4.1 The Customer Experience

Question 1

The customer experience

Answer 1

In Banking , this refers to a customers perceptions and feelings about the interactions with the bank.

Question 2

‘Touch points’

Answer 2

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

Question 3

Customers journey in Banking

Answer 3

👀 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)

Question 4

Influenced a person to choose a bank in the first place

Answer 4

1. Positive reports of others people customer experience
2. A customers own demands and preferences (trust, security and reliability is the important features of any banking relationship)

Question 5

‘Churn’

Answer 5

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

Question 6

Acquiring new customers

Answer 6

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)

Question 7

Factors influencing customer choice

Answer 7

• confidence
• personalised services
• easy to use and delivered
• choice
• innovation
• instance access
• excellent and seamless experience

Question 8

Confidence

Answer 8

Confident in the bank as an institution, and trust the transactions will be safe and secure
M

Question 9

Personalised services

Answer 9

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)

Question 10

Easy to use and delivered

Answer 10

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.

Question 11

Choice

Answer 11

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

Question 12

Innovation

Answer 12

Innovation in the product and service offering to ensure the bank attracts and retains customers as the market and industry evolves.

Question 13

Instant access

Answer 13

Instant access to up-to-date information about the customers position so they feel in control of their finances
Example their account balance

Question 14

Excellent and seamless experience

Answer 14

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.

Question 15

Customer onboarding

Answer 15

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)

Question 16

Onboarding

Answer 16

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

Question 17

Two reason why customers churn through financial products

Answer 17

• do not understand them
• do not get enough value from them

Question 18

Number of steps that can be taken to achieve good customer on boarding

Answer 18

1. The signup process.
2. Send a welcome email.
3. First login in.
4. Understand the customer.
5. Set clear expectations.
6. Demonstrate value.
7. Product walk-through.
8. Follow up emails.
9. Create customer centric goals.
10. Impress
11. Measure success.

Question 19

The sign up process

Answer 19

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

Question 20

Send a welcome email

Answer 20

Just give customers a good feel about the bank and direct them back to the products so they can begin using it immediately

Question 21

First log in

Answer 21

Where the bank gets customers ready to use the product
Might include a guided tutorial or set up wizard

Question 22

Understand the customer

Answer 22

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

Question 23

Set clear expectations

Answer 23

This ensures the customer is aware of how the product works and is prepared for any difficulties that might crop up

Question 24

Demonstrate value

Answer 24

This shows the customer how the product is suitable for their needs

Question 25

Product walkthrough

Answer 25

This stage shows customers how to use the product and support should be provided

Question 26

Follow up emails

Answer 26

Customise are provided with tips and resources to keep them engaged

Question 27

Create customer centric goals

Answer 27

Creating customer centric goals means that the customer can find their own own success in using the product

Question 28

Impress

Answer 28

Seek to impress by delivering a first class service to reinforce to customers positive view of the product

Question 29

Measure success

Answer 29

This can be done by gathering customer feedback, identifying possible issues, and accessing the data it has on the customer.

Analysing this information helps the bank to understand what customers are thinking and help them to understand what drives customers satisfaction and dissatisfaction.

The bank then seek opportunities for improvement in processes and customer experience

Question 30

Customer experience can be affected by a number of factors

Answer 30

Quality and functionality of the product and their extent to which it means the customers expectations
This mat be based on advertising

Question 31

Key factors determining the customer experience

Answer 31

1. The choice of delivery channels - including branch service, mobile app or digital assistant
2. Ease of access and operation when using the product.
3. Customers perceptions.
   Customers are more likely to be loyal to the bank. They see it as reliable and if it treats them fairly.

Question 32

The end to end customer experience

Answer 32

Maps out customer journeys and identifies all the touch points across all channels, where the bank and customer interact.

For example;
- A customer might check the balance Online
- Deposit money through a branch
- Verify that the deposit has been made on a smart phone

(Three touch points and three channels in this example)

Question 33

First point of contact

Answer 33

Before the account is even opened

Question 34

Customer retention

Answer 34

Low customer satisfaction scores, social media complaints or a poor review can affect a poor customer experience

Financial organisations can now receive automatic notifications if a response to a survey or a post on social media suggest a poor customer experience or a negative opinion

Allow bank to take steps to try keep the customer.

Question 35

Customer engagements

Answer 35

Can be tracked and managed in a customer experience management system

To make sure that each instance is addressed and resolved and to train bank employees to manage future experiences

Customer experience management should become less about reacting to situations and more about predicting how customers will feel and respond