Three Methods For Banks to Improve Customer Experience
Like other industries, the need for a Customer Experience program is becoming paramount for banking brands. The ability to connect with customers can be a difference maker, especially in terms of retaining consistent growth and long-term customer relationships. Because banking is a service-driven industry, it is important that a brand’s employees have the skillset to deliver this value. Check out the following list of three methods written by Stan Phelps for Forbes. You can access the piece by clicking here, or by reading below:
This piece was originally published by Inc on June 12, 2017.
“FIS recently released its third annual PACE index. Started in 2015, the research aims to greater understand how financial institutions are Performing Against Customer Expectations (PACE). The PACE Index measures 18 attributes associated with expectations in banking. In the Global Study asked over 8,000 customers and 500 small businesses what they value most. Each attribute is evaluated on both importance and performance. It measures what customers feel, think and want from their financial institutions. The report aims to uncover where the biggest performance gaps occur.
I applaud FIS for tracking expectations. Expectations tend to be a moving target. I believe the biggest myth of business is the idea of meeting customer expectations. No one just meets expectations, you either exceed expectations or you fall short.
Interested in which country leads on performance? It’s a tie for bragging rights. The index for US banks rose four points, tying with Germany for the top honors. The UK and Canada were second and third respectively.
I spoke with Anthony Jabbour, COO of Banking & Payments from FIS about changes over the last year. Here are three takeaways from the report:
- Responsiveness and Readiness: Consumers want the convenience of making digital payments. This increased by eight points and four places in the study to land at #8. Being connected and having access to your accounts anytime and anywhere stayed at #4 in importance, but increased by three points.
Takeaway: Digital payments take the friction out of banking. Financial institutions are improving here, but they are underperforming on managing the customer relationship and understanding customer wants and needs.
- Millennials are Mobile: Millennial customers are lapping GenX and Boomers when it comes to mobile. They are making twice the amount of transactions than their generational counterparts. They are also gaining in economic strength. Older millennials are now making more than their Boomer colleagues on average.
Takeaway: Millennials just recently outnumbered Boomers. The largest living generation now represents the greatest opportunity—and challenge—for banks today in an increasingly mobile first world.
- Millennial segments: For the first time, the 2017 PACE study broke down the millennial demographic into younger and senior segments. The senior millennials (ages 26-36) share similar banking behaviors to Gen Xers (ages 37-51). FIS calls this sub-group GEN MXers. The report shows that both GEN MXers and GEN Xers have strong preferences for digital channels in all of their banking and business activities. The PACE report uncovered that alternative financial service usage is commonplace among millennials. Over the last month, 52 percent used an alternative financial service.
Takeaway: Not all Millennials are created equal. Use of alternative financial services is heavily concentrated among the younger millennials. The threat to banking providers is immense as these are future profitable consumers.
Understanding and closing the gaps is the key to success. According to Jack Welch, former CEO of GE, “An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.””
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