The digital revolution has irreversibly changed consumer behavior – and consumers’ expectations. Just consider that in a single minute …
- Siri answers nearly 100,000 requests.
- People in the United States alone send more than 3.5 million texts.
- YouTubers share 400 hours of new video.
- Google translates 69.5 million words.
- Instagram users click the heart button more than 2.4 million times.
Today, we don’t go to the library to gather information, we ask Siri. Or Alexa. Or Google Home. Instead of waiting until we’re with a loved one to share exciting news, we FaceTime or Skype, and the celebration begins within seconds. We don’t make a trip to the store to replenish household goods, we simply click the Amazon Dash button.
This digital revolution – the transition to a world in which virtually anything is available on-demand, in an instant – has taken place more rapidly than any technological progression we’ve ever seen. Strongly influenced by the ease and ubiquity of personal computing, mobile technology and multi-channel retailing, consumers have irrevocably evolved – and financial institutions (FIs) must evolve as well.
Today’s consumers define the ideal experience as one that is easy, fast, secure, consistent and deeply personalized.
They expect a banking experience in which channels are varied and accessible anytime, anywhere. One that enables on-demand fulfillment, self-service options across devices, an intuitive digital experience, and individualized functionality and content.
Millennials should be of particular interest to retail bankers. KPMG explains in their 2016 Banking Sector Briefing Report: “As [millennials] continue to gain influence and authority, they’re expected to account for 30% of global spend by 2020. These individuals are rewriting the rules of engagement and interaction. They are demanding services that cater to their specific needs and lifestyle. And they’re more likely to reject brands that haven’t evolved.”
To fulfill these new consumer expectations, FIs need to transform, putting the consumer at the heart of their retail strategy.
Fundamentally, this shift requires FIs to transform from a tactical, bank-centric model – focused on selling products and services – to a strategic, consumer-centric model focused on improving the experience and maximizing value.
Properly conceived and implemented, a consumer-centric strategy will drive enhanced consumer service, a unique brand experience across all channels and thus the enriched benefit of ongoing customer loyalty. We’ve identified five main components to a successful consumer-centric strategy:
- Shifting the viewpoint: An FI must change their viewpoint from inside-out – in which they see the world from the bank outwards – to outside-in – in which they see the world from the consumer inwards.
- Considering the journey: FIs can only truly understand their customers by employing a 360-degree view of their customers’ purchasing journey, listening to the voice of the customer and analyzing their behavior.
- Driving internal convergence: Overcoming silos within an organization is critical to enabling a strategy that’s built around consumer journeys.
- Fostering empowered employees: Create a culture focused on finding new ways to solve customer problems, and give employees room to challenge traditional norms.
- Using data for good: The data that FIs obtain from their customers should drive internal strategy and power decision-making that creates value for the organization. However, that data can – and should – also be used to drive changes that improve consumers’ banking experiences.
The right approach to internal organization and decision-making can greatly facilitate this paradigm shift. The right tools, systems, software and services can also help FIs make the transition. Our philosophy centers on three pillars designed to create seamless customer journeys through technology that enables cross-channel interactions, integrates digital channels and uses the vast volume of data to which FIs have access:
- Personalized interactions: Fostering individualized relationships by unifying digital and human connections.
- Orchestrated channels: Enabling seamless transactions across all touchpoints.
- Always-on services: Ensuring accessible, reliable, secure and available interactions.
Take a full tour of our approach to consumer-centric experiences here.
Fostering a consumer-centric experience will be critical to future success. You’ll hear much more from us on this important topic over the coming months. Don’t miss a post — subscribe to the blog today! In future posts, we’ll explore how you can implement personalized interactions in ways that make sense for your organization, orchestrate your channels and deliver services that are always on.