The continued disruption of the industry, accelerated by the pandemic, has increased the urgency and importance of delivering better digital experiences to all banks. The Boston Consulting Group reported that online banking increased 23% and mobile banking increased 30% due to the pandemic. And EY found that consumer adoption of fintechs in the United States has grown from around 20% in 2015 to almost 50%.
No one in the banking industry could have predicted the pandemic and all the ways it would disrupt the industry, but some were in a better position to respond quickly and improve their digital customer experience. They see the returns in the form of building loyalty and deepening more customer relationships, canvassing valuable primary bank customers who have become frustrated with their old bank, and improving efficiency through to better self-service interactions.
Where some of these leaders are focusing their experience management efforts, there are now four prominent initiatives.
Listening to customers and taking action on a large scale
Continuously transforming customer journeys in ways that affect customer behavior and increase business results means that customer listening is on the rise, and not just for the few customers who fill out surveys. It requires investing in cutting edge technology that captures what the “silent majority” of customers are saying.
Using artificial intelligence and natural language processing, these customer signals can be analyzed from phone calls, emails, chat logs, social media, and more. The resulting information can be combined with behavioral and customer profile data to quantify how customers engage, what they want, and how they perceive their experiences.
Improvements to customer buying journeys
Customers expect the same seamless, seamless experiences in their banking purchases as they do in retail, hospitality or entertainment. Awkward experience within a refi or credit card application can result in abandonment at any point in the process.
To accelerate their ability to improve purchase conversions, leaders are adopting sophisticated digital user session capture and experience analytics tools to follow customers through every step of their digital journey. This, coupled with direct customer feedback, gives user experience teams the data-driven insight they need to accurately and quickly identify not only the cause of those abandonments, but also why it is happening and . And from there, how to fix it.
CX initiatives that generate both savings and revenue
Improving digital experiences not only makes life easier for customers, but can also reduce the volume of costly interactions between branch offices and call centers, which can improve the customer service experience at these touchpoints. . On the other hand, issues, poor design, or difficult transitions in digital experiences can increase these volumes of expensive human interactions while forcing the customer to use two channels when they prefer to do business online.
These two-for-one opportunities that can improve customer experience and loyalty, while realizing cost savings through operational efficiency, reach the top for CX leaders who know how to tie spending on CX initiatives to business results.
More human digital experiences
All bankers understand the importance of building strong relationships with their clients. But recent research shows that many financial service providers “fail in the human aspects of customer relationships that drive engagement.” Confidence is also on the decline – Edelman’s 2021 Confidence Report shows a sharp decline in confidence in the financial sector since 2019.
This underlines how important it is for banks to better understand their customers in order to design and deliver more personal, trusting and relationship-building experiences. Although digital is now the preferred channel for banking customers, the vast majority still want quick and easy access to in-person help when needed. This is especially true for higher stakes travel, such as taking out a loan or dealing with identity theft, which can bring up emotions such as anxiety, worry, and uncertainty.
Leaders strengthen their internal journey analysis capabilities to marry left-brain customer feedback and behavioral data insight with human-centric design of right-brain experience through end-to-end experiences . This in turn is fueling innovation and the adoption of faster and easier ways for clients and bankers to virtually interact with each other within and between digital and physical touchpoints.
As the industry disruption progresses, banks must continually and rapidly elevate their customer experiences to be more personal, holistic and transparent across digital channels and in person – and generally make them feel more human. all around.
Daniel Brousseau is Senior Director, Financial Services Solutions at Medallia.