Most would agree that the platform side of the branch plays acritical role in the success of branch network profitability. Yetmanagement has struggled with fully understanding the overallperformance in the lobby due to various systems capturingfragmented sales/service information such as DDA systems,time/deposit systems, loan systems and credit card systems—and inmost cases no dedicated systems for tracking lobby service.

Financial institutions may perceive their less-than-ideal handleon lobby performance to be sufficient and do not see a remedy worththe expense or the disruption. However, a recent study indicatesthat lobby performances are having a much greater impact on thebottom line than previously thought.

Specifically, in the FMSI branch lobby study of 344,000interactions, FMSI found that on average 65% of the platformactivities do not involve selling products. With sales beingsuch a vital part of most branch operations, this number has beenalarming for many— especially for the bottom institution of thestudy who had only 23% of their platform activities involvingselling new products.

Other disparities from the study include vast differences inmember wait times (top performers vs. group) and average assisttimes between account holders and lobby service representatives(top performers vs. group).

There are several approaches financial institutions can take toimprove their lobby performance; and clearly defining the role ofthe lobby service representatives is the foundation for anyenhancements. Is the lobby service representative an ordertaker or a professional sales consultant? Should they bespending the majority of their time handling service relatedinteractions or selling products? Once you have determinedwhat you want out of your lobby employees, you can employ some orall of the below tactics to turn your lackluster lobby performancearound.

Utilize Extensive Reporting to SupportDecisions

Leveraging retail branch business intelligence in order toimprove lobby sales and service performance needs to be an everydayinitiative, with an emphasis during periodic reviews. Bycollecting and displaying the right data, queue managementsystems—which are Web-based applications— help establish theprocedures that drive the right employee behaviors, such asstronger specific product sales and eliminating excessive accountholder assist times.

Channel Lobby Service Traffic to CallCenter

Many of the simpler interactions that take place in the lobbybetween the account holder and the service representative arebetter suited to be handled over the phone by the institution'scall center. This option provides account holders with convenience.They would not only save time waiting for a service representative,but they would also avoid the inconvenience and time associatedwith driving down to the branch.

To avoid keeping the right account holders away from your lobby,it is important to note that simpler interactions should be clearlydefined and carefully communicated to your account base.

• Work with your marketing team on developing the right emailand/or direct mail communications to promote this message.
• Train your branch service representatives to offer thesuggestion when appropriate.
• Display signs at the branch.
• Have a dedicated call center phone and/or a kiosk in thebranch.

Deploy Self Directed Technology — LikeKiosks

There are sophisticated self-directed technologies in themarketplace enabling account holders to complete some lobbyinteractions, such as NCR's new Video Teller Machines andinteractive Kiosks. Investing in this technology can decrease waittimes, reduce labor costs, portray your branch as beingtechnologically advanced, and gives access to branch servicesoutside regular branch hours.

Migrate to an Online Sign-In Process

An electronic queue management system moves all the informationflow online. Designated financial institution employees, includingsenior-level staff, can see real-time views of account holderswaiting in their lobby. The result is a systematic tracking systemthat establishes accountability on the platform side of thebranch.

Outbound Call Management During SlowPeriods

Improving product sales requires great follow-up activity. Setweekly outbound call goals for your service representatives.Measure these activities and manage the behavior through keyperformance management information.

Whether branches are suffering from lackluster lobbyperformances or not, the platform side of the branch deserves acloser look to determine if the actual performance is achieving thedesired sales and service results. The impact on the bottomline can be much more harmful than previously thought.

W. Michael Scott ispresident/CEO of FinancialManagement Solutions Inc. in Alpharetta, Ga.