You likely know that the key to any strong, long-lasting business is delivering an exceptional customer experience (CX).
Unfortunately, when it comes to financial institutions, there can be a big disconnect between the experience they think they’re providing vs. the experience account holders are receiving. For instance, 41 percent of banks and credit unions consider themselves “relationship focused,” while just 13 percent of consumers say the same.
So how can financial institutions best stay competitive and deliver an outstanding CX? Especially when, in the age of mobile devices and social media, everyone wants something tailored just for them?
The answer is surprisingly simple (and yet incredibly difficult) – financial institutions must deliver outstanding service at every touchpoint in the customer experience, from in-branch to call center and from online to mobile device.
Our latest white paper reveals that account holders remain loyal to their financial institutions for five main reasons:
- They were treated well
- They experienced good communication
- They received high quality advice
- Their problems were resolved quickly
- They had a personal relationship with at least one financial institution employee
Financial institutions have a strong incentive to keep account holders happy: increasing customer retention just 5 percent can show a 25-95 percent increase in profits. This is because acquiring a new customer is anywhere from 5-25 times more expensive than keeping an existing one, with customers having a positive experience spending 140 times more than ones who have a bad experience.
If you think about it, this makes perfect sense. Regardless of the context, people are loyal to who and what makes them happy, they’re more willing to recommend the source of their happiness, and they’re likely to want more from this source. Their financial institutions are no exception.
Creating a positive CX sounds easy enough, but these statistics only convey the benefits, not how crucial it is to get customer experience right.
In one study, 41 percent of account openers and 33 percent of account closers cited customer experience as the number one reason for making their decision, outranking competitive interest rates, low fees and location.
It can take years to build a positive customer experience, but a single negative experience, a single episode of poor customer service, or a single complaint that goes unaddressed can cost a financial institution an account holder — or more, thanks to the power of social media.
CX Best Practices
Want to ensure your financial institution is prepared to deliver an outstanding CX? We’ve outlined eight best practices to implement in our white paper, “Customer Experience: Best Practices for Growing Revenue.”