This begins a new blog series for the banking industry. Over the next several weeks we'll be highlighting different benefits and aspects of Microsoft Dynamics 365 for Banking, centering on the value that Dynamics 365 can deliver as an end-to-end combination of CRM and ERP systems combined with next-generation business applications targeted at core industry capabilities.
Digital technology has created more ways to connect with your bank. Customers email, tweet, post, and even Snapchat their bank. But with the exception of emojis, modern customers experience little face-to-face interaction with their banks. In fact, 79% of consumers view their banking relationship as purely transactional, rather than personal. This results in higher customer churn—83% of millennials would switch banks simply for better rewards—and ultimately, lost revenue for banks.
Although digitization is making face-to-face interactions less frequent, it can also be used to personalize the banking experience. Recent innovations in cloud computing, big data, and advanced analytics are enabling banks to transform their vast data stores into game-changing insights. By analyzing customer data, banks can make more informed recommendations, identify patterns and a “next best action,” and even make predictions about when a customer is about to transition from one life stage to another.
Personalization is important for banks that want to differentiate themselves in both service and sales. Creating personalized engagement involves two main components: (1) engaging customers seamlessly over their channel of choice and (2) understanding and intelligently predicting customer needs.
Meet your customers where they are in the digital world
Today’s customers want to interact with their bank through multiple channels, anywhere and anytime. They also expect a more personalized, interactive experience than a typical web portal can provide, and banks are finding that offering online access to services and accounts is no longer sufficient. For example, AXA Banque France realized its traditional website wasn’t enough to retain today’s customer. To address this problem, they built an interactive mobile service, Soon by AXA, that uses real-time data collection and analytics to offer personalized recommendations, video demos, and real-time chat support. The bank found by embracing mobile to offer tailored products and innovative services, it could attract and retain a whole new generation of young customers.
The challenge is not over, however, by simply embracing mobile or the latest social media platform. In a 24/7, on-demand world, customers expect a fully optimized user experience in every instance. Banks need to deliver a consistent omni-channel experience no matter how a customer chooses to engage. To personalize engagement across a vast customer base, banks must provide self-service options and leverage automation to streamline complex tasks. Chatbots are a great example of this, enabling banks to speed issue response and support customers to find their own answers in a cost-effective and scalable way.
Reestablish a human connection with intelligent recommendations and service
For customers, getting redundant or irrelevant recommendations can feel like spam—their hometown branch banker would never make that mistake. In fact, 40% of consumers say they would stay loyal to their bank if they provided more personalized services.
Personalization begins before a sales person even meets the customer. Making targeted, proactive offers helps attract more prospects and can increase close rates up to 15%. As interaction data continuously builds out customer profiles, banks can identify gaps in customer accounts, make offers to increase wallet share, and ensure customers receive the right level of service. Offering the right recommendations, at the right time, via the right channel is essential to making a genuine connection.
Personalization also plays a key role in providing efficient, consistent customer service tailored to clients’ specific needs. Armed with a 360-degree view of their customer, service agents have the tools and information necessary to provide fast, personalized issue resolution without the need for multiple transfers.
Banks such as Tangerine, an online-only bank based in Canada, are already seeing the benefits of data-driven recommendations. Deploying big data analytics to analyze social sentiment and customer feedback enabled them to launch incentives and services based entirely on customer demand. In this case, customers were demanding mobile optimized access, and Tangerine responded with an adaptable interface compatible with any device. With an improved sense of the what customers wanted, Tangerine was able to improve their service offerings and set a foundation for continued mobility innovations.
Take advantage of technology to bring you closer to your customer
While digital technology has resulted in a loss of human connection in banking, it also provides a means to get it back through personalization. Using the power of predictive analytics and machine learning, banks have an opportunity to exceed customer expectations and differentiate themselves from the competition.
Microsoft Dynamics 365 enables banks to enhance their customer engagement. Utilizing customer intelligence and machine learning, banks can anticipate customer needs and gain actionable insights. From highlighting a new credit card tailored to a customer’s life stage or suggesting a rewards program based on their purchases, banks can use Dynamics 365 to personalize and tailor product recommendations. Through a single customer service interface containing role-tailored experiences, collaboration tools, and self-service capabilities, banks can speed issue response and provide customers with a consistent service experience.