Why Banks Need To Think Beyond Customer Experience
Offering a good customer experiences is no longer enough, says study.
In today’s experience era, the majority of CEOs in the banking sector believe customer centricity is essential for driving business growth. However, there is still a big gap between ambition and reality. According to a Kantar CX+ report, while 91% of retail bank CEOs in India see the need to become customer-centric, just 29% of consumers believe banks offer truly customer-centric experiences.
Good customer experience not enough
The study reflects that providing good customer experiences is no longer enough for the banking sector. In a connected environment, brands and customer experience have become synonymous. Thus the roadmap to growth is based on 5 key CX success factors. These include 1) Clarity of brand promise 2) Empowered employees 3) Empowered customers 4) Creating lasting memories and 5) Exceptional delivery.
Strong brand promise vs. Experience
The study further reveals that the top-ranking Retail banks in India such as HSBC, Standard Chartered, Citi Bank, Yes Bank and IndusInd Bank, among others, have delivered a superior customer experience. That is matched with a strong brand promise thus giving them a distinctive Experience advantage over their competition.
“We live in the age of experience, but many brands are still missing the mark as there’s a huge gap between brand promise and customer experience. However, there’s a huge opportunity for growth as half of India is still unbanked. They are increasingly looking up to their banks to give them more personalized experiences, smoother and more convenient digital services, and a more human approach to technology,” Preeti Reddy, CEO-South Asia, Insights Division, Kantar said.
The age of Experience
The study shows that banks that lead in the CX+ Index has 1.6 times chances for recommendation, as against banks at the lower end of the index.
Banks that deliver an excellent experience on digital channels are 2.5 times more likely to delight customers, while customers are 3.6 times more delighted when they feel appreciated by their bank.
Focus on women, unbanked customers
Improved customer experience can benefit financial services companies across the board. But the opportunity to grow is particularly significant among women.
According to the research, about 114 million Indian women are unbanked. About half of women in India with personal bank accounts use them in a limited capacity or not at all.
The study however shows, women use more online banking than men. Women are less likely to visit branches. However, women are more skeptical regarding FinTechs and technology-enabled banking providers. They feel less in control of their finances with technology-enabled banking providers.
As the study quantifies the difference between bank’s brand promise and the actual customer experience delivered, it recommends that banks should address this challenge to improve customer experience.