Using tech to enhance customer experience

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Today’s connected customer does not judge their experience in isolation specific to that industry.  Instead, they evaluate their experience according to a set of exacting personal standards.

What it means for retail financial services providers is that they need to create a digital customer experience that is exceptional not only in comparison to their competitors but also in terms of leading organisations in other industries.

Why change?

The Global Consumer Banking Survey conducted in 2014 by Ernst & Young showed that while consumer banking should be considered the same as any other consumer activity, it needs to be acknowledged that banking customers are looking for more than a great mix of products.

More than 32,000 retail banking customers were surveyed and their responses revealed that they felt that the way they are treated is the second most important reason to trust their FSP and that customer experience was the most prevalent explanation for the opening and closing of accounts; more so than factors like fees, locations and convenience. The fact is that FSPs are not judged by what they sell so much as by the experience they create – a strong call for financial service providers to rethink the impact of customer service on their identity as well as their retail strategy, engagement marketing and loyalty programmes.

What does change look like?

South African FSPs are on the road to making the changes demanded by the digital revolution, starting with the provisioning of 24/7 internet banking and progressing through to mobile banking applications that give customers access to their finances anywhere and at any time. FSPs are also benefitting from the efficiency and cost-cutting aspects of technology, but they still need to take it a few steps further.

Customers live and move constantly across different channels, switching easily between the digital and physical. In so doing, they use multiple contact points to connect with a company and accordingly expect their experience to be fast, effortless, personalised and accessible.

While many FSPs have multiple channels, they’re still insufficiently connected to the customer experience. In the coming months we need to invest significantly in improving customer interactions across channels, in order to reach a point where a customer can begin research online and sign the deal at a branch, without having to repeatedly provide the same data.

What will influence this change?

It starts by creating a personalised journey for the customer. across all stages of their journey, FSPs will be able to maintain an audience-of-one communication experience, while gathering vital information that could be used for behavioural targeted marketing.

This change to a customer-centric experience starts with financial institutions making use of innovations to improve customer experience, with the intention of changing the preconceived notion of banking as a cold and exasperating experience into a streamlined and simplified process that is, where possible, paperless.

Technology is already driving a change in how customers use their money with mobile payments and mobile banking apps; now financial institutions need to change their essence. Embracing innovative technology trends is crucial, especially that of big data, as all information that is gathered through digital and physical channels will help banks understand what their customers want, and how to give it to them.

Building brand trust

Transformation needs to extend also to the social side of the digital revolution and FSPs need to ensure they’re monitoring all social media challenges and responding to issues quickly. Social media also provides an unprecedented opening for a financial institution to show its human side and build brand trust. By being open to communication on multiple platforms, FSPs can convert customer service into opportunities to create revenue, by proactively suggesting a new product or service that is a perfect fit for a customer’s needs, based on data drawn from other channels.

Only by embracing digital channels and ensuring that they are offering a fast, seamless personal experience will financial service providers be able to survive in a new multichannel world. This requires focusing on ways that technology could bring customer retention and customer experience into the digital age, while ultimately raising brand value.