Key Takeaways:
- Advances in technology enhance the ability to deliver personalized banking experiences to customers.
- Personalization results in measurable results of customers satisfaction and revenue opportunities.
- The banking industry lags other sectors in delivering modern personalized digital experiences to customers.
In the competitive banking and financial services arena, encouraging customer engagement is crucial for driving growth and keeping individuals coming back. A recent survey of banking leaders revealed 93% of respondents agree having a customer engagement strategy is a business need, not merely a way to gain a competitive advantage.
For banking and FinTech professionals looking to enhance their strategies, a look at the different customer engagement tools and best practices can help guide considerations.
What are customer engagement tools?
Customer engagement tools are technologies that help businesses interact with customers across various digital channels. These solutions are often powered by artificial intelligence (AI) to find patterns and insights from each customer interaction. Depending on their purchase history or where they are in their lifecycle, the solution can anticipate customer needs to personalize educational recommendations, marketing messages or product offerings.
Familiar examples of customer engagement tools include customer relationship management (CRM) systems, email marketing platforms, and automated chatbots designed to interact with customers when they visit your website.
The importance of the digital experience an organization delivers to its customers is now a cornerstone of modern engagement. Earlier this year, Salesforce found 80% of customers now believe the experience a company provides is as important as its products and services.
Financial empowerment tools support customer engagement
When financial empowerment tools are incorporated into the engagement ecosystem, customers often enjoy more holistic digital experiences. Credit education and identity monitoring tools, such as those in the TruEmpower™ suite of solutions, can deliver personalized insights based on a customer’s specific situation. Similarly, interactive tools like credit score simulators introduce aspects of gamification that keep customers coming back to the platform.
A recent JD Power study noted: Customer awareness of such financial assistance solutions has risen, and overall satisfaction scores for customers who are aware of these tools are an average 96 points higher than those who are not.
Customer engagement best practices
A successful customer engagement plan is based on presenting a customized digital experience with every interaction. To achieve that, organizations should adopt seven tactics:
- Analyze customer data for insights. By knowing a customer’s unique situation, the organization can tailor its messaging to present the right offer to the right customer at the right time.
- Deliver hyper-personalized interactions. Personalized insights and recommendations that are directly relevant to the customer resonate more, driving greater engagement.
- Adopt an omnichannel approach. A cross-channel approach means customers can engage with your brand however they choose, without a change in digital experience or perceived value.
- Streamline the user experience (UX). Most individuals do not have the time or interest needed to untangle complicated web experiences, so make sure your customers can move from insights to actions quickly.
- Deliver interactive content. Interactive tools produce more memorable messages, making them more effective in connecting with customers. You can also design the experience to guide them to your ideal interaction—whether that’s additional education or a customized product offer.
- Prioritize privacy and security. When an organization earns the trust of its customers, they engage more frequently. Demonstrating your commitment to their safety and security goes a long way to earning that trust.
- Solicit and act on customer input. Today’s customers expect a dialogue with the brands they choose, so pay attention to online reviews and consider fielding occasional surveys to ensure your customers feel heard and valued.
How to develop a customer engagement strategy
When setting out to establish a customer engagement strategy for your financial institution or FinTech, there are a few recommendations to help strengthen your overall engagement program.
First, be sure to set clear goals. Define and write down exactly what you want your efforts to achieve, whether that’s higher customer satisfaction scores, increased retention or something else.
Then, identify key metrics so you can accurately measure your progress. The goal will help specify the metrics used, but you’ll likely want to track things like your net promoter score (NPS), engagement rates and customer satisfaction.
Create an execution plan so all stakeholders know what’s happening — and you can follow specific steps for implementation, monitoring and adjustment.
Knowing what customers think can guide your engagement strategy. Establishing feedback loops enables you to regularly gather insights, improve services and address their pain points. That feeds into another recommendation — committing to continuous improvement and refinement of your engagement strategies.
Finally, it’s worth repeating the value of ensuring robust security measures to build trust. Not only does it encourage greater engagement, 49% of consumers said trust is the most important factor when choosing a financial institution.
For customer engagement, banking’s upside it huge
For banks, credit unions and FinTech companies competing in today's market, offering digital experiences customers want to engage with is essential. Deploying customer engagement tools and adhering to best practices can help create the secure, personalized and relevant experiences customers seek.
As the competitive landscape continues to evolve, meeting and exceeding customer expectations will always be valued. Innovative engagement strategies can help drive trust and loyalty, improving the lifetime value of each customer and positioning the organization for a successful future.
Want to build a customer engagement program that builds trust while empowering consumers with interactive tools and personalized insights? Read our eBook — Five Keys to Nurturing Creditworthy Consumers for Greater ROI in Digital Channels.
