Queue Management Systems for Banks
Customers expect to wait in line at the bank, but that doesn't mean they're happy about it. To use an analogy in another industry: I used to think I was okay with waiting for online orders to arrive. Amazon changed my expectations with its focus on customer experience. Next-day delivery eliminated a lot of hidden anxiety about when my package would arrive, if it would arrive, and how I would track its progress. The same is true for queuing at the bank. Customers don't know how long they’ll have to wait or when they should go to avoid long lines. What if they finally get served but don’t have all the documents ready. Do they have to come back and wait again?
Long lines at banks can lead to customers switching banks or branches. As the lifetime value of banking clients is so high it is unacceptable to see them churn for the sake of a long line. If tellers are aware that there are a lot of people waiting in a long line, they may be less likely to spend time with each customer, which can hurt your ability to upsell financial products. Long lines can have a direct impact on your revenue.
Bank branches in high-rent inner-city areas often occupy strategic locations. However, using much of the lobby space to manage long lines can be a waste of resources and give the impression of an unrefined operation. An area with no lines, on the other hand, projects an image of sophistication and elegance.
Customers feeling unfairly treated in lines at banks
Banks often want to differentiate their customer service based on the needs of the customer. For example, VIP customers or those applying for a mortgage may be given priority access to a manager, while customers who simply need to withdraw cash or cash a check may be directed to a much slower line for a normal teller. However, if customers see two separate lines, one for VIP customers and one for regular customers, this can be perceived as unfair and may lead to customer dissatisfaction. This perception of unfairness must be considered and dealt with carefully.
Reducing the amount of customers with ATMs, Online Banking and shorter working hours
Banks are increasingly encouraging customers to use ATMs and online banking to reduce long lines and staff costs. However, this approach has some disadvantages. For example, some customers, especially elderly customers, may not be comfortable using machines for financial transactions. Additionally, banks have fewer opportunities to upsell products or services when customers use ATMs.
While ATMs can help reduce staff costs, it is important to note that multifunctional ATMs with note and coin recycling as well as custom identification methods, such as passport and ID card readers, can be very expensive to purchase and maintain. They also take up valuable lobby space. If not enough ATMs are installed, they can themselves become a source of lines at the bank.
To further reduce costs, some banks only allow customers to speak to a teller during a limited window of time each day. This can lead to longer lines and wait times for customers who need to speak to a teller in person. It is also a major form of competition between banks. It is quite easy to show that your bank is superior to your competition if they are not open most of the day.
The importance of queue management systems
In today's competitive banking landscape, it is more important than ever for banks to provide excellent customer service. One of the key factors in providing a positive customer experience is reducing wait times. Long lines and delays can frustrate customers and lead to them taking their business elsewhere.
Most banks do not have a queue management system in place. Often they will not have physical barriers to control the line but rather just have a space in front of several tellers. The customers will then queue up for an individual teller forming several parallel lines. Often the tellers are split into different functions.
This basic setup has a few downfalls that are easily fixed. Having multiple queues can produce unfair consequences for the customer. If they join a queue that happens to be slower they will feel hard done by as they arrived first but had a longer wait time than others. A single queue that leads to multiple tellers could be a better solution.
In order to occupy less space and control the flow, retractable ribbon or belt barriers similar to those used at airports can be used. If a more elegant solution is needed fabric rope barriers can be used.
Managing the line with physical barriers is ok as a first step but if wait times are longer than 5 minutes a queue management system is recommended. It will have the following advantages:
- Enhanced data collection: Queue management systems can collect valuable data about customer traffic and wait times. How can you improve the system without even knowing how long your clients are waiting?
- Reduced wait times: Queue management systems can help to reduce wait times by providing customers with a more efficient and organized way to wait for service. Customers can enter their queue number and receive a ticket or text message with their estimated wait time. This allows them to know how long they have to wait and to use their time more productively.
- Improved customer satisfaction: Customers who experience shorter wait times are more likely to be satisfied with their overall experience at the bank. This can lead to increased customer loyalty and repeat business.
- Increased operational efficiency: Queue management systems can help banks to improve their operational efficiency by providing them with real-time data on customer traffic and wait times. This information can be used to better manage staff resources and ensure that they are always staffed appropriately to meet customer demand.
- Improved employee productivity: Queue management systems can help to improve employee productivity by reducing the amount of time that employees spend dealing with customer inquiries about wait times. This frees up employees to focus on providing customers with the best possible service.
- Increased transparency: Customers appreciate knowing how long they are likely to wait for service. This helps to build trust and credibility with customers.
Two possible solutions: physical and virtual queue management systems.
Both physical and virtual queue systems allow customers to wait in line for a service or product without having to physically stand in line.
Physical queue management systems are what most of us are familiar with. You take a ticket with a number on it and are called when your turn has come. This can either be done by a screen or by a person announcing the next number. This allows customers to sit and wait comfortably without fear of losing their place in line.
Virtual queue systems consists of a qr code, app or link on a website. Customers can join the queue from anywhere with an internet connection, and they will receive real-time updates on their wait time. This allows them the possibility of waiting for their turn in another location. Possibly taking a coffee or getting on with other activities until their turn arrives.
The key differences between virtual and physical queue management systems are:
- Location: Virtual queue management systems allow customers to wait in line remotely, from anywhere with an internet connection.
- Flexibility: Virtual queue management systems are more flexible than physical queue management systems. Customers can join the queue at any time, from any location.
- Transparency: Virtual queue management systems provide customers with real-time updates on their wait time. This can help to reduce customer frustration and improve the overall customer experience.
- Hardware & Connectivity: For virtual queue systems to work the customers must have a mobile phone with good connectivity to the internet. If this is not the case the solution will not work
- Cost: Virtual queue management systems can be more expensive than physical queue management systems. However, the cost savings of reducing congestion and improving customer satisfaction can often offset the initial investment.
In conclusion
Effective queue management is a crucial aspect of modern banking that can significantly impact customer satisfaction, loyalty, and operational efficiency. Long wait times and inefficient lines can lead to customer frustration and even drive them to seek services elsewhere. To address these challenges, banks should consider implementing queue management systems that provide real-time data, reduce wait times, enhance communication, and improve overall customer experience. Whether through physical ticket-based systems or virtual solutions accessible from anywhere, these tools offer the potential to streamline operations, build trust, and ultimately differentiate a bank in a competitive market. As technology continues to evolve, embracing innovative queue management approaches will be essential for banks to meet customer expectations and secure lasting success.
