Criticizing Voice of the Customer (VOC) programs is like speaking out against motherhood and apple pie. The last time I criticized VOC programs, someone left a comment chastising me for presuming that a bank could know what its customers wanted without asking them.
Well, excuse me!
But there are (at least) two problems with the “voice of the customer” that many marketers don’t take into consideration:
A few months ago I wrote a blog article comparing the travails of banks today to the challenges faced by the late and little-mourned Blockbuster Video chain.
I’ve had a chance to sleep on this piece and I’ve decided a better comparison might be around the US higher education Business.
To compete effectively in the Age of the Customer —a 20-year business cycle in which consumers have unprecedented real-time access to information and social sharing— it’s time for a new playbook. By using effective strategies to identify sources of dissatisfaction early on, and communicating how and when it matters most, your company can turn disgruntled customers into loyal advocates of your brand.
Consider these proven strategies for resolving pain Points:
Mobility is transforming every aspect of the financial services enterprise. Bank Systems & Technology and leading experts will discuss best practices and where the industry goes from here in our May executive forum.
It’s safe to say mobile is no longer an emerging channel. Almost every bank has a basic mobile offering, and many offer services such as mobile RDC and bill pay.
Banks Falling Behind Pace of Innovation in Mobile Apps
A new survey by CSC and Finextra found that many banks struggle to quickly release new mobile apps, citing competition for internal IT resources.
The proliferation of new devices and operating systems makes the pace of change in mobile hard for many organizations to keep up with. But banks seem to be particularly apt to fall behind the pace of innovation in mobile, according to a new study released by CSC and Finextra.
It goes without saying that the branch experience has changed drastically over the past century and even more so with significant advances in technology in just the last decade. With walk-in traffic electing to embrace home and mobile banking options, several leading banks are directing their focus and attention on investments that improve the digital experience to complement, not compete with, emerging consumer preferences. Despite the recent trends, we still see opportunity for branches to thrive alongside these non-traditional banking channels in the near-term and long-term.
When I moved to Seattle, Starbucks had just four locations. So I’ve had a ring-side seat in their climb to worldwide ubiquity. Though not a huge fan of their coffee, I greatly admire their business model, technology, and payments innovations.
I have been paying with the Starbucks mobile app for the past few months (note 1) as have 14% of its customers. It’s great as long as there is a queue. That gives you plenty of time to go through the 9-step mobile payments process (10 steps with tipping):
Sixxtep Analytics wrote in a blog post titled Irrational banking customer (hat tip to @BankInnovation):
“One of the hard set, and many times hidden premise of customer analytics is that customers are rational. Well, they are not, and it is especially tangible in banking customer analysis. There are many underpinning data to this, yet data scientist still tend to believe that customers are making decision based on math. KYC – know your customer, and realize that majority of them are irrational.
We have done a small study with one of our client in banking, we tried to 1) segment and 2) scale the irrationality of the customers. Part of the job was to test their belief about their banking usage and reality, looking at the results, we were somewhat surprised to learn the incredible hiatus between their memories and reality: 1) Majority of the customers recalled their general ATM-usage wrong; 2) Vast majority of the customers had not even a general idea about the fees applicable to wire transfer; 3) A large part of the customers has not chosen the optimal package for them.”
My take: These assumptions, and the study’s findings, underscore the confusion that many marketers have regarding the concepts of rational/irrational and logical/emotional decision making.
For potential new customers, mobile account opening is an initial proving ground for a bank’s or credit union’s digital capabilities. Mobile account opening is also critical for deepening relationships with existing customers. So, what options are available as many institutions try to catch up with today’s mobile consumer?
Over the past decade, the lens through which customers view their bank and through which banks view their customers has shifted considerably. What once was a channel-dominant view of the customer (“Suzie uses the branch most often, so let’s make sure her branch experience is stellar.”) shifted to a more complex multichannel view (“Suzie interacts with us across many channels, how can we make the various experiences seamless?”), and then to the current focus on enabling a true omnichannel experience (“We need to engage Suzie positively wherever she is, whenever that is, by whatever communication methods she is using.”).