Imagine you call emergency services and get an experience like today’s best banks…
You call from your home phone which they recognize. Male. Late 60s.
They use the latest demographics and analytics to determine there’s a 64% chance you’re experiencing a heart attack.
Immediately they rush the EMT to you home, defibrillator ready to restart your heart.
Except, they discover when they arrive, you’ve just fallen down the stairs. If they had known that, they would have brought the right equipment, but that message didn’t get to them in time.
They weren’t prepared for a fall. Plus, they’re incentivized on the time they spend on each call. So, they look around the room, pick you up off the floor and sit you down in a chair.
“Sorry we couldn’t be of much help. Call us when you need your heart re-started!”
But this story is similar to our banking customer experience today… which is getting worse, by the way.
Banks make the same three mistakes over and over again. They are:
- Too Impersonal
- Too Late
- Too Short-Sighted
Great banking customer experience management is built on being able to personalize the experience in real-time in a way that builds long-term customer value.
Our banks are built on the idea that demographics tells us everything we need to know about our customers. But that concept is old. Back when we didn’t have data, demographics were all we had to go on.
Today, we have access to real-time event-based data from our customers. It’s these events that craft a customer’s financial need. Build your banking customer experience around the events that are meaningful to their lives.
Moving. Receiving extra money. Unexpected expenses. Change in spending patterns. Interactions with contact centers and branches.
These events matter.
Our analytics are based on a batch build process that takes most banks 6 – 9 months to fully complete. That means by the time analytics reach the market, they may have been built on data that is over a half-year old.
Forget trying to leverage events that occurred yesterday….
We have to bring the information closer into the decision point. Shorten the cycle by deploying analytic systems. Don’t let analytics be a back-office function that resides in some remote office. Integrate those learnings into the front line. Otherwise, they’ll just be interesting ideas on a PowerPoint presentation.
True banking customer experience management is about reacting in real time.
Too often our decisions are based on short-term profit objectives like spread and profit from a single-product view. But our customers are more than just a product. Their value is defined as the sum of all of their profitable interactions over their lifetime. Not just the product they own today, but the products they could own in the future.
When our people are incentivized around short-term metrics like volume, we miss the opportunity to craft a meaningful banking customer experience.
One that makes our customer feel like we value them in the long-term.
We need to develop lifetime profitability models and make decisions to maximize it.
Crafting profitable customer experiences in banking is key to our financial survival. I talk much more about how to do this in my new book, Seven Billion Banks: How a Personalized Banking Experience Will Save the Industry.
In fact, chapter one is all about making the case for personalization.
I hope you check it out.