Driving Customer Experience in the Financial Services Industry

In an increasingly saturated and highly regulated environment, financial service providers face a series of intense challenges when trying to acquire a long-lasting differentiator. Emerging, non-traditional competitors with primarily digital offerings are dramatically changing the market landscape. 

To succeed, financial service providers must find new ways to innovate across the customer experience (CX). By more strategically leveraging technology, companies will be able to create personalized, data-driven offerings that lead to increased acquisition and higher retention. 

Following best data practices 
Before making a change to CX, financial service providers must collaborate to establish a customer-first operating model.

As Informatica explains, a customer-centric business model utilizes technology that allows firms to more effectively access, manage and deliver the right data and information to downstream business and user-facing systems. However, data quality is one of the biggest obstacles in achieving this. Duplicate, outdated or incomplete information across departments leads to human error, heightened security risks and less meaningful customer service.

By deploying AI to manage data storage and maintenance, financial service providers can instead invest talent and other resources toward enhancing CX. McKinsey & Company estimated that by applying technology, approximately 75 to 80% of manual administrative tasks can be automated. 

After integrating best data practices, teams will have more time to advise clients, address pain points and develop new products across the customer journey.

Achieving personalization 
Once a more solid data foundation has been established, companies can begin to generate the actionable insights needed to reinvent their CX platform.

According to The Digital Banking Report, only 6% of financial institutions say that they are deploying advanced personalization technology, even as customers have come to expect more relevant engagement and communications. 

To build long-lasting loyalty, businesses must shift away from the traditional sales funnel and instead focus on the entire customer lifecycle. By leveraging data to understand customers outside of brand interactions, firms will be able to provide the catered experiences consumers want. HubSpot explained that using in-depth, personal-level insights, companies can offer better financial education and support based on major events such as graduation, marriage or moving. 

Developing a relevant solution for each customer based on their life stage will not only improve retention, but will also lead to the potential for more effective cross-selling.  By providing value-added upgrades, financial service providers can achieve the personalization needed to generate loyalty and drive revenue. 

Optimizing your company’s tech stack 
While technology will never fully replace the human element in financial services, it’ll be critical to creating and enhancing personalized relationships with customers. 

To more effectively leverage data and generate insights, financial services providers should work with a CX partner that can help to create a more engaging customer experience.

At R2Integrated, we empower financial service providers and other professional service brands to optimize strategic phases of customer buying cycles. Our team will help you engage with a more diverse audience and establish your brand as a trusted financial adviser.

Ready to personalize your customer experience and drive revenue? Contact our team today. 

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