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.
As I finished registering for ICICI’s latest Facebook app, known as Pockets, I felt that I always wanted such a feature. Pockets allows an individual to transfer money to Facebook friends without knowing their account details. This also obviates the need to log on to a banking website. Even though this was a new innovation, I could not help but feel that it was long awaited.
Internet and tech toys have completely transformed the game plan for several industries. For example, books are not only published as e-books but also come in tablet-supported formats for easier reading. Online registration of travel and hotel tickets has posed a threat to the business of travel agents. And there is no end to the list of consumer products that can be bought online. Amidst such fast-paced evolution, the banking industry seems to have fallen behind. Of course, channels like e-banking
and mobile have simplified banking, but there is much more to be desired.
While all businesses would likely consider customer satisfaction a ‘nice to have’, many question whether investments towards improving the customer experience will actually result in a positive impact on the bottom-line. Across multiple industries, analysis of consumer data collected by J.D. Power shows a clear relationship between high customer satisfaction and improved financial indicators.
To anyone who regularly reads the news (or watches “The Daily Show”), it will come as no surprise that Americans’ confidence in banks as an institution is low. Stories of banks’ ineptitude may not be coming out as frequently as they were during the days of TARP, bank failures, bank saving mergers, excessive personal spending by executives, and debit card fee debacles, but the banking industry in general has not done enough to restore its reputation as a whole. Spend 10 minutes perusing any of the more than 23 million links that come up when you Google “banks suck” and it quickly becomes apparent just how much residual ill will there is among the general public toward the banking industry.
According to our recent research, over half of banking consumers (58%) now avoid calling their bank’s customer services team, preferring to use social media instead. This revelation clearly highlights the appetite for both consumers and banks to use social media as a customer service tool. With two thirds of the UK population on Facebook and 30% on Twitter, how are banks leveraging the power of social media to boost engagement and increase efficiencies?
Bill Ready had a great post at PandoDaily on the growing importance of smart mobile driven commerce. In my view this is one side of the equation of the future of commerce, the other side being the creation of smart banking Services.
Customer service programs that fuel measurable profitability improvement are those that are integrated into a bank’s overall operating rhythms.
Well executed service quality programs can have a significant positive impact on revenue and bank earnings. So why do so many banks believe they provide excellent customer service but still experience lackluster customer retention numbers, ho-hum net promoter scores and limited business growth?