We all appreciate good advice and often, we need to look to more than one source to find it.
For example, a recent article in The Financial Brand titled “Just Say ‘Hello’: Almost 60% of Bank Visits Start Without a Welcome”, alludes to a study by Adrenaline—“Closing Customer Experience Gaps in Branch Banking”—that paints a picture of branch visits that fail to “inspire any intent to return”:
“Most damning, 62% of visits failed to inspire any intent to return, turning what should be relationship-building moments into forgettable errands that subtly encourage customers to handle future needs digitally or with competitors. This matters because branches still drive banking relationships in ways digital channels cannot replicate. A third of consumers cite access to a local branch as a primary reason for choosing their current bank.”
The study points out, and I’ll summarize here, that:
- 58% of branch visits begin without any kind of greeting or welcome from staff.
- 66% of interactions feel “product-led” rather than “needs-based,” making customers feel sold to instead of understood.
- 98% of staff never use tablets, QR codes or digital tools during customer interaction. Digital tools go unused, and
- As mentioned above, 62% of visits failed to inspire intent to return.
In short, the article argues that a community bank must focus on hospitality and relational engagement, thus transforming branch visits into relationship-building customer touchpoints, not simply a place for transactions.
All of which makes perfect sense.
By contrast, however, an Apiture study, “Apiture Study Identifies Consumers’ Top Motivators for Switching to Community Financial Institutions”, tells us that consumers are motivated to change banks based not on greeting or in-branch hospitality, but largely on factors such as rates, fees, and the digital experience:
“As community financial institutions continue to compete with national banks, the report notes the growing importance of digital banking, with 63% of consumers agreeing that their financial institution’s digital banking capabilities are more important day-to-day than physical capabilities, such as branch locations.” Delving in a bit more deeply and, again summarizing, the survey says:
- Better interest rates: 54% of respondents cited this as a top reason to switch.
- Lower fees: 49% said reducing fees is a motivator.
- Online/mobile banking capabilities: 63% said their institution’s digital banking is more important day-to-day than physical branch capabilities.
- Personalized and responsive customer service: 28% cited this. (And younger consumers prioritized digital experience and ethical practices.)
The takeaway for community banks?
On one hand: The Adrenaline study tells us that the greeting matters most. Customers arrive at branches and feel unwelcome when they’re not acknowledged. This undermines trust and future engagement: “Start with the branch experience. Get the culture right, welcome the customer, train staff to engage.” If you've ever been to a Chick-fil-A, you've seen the result of "getting the culture right and training the staff to engage." Going there is always a pleasure, and for that reason, I enjoy the experience and their business is phenomenal.
On the other hand: the Apiture study says that the key reasons for consumers picking or switching to a community bank are interest rates, fees, and the digital/mobile banking experience: “Focus on pricing, fees, digital channels. Make the switching case based on value, convenience and tech.”
Acting Upon Differing Perspectives
Rather than view the two sources as mutually exclusive, community banks—utilizing as best they can their limited resources—must reconcile them by taking an approach that integrates both by:
- Ensuring the foundational branch experience is solid.
- Train staff to greet each visitor promptly and sincerely. Adrenaline study data shows nearly 6 in 10 visits start without a greeting.
- Move branch experience beyond transaction to consultation: reduce product-led interactions, increase needs-based service.
- Leverage digital tools in branches (tablets, QR codes, interactive screens) to bridge human and tech touchpoints.
Speaking of branch experience, I'd like to share one of mine. When my son was buying his first house and was searching for a mortgage, I convinced him to visit the nearby branch of a well-known national bank. One, it was close by and two, I was doing my banking there. When the two of us arrived, my son put his name on a waiting list. It was a full 30 minutes before someone called his name. When he told them he was looking for a mortgage, the manager took him into an empty room with only a phone and a desk. She picked up the phone, dialed an 800 number, handed him the phone, and walked out. We both left and have never been back!
- Maintaining competitiveness on value and digital experience
- Audit rates and fees, and ensure you’re not losing customers purely on price or value metrics. According to Apiture, 54% switch for better rates.
- Invest in mobile/online functionality, especially for younger customers.
- Personalize digital experiences and service responsiveness. 28% of switching is due to response to quality of service.
- Creating a coherent joining of values, branch culture, and tech
- Communicate your community bank brand as one that is not only friendly and local, but also tech-savvy and value-driven.
- Know something about the customer (digital profile, history) and engage them accordingly when they walk into your branch.
- Use branch visits to reinforce the overall value proposition: low fees, competitive rates, and digital convenience.
- Prioritizing based on segments and generational differences:
- For older customers (Boomers, Gen X) the branch and personable service may matter more. Apiture finds older age groups appreciate branch access.
- For younger generations (Gen Z, Millennials) it's digital first. Apiture finds digital experience is often more important.
- Tailor your investments accordingly, perhaps with more branch culture focus in certain markets and a more digital focus in others.
Finally…
Yes, community banks must get the greeting and branch interaction right. This is fundamental to establishing and maintaining the human connection that differentiates local institutions from larger banks and fintechs. Meanwhile, they must, of course, focus on their rates, fees, and digital convenience; those value and tech factors may matter more than how friendly the branch feels.
In the end, both studies support that “double edged sword” strategy that leads banks to focus on both the in-branch experience and the digital one. Ignore either, and local institutions risk falling behind.
Bank Marketing Center
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Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.