CX Network takes a look at three major trends that will shape the trajectory of CX in the financial services industry in 2023 as institutions look to drive customer loyalty and retention.
We highlight some of the key insights shared in our ebook Driving customer loyalty and retention in financial services, including the need to remove friction from experiences, build in convenience and develop a solid AI strategy.
Removing friction from customer experiences
When operating in a competitive industry like financial services, it is important that your customers are never given a reason to look to your competitors. According to Joshua Tye, senior customer operations lead at Cash App, financial services organizations can drive customer loyalty by removing friction from customer experiences in areas such as those with high emotional impact or where a customer seeks support.
Bhavana Rana, director of marketing, financial services and insurance at Talkdesk agreed with Tye, noting that one of the most effective ways to remove friction from experiences is to automate them.
According to Rana however, removing friction in this way does require some investment into technology from CX departments:
“Financial institutions need to ensure they have the right tech stack, including cloud-based, AI-infused CX solutions, to deliver a seamless customer journey. Organizations need to look beyond the trend line and envision the future-state of exceptional customer experiences. It is time to utilize automation for smarter interactions and predictive analytics to anticipate client needs. This is what will result in higher customer lifetime value and life-long client loyalty.”
The benefits of self-service for customers
In today’s world financial customers have become accustomed to convenience as a result of digital, self-service initiatives that offer unprecedented control over finances and many are willing to switch brands to attain it. According to Shirley Campbell, director of CX at digital payment platform Payoneer, it is critical to implement technology in the right way to deliver on this convenience and drive loyalty:
“Digital experience investments must be made around the core of CX. When customers choose your digital channels, they look for an easy, personalized, fully self-serviced experience. If your company is looking to stay up to date with digital CX trends, I strongly suggest making it about choice. Focus on personalization, on end-to-end self-service flows and allow automation that will simplify the process for customers and reduce their efforts while interacting.”
CX Network’s Global State of Customer Experience 2022 report revealed that not only do customers demand convenience, but they are also willing to spend more on it. It means there has never been a better time to begin delivering on convenience to ensure customer loyalty.
AI is the future of CX in financial services
The importance of AI for CX in financial services is becoming increasingly apparent for CX practitioners. At CX Network Live: CX in Financial Services 2022 it was revealed that 85 percent of practitioners believed it was important to leverage AI in 2022 while 89 percent believed it would be important by 2026.
Such data suggests that AI is only going to play a bigger role in the future of financial services. Rahul Kumar, senior director of strategy, banking at Talkdesk noted that the current focus for AI in financial services is directed toward the implementation of conversational capabilities, such as offering an understanding of why customers are calling.
According to Kumar, 2023 will be a major year for AI in financial services as more is invested in AI initiatives and the convenient, seamless experiences it can offer become the norm for financial customers.
With AI offering capabilities such as real-time conversation analysis and agent assistance, those brands that are deploying it will begin to set themselves apart from those that are not. Getting a plan in place to utilize AI is key to preventing the churn that occurs when brands forsake loyalty by not keeping up with their customers' demands.
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