Customer Retention Through Secure Digitisation.
Financial services organisations are feeling the heat.
In a hyper-competitive marketplace, banks are dealing with highly educated customers, who are well aware of their options and expect their needs to be met (and if not by you, then by someone else). In fact, banking customers tend to be one of the most engaged and therefore demanding. Today, priorities for these consumers align strongly with customer experience and security.
Protect The Future of Your Business
Today’s consumer is empowered by their access to an abundance of information and the ability to employ social networks to share opinions and experiences. They are well equipped to understand their options and wants and aren’t afraid to voice their opinion (especially when dissatisfied). A focus on customer retention is therefore becoming harder than ever before - but is a lot more valuable than acquisition. Having a long existing relationship with customers allows businesses to identify, track, personalise and tailor offerings. Improving the customer experience also has allowed companies who have been laggards in this area, to reverse the haemorrhaging of customers and even increase customer loyalty and advocacy.
The key to effective retention is a sophisticated customer segmentation approach. By understanding the needs of customers and structuring marketing strategies and offerings accordingly, organisations can better serve their clients. Millennials are the largest and fastest growing customer in financial services – and the ones with the highest expectation for service. 42% of millennials identify 'Dissatisfaction with Customer Experience' as their biggest banking paint point (KPMG). Building a service which specifically target the needs of the millennials, not only protects the future of the business, but also allows for a transformation in user experience. By meeting the needs of your most demanding, sizeable and rapidly growing consumer base – you’re effectively killing two birds with one stone and creating a service attractive to your whole target audience.
Trusted and Secure Services
In order to achieve high customer retention rates, it is important that financial service organisations demonstrate the customer journey is protected and secure. In an era of digitisation where hackers and cyber-security threats are prevalent, a key pain point for customers, is the lacking feeling of security. Research from Hubspot reveals that 77% of Australian customers will leave a site if it is not secure. According to Accenture, 85% of customers are loyal to brands that safeguard and protect the privacy of their personal information. Having high levels of security is important not only for customers, but also for the operation of the business. When the business is protected, customer service is more efficient, effective and without disruption. This issue can be addressed by IBM’s Digital Acceptance Solution. Designed to transform the customer experience and drive operational efficiency, this offering provides electronic document exchange and signature and is Australian Prudential Regulation Authority security standard compliant.
More than ever before, today’s consumers are more knowledgeable and equipped with tools to voice their opinion. In an overactive marketplace, it is imperative for financial service organisations to understand their clients in order to meet their needs and successfully keep up retention rates. Secure digitisation and an impressive customer experience are critical features that are expected by banking clients. IBM’s Digital Acceptance Solution offers a range of services which are APRA security standard compliant and have a core focus on customer experience – and currently helping financial services organisations take the heat.
Author: Damien Hudson | Associate Partner, IBM ix
Contribution by: Madeleine Kinchington | IBM Marketing & Communications Intern
Associate Partner, IBM iX