The entry of companies like Alipay, Amazon Cash, Facebook Messenger P2P, WeChat, and other services skilled at customer ease and experience may, in the longer term, disintermediate traditional banks from customer relationships and reduce banks’ distribution margins. Banks face an expanding array of new competitors. For the biggest banks, how they treat their customers is becoming more of a political issue, as any CEO who has been called before a congressional or parliamentary inquiry can attest.Ĭustomers’ loyalty is also at risk. For example, regulators around the world increasingly examine customer complaints for examples of problematic sales practices and inadequate customer service. Read our latest thinking on the banking customer experience Failure modesĬustomers are central to a wave of new opportunities and challenges facing banking executives, with regulators increasingly expecting banks to deliver on more than just credit-risk management and associated capital requirements. This article explores the ways that some banks have implemented these and other critical steps in constructing successful customer-experience transformations. These include, among other things, a consistent focus on value, ensuring the customer’s central role in any transformation, and the ability to scale a program. In our experience, a handful of elements are necessary to execute any program that will deliver durable impact. Effective transformations must not only recognize the complexity of these relationships but must also make a priority of the parts of the experience that matter most-in order to manage the cross-functional, end-to-end nature of customer needs rather than deferring to existing organizational structures.ĭepending on a bank’s customer-experience goals, transformations can vary in regard to the time and resources required. ![]() A customer’s banking relationship includes key journeys that range from onboarding and transacting to maintenance and problem resolution. ![]() Many leading banks are pouring tremendous resources into transforming the customer experience, often with mixed results. One bank that undertook a customer-experience transformation concluded that the lifetime profitability of a satisfied customer willing to actively recommend the bank to his or her friends was five to eight times greater than one who had a negative perception. A seamless customer experience can be worth at least as much as a superior product or efficient process-building customer loyalty, reducing costs, making employees happier, and boosting revenues significantly. ![]() As practitioners like Amazon and Apple have demonstrated, real value resides not only in the products and services a company provides but also in the way that it delivers them. The benefits of such a strategy have been increasingly clear for some time across sectors and geographies.
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