Multichannel Sales Report
The fifth annual Efma-Finalta Report on Multichannel Sales Productivity in Europe published today anticipates that fully cashless branches will become mainstream in the next three years, as banks see a significant growth in direct channel sales. The new report finds that the role of direct channels has significantly changed within the banking industry over the past 12 months.
Despite limited investments in 2009, direct channels increased their sales contribution at a faster rate than ever before. The share of retail bank sales from direct channels rose from 12.2% to 15.4% year-on-year. Bankers forecast rapid future growth, estimating that by 2012 direct channel sales will account for a third of all products sold, driven by a doubling of the internet sales contribution.
The report shows, taking an aggregate view across customer segments, that banks have three clear priorities for direct channels in 2009:
- sales growth
- service improvement
- cost reduction.
These objectives differ significantly by customer segment.
For most banks, Finalta advises that better measurement of lead generation, sales process improvement and CRM enhancements should be priorities in 2010. Customer intelligence and personalisation will be the key differentiator of direct channel sales success.
“Multichannel banking is more relevant than ever” says Christine Wood, Finalta Director. “However, to succeed in achieving predicted levels of growth over the next three years, banks must ensure that direct channel strategies are aligned with customer value, that there is a clear road map for sales growth and that organisational issues do not become a barrier. Until banks challenge the ‘branch is king’ mentality, their direct channel sales growth will remain constrained.”
Over 260 participants from approximately 40 European countries have taken part in this research over the past five years. Respondents were typically Head of Direct Channels or equivalent.