Marketing

Nationwide combines tradition and modern technology to raise customer satisfaction

March 30, 2015

Global

March 30, 2015

Global
Martin Koehring

Senior Manager for Sustainability, Climate Change and Natural Resources & Head of the World Ocean Initiative

Martin Koehring is senior manager for sustainability, climate change and natural resources at (part of The Economist Group). He leads Economist Impact's sustainability-related policy and thought leadership projects in the EMEA region. He is also the head of the, inspiring bold thinking, new partnerships and the most effective action to build a sustainable ocean economy.

He is a member of the Advisory Committee for the UN Environment Programme’s Global Environment Outlook for Business and is a faculty member in the Food & Sustainability Certificate Program provided by the European Institute for Innovation and Sustainability.

His previous roles at The Economist Group, where he has been since 2011, include managing editor, global health lead and Europe editor at The Economist Intelligence Unit.

He earned a bachelor of economic and social studies in international relations from Aberystwyth University and a master’s degree in diplomacy and international relations from the College of Europe.

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Banks and building societies are often cited as a classic example of technological challenges: their retail customers expect to be able to access their accounts over the web or on their mobile phones, and in practical terms there can be no difference between the online services and going into their local branch. Financial institutions have generally accepted the challenge, with varying degrees of success. However, by and large they have failed to use technology to cut back on the massive costs of running a branch network still preferred by many customers as a source of face-to-face advice.

That is why many are eying with interest the example of Nationwide in the UK. The building society partnered with Cisco in 2013 to introduce Internet-based video conferencing in its branches, giving customers fast access to expert mortgage advice and saving on the need to have expensive specialists in each branch. "Customer satisfaction increased markedly," says Cisco’s managing director of global industries, Paul Jameson, "and costs fell sharply."

The building society launched a pilot project in January 2013, offering customers in some rural branches the chance to speak to remote mortgage experts, talking them through the loan process and application over a high-definition Internet video link provided by Cisco. Some branches can be too small to house such experts cost-effectively, so this was a way to speed up access to good-quality advice as well as to save money on employing mortgage experts in each branch. Even in well-staffed urban branches customers would often have to wait to see an expert or schedule an appointment for a later date. Close to one-third of customers would simply go to a competitor bank to save time instead, costing Nationwide business.

Within a few weeks Nationwide found that the branches offering remote access reported higher customer satisfaction ratings and were doing better business than a test group of traditional outlets and started to roll out its remote-access programme to its other branches. By November 2013 it had seen a 66% increase in new mortgage business, double-digit growth in customer net satisfaction, and it had cut the cost of sales in the mortgage division by two-thirds.

Nationwide has worked hard to merge the use of the new technology with the traditional personal atmosphere of a branch visit. Customers wanting mortgage advice are greeted by staff who book them into a meeting through the building society's online schedule and set up the video conference. They can provide any necessary documentation, meaning that the customer regards the online service as part of the branch service, rather than as separate.

The exciting thing, of course, is how far this idea could be stretched, both to other branch services such as investment advice and to offering people direct advice through their home or office PC. "Telling people where and when to go for advice does not fit with modern lifestyles," explains Mr Jameson.

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