3 Reasons Financial Service Providers Need Great CX
November 12, 2015
Is it important for banks to invest in customer experience management? The answer is an absolute yes.
Financial institutions are under tremendous pressure from a number of sources. For example, this week, the Financial Stability Board released new standards for the amount of risk that global banks need to be able to absorb, which will require the “systemically important” banks around the world to set aside nearly $1.2 trillion.
In the US, the Consumer Financial Protection Bureau is being vigilant about protecting banking customers, resulting in more than $4.6 billion ordered in relief to consumers by CFPB enforcement actions since 2012.
In the UK, financial regulatory laws strictly govern the handling of complaints in banks and other financial institutions. Banks need to report on all customer complaints not resolved within 48 hours. If they do not comply, banks could face large fines.
So where does customer experience (CX) come in?
It makes you different. Clarabridge research shows that 22% of customers do not see a difference between financial providers. If they can’t tell you apart, they have no reason to be loyal to you, stay with you, or advocate for you to their friends. When you listen to your customers and provide the kinds of solutions they are looking for, you make yourself stand out from the crowd.
It helps you avoid fines. Monitoring customer feedback regularly helps you to identify problems as soon as they start. If you can find and fix problems—whether they are related to your website, your branch locations, or your corporate policies—then you can avoid a run-in with the CFPB or other regulatory bodies. Set up real-time alerts on emerging issues, so you can also stay on top of complaints.
It boosts your bottom line. According to Forrester Research, a one-point improvement in Customer Experience Index has an impact of $58 million for a retail bank. Customers are more loyal and expand their business with you when you treat them well and give them what they ask for. They are also less likely to report you for violations, and will contribute to the assets you need in order to forestall risk.
Becoming more customer-centric is not an overnight project; it requires the right team, the right processes, and an institution-wide focus on providing a great experience. But in light of the challenges facing financial providers today, great CX is an investment that is sure to pay off.
Download our new eBook, “CX for Financial Services: Why it matters and what you need to know” for tips on how banks can create a great customer experience.
Lisa Sigler is Sr. Manager of Content Marketing at Clarabridge. For over 16 years, Lisa has used her writing and editorial skills to bring the value and benefits of technology to life. In her current role, she works to demonstrate Clarabridge’s position as thought leader and trailblazer in the Customer Experience Management market. Lisa holds a B.A. of English from Kent State University. Read more from Lisa on Twitter @siglerLis.