Harland Clarke Delivering Value - Robineileenbernstein

Delivering ValueDeliveringValue(continued from cover)Bank. “We found that self-service internet check ordering isnot only a necessity in today’s world, but also an opportunityto be all things to all people.” Snelson notes that thepercentage of customers using the bank’s website to ordercheck products has more than doubled.“That’s another opportunity missed,” says Wier. “This group ofconsumers is often willing to pay extra for check designs andaccessories that appeal to them.”Regional community banks that encourage brick-and-mortarbanking ought to consider ramping up their online checkordering capabilities. “We’re not saying don’t take time withnew account holders,” says Bob Williams, a member ofHarland Clarke’s e-commerce team. “Rather, use that time forbuilding the relationship.” (See related articles on pages 8 and13.) The fact is that a growing percentage of account holdersare internet-savvy and find it more convenient to handlecertain aspects of banking online, such as ordering checks.Internet (over FI-assisted)Where Do You Stack Up?Score yourself on the following eight recommendations (seescorecard on opposite page). The maximum score is 20points. Anything above 10 is good. Share the results with yourIT department or website administrator, and then take thenecessary steps to make your website “check friendly.”#1Build a friendly jump page. Create a friendly,reassuring “jump page” or “transitional page”that will help consumers understand the checkprovider and the ordering process, advising the customer thatHarland Clarke is the preferred, secure check provider foryour organization. Many online banking websites feature legaldisclaimers with negative-sounding wording that may leaveaccount holders wary of clicking. Also, consider including therouting number of your bank and information about how thecustomer will be billed.DeltaAvg. Customer Spend 8Avg. FI Cost- 2Avg. FI Profit 6Fortunately, there is a way to satisfy even the mostenthusiastic and leisurely check shoppers and still give branchpersonnel the time to focus on selling more complex products,such as loans or investments, which require more involvedone-to-one communication. “The solution is easy,” saysWilliams. “Take some or all of our eight recommendations,and watch your check ordering move online and your checkprogram improve.”Score: 1 point for using a jump page. Add 1 extra point if itis friendly.#2Enable “integrated” ordering from onlinebanking and allow personalization andshipping changes. If you are not doing so,consider adding Harland Clarke’s integrated link to your onlinebanking site. This will pre-authenticate your account holders,simplifying and further securing their order process. Onceintegrated ordering is in place, allow personalization andshipping changes. This resolves some of the main reasonsthat people do not self-fulfill their orders online.A Frustrating SearchWhy do many banks have low percentages of web checkordering? Harland Clarke’s e-commerce team has foundseveral patterns. For example, the check order page, if it isthere at all, is often buried deep within the bank’s website.Consequently, when consumers head to their computers toorder checks, they often cannot find the page they need. Theend result is a frustrated customer or, worse, a customer whotakes her business to direct check providers.Score: 2 points for integrating with Harland Clarke. Add 3 pointsfor allowing address changes.#3Link directly to authentication page. Fordirect links to Harland Clarke that requirethe customer to log-in using routing andaccount numbers, link the customer directly to the page thatprovides the log-in. Do not link customers directly to homepages, which are other pages that do not provide a log-in form.Depending on your ordering system, use one of these pages:“Checks are one of the top things that account holders lookfor when they log on to their financial institution’s website,”says Williams. He worked with one bank in Rhode Island thattracks keyword searches and found that “check ordering” wasthe top search phrase by customers. “They expect to click onthe order page quickly but, in reality, when they look for it, it’soften very hard to find.”www.checkreorderexpress.com (former Clarke American system)Yet banks that go the extra mile to provide easy and secure24x7 access to online check ordering are pleased with theoutcome. “One of our goals was to increase our customerbase without adding staff,” says Sherry Snelson, anemployee-owner with the Missouri-based Phelps Countywww.checksconnect.com (former Harland system)reorder.libertysite.com (former Liberty system)Score: 1 point for sending account holder to authentication page.4

SeptemberSeptember 2008#4#8Optimize site search. Offer a searchcapability and make sure “check ordering”keywords are included. A search for checkrelated keywords should result in relevant check-orderingsearch result choices. Alternately, use a quick-links section onyour site.Link page placement. Use the top and leftside content areas of your website for menusand links, including a check-ordering link,instead of the middle, right side or bottom of the web page.The phrase “order checks” is more friendly than“reorder checks.”Sample search fieldScore: 2 points for a check-ordering link on the left side or top ofthe web page.order checksThese are keywords to include:Online Ordering Score CardSample Quick Link checksMaximum Score 20 points order checks8 Best-Practice Recommendations reorder checks#1: Friendly jump page1 point for using a jump page. Add 1 extrapoint if it is friendly. personal checks business checks#2: Integrated ordering and addresschanges2 points for integrating with Harland Clarke.Add 3 points for allowing address changes.#3: Direct link to the check orderinglog-in page1 point for sending account holders to anauthentication page. check orderingScore: 3 points for having check ordering in search. Add 2 pointsfor having a quick link.#5Offer multiple links to check ordering.Create the ability to link to check orderingfrom both within and outside of onlinebanking. Create links from multiple locations where an accountholder may be thinking about or looking to order checks.Locations for these links include online statements and in your“contact us” and customer service pages.#4: Site search3 points for having check ordering in search.Add 2 points for having a quick link.#5: Multiple links to check ordering2 points for links both inside and outside ofonline banking.#6: Text links vs. image links1 point if your check ordering link is a textlink versus a graphic or button.Score: 2 points for links both inside and outside of online banking.#6#7: Listing a shortcut link, then phonenumber2 points for listing URL before phonenumbers on printer order directives.Use text links vs. image links. Wherepossible, use text links instead of imagesor buttons. Text links are more intuitive topeople who are quickly scanning a page.#8: Link page placement2 points for check ordering link on left sideor top of web page.Score: 1 point if your check ordering link is a text link versus agraphic or button.#7YourScoreTotal ScoreList link, then phone. On reorder forms, boxtops, and other printed order directives, listthe website address before the phone number.For more information on how to move check orders out of yourbranch and onto your website, request a copy of Harland Clarke’sfree white paper titled Best Practices for Online ConsumerCheck Ordering. Contact your Harland Clarke account executiveor write us at: harlandclarke.com/contactus.Score: 2 points for listing a URL before phone numbers on printedorder directives.5

Delivering ValueReaching Out to EntrepreneursHarland Clarke shares its expertise and commitment to your small business clientsDelivering Value recently spoke with Rick Osewalt, Harland Clarke’s vice president of marketing for businesssolutions, about how financial institutions can find and acquire small business clients.Citing statistics from Warrillow & Co., an advisory service for enterprise companies targeting the small andmidsize business (SMB) market, Osewalt makes a strong case for banks to reach out to entrepreneurs. “Theworst thing you can do is ignore the small business market,” he says.DV: Why seek out small business customers now,when the economy is in a downturn?(finance, insurance and real estate). Muchdepends on your branch location — is it in anurban, suburban or industrial area? Spend yourmarketing dollars on the types of businesses thatare prominent in your neighborhood.RO: Because the entrepeneur segment of the marketremains highly optimistic. According Warrillow &Co., nearly half (40.9 percent) of entrepreneursare optimistic about their own sales, whereas only27.5 percent feel optimistic about the economyin general. They are excited about their own newideas, and their passion and drive to succeed willhelp them thrive in a down economy.You need to think of yourbranch as part of that localbusiness services network.DV: How can banks and credit unions find thesesuccessful entrepreneurs?RO: Find out what they’re reading and watching, andconsider using those media outlets to promoteyour institution. Warrillow’s Market Insightsfound that more than a third of optimisticentrepreneurs (35 percent) read their industry’strade publications; nearly three in four (74percent) read their hometown newspaper; and 19percent read The Wall Street Journal. Also, morethan half (56 percent) listen to morning driveradio, and the majority prefer news/talk formats.And the website they visited most during a normalbusiness day was msnbc.com.DV: What is the biggest challenge to acquiring smallbusiness accounts?RO: They often like to work with other small “momand-pop” businesses in their local area, where theyfeel they can get personal service. You need tothink of your branch as part of that local businessservices network.DV: How should a financial institution decide whichbusinesses to target?RO: Nearly half (43 percent) of entrepreneurs arein service industries such as consulting, healthcare, law, graphic design, computers and so on.Only 18 percent are in retail and fewer still arein construction or the so-called FIRE industriesDV: What are some other characteristics thatfinancial institutions should know aboutentrepreneurs?RO: During an economic downturn like we have now,entrepreneurs will switch vendors, if they need to,and they’re looking to adopt products and servicesthat improve productivity. They want to havemore control over what happens and they’re veryattuned to efficiency. So this is an opportunity forbanks to promote self-service features, such asonline banking and remote deposit capture, whichenhance productivity.DV: What about using online networking sites as away to reach entrepreneurs?RO: Warrillow found that more than two-thirds of fastgrowth entrepreneurs are registered on LinkedIn,the online business networking site. Socialnetworking sites such as Facebook and Twitterare growing rapidly, too. Banks might considerexploring these sites as yet another way to reachsmall businesses.6

September 2008DV: What types of bank promotions or marketingactivities might appeal to entrepreneurs?RO: Campaigns that offer free tickets for local sportingevents are always popular. Other marketingpromotions could include free seminars orworkshops for small businesses on topics such ascash flow management. Newsletters focused onthe financial needs of entrepreneurs are anotherpossibility. The bottom line is to decide what wouldwork best for your bank. What is your budget? Howmuch of a marketing commitment are you willingto make?through a trusted supplier and save valuable timeworking through their branch?DV: Why would a branch want to compete with its localoffice supplies store?RO: Because everyone wins. The customers win becausethey get the right products without having to shoparound. The bank wins because it maximizes feeincome, and it gets satisfied customers who nowview the branch as more service oriented.We essentially can become apartner to banks and credit unionsin supplying entrepreneurs withone-stop shopping.DV: Give us an example of how Harland Clarke can helpa local branch with its small business accounts.RO: A perfect example would be computerized checksand laser checks, which are popular with smallbusinesses. Both are higher-ticket items. We’renot talking about a 20 box of personal checks;these are orders that can cost hundreds of dollars.Entrepreneurs usually have questions about thesoftware compatibility of their checks, and thesolutions can be complicated. Often the branchemployee isn’t as knowledgeable about theseproducts as we are. We can get on the phone withentrepreneurs and talk them through the sale, whichis better than having them leave and take their orderto a non-endorsed check printer.DV: What sort of problems might arise ifentrepreneurs don’t use a financial institution forcheck products?RO: There can be quality control issues, which can beexpensive. For instance, if they go to an unapprovedcheck vendor, they run the risk of having a bad MICRline or poor imagability, which in turn causes rejectsthat cost the bank money. And the banks then mayhave to charge the small business. Security andfraud can also be issues if the customer orders fromanother printer that doesn’t have security measuresin place during the printing of the order.DV: What’s the most important piece of advice you canoffer financial institutions that want to reach outto small businesses?RO: Have a plan. Understand exactly who you aretrying to target. Are you going to concentrateon established businesses, or on the SOHOentrepreneurial start-ups? Which industries willyou target? Once you understand where you wantto focus, get to know that segment as well as youcan. Research it and understand its population.Know why they buy what they buy. Then target yourpromotions to that segment. To paraphrase an oldsaying, “If you don’t know what port you’re steeringfor, no wind is the right wind.”DV: Does Harland Clarke provide other services forsmall business account holders?RO: We like to serve as a partner to banks in supplyingentrepreneurs with one-stop shopping foreverything they need, whether it’s check accessoriessuch as security bags, stamps and binders, businessforms, stationery or promotional products. Whyshould they use another vendor when they can order7

Delivering ValueSeven Steps to Improve YourCustomers’ Branch ExperienceBy John Meyer, Vice President, Harland Financial SolutionsThe following abstract is available in an extended white paper format. If you would like a full copy, contact yourHarland Clarke or Harland Financial Solutions account team or write us at dv-editor@harlandclarke.com.How do your prospective account holders feel about going into your branch office? Do they have anxietieslike: ”Is my bank working in my best interests?” “Is this the lowest rate?” “Will I become just a number?” Thiswhite paper addresses seven steps you can take to improve the branch experience and start building longterm relationships.Step 1: Create a vision of what you wantyour account holder experience to be.high-turnover branch staff to have a needs assessmentculture. In such a culture, staff should treat each customerinteraction as an opportunity to identify spoken andunspoken financial desires and then offer the right-fitproducts and services to meet those needs. This type ofenvironment cultivates long-term, lifetime account holderrelationships, which are far more profitable than simplythat second service sale.Too many financial institutions say their number-onedifferentiator is customer service. But with more than17,000 banks, credit unions and thrifts competing to be theprimary financial institution for consumers and businesses,can there really be 17,000 flavors of differentiatedcustomer service?One study showed that 70 percent of a bank’s productsand services are sold throughout the lifetime of acustomer’s relationship, beyond the early months of newaccount opening. Another study showed that 80 percentof these products and services are opened in the branch.To truly set your institution apart, you have to first definewhat you want your account holder experience to be. Forexample, if your institution caters to small and midsizebusinesses, offer remote deposit capture for the ultimatein convenience. If your institution markets to retirees,deliver your service on-site — once a week, once a monthor year round.Step 3: Teach your team the essentials ofyour offerings.Step 2: Develop a needs assessmentculture.A typical customer service representative can discuss sixproducts or services in detail. That’s simply not enough.The key to identifying right-fit products requires knowingall the products and services well.With the proliferation of free checking and account holderswith deposit accounts at numerous financial institutions, itbecomes more difficult to define which financial institutionis truly the primary institution. Cross-selling a second orthird service is not enough to claim a relationship. It’s allabout discovering and meeting real needs.How do you get there? The answer is train, cross-train andmake sure the branch management team is involved —both in product training and service training.Financial institutions must find a way to teach the skillsrequired in order for an already busy, sometimes➋➊8➌

September 2008Step 7: Enable intelligent decisionsand actions.Step 4: Increase account holder rapport.Friendly communication is much more than small talk andpleasantries. It’s true account holder appreciation — fromstanding and smiling to greet new or returning accountholders, to proactively calling them to check in if youhaven’t heard from them in a while. Make an effort to findout real information about account holders and then send apersonal thank you note the week they open an account.To improve the account holder experience and buildstronger relationships at the branch level, your branchteams need access to customer segments, histories andprofitability measurements. Equip them with the toolsthey need to deliver and act on key customer informationat the time of service. Back-office customer intelligencecan monitor customer life stages and inform teller or newaccounts personnel about products or service offeringsthat other people in that same life stage are usingeffectively.Step 5: Reward your team for good work.Incentives change behaviors, but only if you reward theright behaviors. Incentive plans can be very effectivewhen they are designed properly, and when their resultsare measured frequently to make sure they’re actuallyhelping you build account holder relationships. Frequentrecognition programs can cost relatively little but yield agreat amount in fostering an atmosphere of respect andtrue service.The integration of customer intelligence and branchautomation addresses the challenges of team knowledgeabout the best right-fit products. It enables your teamto offer detailed product offerings matched to specificsegments. Branch automation systems can help buildaccount holder rapport.Improving your account holders’ branch experiencerequires a well-defined plan for how to treat them. Suchchanges include specific behaviors that make accountholders feel like your financial institution cares about themand their needs. Branch team members can use customerintelligence to better meet those needs and preferences todeliver the type of experience that builds relationshipsfor life.Step 6: Reward your account holders.Designing an effective rewards program starts withunderstanding the account holder relationship in terms ofprofitability, not in terms of the number of products theyhave. Profitability ties back to household relationshipsand the costs associated with servicing these households.Understanding profitability by household enables you tocraft rewards based on deposit balance, loan balance andinvestment services.John Meyer (john.meyer@harlandfs.com) is a vice presidentwithin Harland Financial Solutions’ Integrated Solutions Group.Your reward programs can positively impact your keyaccount holders’ branch experience — from access tospecial teller lines to free branch services, includingdocument shredding, financial adviser visits, and personalcredit checks, among others.➐➎➍➏9

Delivering ValueSolution SpotlightAs Credit Crunch Tightens, FinancialInstitutions Look Within for Opportunitiesextend new lines of credit due tomarket conditions.A High Volume of UntappedAccount Holder Credit SpursAppeal of “Optimization”MarketingCut Risk and Boost ROI WithHarland Clarke’s CreditOptimization SolutionExisting credit card account holdersare a known quantity, explainsNekasha Ross, marketing servicesmanager with Harland Clarke. “Youknow more about their level ofcredit risk,” she says. Having readyaccess to account and paymenthistory enables bankers to be moreselective about whom they targetand allows for more customized messaging and offers.As the mortgage crisis continues to wield a tight gripon the banking industry, financial institutions arescaling back their pursuit of new lending relationships.In effect, marketing to existing account holders canbe less risky since financial institutions can conductperiodic reviews of their revolving credit accounts.“In the first quarter alone we have seen a 50 percentdecline in secured loan direct mail solicitations,”says Stephenie Williams, senior strategic accountplanner for Harland Clarke’s Marketing Services ClientStrategy department. “That’s a key sign that banks arefocusing inward. There’s not much appetite to look fornew customers because the possibility of default istoo high.”“By looking at how long customers have been with youand their payment histories and whether they haveother accounts with your institution, you can makemore informed decisions and identify who is less likelyto default,” she says.Another reason to target existing credit accountholders is that they are up to six times more likely torespond than outside prospects, according to bothRoss and Williams.Not surprisingly, banks and credit unions are turningto their own backyards to cultivate less risky growthopportunities. One example is the focus on revolvingcredit lines that are not fully utilized by a financialinstitution’s existing a

Harland Clarke In search of untapped potential for its clients, Harland Clarke’s e-commerce team performed a comparative analysis of the results from client check programs, drawing correlations between check program profitability and order channel mix (branch versus phone versus web). The t