How Digitization Optimizes the Customer Experience in Banking
It may not seem like it, but a bank is essentially a retail business. After all, it’s a private company that sells products (in this case, financial products) and provides various services to a final customer. Just like other retail businesses, banks have been greatly affected by the rise of online business. Many bank branches have closed as companies in the sector go all-in online. The way we see it, though, offline business and e-commerce can exist together.
We are currently at the hybrid phase where online and offline can work together perfectly. Phenomena like the ROPO effect and showrooming (which we have explored in previous posts) are proof of this. Despite bank digitization focusing mainly on the online world, many clients still prefer to bank in person at their nearest branch. This is why banks should see it as a necessity to improve the customer experience in banking.
The Beabloo research team performed a study on the banking sector to detect pain points both online and offline. In this post, we will explain the most important findings of our report. Without a doubt, bank marketing strategies will continue to transform as the sector evolves.
The banking sector and how technology can resolve friction
Problems in the discovery phase of the customer journey
People need a high-quality banking service that provides financial services to optimize their economic resources. However, there is an important friction point when selecting a bank. Consumers find themselves asking, which is the best one to cover my needs? Are different banks really that different? Standing apart from the competition to attract new clients using digital signage in retail banking and traditional advertising is a necessity for 21st century banking. Technology can help create a better banking experience.
There is a general preconceived notion that going to the bank takes up a lot of time, whether it’s waiting in line or doing the process itself. Despite the growth of online banking, there are still certain processes that need to be done in person to clear up any doubts with bank employees. How can we make these processes more efficient? What can technology do to reduce wait times in the banking sector?
Banks don’t usually have the opportunity to personalize their services because of the volume of clients they manage. This makes clients feel like their bank doesn’t know them, making them question if their bank is actually concerned about their interests. Is it possible to improve the customer experience so it is positive, memorable and reinforces trust in the company? What can we do to make processes easier to manage for online customers and give them a more personalized experience?
The right banking products
The lack of personalized attention makes customers feel like they aren’t getting the best possible assessment for banking products. Many feel like there are attractive offers, promotions and solutions, but that they aren’t offered or explained conveniently, so banks lose that investment opportunity. Is it possible to accurately predict which products and services are most beneficial for each client? How can we get them this information?
Ending the relationship
There is another general preconceived notion that certain banking processes are complicated, like closing an account. The customer churn rate is a metric that measures the number of customers and subscribers that cancel a service. For banks, this is often because the customer feels like the bank isn’t taking care of them. What can we do to detect which customers are most likely to leave so we can try to stop them? Is there any way to know why they leave so we can make sure it doesn’t happen again?
The endless possibilities of applying retail tech to the banking sector
This Beabloo study on the banking sector shows that there are many pain points, both online and offline. We can’t forget that banks and their offices are essentially retail businesses that need to consider the customer experience. If banks take advantage of technology to improve it, they can improve processes and create an unforgettable experience for clients. Bank marketing in the coming years, both online and offline, will be heavily influenced by digitization.