How to Improve Customer Experience in Banking?

In all industries, including financial services, customer experience has become crucial for gaining a competitive edge. But, again, the statistics speak for themselves:

• Businesses that prioritize enhancing customer experience in banking report an increase in revenue (84%) and customer loyalty (92%)
• A single-point increase in Forrester's CX Index score can potentially increase assets under management by an average of $19 billion for multichannel brokerages.
• A 20% increase in employee engagement can be attained by companies that prioritize the customer experience.

Did you know that customer service is critical in shaping your customers' experience with your organization? It directly impacts how they perceive and interact with your business. It is why it's important to prioritize customer service and go above and beyond to exceed their expectations. Therefore, it's essential to focus on improving customer service and surpassing customer service expectations.

What is Customer Experience in a Bank?

The way customers perceive their interactions with a bank is known as customer experience. CX encompasses every touchpoint, from opening a new account to using online banking services. As a result, banks that prioritize CX see numerous benefits, including:

1. Customer retention: A positive CX can help banks retain their existing customers. Customers satisfied with a bank's services are more inclined to continue using them and refer them to others.
2. Competitive advantage: Exceptional CX can set banks apart, potentially increasing revenue and market share.
3. Cost savings: Improving CX can lead to cost savings. Satisfied customers are less likely to file complaints, which can reduce the bank's operational costs.

How do Banks Measure Customer Experience?

Banks use a variety of methods to measure customer experience. Here are some common ones:

1. Customer feedback surveys: Banks often send surveys to their customers to ask about their experience with the bank. These surveys can be conducted through email, phone, or in person. The surveys typically ask about customer satisfaction with the bank's products, services, and customer service.
2. Net Promoter Score (NPS): The Net Promoter Score (NPS) is widely used to assess customer satisfaction with financial institutions. To determine their NPS, customers are asked to rate the likelihood of recommending the institution on a scale of 0 (indicating a very low likelihood) to 10 (indicating a very high likelihood).
3. Customer complaints: Banks track and use customer complaints to measure customer experience. By analyzing the various kinds of complaints and how they were resolved, banks can identify areas where they need to improve.
4. Customer retention rates: Banks also measure customer experience by looking at customer retention rates. Customers who are happy with their experience are more likely to stay with the bank.
5. Mystery shopping: Some banks use mystery shopping to measure customer experience. Mystery shoppers pose as customers and evaluate the bank's products, services, and customer service. It can provide insights into how customers are treated and the areas of improvements.

Overall, banks use a combination of these methods to measure customer experience and identify areas for improvement.

Ways to Improve Customer Experience in Banking

To create a digital banking customer experience in banking that truly resonates with users, it's important to put the customer at the center of the design. This involves meeting their needs at every interaction and creating an emotional bond with the brand. Here are five strategies to enhance digital customer experience in financial services.

Focus on Digital Transformation

In today's digital age, customers expect banks to offer digital services that are easy to use and accessible to various devices. Banks can achieve a seamless customer experience across all channels by focusing on digital transformation. It can include:

a. Online account opening: Banks should offer an easy-to-use online account opening process accessible to various devices.
b. Mobile banking: Banks should offer a mobile app that allows customers to manage their accounts, pay bills, transfer money, and more.
c. Chatbots: Banks can provide customers with quick and efficient support. Learn:  Benefits of Chatbot in Banking

2. Personalize the Customer Experience

Personalization is key to providing a positive CX. Therefore, banks should use customer data to tailor their services to individual customers. This can include:

a. Personalized recommendations: Banks can use customer data to offer personalized product recommendations relevant to the customer's needs.
b. Customized communication: Banks should use customer data to personalize communication, such as sending personalized emails or notifications.
c. Customized offers: Banks can offer customized offers and promotions to customers based on their transaction history.

3. Provide Quick and Efficient Customer Support

Customers expect quick and efficient support from their banks. Therefore, financial institutions should prioritize the availability of different client service channels. This can include:

a. Live chat: Banks can offer live chat support to customers who need immediate assistance.
b. Social media support: Banks should have a social media presence and offer support through these channels.
c. Phone support: Banks should have a dedicated phone line for customer support.

4. Improve the Physical Customer Experience

While digital transformation is essential, banks should not neglect the physical CX. Improving the physical customer experience for banking can include:

a. Modernizing branches: Banks should modernize their branches to provide a more welcoming and modern atmosphere.
b. Offering self-service kiosks: Banks can offer self-service kiosks that allow customers to perform basic transactions, such as withdrawing cash or depositing checks.
c. Hiring friendly and knowledgeable staff: Banks should hire friendly and knowledgeable staff to provide a positive in-person experience for customers.

5. Collect and Act on Customer Feedback

Banks must first understand what their customers want and need to improve CX. Obtaining consumer feedback through surveys, focus groups, or other techniques can provide useful insights into customer preferences and trouble concerns. Banks should utilize this input to find areas for improvement and take action to resolve them. It can include making changes to products or services, improving customer support, or addressing specific pain points identified by customers.

6. Offer Financial Education and Resources

To improve customer experience, banks can offer financial education and resources to their customers such as online tools, seminars, workshops, and customized financial advice. By equipping customers with the knowledge and resources they need to make informed financial decisions, banks can foster trust and loyalty, resulting in an improved overall customer experience.

7. Emphasize Security and Privacy

Customers in the modern era are understandably concerned about their data being safe and secure. To keep their client's personal and financial data safe, banks should prioritize security and privacy using advanced banking software solutions. This can include using encryption technology, offering two-factor authentication, and regularly updating security measures. By emphasizing security and privacy, banks can build customer trust and provide a more secure and positive experience.

8. Closed-loop Functionality to Track and Address Individual Customer Feedback

By leveraging closed-loop functionality, financial institutions can track and address negative customer experiences through automatic notifications and managing customer engagements in an experience management system. This not only resolves individual instances but also informs employees about future experiences.A customer experience program must positively influence customer and financial outcomes by changing behavior to achieve success. Real-time metrics that are relevant and easily accessible to employees can aid in achieving this goal.

9. Incorporate your CXM into your Current Software Systems

Your content management system must integrate smoothly with your current platforms to achieve optimal results. Rather than replacing existing infrastructure, an experience management system should complement it. Various CRM software offers financial institutions the option of incorporating surveys into other communications using existing systems such as Salesforce or Marketo. For example, when a specific threshold is reached, an email trigger with a survey can be sent to a prospect, and based on the survey feedback, it can auto-generate a new sales lead.

Conclusion

For banks to retain and attract new customers, delivering a superior customer experience is essential. Prioritizing digital transformation, personalization, efficient support, and acting on feedback can provide numerous benefits, including customer retention, cost savings, and competitive advantage. By prioritizing CX, banks can thrive in the digital age.

At Agile Soft Systems, we specialize in providing comprehensive CX solutions to help banks improve their customer experience. Our team of experts can help you leverage cutting-edge technologies and strategies to deliver exceptional customer experience for banks and outperform your competitors.