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Two-thirds of consumers who took part in a recent Broadridge survey said they need to improve the experience the companies they do business with. In 2019, its share was just 35%.
Digitization risks alienating retail customers who may not be ready to take the plunge
Why are consumers less satisfied today than they were three years ago? It’s hard to imagine that customer service has gotten any worse. I have become accustomed to doing business with customer-oriented companies like A relatively small number of companies set the standard for fast and efficient service, create communication experiences that customers actually enjoy, and expose the shortcomings of others’ experiences.
Some of these key experiences have also come from banks, but there is significant room for improvement across the industry, which is one of the main reasons banks are rushing to go digital. Banks know that technology presents an unprecedented opportunity to rethink the relationship between themselves and their retail customers. It also has the potential to reshape the economics of business.
Replacing paper documents with digital forms, call centers with online help, and branch visits with remote payments and deposits are just some of the ways banks are using technology to reduce the cost of customer service.
With these distinct advantages, many of the world’s largest banks are in the midst of digital transformation initiatives that promise to improve profitability and make it easier and more comfortable for their customers to transact.
But banks face unique and delicate challenges as they integrate new technology into their platforms. It’s about innovating without alienating retail customers who may not be ready for the digital dive. Our research shows that over half (56%) of bank customers still prefer to receive paper statements, and many also like to talk to their local branch tellers. Even customers who enjoy the convenience of checking their account balances online and depositing money through an automated app on their phone may want to talk to a real person rather than a chatbot when it comes to important financial questions. I can’t.
How can banks use digital technology to deliver world-class customer experiences and reduce costs while alienating a significant portion of their customer base? Here are four practical tips: is shown.
1. Banks need to take customer experience seriously. As banks embrace new digital tools, they need to continuously listen to the ‘voice of the customer’ for response. For example, a bank can use customer feedback in his A/B testing to roll out and perfect new technology tools and features in an iterative process. This will give you great results and avoid overwhelming your customers with sudden changes.
2. Banks must always give customers choice. Digital cannot be an all-or-nothing proposition for customers. To create a great customer experience, banks need to give customers a place where they can easily communicate their preferences on how they want to be involved. Banks can achieve this by providing access to their customers’ “preference centers” prominently in online portals, mobile apps, and even printed statements (using QR codes). These centers allow customers to choose the channels, frequencies and even languages that best suit them. Providing an easy way for customers to enter their preferences makes it easier for them to transact with their bank and makes them more likely to maintain or grow their relationship.
3. Personalization is a top priority. Digital tools help customers bank more easily and efficiently. What technology cannot do is replace the human interaction these customers want when they visit a bank branch or talk to a representative on the phone. As such, banks should aim to imbue the new omnichannel model with some form of personalized experience. There are many tools banks can use to personalize the customer experience. For example, we are making better use of customer data and incorporating personalized videos and artificial intelligence applications that help banks deliver the right content at the right time through the right channels.
4. Getting the digital transition right is not easy and requires a new way of thinking. Fortunately for banks, banks now have many qualified partners. Not so long ago, outsourcing technology might have been against the corporate culture of a bank. Security was the main concern. In particular, there was a risk that third-party technology could open the door to criminals looking to exfiltrate accounts or hackers looking to steal customer data. Today, these concerns are largely addressed. In both the banking and technology industries, it is widely accepted that the best technology his providers have security features that are equal to or better than the big banks. At the same time, innovations over the past decade have made outsourcing much easier and reduced operating costs for banks. With cloud computing, software as a service (SaaS), and APIs connecting systems, enterprise technology is becoming more plug and play, allowing banks and other companies to choose the best platform and provider and integrate them into the platform. It will be seamlessly integrated into the whole. .
By working with these external partners, banks have a unique opportunity to apply innovative technologies to better align the customer experience with CX leaders while reducing costs at the same time. And by focusing on principles like personalization and customer choice, you can delight customers who still enjoy opening their mail and visiting their local branch.
