For as long as I can remember ATMs in the Czech Republic have been a constant source of annoyance for anyone who uses them (setting aside the fees they charge) because the ATM’s programming was designed to optimise its use of banknotes.
Withdraw 2000 Czech Koruna (Kc), which is approximately $100/£66, and you’ll be furnished with a crisp 2000kc note. Now go and buy something for 150Kc and you’ll get a fairly understandable ‘Don’t you have anything smaller?’ and sometimes a flat refusal to take your money because it will wipe out their change float. You might ask ‘why not just withdraw 2 x 1000Kc?’ but with a fee per withdrawal why should you?
In a perfect example of soft innovation, finally this spring a couple of banks have taken notice and their ATMs have been updated (with software). Now you can choose the denominations of banknotes when you make a withdrawal. With one simple change they’ve removed a common cause of anxiety and annoyance for their customers.
What pain points can you solve for your customers?
Think about how your customers use the products and services you provide. The pain point doesn’t have to be with what you do but maybe it’s what they do with it next. The immediate things banks might look to fix with ATMs would be making sure they’re always stocked with cash, not out of service, in safe locations, not what people do with the cash once they’ve taken it out. At a travel company I work for we’ve been looking at what we can do to make our guests travels even smoother by providing useful items like US to European plug adapters and various other things in their welcome pack. The great thing about soft innovation is that it’s inexpensive to implement but can have a very significant impact on your customers’ experience.