How Banks Can Improve Experience for the Connected Consumer

By Sam Holding, Head of International, SparkPost

When analysts and market experts were making predictions for 2020, little did they know that this would be a most disruptive year for global markets. The rapid spread of coronavirus has added to the overall uncertainty, and changed consumer behaviours in several ways: more people have shifted to online services, many have changed their habits, or even consolidated trips to stores and branches to avoid unnecessary exposure. Many financial services organisations have been forced to accelerate provision of digital services, or redirect their focus towards their strongest asset: customer loyalty. Customer engagement and loyalty have become absolutely crucial.

The biggest challenge for Retail Banking is the evolving customer expectations. When these expectations are not met, customers churn; and banking organisations know that very well.

Historically, the financial services industry has shown a reluctant aptitude towards adoption of marketing technology; a trend fed by strict regulatory and compliance requirements, and frameworks like MiFID II. In today’s highly competitive landscape, though, “playing it safe” can actually prove rather risky, even for financial services organisations with justly stringent controls, and a reputation for conservative decision-making. The reason for that is that consumer behaviour has changed dramatically. New trends and advances in marketing automation have redefined the way Banks look into their customers, as they develop a “consumer-first” mindset. With marketing technology (and a number of smart tools and apps) woven into the fabrics of consumer behaviour, financial institutions are expected to be proactive and deliver on customer expectations.

Financial services organisations need to be up-to-date with their practices, and regularly review and evaluate their programmes to keep up with technological advancements, current trends and, most importantly, customer expectations. Consumers all over the globe are more mobile, engaged and connected than ever before. What used to be “the internet of things” is now “the internet of me”, where the Connected Consumer expects that all the things they want and need will be just one click away.

The Connected Consumer increasingly expects this level of convenience from service providers across the financial sector—from banks to investment firms, credit card providers, or insurance companies. In fact, it has become a key competitive battleground.

To keep up, financial institutions must find ways of delivering valuable, reliable, continual communications to the customer securely, consistently, frequently and on time. Consumers across the globe are connected via all the devices in their lives, and they have become more proficient with tools, media and apps than ever before. When the Connected Consumer walks into a branch, they know what they’re looking for. They also expect the business to know, and respond accordingly. Brands can capitalise on marketing technology to get to know their customer, and optimise the brand experience through email. It sounds obvious, but it is in fact both the most prime and most overlooked opportunity for approaching the Connected Consumer. Not just by sending emails, but by building and developing customer relationships.

Offering an immaculate experience throughout the customer journey is not easy, but for many organisations this has been the only way forward. As most consumer products have become commoditised with very few differences and unique selling points, consumers are in pursuit of better service. Not every business has a truly unique product, but any business could potentially deliver a truly unique customer experience.

Finding ways to deepen relationships with customers across the board and instil true, long-lasting loyalty, plays an essential role in driving profitability across the financial services industry. One of the most important tethers that is always present between a consumer and a brand is an email relationship. Email is needed much of the time to perform basic tasks, such as account logins or order updates. Even consumers that opt out of promotional emails have come to expect that their email address will be used to stay informed of important updates with automated, transactional emails. Email has actually become ground zero for any online digital relationship, and Retail Banking is no exception.

Consumers have always been making emotional connections with brands; even more so in a time of crisis, like the current pandemic. Retail Banking has traditionally been focusing its marketing efforts on brand building. Undoubtedly, a solid, reputable brand is a great asset. However, as consumers become more connected, financial services organisations may need to switch over to building a digitalised customer experience and engaging more with consumers; while maintaining safety and compliance standards.