50.72% of banking customers state that trust in their bank is the most important factor that influences service. Digital service comes in second for 13.78% of consumers, and 12.21% rated customer service as a critical factor.
The question then becomes where to start looking at how to improve customer experience in bank services. The answer is that banks must research what is most important to their customers, and focus on those areas first.
In this article, we'll cover:
Assessing Customer Experience in Banking
Assessing customer service for banks is the first step to understanding how well they are meeting customer expectations and identifying areas for improvement. Here are some key metrics and methods for assessing the customer experience.
Net Promoter Score (NPS)
NPS is a metric used to assess customer loyalty and satisfaction. It involves asking customers how likely they are to recommend a bank to others on a scale of 0–10. Customers who score 9 or 10 are considered promoters, while those who score 6 or below are detractors. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
Banks should aim to increase the number of promoters while minimizing the number of detractors. The value of this metric is that it gets clients to think about how they view a bank overall. Instead of basing their response on one interaction, they consider their overall experience.
Customer Satisfaction Score (CSAT)
CSAT is another popular metric that measures how satisfied customers are with a bank’s products and services. It involves asking customers to rate their satisfaction on a scale of 1–5 or 1–10.
Many banks use this metric to gain a snapshot of service at a specific point in time. They might, for example, ask clients to rate the service they receive after a single interaction. This rating can, therefore, change over time.
Customer Effort Score (CES)
CES measures how easy it is for customers to interact with a bank and get their issues resolved. It involves asking customers how much effort they had to put into a particular interaction, such as opening an account or resolving an issue.
Banks should carefully assess processes that involve extra effort on a client’s part and simplify them as much as possible.
Complaints and Feedback
Banks can collect customer complaints and feedback through various channels, such as email, phone, and social media. Analyzing these complaints and feedback can help banks identify common issues and areas for improvement.
While they will not be able to act on every complaint, banks should see them as an opportunity for improvement. They can identify common themes that detract from the overall customer experience.
When collecting data of this nature on a widespread scale, it’s important to give customers feedback as well. Banks can publish a list of commonly identified concerns and how they will address them. This way, the customers can see that the bank values their feedback.
Mystery Banking
Banks can conduct mystery shopping exercises to assess customer experience at different touchpoints, such as branch visits, call centers, and online channels. This involves hiring mystery customers to pose as customers and provide feedback on their experience.
Customer Journey Mapping
Customer journey mapping involves mapping out the customer journey from the initial interaction with a bank to the resolution of issues. This can help banks identify pain points and areas for improvement in their customer journey.
Overall, by using these metrics and methods, banks can assess their customer experience and take steps to improve it. Regularly monitoring these metrics and implementing changes based on the feedback can help banks build a loyal customer base and improve customer satisfaction.
Improving Customer Experience in Banking
Improving customer experience in banking is crucial for retaining existing customers and attracting new ones. With the information garnered during the research phase, a bank can identify some ways to improve its customer experience. Some ideas might include the following.
Make It Easier to Open an Account
The account opening process should be simple and straightforward. Banks can offer online account opening options, provide clear instructions, and minimize paperwork to make the process quicker and easier.
While the idea may not appeal to banks with a wide network of branches, digital banking is becoming more popular. Considering 6 out of 10 consumers in the United States say they are interested in using digital banking within the next year, banks not offering this option may miss an opportunity to not only retain their customers, but actually grow their customer base.
Personalize Interactions
Banks can use customer data to personalize interactions. For example, they can send personalized emails, offer tailored recommendations, and provide customized banking products and services. With the advances in how artificial intelligence analyzes big data, there is no longer any excuse for banks not to provide their customers with timely and relevant offers.
Enhance Digital Channels
Banks should provide an easy-to-use and secure digital platform that allows customers to manage their accounts online. This includes a mobile banking app that provides access to all account details, transactions, and balances in real time.
Offer Proactive Support
Banks can offer proactive support to customers by providing notifications for important account activities, such as balance alerts, upcoming payments, and suspicious activities. They can go one step further by having consultants contact customers to ensure they understand new processes and features on offer.
Simplify Fees and Charges
Banks can simplify fees and charges by clearly communicating them and avoiding hidden fees. They can also offer fee waivers or discounts to long-term customers. In conjunction with this, they could empower front-line personnel to waive or refund fees under certain circumstances to improve the experience.
Improve Accessibility
Banks can ensure their services are accessible to all customers, including those with disabilities. This includes providing accessible websites and mobile apps, accessible ATMs, and support for customers with hearing or vision impairments.
Provide Financial Education
Banks can offer financial education to customers to help them manage their money better. This can include budgeting tips, investment advice, and debt management strategies. It can also extend to advice on managing their overall estate and learning to build generational wealth.
Today, improving customer experience in banking extends beyond merely providing flawless service. Bankers must anticipate their customers’ needs in a rapidly changing marketplace and proactively meet them to stay ahead. They should also move beyond mere transactional touchpoints, providing customers with advice that assists them in improving their financial wellness. By doing so, banks can ensure their customers’ loyalty and build long-standing relationships with them.
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Anna started out in financial markets, diving into daily research on bonds and stocks. A passionate reader with a love for historical literature and international cuisine, she’s now all about mastering customer communication. She writes in-depth about customer support, backed by extensive research, and has become an expert on the topic.
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