Putting on the Ritz

In their quest to improve branch service through the use of greeters, many banks are taking their cue (and seeking advice) from providers that are known for high-end customer service. Typically, these can be found in the hospitality and retail industries — like Ritz-Carlton hotels and Nordstrom department stores.

The Ritz-Carlton model, for example, has been the inspiration for Umpqua Holdings Corp. in Portland, Ore. BAI's SmartTactics for Profitable Retail Delivery conference in Las Vegas in April featured both the Ritz's senior vice president for sales and marketing Bruce J. Himelstein and Umpqua executives. And the approach generated significant comment by bank analyst Thomas K. Brown of bankstocks.com, who concluded that $3 billion-asset Umpqua was "an interesting company to watch."

Having previously sent its executives on "field trips" to observe customer service at Ritz-Carlton — and Nordstrom — the bank formalized its relationship with the Ritz last year by signing up for a staff training program offered by one of its subsidiaries. The program teaches Umpqua representatives to sweat the details when it comes to cultivating good relationships with customers, including such touches as addressing customers by name whenever possible.

Umpqua's purpose in doing all this is to establish a palpably different culture from that found at other banks. For example, its tellers present customers with a piece of chocolate on a tray at the completion of each transaction. "We're trying to achieve the unexpected for customers," says Lani Hayward, senior vice president and director of marketing.

Indeed, during the SmartTactics presentation, Ritz executive Himelstein cited four examples of how his own bank falls short of what the Ritz (and Umpqua) aims to provide: The branch manager is never around. The premises are not clean. Employees fail to properly address customers. Employees are poorly dressed.

Umpqua's use of greeters, a major part of this program, is loosely inspired by the role that hotel concierges play. They're expected to offer a friendly greeting to customers who walk into Umpqua branches but also, at times, answer questions and solve problems.

Until early last year, the bank chose its greeters by simply rotating staff members through shifts on the job. In the Umpqua branch system, personnel are trained to do all the jobs in the office so everyone gets a chance to open accounts, where they have the opportunity to earn incentive pay. Greeters, meanwhile, show first-time visitors around the branch, offer a cup of coffee to customers who need to wait to see a particular banker or just say a quick hello to people on their way to the teller counter — not unlike the role played by greeters at Bank of America Corp. or J.P. Morgan Chase & Co.

Umpqua moved closer to a true hotel concierge model in March 2003 when it opened a branch in Portland's Pearl District, where old industrial buildings are being refurbished and put back into use for lofts, galleries and boutiques and where Umpqua wants its branch to serve as a community center. Rather than rotate staff members through the greeter's post, it created a full-time position for someone who will greet customers as well as arrange community events — such as art shows and poetry readings — to be held in the branch during the evening.

With foot traffic generated by such unbank-like design and activity, the bank's greeter is frequently asked questions like those posed to hotel concierges, such as "Where can I find a good restaurant?" and, "What activities are available for families?"

— Bill Stoneman