It is vital for every organization, but it is especially critical in the financial services sector to provide a positive client experience. Nowadays, clients have hundreds of alternatives when it comes to picking who will manage their money, and institutions compete for customers by providing reduced costs, bigger returns, and new digital services such as Oracle Flexcube. What strategies can financial institutions use to distinguish themselves in order to retain current clients while also attracting new ones as banking services become more commoditized?
The quality of the customer experience has emerged as a critical driver of choice and long-term retention, and if customers are dissatisfied with their experience, they will seek a new supplier. The low quality of service and bad financial advice were identified as the most common reasons for consumers to quit their banks and credit unions in a recent Qualtrics poll of more than 550 banking clients. While decreasing fees may be beneficial in the near term, improving the whole customer experience may have a much greater long-term effect on the bottom line. Customer surveys revealed that lousy customer service was the most common cause for consumers to leave their banks, with 56 percent of respondents stating that the bank might have changed their minds if an effort had been made to salvage the relationship.
It is undeniable that there is a skill and experience gap that financial service providers must close in order to stay competitive and have an influence on company performance.
How can you enhance the customer experience in the banking and financial services business so that you can retain and satisfy your customers? Here are some suggestions.
Collect customer experience data in real-time across all channels and touchpoints
Understanding what your consumers are thinking is the first step in providing them with a positive customer experience. By launching surveys and collecting feedback across all channels, you may develop a customer experience pulse that can be used to identify areas for improvement in the customer experience.
- In-branch (office) feedback: Utilizing mobile or email to collect feedback from customers immediately after in-person visits enable you to measure their emotion while the experience is still fresh in their minds, allowing them to offer more honest and useful feedback.
- Customer support feedback: Customer service is vital when it comes to dealing with emotional situations such as losing a credit card, submitting an insurance claim, or missing a mortgage payment. Making sure your contact center representatives are taking good care of your clients is essential. The way a customer interacts with support may make or break a business relationship with that consumer.
- Website and mobile feedback: Providing an easy-to-use and full-service online experience may go a long way toward encouraging your clients to keep their money with your bank or insurance business in today’s digital age, so make sure you provide them with one.
- Relationship feedback: Relationship surveys enable you to get a better understanding of what your consumers think of your organization, where their requirements are not being addressed, and where there may be potential to develop your business relationship with them.
Identify key business drivers and take action to improve customer satisfaction and loyalty.
Obtaining and maintaining customer loyalty is something that every business aspires for. The marketing and sales expenditures associated with regaining a lost client are prohibitively expensive when compared to the costs associated with integrating feedback experiences that warn you of a customer’s potential to depart before it occurs. Because, as the saying goes, “the squeaky wheel gets the oil,” your dissatisfied consumers will let you know about it.
The same Qualtrics poll found that consumers had an average of 13.8 and 15.7 years with their current bank or credit union, respectively, according to the findings. As a result, investing the effort to study client feedback in order to better understand the experience you’re providing may pay benefits for decades. Even if your company’s policies and services are the greatest in the financial services industry, if your customer experience is inadequate, you may find yourself losing business to rivals that are more concerned with the needs of their consumers.
Customer satisfaction (or unhappiness) may be measured using a variety of methods, including net promoter score (NPS), customer satisfaction (or dissatisfaction) index (CSAT), and other methods. As soon as you discover the drivers that are crucial to clients but for which they do not get the service they anticipate, you will know precisely where to direct your attention.
Monitor end-to-end customer journeys to create a 360-degree view of every customer
By mapping out your customer journeys, you can identify all touchpoints across all channels where you engage with customers.
Establish your client categories, such as personal bankers, business bankers, house purchasers searching for a mortgage and homeowners insurance, and so on. Many various “customer personas” are likely to exist inside your business; nevertheless, you should start by focusing on the two or three most prominent ones. Customers’ journeys may be expanded as your customer experience program grows in complexity.
Following that, sketch out the customer journey for each sort of consumer that interacts with your organization. Start with the initial point of contact that you have with the client and work your way down the line from there (checking online account balance in the example above). Continually go through each subsequent stage and all possible steps until the voyage is completed.
When it comes to the Oracle Flexcube universal banking, a customer journey (and each step within the journey) might last many years, which means you can and should be assessing your customer experience more than once at each contact point, as described above.
At long last, recognize at-risk clients and connect with them on a personal level to enhance and maybe even save the relationship in its current condition. Banking, insurance, and credit unions, among other businesses, have turnover rates that may reach 25-30 percent for companies that do not have non-binding contracts. It is possible that even organizations with some form of yearly contract may face attrition rates in the range of 5 to 7 percent. For any financial institution, decreasing client turnover (also known as attrition) should be their top objective.
Identifying at-risk clients, engaging them on a human level, and determining what is affecting the customer’s behavior are all skills that financial institutions may acquire. Companies will have a far better chance of maintaining a customer for life if they can master these skills.
In order to achieve this, the objective is to transition from a reactive to a predictive state and ultimately to a state of providing excellent experiences at all touchpoints.
An experience management system (like the Oracle Flexcube 14.x) that allows a bank or insurance agency to take advantage of the latest AI analytics or collect customer feedback on a brand-new service will put you in a position to meet the challenges of the future and ensure that your customers have a great experience every time they interact with your business.