There’s an old Irish proverb which says: “Más cam nó díreach an ród, ‘s é an bothar mór an t-aicearra.” In English, this translates roughly as ‘whether the road is crooked or straight, the main road is the shortcut’ or, in another way ‘a shortcut that locals know may, in fact, get visitors lost and result in more travel time – the main road is the tried and trusted route.’
The proverb provides a valuable lesson in today’s business environment, where implementation of new products and technologies is common. It serves as a warning to businesses to avoid short term decisions which can impair/impact their long term revenue. The key to maximising potential revenue lies in understanding the key business drivers and providing the tools to enable companies to make informed business decisions. For today’s financial services companies, this means providing customer intelligence in the form of useful, current and easily understood reporting.
Better customer insights
For ATM network operators who are deploying Dynamic Currency Conversion (DCC) on their ATMs (DCC@ATM), this means having access to reports which can analyse customer traffic. These reports allow the deployer to better understand how to serve their customers. In real terms, this means having reports that highlight which ATMs are generating revenue.
A key DCC@ATM metric is the ‘hit rate’ measuring the percentage of customers that accept the DCC offer being made by the ATM. Hit rate figures should be available both in overall terms (e.g. for all customers using the machine) as well as broken out by date, customer nationality and customer card currency. This helps the ATM operator ensure that customers most likely to avail of the transaction are being catered to by their solution as well as to understand customer cultural differences which result in lower hit rates for some nationalities.
A related analysis is the ranking of top card currencies in terms of both hit rate and overall DCC@ATM offer uptake. Top card currencies show who the opportune customers are and this information may provide insight into how to better maximise footfall from this customer group. For example, if particular ATMs had a high proportion of French customers, there may be opportunities to cross-sell to these customers by literally pointing the way with French language signage to allied service providers, provide French language information or simply make a tourist happier with their ATM experience.
A third form of reporting worth mentioning in any conversation around maximising revenue is to understand all of the “missed” DCC@ATM opportunities. For example, a bank may choose to implement a DCC@ATM service supporting card currencies from 10 countries—accidentally missing significant revenue opportunities from another three countries. The report will list all of the card currencies that used the ATM to withdraw cash, potentially identifying new revenue streams.
The exception to the proverb is if you are knowledgeable of your surroundings. Only then will you be able to understand the nuances and quirks that come with the shorter path, thereby truly making it a shortcut. If you do not possess this local knowledge, then the only way to benefit from the shortcut is to be guided by someone who does. Some DCC providers offer a strong initial integration support but can fall short after the integration has completed leaving the ATM deployer to navigate changes in card scheme compliance guidelines as well as to review their offering in the optimal way to maximise revenue.
At Fexco we pride ourselves on our provision of exceptional, expert support from project implementation right through to business as usual. One of the key Fexco services is in providing ongoing guidance to ATM network operators by leveraging Fexco’s customer intelligence reporting platform. This platform provides a full range of easy-to-use, business-critical reports to assist operators in maximising their revenue. Fexco Relationship Managers ensure that all operators understand their customer base as well as changes to card scheme compliance guidelines which could affect the service. Fexco literally invented DCC nearly 20 years ago and provides a solution for every channel—DCC@ATM, PoS, online and mobile.
DCC@ATM with Fexco
If you’d like more information about increasing revenue by providing DCC@ATM on your ATM network, please contact our Strategic Business Development Manager, Shane McElroy at Fexco.