KQ Article

Since 1892, The Peoples Savings Bank has differentiated itself from the local competition with a personal touch to customer service. Today, Peoples Savings Bank deposits are growing faster than other local institutions that pay out higher rates. According to bank President Brice Kadel, this difference can be attributed to the individual attention his bank pays to each and every customer.

“In a market where there are still a number of small local institutions, we pride ourselves on out-servicing the competition,” Kadel said. “This gives us an especially strong advantage during this time of economic turmoil, where consumers require a high level of trust in the banks they choose to handle their money.”

However, no matter how steadfastly a bank commits itself to service, problems will occasionally and inevitably arise. Peoples Savings Bank management was aware of the fact that effectively resolving a customer issue can make that customer more loyal than someone who never experiences an issue. The bank also knew it could improve its approach to problem resolution, but it struggled with adopting a plan for doing so.

INSPIRED AT THE EXPO
When Peoples Savings Bank Branch Manager Nancy Zerkle signed up for last year’s Deluxe Collaborative Expo in Scottsdale, she had no idea she was moving her bank a giant step closer to adopting a new problem resolution program.

“The topic of problem resolution was already top of mind for us, and when I learned about the Collaborative findings on the topic at the 2008 Expo, it all sort of clicked,” Zerkle said. “Deluxe had transformed problem resolution from an art to much more of a science, and the prospect of adopting a program seemed far more feasible.”

The Expo’s presentations offered a structured approach to problem resolution program implementation, divided into three phases. First, a financial institution must get buy-in from its employees. Second, the program must provide the training necessary for employees to tackle customer issues on the spot, without having to rely on a supervisor to make decisions. Third, the program must facilitate the changes in internal policy that are necessary to increase employee empowerment, while at the same time maintaining a necessary level of oversight.

Peoples Savings Bank recently purchased two Deluxe solutions, Valuing ProblemsSMand Resolving ProblemsSM (see sidebar). Both solutions are designed to guide financial institutions through all phases of problem resolution program implementation — from employee buy-in through employee empowerment and ongoing program support.

“We felt we could make empowerment work here because there are only 28 of us,” Kadel said. “But we quickly realized it was not going to be as simple as saying to someone, ‘Well, you decide whether to waive that service charge and let me know what your decision was.’ We recognized we need clear steps and constant dialogue to pull this off.”

MORE ENGAGED EMPLOYEES
When Kadel and Zerkle first announced how the Deluxe problem resolution programs would work, not every employee greeted the news enthusiastically. “You could see the fear on their faces when we said it’ll be up to them to make the decisions,” Zerkle says. “But once they learned they’ll have clear guidelines to follow and that there’s no right or wrong answer, you could see the relief.”

Zerkle said that empowering her staff to act will provide an extra morale boost to a culture that already discourages passing customers around. “It’s going to help our employees to feel even more connected to Peoples Savings Bank when they can stand in front of customers and confidently say, ‘I can fix this for you right now.’”

According to Kadel, adopting the problem resolution program will also help to further differentiate Peoples Savings Bank.

“At a time when two of our competitors in town have been acquired and are adding bureaucracy, we’re going the other direction and further personalizing our service with this program,” Kadel said. “It’s going to be wonderful for both our customers and our bank. It will help Peoples Savings Bank live up to its name even more.”

_{© 2012 Deluxe Enterprise Operations, Inc.}