Customers today demand greater levels of autonomy, transparency, and responsiveness from their banks. They are spoilt for choice thanks to the increase in the income levels, easy access to information and ease of banking transactions. They do not hesitate to take their business elsewhere if they get a better deal.
Banks need to have the right mix of traditional and new age channels to meet customer requirements. Customer experience management(CEM) is the primary differentiator, considering the highly competitive market. According to a study by Gartner, 89% of all businesses compete primarily on customer experience.
Providing a seamless customer experience in the age of digital media is no small task. Traditionally, conversations between banks and customers have been one-sided, but, this is no longer the case. Moreover, brands no longer have control over these conversations. This shift makes it a priority for every bank to develop an effective customer experience management program.
CEM programs offer much more than mere customer feedback. It is all about ensuring that the customer has a positive experience at every touch point. It provides an insight into the customer journey and a 360-degree view of the customer. Considering the number of points of contact that exist today, an integrated CEM software is mandatory. This CEM software should be able to draw inferences from various touch points to provide a seamless ‘omni’ channel experience.
We all know that customers today demand personalized products and services. Banks also understand that customers who have accounts with them are more likely to apply for a personal loan or mortgage. A good CEM software can help banks reach out to customers with targeted communications. Understanding the customer from every angle is crucial to providing personalized experiences. This requires recording and analyzing customer feedback to gain insights about customers.
Being aware of customer satisfaction levels also enables banks to keep tabs on customer attrition. Banking customers sticking with the same bank for a decade or more is not unheard of. When a bank loses a customer due to poor CEM, it loses a customer who could have stayed with them for a long time. Being aware of a customer’s likeliness to churn would help banks carry out pre-emptive measures. A good CEM software would help banks ‘profile’ their customers. Studies indicate that more often than not, 80% of business is brought in by 20% of the customers. Identifying these customers would enable banks in prioritizing them.
Role of digital experience in customer satisfaction
Digital experience of a customer plays a crucial role in determining his overall experience. This is particularly true for the younger generation. If a bank fails to meet their needs, customers do not think twice before moving on to a different bank. The digital interface should provide for an overall positive customer experience.
Customers today are more connected, more demanding and less forgiving. Yet, a large number of customers do not see any difference among banks. They believe that all banks offer similar products. Hence, customer experience becomes the key differentiator. Banks need to make CEM the center of their operations to ensure that customers remain loyal.