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Category: Customer Experience Management

Banking Customer Experience in Middle East

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Banking Customer Experience in Middle East

The growing importance of customer experience has taken over the banking industry by storm. A recent report published by E&Y details out latest trends in customer experience from around the globe and suggests that banks should aggressively leverage valuable insights from customer behavior to effectively chart out their customer experience strategy.

The infographic below throws light on banking customer experience in Middle East and how implementing real-time technology solutions result in customer delight by making use of deep customer insights.

 

 

Customer Experience – The new bedrock for consumer banking

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The new bedrock for consumer banking:

Customer experience is not a fad but has the potential to make or break a bank’s revenue. A recent research report from Capgemini revealed that more than half of bank customers are dissatisfied with their retail banking experience. The report also reveals that dissatisfied customers are increasingly choosing competing banks over their present service providers. Therefore, in order to stay profitable in the business, banks must invest in intelligent real-time technology that takes proactive care of customers’ needs and pain areas. Positive customer experience not only improves customer loyalty but also improves top-line for banks.

The infographic below highlights recent trends in consumer banking customer experience and how implementing real-time customer experience solutions would result in mutual benefits for banks and customers.

 

consumer banking customer experience.

 

Increasing Importance of Big Data in Banking

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Increasing Importance of Big Data in Banking:

The phrase big data has become a buzz word. Everyone talks about it or has information in bits and pieces, but only few companies know how to utilize the same. Big data is characterized by the tremendous volumes, varieties and velocities of data, that are generated by a wide array of sources, customers, partners and regulators (IBM)

Banking is among many industries which has a vast and useful data about their customers.  But right now, only a handful of banks are utilizing this pool of information and taking steps to enhance Customer Experience and deducing the data to combat fraud. Banks are aware of the fact that if the data is used smartly they will be able to cater to the needs of customers accurately.

As per research from (Capgemini) only 37% of customers believe that banks understand their needs and preferences. Banks have an abundance of informative data, but the major challenges they are facing today is how to utilize it intelligently, shortage of skilled people, insufficient tools, time constraints, the high cost associated, unstructured vast data and much more.

Most of the banks have silo based solutions to harness this pool of information. (Capgemini) research shows that organizational silos are the single biggest barrier to success with big data. Banks should apply 360 degree approach and understand the customers’ needs and act accordingly.

Big data can do wonders for banks if mined properly. Big data help to limit customer attrition, help in relationship management, increase in ROI and reducing fraud. Big data can be utilized to:

 

  • Increase revenues by optimizing offers according to the customers’ needs
  • Cross sell & up sell to the customers based on the information deduced from big data
  • Reverse attrition & meets stringent regulatory requirements
  • Establish more meaningful customer relationships
  • Generate more personalized multichannel customer journeys
  • Detect and prevent fraud by using data analytics
  • Understand the behavior of their customers
  • Mine new revenue streams
  • Manage risk and take precautionary actions
  • Understand crime and help to predict where crime is likely to occur

Big data is being increasingly used and studied by banks now. Banks have understood the potential of big data and are taking measures to apply it.  Banks should come out of their silo based legacy solution to more wider and useful approach that will not only enhance customer experience, but also will help them to increase ROI, prevent fraud and reduce attrition rate.

Find the truth about your Customers, yourself!

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In an age where even scientific discoveries are turning out to be unreliable, scientists, of course state that these are “self correcting” and therefore in the long run, the truth shall prevail, businesses have something to worry about, mainly so because they need to take quick decisions based on the information they have available today and cannot wait till a more “accurate” version of the truth arrives tomorrow. To take a parallel in the medicine industry, many times wrong diagnosis has harmed businesses more than wrong strategy.

Here are a few reasons why research goes wrong in today’s world:

  • An interconnected world allows access to analysis in one part of the world, everywhere else. However conditions and assumptions underlying the analysis may not apply to your case

  • Hype about new media, like Facebook, Twitter and Mobile forces advertisers and marketers to embrace these channels so that they can brag about the logos. However, the ROI for the same may not justify the effort depending on how frequently decision makers in your segment access these channels

  • More data, more complexity – news gatherers try to hide the complexity of findings and analyses in simple terms, so that content is easy to read and generates more page views. However, only getting to the source of the content would tell the reader about the constraints and assumptions as well as the statistical probabilities observed

  • Terminology – different terms mean different things in the same language with the same industry. For example, a “savings account” could mean an fixed term deposit in the UK, whereas it means an interest earning demand deposit in India. An analyst reading about trends in savings accounts could make wrong interpretations owing to this

In summary, either

  • the third party research does not mean what you think it does, or

  • it isn’t relevant in your context, or

  • it works – and if it does, it’s more likely a fluke that’s not guaranteed to provide repeatable results

The solution?

  • do your own research

  • implement strategy based on this research

  • implement a feedback loop that proves / disproves your hypothesis

  • rinse and repeat

In the banking industry, it is more important than ever to not rely on trends, news sources and so called “independent” studies that are not validated for your customers, your business environment and your products based on your own data.

If you are a leading bank, you already have a huge amount of transaction data ready to be mined in real time. To find out how you can perform your own research to retain valued customers and maximize revenue, contact CustomerXPs at clari5@customerxps.com.

By Alok Kumar

Alok Kumar is Product Line Engineering Manager at CustomerXPs

He can be reached at clari5@customerxps.com

CustomerXPs offers real-time, intelligent products that empower banks with instant insights enabling influenced outcomes of deeper customer engagement and fraud-free transactions.

Five ways Banks can ensure annus horribilis for Customer Experience in 2014!

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1. Offer to downgrade:  Banks can bombard the best customers with offers to downgrade their status. For example, they can get the relationship manager to call the platinum card holder and offer her to issue a silver credit card.

2. Cross sell irrelevant products: Its relatively easy doing this.  Run the algorithm on a customer relationship and identify the least fit product. The teller can than try to cross sell it to the unsuspecting customer. A new low can be achieved by wrong-timing the pitch. Example:  Offer a car loan at a cheaper rate to customer who purchased car last week.

3. Antipathetic complaint redressal mechanism:  There are more than one ways to do it. Make customers jump through hoops to reach the customer care executives.  Refuse to acknowledge that the problem exists. Get customers to start over every time they want to check the status. Cross sell irrelevant products when the customers call to complain.

4. Commoditize the customer:  Converting the customer from individual to a commodity has monopoly rule at the pinnacle of horrible customer experience.  One sentence that really does the trick is,” we deal with hundreds of customer like you.”

5. Continue with antiquated processes: After all, old is gold. Continuation with antiquated processes will ensure that customers have to fill forms in triplicate and visit multiple counters for each transaction. Then cross sell irrelevant products to them.

From the days when customer experience management was more titular than operational, today its closely correlates with lower customer attrition and better financial results for the banks.  Hopefully, the banks will endeavor to avoid the above 5 mistakes thus achieving superior results.

By Ratnesh Pandey

Ratnesh is Head of Marketing at CustomerXPs.

He can be reached at clari5@customerxps.com

CustomerXPs offers real-time, intelligent products that empower banks with instant insights enabling influenced outcomes of deeper customer engagement and fraud-free transactions.