Self-service technologies are a key aspect of business for today’s most successful banks. Research shows that institutions that effectively employ this technology and build strategies focused on customer value find significant cost savings and increased customer loyalty and satisfaction. While ATMs may be the main players in the self-service space, another service that should not be overlooked is the self-service coin machine.
A service customers count on
Consumers are finding it increasingly difficult to cash in their change without being charged a significant fee. Branches that offer self-service coin redemption stand to gain a competitive advantage over peer institutions where it may be lacking, while also helping to build stronger relationships with current customers. In fact, sixty-four percent of people who redeem coins prefer to cash them in at the branch.
Financial institutions also stand to benefit in a multitude of ways by offering this service, including added customer satisfaction, increased foot traffic, and the ability to remove inefficient processes associated with tellers handling coin. A recent case study showed that an average of more than 40 teller hours per month was gained in branches where customers processed coins using self-service machines. In addition, about 250 customers per month were coming into branches to redeem coin, presenting an invaluable opportunity to connect positively with customers and cross-sell other products.
Building stronger branches
While many have predicted the closing of America’s branches, customers are still choosing in-person banking experiences. Rather than becoming obsolete, they are taking on a new meaning creating opportunities for greater profits. While the majority of today’s customers prefer interacting with their institutions online, nearly half of customers still visit their bank branch more than 10 times per year. Branches are transforming in an effort to remain relevant and provide fulfilling customer experiences in both the digital and physical spaces. A self-service coin counter located in a branch offers an additional reason for customers to visit when it comes time to redeem coins. According to an Accenture report, banks with high numbers of customers engaged via self-service are often among those banks with the highest rates of loyalty and customer satisfaction.
Reducing wait times
With counters able to process up to 4,100 coins per minute and customers no longer needing to wait for coins to be hand processed, a self-service coin machine can go a long way toward speeding up wait times and bolstering a branch’s automation strategy. When customers do visit the branch their time is limited, with 64% of respondents in a recent survey indicating they are willing to wait less than 10 minutes. A key recommendation to help reduce or eliminate lobby wait times is to deploy self-service technology.4 Such technology has a direct impact on wait times and labor costs, while also helping present the branch as being technologically advanced and customer focused. Interactive screens, such as the ones featured on self-service coin machines, were recently ranked as the most important in-branch technology.5
Value added differentiation
Customers overwhelmingly are in search of value when it comes to banking, with saving money as the top reason that they would stay loyal to their bank. On the opposite side, the main reason people leave their bank is for less costly products and services, making a self-service coin machine a potential key differentiator for customers when comparing banks.
With customers appreciating the added service and corresponding time/cost savings and branches benefiting in the forms of increased traffic, enhanced customer loyalty, and improved teller efficiencies, self-service coin can be win-win for both parties.
Source: ABA Banking Journal, CA