As consumers have grown accustomed to great digital experiences while shopping online and in person, they have come to expect them everywhere they do business — including with banks.
Deloitte has found that customers want their bank interactions to be as sophisticated, immediate and personalized as their experiences are with other businesses. However, 94% of banks cannot yet meet this expectation.
Retailers have elevated the customer experience (CX), particularly in the areas of personalization in banking and customer-centric approaches to service. Here’s how banks can earn increased brand loyalty in banking by learning from some of the retail industry’s CX successes.
Personalization in banking enables a great CX
Banking customers see personalization as essential to a high-quality customer experience. A recent Q2-Harris Poll Report found that 74% of respondents across generations want more personalization in banking, and 66% of them are comfortable with financial institutions using their data to personalize experiences. However, only 22% said it regularly feels like their financial institutions anticipate their needs.
Retailers analyze customer data to understand their individual customers’ preferences better and, from there, create customized offers and experiences to match. Mobile apps that bridge the digital and physical experiences are particularly effective where this is concerned.
For example, Target allows customers to build their own shopping lists inside the Target app, view what’s in stock at their local store, and even locate the items they want in advance. Once in the store, they can scan a barcode to take advantage of app-exclusive coupons if they participate in the retailer’s rewards program. The Starbucks mobile app gives customers personalized recommendations for food and drinks based on what’s available at their local store, what’s most popular in their community, how the weather is trending and even the time of day.
A bank could leverage its mobile app similarly at its branch locations. For example, the bank could allow customers to check in from their phones upon arrival, join a virtual queue with live information on estimated wait times, and even begin processes like setting up a checking account on their own before meeting with a banker.
With smart self-service tools streamlining the retail banking experience in this way, customers are more likely to feel like their time and attention are being valued when they visit a branch location in person — something Gen Z customers would especially appreciate. The Q2 report notes that 65% of Zoomers prefer opening an account in person, compared to 58% of millennials, Gen Xers and baby boomers.
Blending the physical and digital experiences for better customer care
Retailers are creating “stores of the future” that blend advanced technology like interactive displays and self-service kiosks with data-driven insights to elevate the customer experience even further. Customers can walk up to displays for real-time information on where to quickly locate the item they’re looking for and use a self-checkout terminal to complete their purchase. Bank branches could apply similar concepts to deliver a better retail banking experience.
For example, a customer walking into a branch can use the bank’s mobile app to check in and confirm the reason for their visit. If their need is simple, they can be directed to a self-service kiosk. If the customer requires more in-depth assistance, a banker can receive an alert on their smartwatch or tablet, walk up to the front reception area and greet the customer by name. This can help decrease wait times for customers, which provides a more positive customer experience and can even improve a bank’s net promoter score (NPS). To ensure proper security, the banker can scan the customer’s ID on a tablet to verify their identity. These are just a few ways banks can thoughtfully use technology to enhance customer care at key moments during a branch visit.
A stellar CX inspires brand loyalty in banking
Consumer technology trends are shaping expectations for the customer experience across multiple industries, including the financial sector. Having grown accustomed to the speed and convenience of digital innovation in retail, banking customers want to see the same kinds of advancements from their banks. By embracing personalization in banking and leveraging customer data to deliver better service, banks can earn increased customer satisfaction and brand loyalty.
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