How Digital Is Changing Retail Banking Customer Experience
Usually, when we talk about the effects of digital transformation, we tend to focus on companies producing shopping consumer goods. But there is another ‘industry’ that is effectively searching for innovative ways to deal with customers: retail banking. Digital technology is dramatically changing the way clients interact with banks, forcing them to evolve from traditional bank counter operations to online services. A new era for retail banking customer experience.
Mobile banking is already an important aspect of our daily life, but analysis often just study how Internet and apps have changed payments and deposits. Money sharing is just one side of the coin. The other one, even more important, is how digital is redefining customer experience. At the heart of this transformation we find two trends:
The increasing competition from emerging digital banks, lowering the cost of financial services.
The emergence of a mobile mind shift, with financial institutions finally focused on putting customers at the core of their strategies and creating a consistent experience.
Truth is customers now evaluate their banking experience the same way they would do for consumer goods retailers, in terms of interactions and experiences. As they use multiple touchpoints, they want banking to be easy, fast, personalized and accessible wherever they are whenever they need it. The ability to deliver a seamless service through all touchpoints – both physical and digital – is crucial to enstablish and mantain long term relationships.
Growing expectations mean that banks must reshape their marketing strategy, CRM and even their identity. The only way to achieve a successful transition to digital banking is to focus on key areas to create engagement, raise brand value and deliver amazing experiences.
There are 4 strategic areas to achieve a meaningful and innovative transformation:
Big Data: if there’s an industry where big data can really elevate service, that is banking. Digital demands new model and assets to collect data, test and transform them into useful insights (i.e. using analytics dashboards)
Content Management: when you decide your marketing mix, you can’t ignore the power of storytelling. To create your brand image and adapt it to times of constant evolution, you need to set up a proper content marketing strategy, to connect with customers and engage them on a deeper level.
Social Media: talking about engagement, social networks are crucial to talk with clients and prospects and let them talk to you. Using Facebook and Twitter, a bank is able to show a warm human face, build trust and answer in real-time to opportunities, questions and threats.
Mobile Experience: today there’s no banking without mobile. Even in less developed markets, financial institutions now offer a complete online service to their clients, providing a consistent experience across all touchpoints (right-time personalization and Apple Pay are just two examples). To convert banking from a cold experience to a simplified, streamlined, friendly and easy one.
And remember: the first step for a real digital transformation in banking is to stop considering your customers as generic account numbers.