There are multiple factors that may impact the success of today’s financial institutions; however, one factor has greater significance over the rest – customer experience (CX). Customer experience does not only have an impact on a financial institution’s success but it is also seen as one of the largest challenges that banks face whilst attempting to stay on track with customers’ digital communication preferences.
The global pandemic gave rise to alternative ways of working such as digital-first banking where the need for contactless experiences was born. Many financial institutions needed to quickly adapt their systems and invest in omni-channel and digital experiences approaches to serve their customers in a manner that accommodated the ‘new normal’. However, unpredictability, inflation, employee turnover, and the risk of recession have led to many of these institutions now considering where to direct their future spend.
Some institutions are finding a solution to these internal and external pressures by reducing resources supporting digital-first communications. In doing so, they have negatively impacted the customer experience and inevitably the institution's bottom line. Customers have familiarized themselves with digitally enabled services for all tasks at hand. Whether they are attempting to pay bills or apply for financial assistance they have come to expect a digital experience that is easy, secure, and effective. Customers tend to look for alternatives and/or switch institutions if they encounter any inconvenience or difficulty when participating in any kind of interaction with their bank. Keeping in mind, the various competing banks, the possibility of customer attrition is high.
The manner in which consumers interact with personal bankers has changed due to the fact that more banking is conducted online or through mobile devices. Despite these changes, the expectation of a personal banking experience has remained the same. The demand for banking products and services that are fully customizable to a consumer’s current and future financial needs is still significant. Consumers are seeking consistent and personalised communications from their bank. This customer communication must be secure and be more relevant to their personal preferences which include payment notifications and investment opportunities. In addition, they want the ability to engage with their financial institution in a seamless manner on the platform of their choice, whether it be in the branch, at the ATM, or on their mobile device. This ultimately comes with an expectation that any exchange made on one channel will be carried over to others. Although a streamlined, digitally savvy customer experience may not be easy to accomplish for all institutions, it is extremely important and cannot be overlooked as one out of eight consumers will switch providers based on poor CX.
Financial institutions are realizing how serious it is to implement a well-planned digital communication strategy that communicated with consumers across all platforms and delivers relevant and personalised experiences. Prioritizing the customer experience and omni-channel communications is not enough on its own to avoid the threat of new providers entering the marketplace. Institutions need to offer all-digital, relevant, and secure communications in order to encourage loyalty and profitability.
How does an institution improve the CX in times of economic uncertainty in a manner which doesn’t add more resources or costs to the bottom line? The answer lies within a partnership between the financial institution and an industry leader. A trusted advisor like Communication Genetics who not only understands customer communications in the banking industry and touchpoints across all platforms but also has the global innovative technology to back it up.
Communications Genetics offers flexible and customisable solutions that bridge the gap between customer communications management and customer experience management through centralized communications and digital assets management. Transform your institution today
