4 Reasons Why a Customer Experience Platform is Essential for Financial Services Businesses
As a Customer Success Director at Decibel, I have the pleasure of working with many leading financial service companies. While no two businesses are the same, there are undeniable trends that permeate throughout the industry.
The customer experience challenges that all BFSI’s (Banking, Financial Services and Insurance businesses) face are numerous, but far from insurmountable. With the right CX platform, the issues can be mitigated and your business can rise above the competition. With customer experience now being touted as the number one differentiator between businesses, you really can’t afford to not prioritize it.
Here are the four challenges that financial services businesses can overcome with a customer experience platform:
1. Millennials are less loyal than baby boomers
We’ve all heard it, seen it, maybe even proven it to be true. Millennial loyalty is in short supply. The same millennials that hop between jobs and brands are also inclined to bank-hop.
Marqeta’s report published in February 2019 indicates millennials are significantly less likely than previous generations to remain loyal to their banks. In fact, only 1 in 6 millennials reported not being open to changing banks.
Fear not, in the same way that great workplace cultures and brilliant brand marketing have the power to win millennial loyalty, so do banks. They just need to know their audience and act accordingly. The challenge here is gaining accurate and actionable insight into their audience.
Enter CX platforms. CX platforms capture customer behavior and show banks what they’re doing right and what they’re doing wrong. With a good CX platform, banks can maximize the right and minimize the wrong and what happens when right > wrong? An uptick in loyalty!
Above all, millennial customers are searching for banks that are convenient and make finance simple and straightforward. By making navigation intuitive, perfecting the technical experience and providing educational content, you give yourself the best possible chance of winning over your customers.
2. Not all banks are created equal
In the past, there was a consensus view that a bank was a bank. Today, the boundaries are blurring. The shift to digital has led to the rise of BFSIs that live solely online. For digital natives, the allure is undeniable. So, what’s a bank to do?
To set yourself apart, you have to invest in customer experience but despite a heavy focus on CX, very few businesses are really delivering.
“80% of companies believe they deliver “super experiences,” but only 8% of customers agree.” – Shep Hyken Customer Experience Expert & Author
To deliver brilliant CX, banks need greater visibility. Knowing your competitors is important, but it’s knowing your customers that will allow you to rise above the pack.
You simply cannot continue to operate blindly nor rely on outdated “customer satisfaction” checks like NPS surveys. CX platforms can offer finance businesses qualitative insight at scale, meaning you can get to know today’s customer like never before; a customer with lots of options, little patience, and high expectations.
3. Great in-branch experiences are no longer enough
It doesn’t matter that your branches are open, inviting and staffed by empowered and patient people if your customers aren’t coming through the doors. You must meet your customers where they live – and today, that’s online and on mobile apps.
“Good, bad or indifferent, if you are not investing in new technology, you are going to be left behind.” – Sir Philip Green Chairman Arcadia Group
Tech is here to stay. Financial service companies need to innovate or risk getting pushed aside in favor of their more technologically-advanced counterparts.
In fact, according to research published in The Financial Brand , 65% of users report that they would choose a bank for a more convenient mobile app.
Today, 90% of our time spent on tablets and cell phones is in apps. With screen-time reports, we’ve all seen the alarming number of hours this adds up to. To make sure you get your slice of the pie, an intuitive and reliable app is essential.
4. Uniting disparate teams around a CX improvement project
Your marketing team can target your customer in all the right ways but if your customer service isn’t responsive and your technical team isn’t fixing what needs to be fixed, the overall experience is likely to be very poor. In the eyes of the customer, a company is one big team. Just one bad experience can irreparably damage their perception of the brand.
So, how can a company fight siloed teams? Through consistent and thoughtful collaboration. You must unite your business around a common goal and set key actions for every department to contribute. The right technology can help facilitate collaboration and provide insight for measuring progress against goals.
With a CX platform, every department can access what they need and share information with ease. Marketing can see what campaigns are working well, the customer service team can see where customers are becoming frustrated, and IT can focus on perfecting the technical experience.
Today, the customer holds the power. The customer can (and will) bank-hop in search of a better, more technologically advanced, mobile-friendly, easy to work with, bank.
“83% of millennials would switch banks if one offered more or better rewards.” Nielsen Executive Summary
Let CX platforms help you prove to your customer that you are the number one bank out there.