The world of finance has always been highly competitive. But as challenger banks and Fintech organizations have entered the landscape, this competition has increased. To keep ahead of competitors and maintain an impactful financial brand, the customer experience element has become a crucial differentiator. Now, the power of the customer journey is what separates the good from the exceptional customer experience (CX).
Here, we provide some key tips on how to create amazing customer journeys that deliver an exceptional customer experience to make your financial institution the company of choice.
Top 5 Focal Points to Deliver the Best Possible Customer Experiences
The Digital Banking Report for 2020 writing on the digital transformation needed for innovation in the sector, states that:
”Done well, this transformation will have the opportunity to increase revenues and decrease costs, positively impacting the customer experience and providing differentiation in the marketplace.”
But determining what is needed to apply technical innovation is key to ensuring digital transformation is “done well”. Deciding what technologies to apply at which juncture and under varying conditions, can be a challenge. To help you focus on the right areas, we have outlined below our top tips to help you build engaging customer journeys.
Tip 1: Reduce friction whilst reducing fraud
A survey of marketing and analytics professionals found that 87% of respondents believed that a great CX was very or extremely important to their business. One way to deliver this is to reduce customer friction. The Amazon “Buy Now with 1-Click®” option is a case in point – making purchases extremely easy. Frictionless payment systems, like Amazon’s, are a goal in making online transactions seamless. The fewer the clicks the easier the transaction. With an average cart abandonment rate in 2019 of around 69.5%, reducing friction is a key customer journey tip.
But achieving friction-free experiences within a stringent regulatory framework can be a challenge. According to analysts at 451 Research, 87% of businesses believe that the PSD2 requirement for Secure Customer Authentication (SCA) during a transaction will help differentiate the checkout experience, whilst reducing fraud. However, the SCA, which requires the customer to input additional credentials to authenticate the transaction, has also been accused of increasing friction. Fortunately, PSD2 has exemptions that allow low-risk transactions to be processed without the need for a second factor. When designing a customer journey, ensure that you can meet the needs of PSD2, whilst reducing friction, by utilizing exemptions such as transaction risk analysis (TRA).
Tip 2: Provide user journeys that reflect your customer base
Financial organizations need to provide services for a wide demographic of users. This should be reflected in the service. Customers are more likely to be loyal to a company that provides for their needs and offers a more personalized service.
The Accenture “2019 Global Financial Services Consumer Study” showed that consumers increasingly want personalized services from financial providers. As an example, 64% of consumers were interested in insurance premiums that are tied to behavior
Offering your customers a personalized service has been shown to increase revenue and result in fewer returned goods. According to Global Consumer Pulse research, 33% of consumers have abandoned a relationship because personalization was lacking. In financial services, tailor-made services can be delivered by analyzing data from user journey feedback and customer preferences.
Another way to add personalization is to deliver services across multiple channels. The Accenture study also found that around half of customers expected a “true omnichannel banking experience”.
Look at using mobile channels and potentially digital assistants that could help customers with disabilities.
Tip 3: Ensure that security is part of the design (Security by Design)
Security is now on everyone’s mind as cyber-attacks become part of everyday life. Customers now don’t just expect a secure experience, they demand it. As customers become more cybersecurity aware, the expectations of robust security measures increase. The Accenture study, mentioned earlier, found that customers wish to see demonstrable security alongside personalization.
The SCA requirement of PSD2, when implemented well, using a risk-based application of the requirement, provides a good balance between security and usability.
Measures that can be used to help balance security and usability, including biometric authentication, instead of one-time password (OTP) – this can make authentication a more seamless experience for users. In addition, push notifications instead of the slower SMS text messages can also improve CX. Mobile phone apps rather than additional hardware tokens, cut costs and improve accessibility. The use of the mobile channel can also enable options such as QR code scanning devices or photo TAN authorization.
Tip 4: Ensure that Privacy is part of the design (Privacy by Design)
Having robust privacy, alongside security, is part of delivering exceptional customer experiences. Privacy is about user control; creating an environment that respects customer data is paramount. However, the balance can be hard to meet - especially as it is customer data that drives personalization of services. Getting this balance correct is part of great design and may require specialist help to deliver.
In addition, privacy is now a legal requirement in certain areas of jurisdiction. This is perhaps best demonstrated by the EU’s General Data Protection Regulation (GDPR). The GDPR sets out stringent rules on the collection and further processing of personal data. Building a service that is both personalized, omnichannel, and privacy-respectful under the GDPR, can be complicated. However, with help from designers and developers with privacy and security know-how, the balance of privacy and personalization can be met.
Tip 5: Be responsive
Digital transformation is an ongoing exercise, especially where consumers are concerned. New technology evolves, new channels of service delivery open up, and customers expect to have access to all of these. On top of all of this change, new regulations enter the landscape. Regulations such as PSD2 and GDPR are updated along with the technology upgrades. Your organization must allow for the change in your design. This is again where experts in the delivery of financial service technologies, who understand what customers want and know how to deliver within the framework of regulations, can help.
Hopefully, our top tips can help you to create those exceptional customer experiences.