Improve Customer Experience - Retail Banking

The post-crisis banking landscape is highly competitive.  Unprecedented access to information and technology is fuelling customer knowledge and demands, along with the potential for dissatisfaction.  The end result?  A greater prevalence in customer switching behavior across banking organizations.

TRUST

• Customer trust in banking has been damaged.  By refocusing on the customer relationship, paying particular attention to consistency of service, transparency of process, and clear communication of service level standards, banks can restore trust in prospective and current customers. The key to rebuilding trust is the ability to establish confidence within minutes of each interaction.  It is also essential to understand the complete picture of each customer’s relationship beyond a list of accounts.

CONVENIENCE

• In a permanently connected world, banks must focus on a channel strategy that provides the convenience of virtual channels along with the personalized experience of a traditional channel. Customers’ expectations focus on three key areas: service quality, increased access, and ease-of-use. A consistent and integrated cross-channel customer experience is paramount to future success.

INDIVIDUALIZED SERVICE

• The combination of technology and customer willingness to share more about themselves has made it possible for many consumer driven industries to deliver highly personalized and customized services. Banks, however, have not been quick to adapt to this model.  In order to attract, retain, and grow customer relationships, it is essential for banks to have a deep understanding of their customers, align its product and service mix toward their customers’ personal needs and then provide the ability to customize further.

VALUE FOR MONEY

• Without a clear value-for-money sentiment as to the benefits of consolidating with a single banking institution, customers will continue to fragment their financial relationships beyond a single provider. This climate, however, provides opportunities for banking organizations.  For example, executing targeted customer acquisition campaigns focused on product and service lines where the bank is most competitive is a good start. Another strategy is for banks to design product and service bundles that can set reduced pricing based on aggregate buying.  Where pricing cannot be the primary competitive driver, banks must seek to add complementary facilities to their products or services offered so as to enhance perceived value.