![]() Take inspiration from other industries as a customer’s bar for great experiences is driven by interactions and experiences outside banking.Understand the competition, including recognizing that experience leaders also come from adjacent and other B2C industries outside purely banking-for example, a mobile payment application.Assemble a cross-functional group that can bring diversity of experiences and thinking.To truly reimagine a given journey, banks can take the following steps: New financial accounts are being opened at twice the average rate, and new banking relationships and switching banks are being considered (Exhibit 2). We notice a move toward increasing household spending and accelerating paying down credit card debt, as well as reducing savings for retirement and emergency funds. With the dynamic macroeconomic environment and the overall pessimism consumers are feeling, customers are thinking to the future, shifting their financial practices, and reevaluating relationships with their financial institutions. Their biggest concerns are inflation, the rising cost of goods, and savings for emergency funds. ![]() Over the past 12 months, interest rates have risen by more than 300 basis points, mortgage originations have dropped by 60 percent, and the flow of money between financial institutions has increased four times.Ĭonfidence is waning-more than 65 percent of customers are pessimistic about the economic outlook for the coming year, about a ten percentage point increase compared to last year. ![]() In this uncertain economic environment, excelling in customer experience is more important than ever for banks-the past year has seen one of the most dynamic macroeconomic conditions in the past several decades. And satisfied customers are six times more likely to say they'll remain with a bank than dissatisfied customers are. We also see a positive correlation between customer satisfaction and purchasing decision-customers who are satisfied with their banking experiences say they will purchase more of that bank’s products. Our research shows that banks that are frontrunners in customer satisfaction lead in financial metrics such as total shareholder return (TSR), increased growth, and decreased costs (Exhibit 1). In this article, we explore how banks can improve customer experience, identify five bold moves they can make to gain the competitive advantage, and why they must act now, given the current dynamic macroeconomic environment. Customer experience (CX) is proving to be the strategic differentiator for banks, with experience leaders outperforming laggards. Their banking practices have also altered, with many of them now using digital and looking for it from their banks. They expect more from service providers in the form of fast, frictionless, and personalized journeys.
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