Customer experience (CX) is critical in most, if not all sectors, but particularly for banks.
One of the leading drivers for growth in banks is referral between family and friends. Money and finance are difficult subjects to navigate, so high-quality and efficient customer care is a vital offering. It both keeps existing customers happy and loyal and increases the chance of them referring their family and friends. It can also result in increased customer lifetime value, as loyal customers are more likely to use a bank’s services and products, such as loans and credit cards, over an extended period of time.
On the flipside, a negative experience can lead to customer churn and reputational damage. When dealing with financial data and money, customers are usually in a rush to receive an answer or seek support, so being available, efficient and ‘bend over backwards’ helpful is key.
Why is it time to invest in CX now?
With the UK narrowly avoiding a recession and an inflation rate of >10% (Source: Reuters), the volume of cost-of-living related customer queries will likely increase. Customer service representatives need to be supported during this time. They need to have both metaphorical safety nets installed to help them deal with the difficult trying requests, and the latest technology available to them in order to improve the quality and efficiency of their responses.
With the rise of online banks – the Monzos and Revoluts of this world – there is another reason to reinvest in CX. The market is saturated, and it is a key business tactic to differentiate branding and experience from competitors. With so many banks in the market offering similar services and products, a positive CX can help a bank be distinctive, attracting new customers, and staying top-of-mind for existing ones. By providing exceptional customer service, personalised communications, and seamless digital experiences that piece together historical context, banks can create a competitive advantage that sets them apart from their competitors.
How can a bank create more personal CX?
Customers don’t usually interact with the same customer service representative every time they call or log a support request. But that doesn’t really matter. What’s important is that no matter who the person is that picks up the phone, or opens the chatlog, they must understand the customer’s query or issue, and all the historic context as well. That’s how a truly efficient resolution occurs without the customer having to repeat everything they said to a different customer service representative.
To understand the current issue, and the scenario and even the B2C relationship as a whole, there must be context available to the representative.
By storing contextual data on every customer and their historic relationship with your organisation, you unlock the ability to respond not only in a human way, but in an intelligent way. Thus, improving the efficiency of the interaction and supporting your staff. Representatives can see whether a customer is already listed as financially or emotionally vulnerable, or if there are other open requests that haven’t yet been resolved. This full visibility way of working is possible through the Liquid Voice Single Pane of Glass dashboard. More on that later!
Customers will appreciate that their request or question has been resolved efficiently and will subconsciously be happier if they have what feels like a bespoke experience. Additionally, the costly signalling of being able to offer high-quality customer service counts for a lot! It’s the peacock effect. If a business has excess funds that they are investing in what appear to be the less tangible business avenues, it shows they are doing well, and that counts for a lot in consumers’ minds.
Honest reviews in the modern world
A positive CX helps to mitigate reputational risks for banks. With there now being over half the entire planet on social media (4.76 billion according to Statista), and online review platforms at all our fingertips, it is easier than ever for customers to share their experiences with a wider audience. If a bank consistently receives negative reviews and feedback, this can damage its reputation and lead to a decline in customer trust. Inevitably, this will slow down acquisition and hinder retention too. On the other hand, positive CX can lead to more effective word-of-mouth marketing and help build a bank’s reputation as a trustworthy and reliable financial institution. This is what Monzo and Starling Bank have done very well in recent years.
In fact, over 80% of Starling Bank’s customers said that they would recommend the bank, according to Ipsos Mori’s personal banking service quality survey, compared to only 50% of a competitors’ customers when asked the same.
In 2021, Starling Bank hired more than 300 new customer service staff and pivoted their focus to excellent CX and no less.
Now, a new customer joins Starling Bank every 39 seconds and roughly 40% hear about the bank through word-of-mouth referrals! If that isn’t good enough proof that investing in CX is vital for banks, we don’t know what is!
Empowering customer service with technology
After a brief namedrop earlier, we should talk about the possibilities available with the Liquid Voice Single Pane of Glass Dashboard. We’ve spoken about the need to have the entire context of a customer at your representatives’ fingertips, but now let’s talk about how that’s possible.
The dashboard:
🔎 Enables easy search and retrieval of any customer interaction regardless of age, format or platform
💬 Consolidates all previous interactions and supporting data into a ‘single source of truth’
📊 Enables deep analysis of immediate issues as well as long-term operational trends
Essentially, our mission is to empower customer service and experience staff with technology that can help them understand the full story. Because once someone sees the full picture, they are able to truly understand it and therefore answer it faster.
Famously, Einstein once said:
“If I had an hour to solve a problem I’d spend 55 minutes thinking about the problem and five minutes thinking about solutions.”
The best way to solve a problem or request is by understanding it better. Then the best solution available becomes apparent rather simply.
Customer experience is crucial for all sectors but you don’t need to work harder to make that happen. Just work smarter. With a CX-first approach, banks can drive customer loyalty and acquisition, differentiate themselves from their competitors, and mitigate reputational risks. Banks that shift to a CX-first approach are more likely to succeed in the current market and survive through the recession. Your move…
