Elevating Customer Experience in the Evolving Banking Ecosystem

In today’s changing banking ecosystem, customer expectations continue to evolve. However, the best practices for delivering an excellent customer experience (CX) remain the same. This represents a tremendous opportunity for institutions that deeply understand the fundamental CX principles.

Typically, CX is defined as the customer’s cognitive, emotional, physical, and sensory responses that measure direct and indirect interactions driving behavior. CX viewpoints are informed by science, drawing on consumer behavior, sociology, economics, and psychology knowledge. Looking at dozens of studies, including surveys conducted by J.D. Powers and other high-profile consulting firms, there are concrete factors explaining positive and negative customer experiences. The five pillars of CX include the following:

1. Frictionless: Customers expect to be able to transact business without encountering cumbersome processes or barriers. Ease of navigation and cross-channel start-stop-resume functionality positively influence CX.
2. Personalization: Relevance, timing, and assistance provide a nurturing environment where customers feel heard.
3. Guidance: 78 percent of consumers would like financial assistance. Goal-centric personal financial planning assistance enhances CX.
4. Empowerment: Consumers demand the empowerment of self-service and human assistance when necessary.
5. Trust: Security, privacy, and protection of personal information, especially through digital channels, protect CX.

Customer experience also impacts the emotional state. Key factors include speed, simplicity, and empathy. For instance, consumers value having their needs met quickly, seamlessly, and in a way that makes them feel “known” and understood.

To successfully meet expanding customer experience demands, financial institutions must be cognizant of the hierarchy of customer engagement. This includes meeting customer satisfaction requirements while eliminating sources of friction and detecting needs at various touchpoints. Additionally, by quantifying success and identifying friction points through a best practice Voice of the Customer (VOC) program, organizations can deploy timely and relevant custom engagement to enhance the overall customer experience.

For more information download our white paper: "Innovation Drives Customer Engagement Best Practices."