The Significance of CX
A successful business is one that makes customer experience (CX) a priority and here are some reasons why. According to research by Salesforce, 76% of customers reported that it is now easier than ever to switch from one brand to another that matches their CX expectations. The same study also revealed that over 57% of customers have actually made the shift because of bad customer experience.
What’s more, customers at the receiving end of poor customer experience create a ripple effect by talking about it to others who could have been your potential customers in the future. This goes to show that good CX is crucial, both for retaining existing customers and for acquiring new ones. It’s a competitive world, and losing customers due to poor customer experience is not something your business can afford to risk.
Seamless transitions from one stage to another, tailored engagement, and immediate, responsive service are among the top demands when it comes to customer expectations from a brand or service provider. In return for great customer experience, another study revealed, businesses are rewarded with loyal customers with at least 86% of them repurchasing the same/related products and services associated with the brand.
CX in Banking
In a business like banking, where customers are not usually purchasing a physical product but availing an intangible service, the entire banking process is viewed as customer experience – a cumulative of all their interactions with the company – and that experience begins at the onboarding process. Onboarding, unfortunately, is also one of the most challenging areas for banks and financial institutions, as a number of potential customers abandon the process midway.
An increasing number of customers today are seeking a banking experience that cuts down on their wait time and manual processing. While offline, manual onboarding is riddled with challenges, banks that have switched to digital alternatives are able to offer an improved customer experience. Better customer experience helps businesses attract more revenue and increase efficiency with automation.
Beyond Just Digitization
While a majority of financial institutions are still grappling with the idea of digitally acquiring and onboarding their customers, a few others who have already set up the facility are facing problems. According to a report published in 2017, 27% of banks have reported that one potential customer among five abandons the digital onboarding process midway.
Some of the common challenges include:
Gaps between expectation and delivery
Often, the digital onboarding process seems to be hampered due to a lack of understanding of customer expectations. Not being empathetic of customer pain points will lead to the risks of frustrating customers, which can cause them to abandon the process. Most often, customers complain that the process was too difficult or took too long.
Lack of Agility
Stagnation stinks. A financial institution that puts its customers’ best interest first will keep updating their online presence and processes – digital onboarding process included – without settling. A company’s inability (or unwillingness) to adapt can make a customer feel they just aren’t that important.
Compliance vs. Convenience
The finance sector is bound by a number of strict regulations. A certain number of documents will be required, a certain set of questions must be asked before an account can be opened and during the KYC process. It is important to find the right balance and design the process in such a way that information can be requested from customers without overwhelming them.
Overcoming Challenges with Technology
By leveraging modern technology, you can overcome the challenges in digital onboarding and improve customer experience.
- Blockchain – For enhancing user convenience throughout the KYC process, improving security, and enabling better management of customer data
- Data Collaboration – For enabling seamless customer experience while remaining compliant with anti-fraud, anti-money laundering regulations and better compliance
- Artificial Intelligence (AI) – For customer profiling, behavior analysis, and proactive fraud monitoring
- Strong authentication systems like MFA – For improving security around the login process through customer’s knowledge, items they possess or biometrics
Are you Offering a Superior Onboarding Experience?
If done right, digital onboarding can improve the ease of doing business while cutting down costs and increasing the speed and quality of customer services.
At CloudNow, we know exactly how to do this and help you deliver a delightful customer experience that ensures superfast onboarding and accelerate productivity. If you’re facing challenges with slow onboarding and poor customer engagement, get in touch with us today!
Want to know how we helped a large global bank enhance their onboarding experience? Find out here!