Customer experience has major financial impact for banking industry

Differentiation in the marketplace is no longer determined by price, product or location. Instead, leading brands have shown that the power of customer experience – both online and offline – is the most important component of long-term competitive and financial success.

Today’s consumer follows a multi-directional path to purchase, with their combined experiences determining what they buy, how much they engage and how loyal they become. Now, for the first time, there is statistical evidence of the connection between the experience a consumer has with your financial brand and the revenue impact on your financial institution. In other words, the success of your organization in the marketplace has become increasingly reliant on how you manage customer experiences.

For the past several years, the Digital Banking Report has found that ‘improving the customer experience’ is both a major trend in the banking industry and a major strategic objective for the majority of banks and credit unions. Unfortunately, research also indicates that most financial institutions talk more about improving customer experiences than investing in ways to remove friction, increase engagement and motivate employees towards this goal.

Now there an extra motivation to do the right things for consumers. In a study from Kantar, it was found that financial institutions that lead in customer experience (CX) have a higher recommendation rate, a higher share of deposits, and a greater likelihood that customers will increase their portfolio of new products and services from their bank. Conversely, it was found that financial institutions that let their customer experience decline risk losing up to 12.5% of their share of deposits.

 

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