If you’re looking to find ways that can improve the bottom line, look no further than your digital efforts.
Often bank leaders consider ‘finding waste’ as going through the balance sheet and uncovering unnecessary spending. But other types of waste, when discovered, can lead to opportunity.
And there’s no bigger waste than the lack of interactions banks spark with customers as they go online or to the mobile app. Why? Because there’s a very good chance you’re not engaging with these customers in conversations, as they click around your platform. The assumption comes from the data. BCG evaluated customer interactions at retail banks across the globe, finding that for every one time a customer visits a branch, the same customer will access the bank’s app between 50 and 80 times. The firm then analyzed how banks interact with their digital customers, finding that most do a poor job engaging with these users and sparking conversations. It’s a particularly wasted effort, if you also consider how many billions of dollars go into developing the digital products across the industry.
Modern banks need the digital access. That almost goes without saying. But, while you provide the access, you also must create ways to boost conversations with these same customers. If you don’t, you’re wasting the primary tool in which customers use your services. This impacts the bottom line. Of banks that reported a positive business impact from digital saw an increase of 45% in net revenue growth.
45% increase in net revenue growth
These conversations aren’t started on their own, however, especially online. There’s less opportunity for your reps to get in front of the client, which means you have to work to spark them.
Understand Where The Customer Is Today
When it comes to digital, you only have a few moments each time a customer checks in to encourage conversation that will engage the person. If they reach out online about a question, understand why they would need to ask that today. A question about a mortgage application will differ depending on if it’s the person’s first house or third, for example.
Either way, you want to provide them with information that will answer their basic question, if possible. But you also want to show them the value of speaking directly with a bank representative. With the right tools, you can make sure an initial engagement highlights your knowledge of their situation. You can seamlessly present them with solutions that you offer, based on their financial situation. This information can be provided to your reps so they know exactly what this customer needs and what offerings best fit.
It not only ensures the bank gains by placing the customer in the best possible solution, it also aides the customer, making them aware of your service, encouraging him or her to come back again.
Where Do They Want To Be
Even as you build out digital products and services, you want your customer to become an active engager of your tools. In fact, according to Accenture, this is exactly the type of experience you need to build in order to turn passive users into active engagers, improving the impact of the online effort.
For banks, one of the best ways to do this is with financial tools that allow people to grow their financial wellness. From a video on how to improve a credit score, to an online class on how to save for a home or launch a small business, the tools you provide customers will lead those interested in the offerings seeking more of your services within those sectors.
It also builds in reasons for customers to reach out about other options, especially once they know that you have more services that they can take advantage of. These initial conversations have the ability to create revenues because you’re showing them answers to questions that they want to accomplish, even if they’re not ready to commit to the effort today.
Where They Should Be Headed
One in two consumers want personalized financial advice from their bank. You also only have to look at the rise of the financial wellness apps that have grown in popularity to know your customers want this level of service and information. If you’re not providing it, then you’re ignoring your customers’ wishes. And without your voice, they will then turn to online influencers, which may or may not lead them in the right direction. This will also prevent a conversation that could have occurred between the customer and one of your representatives.
“…the recent shift to digital is threatening the relationships banks have worked to develop. To forge strong customer connections, banks must reimagine the digital services they provide and make those connections more personal and relevant.”
—Alan McIntyre, leader of Accenture’s Banking industry group globally
About 84% of banks have not mapped their customer’s financial journey. But banks aren’t providing or sharing that information directly to their customer.
The Digital Customer Journey
Using tools, analysis and targeted content to provide your customers with some of this information will allow them to see the possibilities. It’s likely that they’re unaware of where they should set their goals and how they should view their lifetime journey to financial wellness. If you provide the right advice – even if it’s simply through digital tools on your site – it will allow them to seek out a representative for more information and help connect with them on a personal level. Why? Because it shows that you view them as a person, allowing them to also see your employees as helpful guides instead of autonomous faces in the bank.
They will then seek them out, since you’ve opened their eyes to new opportunities that they won’t want to waste.
Ignite Sales is the leader in digital member engagement, using artificial intelligence for engaging analytics to facilitate growth, deeper product penetration and increase satisfaction levels of bankers and members.