More and more digital, more and more automated. McKinsey says that 75 to 80 percent of transactions (general accounting operations, payment processing, for example) and up to 40 percent of strategic activities can be automated. In the wake of this transformation, one of the primary focuses is to put the customer at the center of all their operations and decisions.
What does the customer-centric financial institution look like?
It is worth mentioning that customer-centric organizations have some essential characteristics, such as strong leadership and value strategies that transcend the product or service, providing true experiences to consumers. They also have very well-defined goals and metrics that indicate whether they are being successful (or not) in this sense – in addition to teams trained and very well trained to fully meet the needs, demands and desires of clients, providing them with satisfaction, loyalty and transforming them into brand lawyers.
In practice, a customer-centric financial institution will be able to offer loyalty programs, as well as personalized rewards and experiences, in order to increase the satisfaction of its customers and establish a long-term relationship. This approach can result in:
- More efficient and satisfactory service for customers;
- Best portfolio of products and services;
- More simplicity and convenience in accessing products and services;
- More agile and effective support;
- Greater transparency in the relationship with customers;
- Increased customer loyalty;
- Improvement of the reputation of the institution;
- Increased profitability in the long term.
The construction of a customer-centric business model is structured in a few pillars:
- Understand the customer
The initial step is to identify and understand customers’ needs, wants, desires, and expectations for bank products and services—and this involves market research, data analysis, and, most importantly, feedback. It should also be noted that in order to understand the needs of customers, it is essential to be constantly attentive to their changes in behavior and preferences.
- Create a customer-centric culture
The organizational culture must be aligned with the customer centricity strategy, that is, all employees must be committed to putting the customer at the center of all decisions and actions. Technology, it should be noted, can be used to improve the user experience, but it is necessary that the sales team and any employee who maintains a minimum contact with the customer and the market experience such a philosophy. In this sense, it is essential to invest in training and development of professionals in order to enable them to offer a quality and personalized service – in addition to providing an understanding of the needs of customers so that they can offer effective solutions.
- Streamline processes
Processes should be streamlined and automated to reduce wait times and complexity of financial transactions. This helps to improve the user experience and increase the efficiency of the bank. Technology has advanced (and advances) toward a customer-centric approach, enabling this simplification with a wide range of service channels such as mobile apps, chatbots or virtual assistants and social networks — among others.
- Develop and implement a customer-centric offering
The development of solutions and services that meet the needs and demands of consumers, based on information collected in the first phase, allows the creation of customized products and differentiated service channels, with the potential to stand out from the competition. After the development of the offering, however, its implementation may involve restructuring internal processes, training employees and changing the mindset in relation to the organizational culture to ensure the integration, in all aspects of the business, of the new approach.
- Monitor and adapt
It is essential to constantly monitor customer satisfaction and adjust the offer accordingly. This may include the introduction of new products or services, price adjustments, and improvements in service channels, among other actions.
- Implement metrics
Performance metrics should be customer-centric so that the bank can measure the success of its customer centricity strategies. This includes measuring customer satisfaction, service response time, and the adherence — or effectiveness — of the solutions offered.
The importance of personalizing the offer of products and services
Another essential aspect is the importance of offering increasingly personalized banking products and services, one of the most effective strategies to win and retain customers – in addition to strengthening the image of the institution in the market. This customization can occur in a variety of ways—such as profile-specific service packages and bespoke product development, among others. It is worth mentioning that personalization and flexibility are no longer a choice of the institution. They are needs.
The construction of a good customer-centric strategy therefore involves the subtlety of understanding the difference between keeping the focus on the customer, a vision oriented mainly to the understanding of behavior, economic and consumer profile to meet their needs, and being with the customer’s focus, that is, the ability to be empathetic (put yourself in the user’s shoes). ) — an aspect that enhances the ability to add value to the offer and service.