Customer Engagement in Banking and Its Significance in 2020

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INTRODUCTION

Today, customers no longer read, they just browse. With so much content to consume, the attention span of customers is decreasing drastically. A Microsoft consumer study states that the human attention span is only for 8 seconds. This is lesser than a goldfish’s attention span which is 9 seconds! With this reduced attention span, banks need to look out for more substantial means to grab attention and stay connected.

There is a lot of buzz around the word “Customer Engagement”. Its fast-growing popularity has made banks to take notice of its relevance. What is customer engagement in banking? Why is it so important? What are its strategies and platforms? We are here to guide you through everything you need to know about customer engagement.

WHAT IS CUSTOMER ENGAGEMENT?
Customer Engagement is the interaction that occurs between customers and the brand. This interaction can take place through diverse channels and various touchpoints throughout the customer lifecycle.
The channels through which customer engagement happens is an online store, Brick-and-mortar stores, Emails, Mobile applications, Chatbots, Messaging apps, Social Media apps, Live Chat, and Telephone.
Customer engagement means being actively involved with the customers and motivating two-way communication. A well-planned customer engagement strategy helps in brand building, establishing connections, and providing value.
Banks no longer just focus on increasing sales and providing services. They now aim to look beyond transactional relationships. With customer engagement activities they try to understand customer needs and deliver solutions. Customer engagement in banking has been beneficial in creating happy and loyal customers thus leading to business growth.

WHY IS CUSTOMER ENGAGEMENT IMPORTANT?
Earlier, quality products/service and price were a differentiating factor to make a choice. But today customers need something more, something unique. They are keen to understand how brands treat them, how easily the services are accessible, and how much is the brand involved and available to guide them.

A survey states that 82% of consumers don’t continue if they have a bad experience with a brand, whereas 86% of consumers have shown the readiness to pay more if they get a great customer experience. Digital core banking is a great step forward.

Here are a few benefits that make customer engagement in banking worth the effort:

High revenue generation
A consumer involved in customer engagement activities is likely to get in more revenue to the banks. An engaged customer shows interest in investment opportunities and financial products within the bank, helping banks generate high revenue.

Prime Bank
It’s a familiar norm to have multiple accounts in varied banks. But if you can engage customers with the right approach, your bank becomes the primary bank for their banking needs. From online purchases (Debit/credit card), bill payments, cheque books to use of web portal for transactions all will be performed through your bank’s facilities.

Brand Ambassador
When all your efforts are towards customer satisfaction, the result is bound to be great customer experience. With customer engagement tools banks can build long-lasting relationships. When consumers are actively engaged, they become your brand advocates. They spread a positive word of mouth among their peer group and on social media. The outcome of this is increased brand awareness and sales. Results of customer engagement technology are better than any form of advertisement.

CUSTOMER ENGAGEMENT PLATFORMS
A good customer engagement platform helps in strengthening communication with customers. These platforms help in centralizing the multiple customer interactions and enhance the overall customer experience.
Personalization is a key aspect of customer engagement in banking. These platforms provide sufficient customer data that aids in personalizing marketing campaigns and communicating constructively. It helps in understanding consumer behavior by tracking their interaction online with your products and services. They assist in recognizing the pain points and aid in improving it. With customer engagement platforms banks can experiment and test various campaigns and then select the best one.

Top customer engagement platforms
Various customer engagement platforms are Bold360, Astute Solutions, Pega, Avaya, LivePerson, Eudata, RedPoint, Aurea CX Platform, Chirpify, Vivocha, WalkMe, Velaro, Doxim, Magentrix, Revation’s LinkLive, and Nuance Digital Engagement Platform.

The main features of customer engagement platforms are social media, webchat, individualized marketing, and CRM. They also look after multichannel communication, PR capability, live chat, and marketing functionality.

CUSTOMER ENGAGEMENT STRATEGIES

Go Digital
If banks don’t have a digital presence, they are losing out on a big portion of the population. An effective engagement happens when banks connect customers when they need them the most. With digitalization connecting customers anywhere, anytime, and through various channels is possible.
Attracting customers through informative, high quality, contest posts is a great way to engage customers. Sharing your brand journey creates a sense of involvement with the consumers. Creating a video featuring your bank employees humanizes the brand and makes the customer more comfortable.

Emotionally Connect
Customer engagement activities without emotions will not create the desired impact. Only using technology is not sufficient, there needs to be a sense of compassion while dealing with consumers. Who doesn’t like personalized attention and appreciation? This can be done by well informed and sensitive employees. Connecting with consumers on an emotional level helps in customer satisfaction, loyalty, and turn them into your brand ambassadors.

Feedback
There are various strategies that banks can apply but if there is no scope for feedback, banks will not be able to engage with customers in a true sense. Customer engagement is a two-way process. Let the customers know how much you value them. Create opportunities for customers to speak and feel heard. Feedbacks are a great way to analyze and solve queries even before they escalate. Gathering feedbacks and working on it helps the bank to come up with customized solutions.

CONCLUSION
Today, one cannot deny the importance of Customer Engagement in Banking sector. The customer engagement process helps in attracting new customers and also creates a strong connection with the existing clients.
There needs to be a constant effort to make each interaction significant and hassle-free. A well-planned customer engagement strategy builds trust and confidence among the customers, making them your spokesperson.

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