To Act or Not to Act: 2 Metrics Drive Banking Customer Retention

To Act or Not to Act: 2 Metrics Drive Banking Customer Retention

Recently my satellite company called me up. I thought it was a typical sales call, upselling me to some premium package. But I was surprised… They told me that data they are collecting on my system showed that we are having some signal loss and they would like to send someone out to fix it – on their dime. No service call charge, regardless of what they find. I was a little shocked, and I must admit, I was looking for the catch. There wasn’t one. But it was true that we were suffering silently with some signal issues. They sent out a tech. He reviewed the situation, found the installation wasn’t done right, and re-installed the entire satellite system. All without us asking. I asked what the motivation was for taking such a huge step. He said the company had identified that they were losing customers based on quality issues. Those quality issues were totally fixable, but they just didn’t know about them. So, they started collecting data. But what amazed me was the proactive way in which they intervened – even those they weren’t asked. It got me thinking about our banking customer retention experiences. Would you intervene financially with a customer if you thought – but did not know – the relationship was at risk? I’ve asked this question to many banks, and all too often the answer is no. At best, I get an “I don’t know.” Knowing When to Act The problem is that our banking customer retention efforts are build on being reactive, not proactive. We respond when a customer complains or closes...
Your Mobile Banking App Isn’t Smart Enough

Your Mobile Banking App Isn’t Smart Enough

In early 2014, Chris Skinner introduced the concept of the “intellisensing bank.” He talked about the bank that interacts with you 24/7, but only if you want it to. Of course, in order to interact with you everywhere you go, it needs to go with you everywhere. Hence, the mobile banking app. But how many mobile banking applications are smart enough to be intellisensing? Mobile banking applications need to have three major features: pull, push, and orchestration. Measure yours against the three and see how you do. Pull Pull is the easy one, and probably the one your mobile banking application has down. If I request interaction with the bank, I get it. But it’s more than just providing information. In order to be an intellisensing application, it needs to provide me that information in context – the way I need it now. For example, if a customer is out shopping and has just had their debit card decline and accesses their mobile banking application, what do you think he wants to know or wants to do? See and transfer balances, of course. So that feature should be the first thing they see. No sense in providing the same menu all the time and add three more clicks to the process. They say data does not always mean information. Well, information does not always mean helpful either. Unless that information can lead to a decision or action which adds value for the customer, then it’s useless. Push Push is one that mobile application are just starting to figure out. Providing time-sensitive alerts are critical to filling out the banking experience....
If Your EMT Was Like A Banking Customer Experience…

If Your EMT Was Like A Banking Customer Experience…

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!” Crazy, right? 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. Too Impersonal 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...