THE FUTURE OF CUSTOMER EXPERIENCE IN FINANCIAL INSTITUTIONS

Customer experience is usually at the top of any financial institution’s priority list, yet it still remains a kind of amorphous, undefined notion. This poses a serious impediment because, in a world where many financial products are commoditized, customer experience can be a real differentiator.

According to one study, banks and SACCOS that succeed in creating a customer-centric culture are more profitable than those not focused on it. It is critical to understand what consumers want from an experience and deliver it to them. Knowing what they want is not a one-and-done exercise, of course. And there are variables within markets and particular market segments.

Organisations need to review their priorities and strike a proper balance between digital and in-person services. Here is a look at customer experience trends financial institutions need to consider seriously going into the future.

The human connection

Many financial institutions struggle when it comes to customer satisfaction. Financial services are typically one of the lower-ranked industries in customer satisfaction surveys according to many studies. Many financial institutions have put a focus on digital capabilities in order to improve the customer experience and thus, customer satisfaction. However, institutions shouldn’t forget about the human touch. 

Deloitte found in 2019 that customer satisfaction with contact centres was closely linked to overall customer satisfaction with financial institutions. The Covid experience likely heightened that connection as more people turned to contact centres for non-routine issues.

The same applies to the branch experience. With most routine transactions shifting to digital, it’s vital that when customers reach out by text, chat, call, or in-person with more complex issues, the staff and the technology backing them up match consumers’ expectations.

Goodbye customer experience. Hallo customer science

Financial institutions often talk about improving the customer experience, but the notion of customer experience needs to evolve. As channels become more integrated, the approach to customer experience needs to evolve too

Customer Science basically combines technology, customer data, and artificial intelligence (AI) to create predictive models for customer satisfaction. The significant difference between customer science and customer experience is the behavioural science aspect of it. With all of these factors working together, customer science can help organizations anticipate customers’ needs and build experiences that meet them. Customer science will essentially predict what the customer will do next, not what they say they’re going to do next.

Ultimately, customer experience is about improving customers’ lives and creating value. By embracing customer science principles, and anticipating customer needs, financial institutions can have a material impact on people’s lives.

Community engagement and personalisation

More and more, financial institutions are focusing on specific communities. This idea of niche targeting is set to play an even bigger role going forward, and traditional financial institutions should embrace it. Many financial institutions have struggled because they don’t understand which segments of their customer base want which products and services.

For example, the niche targeting model in banking is inherently customer-first, and financial institutions can only put their customers first if they truly know and engage with them.

Additionally, institutions also need to convey to customers how they are engaged with their local community. Increasingly, consumers are asking how all companies they do business with are affecting positive change. That has become an important element of customer experience.

Conclusion

The financial services business is quickly evolving with a focus on high-quality client experiences rather than just high-quality products. Many would dare ask if it is possible for organisations to keep up with the rate of change in the market? Our answer is yes. With future-ready solutions such as the Q-SYS customer experience platform, institutions can make customers feel valued while delivering measurable business results. Furthermore, With data analytics, the financial sector can bring employee experience data and customer experience data together to deliver improvements for both – positively impacting customer loyalty, revenue and profitability.