In recent years, the behavior of commercial banking customers has changed. They no longer make the same type of decisions they used to make when purchasing a product or service, now they also buy an experience. This means that the customer values much more personalized attention, quick problem resolution and, therefore, a better customer experience.
After all, customer experience drives loyalty and reduces churn. And in financial services, where customer lifetime value is a key metric, loyalty is everything.
Download Now: Customer Experience
Using metrics such as NPS or another method to take stock of the current state of the customer experience is a start, but you need to be able to identify what drives customer satisfaction or dissatisfaction. When you identify which metrics are driving satisfaction, you will be able to prioritize improvements that will convert their satisfaction into long-term loyalty.
For this reason, Voice of the Customer is becoming increasingly important in the banking industry and using it correctly and applying it correctly is essential to increase customer retention and loyalty, create better products, provide better service and, with it, generate a better customer experience.
The win-win of listening to the Voice of the Customer
The digitalization and omni-channeling implemented in the banking sector have multiplied the opportunities to capture ideas and feedback. In short, to listen to customers.
Listening to the Voice of the Customer brings benefits to both parties. On the one hand, banks are able to retain more customers, acquire new ones, increase cross-selling and up-selling and therefore achieve a higher return on investment.
On the other hand, customers get increasingly personalized services, tailored to their demands and needs, and feel that their problems are listened to and addressed.
73% of customers point to experience as an important factor in their purchasing decisions, behind the price and product quality.
Source: PwC
The problem with traditional listening methods
Among the tools most used over the years to listen to customers are surveys, the Net Promoter Score (NPS), or the Customer Effort Score (CES). While these tools in themselves are a valid means of gathering customer feedback, they fall short as a management tool for measuring CX performance and identifying opportunities for improvement.
In fact, survey-based systems can no longer meet the demands of today’s businesses and are flawed in customer experience measurement as they are limited (not sharing 100% of actual customer feedback), reactive (not allowing for real-time measurement), ambiguous (not addressing root causes of performance) and unfocused (not allowing for ROI calculation of customer experience decisions).
Therefore, for organizations to lead from a customer-centric position, they increasingly need a holistic view of the customer journey, as well as the ability to gain deep insights into what drives the customer experience. They need immediate, individualized signals to take action at the moment and create relevant experiences for each customer.
Many companies conduct surveys or customer experience programs, but they don’t analyze the most important source of data: the Voice of the Customer.
AI to monitor the Voice of the Customer: 3 benefits for banking
Because of this inefficiency of traditional methods, many banks are turning to conversational intelligence solutions that allow them to listen to the Voice of the Customer in 100% of their customer interactions. These solutions not only allow the banking sector to improve the customer experience, but also to reduce bank churn, facilitate quality management, optimize products and services, and even ensure compliance and protection of customer data.
Listening to the Voice of the Customer through artificial intelligence-based solutions offers great advantages for banking, including:
- Reducing customer churn by increasing loyalty.
- Increasing efficiency through improved solutions.
- Knowing new trends and sales opportunities.
- Reduce costs, which translates into higher customer satisfaction.
- Improve customer experience by identifying signals that indicate negative experiences or dissatisfaction.
1. Create a customer experience according to their preferences
Knowing the preferences, needs, and concerns of customers is essential to creating a quality customer experience. By creating a customer experience based on all the knowledge gleaned from the Voice of the Customer, banks can reduce churn and increase brand loyalty and trust.
2. Enable quality management
Using conversational intelligence to listen to the Voice of the Customer makes it possible to discover inefficiencies in processes, what customers miss, and even dissatisfactions in service, even if there is no explicit feedback or survey. In this way, listening to the Voice of the Customer through conversational intelligence solutions ensures the highest quality standards in customer service.
3. Detect and identify customers with a higher risk of churn
When a customer is at risk of abandonment, there are warning signs that indicate that the customer is at risk of churn. Knowing and being able to detect these signs quickly with conversational intelligence technology allows you to take corrective actions early and even define new loyalty strategies.
Download Now: Churn Reduction in the Banking Industry
Knowing the Voice of the Customer is essential for the banking industry to achieve quality customer service, higher customer satisfaction, increased loyalty and retention, and operational efficiency. Find out how our conversational intelligence solution, Recordia, enables all this and much more for the banking industry by clicking here.