Putting intelligence at the heart of customer retention strategies

By Helen Murray, Chief Customer Solutions Officer, Webhelp

The Covid-19 crisis has put the spotlight on the issue of maintaining and, wherever possible, strengthening relationships with customers.  If there was ever a time to go the extra mile to show your customers how important they are then it’s now.

To transition confidently to the ‘new normal’, financial services firms are evaluating and developing contact channels for both marketing and customer experience (CX) communications.  A recent survey found that over a third (34%) of UK consumers distrust digital communications from banks to the point that they actually ignore actions advised in the messages, which shows the importance of testing different approaches.

Many businesses are now focused on connecting with and preserving the customers they currently have, which is imperative – but so is building for future growth.  Casual customer feedback on social media can be very telling, and inform firms of major customer service issues, which can then help to develop solutions and tackle challenges before they become ingrained.

The current climate has dramatically increased the desire to communicate.  As ever, voice remains a prominent channel for CX, and we know that person-to-person contact is preferred by customers when they have a complaint, and as a platform for issue resolution.

Marketing will also play an important role making sure that customers, who are quick to vote with their feet and wallets, remain connected and loyal.

Core to all of this is intelligence, which must be the lynchpin of today’s loyalty strategies — from the intelligence that sits within companies’ data or powers automation, to that which enables companies to create emotional connections with customers.

  Acting on insights

Knowledge and understanding is key to successful customer retention, with data analytics today helping to predict customer behaviours with ever-increasing accuracy.

According to research by Accenture, over 80% of skeptical consumers are willing to share data in return for advice that is more relevant to their personal circumstances.  That figure also increases for receiving quicker, easier services, such as faster approval for a loan.

Dynamic insights garnered from interactions, combined with static account information, can now be used to form a strong understanding of what each customer wants and needs.

A fundamental element of customer retention is the ability to predict customer dissatisfaction before they even make contact. Using data analysis, it is possible to identify signals or triggers that predict churn.

At Webhelp, we determine the ‘next best action’ — whether that is getting in touch proactively to make an offer that better fits the customer’s circumstances or lining up the perfect response for when they next get in contact.

Advanced data analytics tools enable financial services firms to turn customer data into meaningful insights.  They are then able to act on those insights by delivering appropriate recommendations at the right time and place, which helps to generate increases in engagement and revenue.

Investing in AI and automation 

We have seen a wide range of companies turning to AI to help manage peaks in demand, with conversational AI agents supporting customer service calls.

The benefits of advanced automation for banks — when used well — prove to be substantial. Automation saves time and also allows agents to focus on handling the more complex enquiries.  As the process has matured, customers have also become more comfortable with the self-service approach.

AI is playing a role in transforming processes and productivity across business, industry and the economy as a whole.  It has made a mark on digital transformation in CX and is prompting companies to compete to recruit the best talent.

The financial services sector has embraced the use of chatbots and virtual assistants to help customers with routine tasks like scheduling payments and automating frequently asked questions.  At the same time, Predictive Analytics has become key in reducing the risk of defaulting on loans, and machine learning is being used to identify patterns of transactions that indicate fraud.

Banking firms are now taking measures to ensure that their people have the AI skills and the support they need to be at the top of their game.  This ranges from real-time systems to augment understanding between advisors and customers and supporting the development of internal data professionals, to investing in tools that improve advisor focus and performance.

While there’s no single route to success, a sustained, multi-pronged approach to creating a highly-skilled, flexible and resilient workforce will pay dividends.  The financial services companies that are able to harness digital transformation will undoubtedly enjoy significant productivity and financial gains.

Connecting with customers 

Now, more than ever, developing an emotional connection with customers will be vital for banks. Loyalty will be strengthened for those that succeed in creating a brand identity that resonates with customers.

All companies can establish a ‘functional loyalty’ that’s based on the right method, the right product or service and the right price — that’s the foundation to build on.  In financial services, in order to tap into emotions you must get the functional element right.

Emotion has been linked to heightened learning and memory, especially in areas of motivation and attention, so any positive experiences customers have during this difficult time will affect their decisions long after the latest crisis has passed.

Our own research found that customers who are emotionally connected to a company are 55% more likely to purchase other products or services from them and 63% are more likely to recommend them to family and friends. Only around one in five (21%) have an emotional connection with banks, putting the sector behind grocery, clothing, technology and beauty brands.

Relationship building and platforms that inspire trust can help banks build better experiences, to increase loyalty and attract new customers.

The pandemic is likely to cause some fundamental behavioural shifts in consumers.  New customer retention strategies with emerging technologies and a human touch at their core will be critical to the success of individual firms in the sector.