) Shorter process to apply/ 24% open account 3) Ability to go online to check 23% status 1) Less paperwork 21% 2) Shorter process to apply/ open account 16% 3) Ability to go online to check 14% status Source: A commissioned study conducted by Forrester Consulting on behalf of Deluxe, November 2014

13 11 Key Recommendations Meeting customer expectations across the purchase path requires a dedicated effort by financial institutions. Only those who prioritize their customers by delivering to an always on customer will create resonant experiences and ultimately shine above competitors. Decision-makers at financial institutions must: Collaborate across the business to deliver a better purchase experience. Deepen your understanding of the purchase journey and needs of different types of financial product purchasers by working with customer insight, marketing, and product teams. Leveraging data analytics and developing clear segmentation of product purchasers is important to gaining a deeper understanding of their needs in order to develop products, build website content, and design targeted marketing programs. Use digital to support prospects throughout the journey. Digital is important across all phases of the purchase journey. Breaking down the purchase path into stages Discover, Explore, and Buy will make it easier to focus on how to support prospects for each one of them. For example, during the Discover phase, it is important to take a needs-based approach to connecting with prospects and delivering educational content; in the Explore phase, prospects want a personalized experience with product recommendation tools and advice; and in the Buy phase, the application and closing experience should be fast and easy with digital enablement. Take a needs-based not product-based approach through digital touchpoints. The presentation of product and services information through digital touchpoints is still often very product-focused. But consumers don t think this way they have life events such as divorce, marriage, a move, or the birth of a child. And these life events have very different product needs. Digital teams need to think beyond just about putting needs-based content on educational pages, and look to embed needs-based language, information, and tools throughout the site and into the researching and buying process. For example, leading credit card issuers are taking a more needs-based approach to digital content and tools, such as with a credit card home page that helps prospects find the right card based on their need. A large North American bank embeds needs-based categories into its home page, such as retirement, going to college, protect what counts, and home lending ; and a leading bank in Australia takes it a step further by embedding a needs-based approach into its home page navigation. A needs-based approach to content and tools also makes it easier to explain why consumers may need related products, and digital teams should consider embedding tools into key product pages and application forms to help customers uncover additional needs. Ensure that simple, multichannel sales processes exist. Map out cross-channel interactions to develop frictionless handoffs between digital and human-assisted channels. For example, let customers switch channels during their application process, such as starting online and finishing in the branch or call center without having to step back in the process or re-enter any data. Financial institutions are doing this by ensuring that interactions that take place in different channels are connected to the same customer/member profile in their CRM systems. Weave human and digital together to amplify sales. The greatest competitive advantage established firms have in an era of digital disruption is in weaving human and digital touchpoints together. Despite the growth of digital touchpoints, human assistance continues to play a pivotal role in the purchase journey for financial products, from researching through to finding the right product and applying. Digital teams need to make it easy for existing customers and prospects to get human assistance through websites and apps. In some cases, such as applying for a product, immediate assistance through tools such as video chat, click-to-call, or click-to-chat can increase conversion and completion rates. For more complex products, such as mortgages and loans, consumers want guidance and advice on the purchase. So to improve engagement and increase overall sales, financial institutions should empower employees with digital tools, such as tablets filled with sales and service tools to help associates perform a needs assessment, deliver personalized product offers, and offer immediate paperless account opening.

14 12 Appendix A: Methodology In this study, Forrester conducted an online survey of 3,597 adults in the US who purchased a checking product, applied for a credit card, applied for a mortgage/home equity loan, or applied for an auto/personal loan. Questions provided to the respondents asked what channels they utilized in becoming aware of, researching, and ultimately purchasing financial products as well as how satisfied they were with the process. The study began and was completed in November Appendix B: Endnotes 1 Source: Digital Disruption Hits Retail Financial Services, Forrester Research, Inc., July 16, Source: Trends 2015: North American Digital Banking, Forrester Research, Inc., April 15, Source: Digital Financial Innovation Is The Antidote To Disruption, Forrester Research, Inc., February 10, 2015.