To successfully transition customers from physical branches to digital channels, it is not enough to provide the best experience in mobile or online banking alone. It is just a part of the larger journey of an offline customer to an online one. Initiatives beyond the digital channel are mostly needed for the initial entry into the digital channel: onboarding on the website, in the branch, at the ATM during card activation, and so on. Therefore, it is important to see this entire path: all touchpoints and processes built around the digital channel that impact its success.
At the start of the project, the bank's customer base was predominantly salary-based customers, and the proportion of mobile banking users among them had been steadily increasing since the beginning of 2019. However, there were significantly fewer new retail customers "from the street," and they converted to mobile banking users much less effectively. In recent months, the penetration of the app in this segment either remained stagnant or showed minimal growth.
To improve this metric, our client began implementing individual solutions to attract new customers to the mobile banking app. They developed promotional materials, scripts, and a motivation system for client managers. Despite these efforts, the number of installations among new customers grew only marginally.
It was necessary to identify the weak points in the customer onboarding process and find ways to improve it, creating a comprehensive system for attracting new customers to the mobile app.
Contents
Through data analysis provided by the bank, we understood that the majority of new retail customers were initially not motivated to use the mobile banking app due to various reasons: lack of experience, reluctance to learn a new service, time constraints, or difficulties with digital channels.
People simply did not proceed to install the mobile app. Therefore, the main priority of the strategy became strengthening communication during the debit card application process and afterward, if the customer still hadn't become a user of the app, as well as simplifying the transition to installing the mobile banking app.
Such customers cannot be passively informed about the existence and benefits of the mobile app; they need active communication across various channels, showcasing different values, and ultimately offering the most convenient and understandable path to achieving their goal. In other words, guiding them on how to quickly and easily install the app and start using it.
To develop an effective strategy, we thoroughly studied the entire journey preceding the customer's transition to the online service channel and all the main interaction channels with the bank.
It is important to initiate communication during the brief moment when the customer receives a card, seeks consultation, solves a task at a branch or ATM, or searches for information on social media. All communication about the mobile app should show the customer that they haven't just obtained a debit card, but have gained the ability to conveniently manage their finances.
Receiving the card and the first days of usage are the best time for mobile banking onboarding. The process of obtaining a debit card is often the customer's first significant contact with the bank. It is crucial to dedicate special attention at this stage to inform the customer that they can manage their card and finances remotely through the mobile banking app.
To understand how the bank promotes the mobile app during these stages, we analyzed three scenarios of ordering and receiving a debit card, as well as the need for further consultations at the branch or over the phone:
The problem was quickly identified: during the card pickup, activation, and the first three days of usage, the customer received either 1-2 messages about the mobile app or no information at all. For comparison, a new customer of Tinkoff Bank receives 6 messages about the app through various channels within 4 days.
Expectation: Bank employees would proactively inform customers about the mobile app and be able to answer questions regarding its functionality.
Reality: Without the customer's request, employees did not provide any information about the app. When asked, they gave incomplete answers, did not use a script, and did not have leaflets with app information at hand. They had to verbally explain how to find the app and what its icon looks like to answer customer inquiries. Along with the card, customers did not receive any printed materials that could compensate for the lack of initiative from bank employees.
In other channels through which customers received messages from the bank (SMS, email), there were no offers to install the mobile app in the first few days after card pickup. Emails catching up with customers who had not registered in the app were only sent after two weeks.
The higher the communication saturation, the higher the likelihood of engaging unmotivated customers. If it was not possible to convert a customer into a mobile banking user during the product registration phase, convincing them of the usefulness of the mobile app can be achieved through active communication in their familiar offline channels—where a significant portion of traditional bank customers begins using financial products.
It is important to increase the amount of content and place information about the app on all mediums and communication channels. For example, on the surface of ATMs, queue tickets at branches, receipts after transactions at ATMs, SMS messages after transactions outside the mobile app, information prompts during contact center calls, and increase the number of messages on social media.
For different channels, we have identified growth points and formulated recommendations on how to effectively convey information about the app to customers.
To find opportunities for increasing app installations among new customers, we focused on specific segments with specific initiatives and achieved an effective combination of resources and results. With our assistance, the bank's team was able to gain a fresh perspective on their processes, understand customer difficulties in interacting with the bank, set clear goals for changes, and establish control over their implementation. As a result, the conversion of new cardholders to the mobile app increased.
This case study demonstrates the effectiveness of a comprehensive customer engagement strategy to transition customers from physical branches to digital channels. By optimizing the onboarding process, enhancing multi-channel communication, and providing consistent information about the mobile banking app, the bank significantly increased the conversion rate of new cardholders to mobile app users. The project highlights the importance of understanding customer behaviors, addressing their needs, and leveraging various touchpoints to drive digital adoption and improve overall customer experience.
Every year we conduct up to 15 studies of digital services. These are industry benchmarks that reflect the state of the market and trends.