Cross-Channel Client Engagement Remains a Top Priority for Financial Institutions

Consumers are more empowered to research and make decisions online; however, the digital landscape has redefined consumer engagement rules, diminishing the success of traditional customer engagement models. Though digital channels actually improve consumer connections, they further disconnect banks from the consumer at the very moment they desire engagement.

Baby boomers (ages 58-76) and traditionalists (ages 77+) account for 70% of all deposit balances and nearly three-fourths of investment balances. While wealth transfer is happening, many banks are not prepared for how software can drive positive customer engagement. For instance, recent research from Raddon shows that half of consumers are unaware that their regional bank offers investment services.

Customer engagement results from a financial institution’s interactions and how it positively or negatively influences a customer’s cognitive, emotional and behavioral investment. An institution can significantly enhance engagement by having a deep understanding of the unique needs, challenges and financial knowledge of their customers and prospects.

By demonstrating empathy and tailoring solutions to meet specific interests, institutions build trust and lay the foundations for long-term relationships. By delivering relevant content at the right time, institutions can further strengthen these connections, ensuring customers feel heard, valued and supported.

Successful engagement is multifaceted, not only educating customers through informative content but also by gathering data through digital sensory technology, questionnaires and self-service financial planning tools. Dynamic engagement identifies customer needs, addresses concerns and uncovers new growth opportunities.

Ways to Guide Customer Experience
Customer expectations are continuously evolving, but the best practices for delivering excellent customer experience (CX) remain the same. This presents an opportunity for institutions with a strong understanding of fundamental CX principles.

There are several principles banks can use to assess positive and negative customer experiences such as:

• Friction. Customers expect to transact business without barriers. Ease of navigation and cross-channel functionality positively influences CX.
• Personalization. Relevance, timing and assistance provide a nurturing environment where customers feel heard.
• Guidance. Consumers like the option of having financial assistance. Offering goal-centric personal financial planning assistance enhances CX.
• Voice of customer empowerment. Capture and measure customer sentiment at critical moments of truth across their journey

Successfully meeting ever-changing and expanding CX demands requires institutions to pay close attention to the hierarchy of customer engagement. This includes eliminating sources of friction and detecting needs exposed at various touch points, often revealed through financial planning. Quantifying success and identifying pain points through best practice voice of customer programs enable institutions to continuously improve the customer experience.

Meeting Specific Customer Needs
Bankers have historically engaged customers face-to-face, allowing them to ask questions, address concerns and offer financial advice and products. However, the branch’s role has continued to change, with customers visiting branches less frequently for transactions but more frequently for advice. Providing the same experience in an omni-channel ecosystem is essential and requires technology to detect event-specific touchpoints, assist with stated goals and listen to the voice of the customer.

Leveraging the correct technology and analytics empowers institutions to anticipate needs and mitigate friction. For instance, accumulated customer insights enhance the institution’s understanding of segmentation and customers’ financial needs and goals. Continuously assessing attrition risk enables the institution to implement targeted mitigation strategies throughout channels based on a customer’s risk profile and value to the banks. Recognizing patterns at individual and institution levels informs product offering expansion and adaptation to market trends.

Leveraging Technology to Close the CX Gap
The technology that banks choose to implement will play a crucial role in customer engagement. Advanced analytics and workflow-driven technology build a foundation to address gaps in customer experience.

New business strategies like listening technology let institutions detect, interpret and quantify needs. Institutions can respond with personalized and relevant content across digital and physical channels. Sensory technology can detect customer behavior across all stages of the customer journey when supported by an omni-channel architecture that creates seamless collaboration between digital and physical touchpoints.

Analytics play a critical role by quantifying key indicators such as purchase propensity and predictive attrition risk to offer prescriptive and predictive indicators and provide actionable insights.

Exploring ways to expand collaboration between digital and physical channels remains a primary objective for financial institutions. This is particularly true in a business model with commoditized products. Many executives agree that focus on customer experience throughout their journey needs to expand, and many institutions are seeking innovative avenues to leverage data and insights and differentiate themselves from the competition.