With countless financial institutions vying for consumers through a wide array of products, the best way for FI’s to differentiate themselves is through customer experience. It’s predicted that, by 2020, customer experience will overtake both price and product as the key brand differentiator. According to a recent Walker report:
The customer of 2020 will be more informed and in charge of the experience they receive. They will expect companies to know their individual needs and personalize the experience. Immediate resolution will not be fast enough as customers will expect companies to proactively address their current and future needs.
In the banking industry, customer experience can be defined as the result of consumers’ interactions with a business across all channels (touchpoints) plus consumers’ perceptions of those interactions. This summer I wrote about why financial institutions are failing at CX despite the fact that industry leaders recognize its importance. For FI’s ready to make CX really happen (as opposed to only acknowledging its importance), I often suggest to my own clients these first steps:
The Customer Journey
The first step toward improved customer experience is to understand your customer’s journey. Know that this is not a linear process: customers will call you, then show up in a local branch. They will bank online AND in person. They will use multiple devices across multiple channels, and above all, they will want to do all of it on their own terms. For this reason, it’s imperative you have intimate knowledge of your channel mix, including email and chat, to website FAQ’s, in-store self-help, social media and more. I recommend a customer journey mapping process. Sage Johnson wrote about this in a past blog, where there are some great tips on how to do this yourself. Once you understand how your customer moves through the experience you offer, you have to be ready to make changes based on your findings, including new products where necessary.
Technology
It’s no longer enough to provide standard online services like account access, online bill pay, etc. Those are non-negotiable. In order to provide stand-out, keep-them-coming-back customer experience, you have to be innovative. Consider how you can offer convenience that cuts through traditional banking red tape (while still protecting privacy, of course). Emerging technologies like fingerprint readers, retina scanning and Near Field Capabilities (NFC) capabilities empower customers in order to improve satisfaction.
Empower Employees
I have worked with several clients who have invested in developing thorough customer experience strategies only to have them fall flat because employees weren’t given the resources – or permission – to make them successful. As Bill Gates said, “As we look ahead into the next century, leaders will be those who inspire others.” I think the most important thing financial institution leaders can do to empower employees is invest in powerful CRM (and Social CRM) technology. When staff have easy access to up-to-date customer information, they become customer experience superheroes, quickly identifying customers’ pain points and helping them to resolution in record time. When rolling out a new CRM, show employees how the tool connects to actual customers, how it makes their journey with your company better, and their direct role in the process.
You already know the importance of customer experience. CH Consulting Group can help you plan and implement a customer experience strategy that will drive sales while proving ROI. Contact me today for more information.
