Performance Metrics for merchandising.

• Author: Bachman, Timothy
• Position: Fundamentals

When it comes to a branch merchandising, a number of elements have to synchronize--like dancers on a chorus line--for a program to succeed. When evaluating your efforts review tangible results, but don't overlook nontraditional measurements, such as those for customer satisfaction brand recognition or employee motivation.

Can you measure the effectiveness of your branch merchandising? The answer is yes, although some aspects of merchandising are more tangible than others--and thus easier to quantify.

To understand what can or cannot be measured, you first have to know what branch merchandising can or cannot do.

Most financial institutions understand the importance and value associated with maintaining a predictable level of service quality, offering competitive products, updating branch facilities and keeping trained staff accessible for each branch customer. What they are less certain about is how this mix of facilities, marketing, employees, branch operations and delivery options influence one another and, more importantly, affect overall branch performance.

Like any successful retailer, bankers should recognize the value of informing and educating customers to the products and services they offer. The more customers know about product benefits and features, the more likely it is that they will purchase.

Marketing departments are challenged to develop comprehensive campaigns that bring customers into the branch. Once the customer visits the facility, the various interrelated, branch resources--including people, operations, technology, information, merchandising and the bank itself--work together to deliver the branch experience.

The objective of merchandising is to attract the customers attention through the positioning and presentation of graphic merchandising elements within the branch space, to inform customers by displaying product and service messages, and to prompt or influence customers in their purchase-making process. These merchandised messages can:

* Promote current product offers.

* Inform customers of product features and benefits.

* Identify new service offerings.

* Improve cross-selling opportunities.

* Remind customers of future financial product and services needs.

* Build brand recognition--image and voice.

* Announce community events and the bank's involvement or sponsorship.

Here are the resources that must work together within the branch to ensure a successful customer experience. The following list includes five interrelated branch resources:

* People: staff, management, customers, prospects, suppliers, consultants.

* Products and services: financial processes, accounts, advice, credit, loans, interest- bearing accounts, insurance, equities, fee-based...