4.1 The Customer Experience Flashcards
The customer experience
In Banking , this refers to a customers perceptions and feelings about the interactions with the bank.
‘Touch points’
Is any point with the customer comes into contact with the bank- before, during or after purchase of the bank product and services
Can be Online mobile phone face-to-face
Customers journey in Banking
👀 Awareness
📂 Open account/ service
💡Use account/ service
Get issues resolved
Add account/ service
Continue as customer or stop services
Banks that can innovate and meet customer needs have a huge competitive advantage.
Today customers want personalised interactions, simplified Banking and access to their accounts through technology
(Forbes 2018)
Influenced a person to choose a bank in the first place
- Positive reports of others people customer experience
- A customers own demands and preferences (trust, security and reliability is the important features of any banking relationship)
‘Churn’
Where customers switch providers from time to time
Bank must reduce the level of churn if they are to retain their customers
Online Banking means that switching between banks easy in the case of current accounts and credit cards which can create some amounts of churn
Acquiring new customers
This is done through marketing policies by banks
Includes advertising and through the recommendation of other customers
Can be done through good publicity on the media (a bank overall image is an important factor for confidence in its products and services)
Factors influencing customer choice
- confidence
- personalised services
- easy to use and delivered
- choice
- innovation
- instance access
- excellent and seamless experience
Confidence
Confident in the bank as an institution, and trust the transactions will be safe and secure
M
Personalised services
Products that provide a personalised service and allow customers to satisfy their needs
(E.g, to transfer money safely, to finance a purchase or to insure a possession)
Easy to use and delivered
Product are easy to use and delivered via suitable channels.
People want the flexibility of digital channels and like using up-to-date technology .
Others want the personnel service of a face-to-face and telephone channel.
Many people are not good at managing their money or understanding her balance work so financial products must be as simple as possible , easy to use and reliable.
Choice
A choice of different products in each categories so that customers can select the one which has the best combination of cost and service for them
Innovation
Innovation in the product and service offering to ensure the bank attracts and retains customers as the market and industry evolves.
Instant access
Instant access to up-to-date information about the customers position so they feel in control of their finances
Example their account balance
Excellent and seamless experience
Banks must aim to provide their customers with good experience throughout.
Customers perception can change easily and a positive feeling can be lost with just one bad experience.
Customer onboarding
Is the process that new users go through to get set up and start using a new product
Covers the whole journey from initial signup to product and first use.
It aims to deliver value to the customer as early as possible (Help Scout 2023)
Onboarding
It’s about setting up an operating a new bank account.
Must be streamlined to create a seamless experience from the very first touch point through to the post purchase stage.
Will be successful if personalised and tailored to the needs of the individual.
The bank should not expect the customer to absorb too much information at the beginning
Instead, they should provide information gradually so the customer can understand the product one step as time .
Bank must be available to the customer at every stage to guide them (This helps them to become more experience and to be a long-term customers
Two reason why customers churn through financial products
- do not understand them
- do not get enough value from them
Number of steps that can be taken to achieve good customer on boarding
- The signup process.
- Send a welcome email.
- First login in.
- Understand the customer.
- Set clear expectations.
- Demonstrate value.
- Product walk-through.
- Follow up emails.
- Create customer centric goals.
- Impress
- Measure success.
The sign up process
A lot of customers begin signing up for a product and then stop.
To avoid this, a bank must keep the signup stage as simple as possible and reduce the amount of information requested
Send a welcome email
Just give customers a good feel about the bank and direct them back to the products so they can begin using it immediately
First log in
Where the bank gets customers ready to use the product
Might include a guided tutorial or set up wizard
Understand the customer
Good customer knowledge helps the bank to tailor its on boarding but understanding the customers profile and the challenges they might face in using the product
Set clear expectations
This ensures the customer is aware of how the product works and is prepared for any difficulties that might crop up
Demonstrate value
This shows the customer how the product is suitable for their needs
