Customer experience is critical to any business. Many companies across the globe, often aren’t putting customers at the center of their ventures. Instead, they are using new technologies to create operational efficiencies and in turn, reduce costs.
But, when we think about how to approach customer experience and how to change it, first and foremost we need to have a clear view of what matters to the customers and what doesn’t. The recent economic downturn due to the severe health and financial shocks inflicted by the pandemic and the massive economic disruptions is forcing businesses to rethink the core competencies of customer experience.
The picture is not very different when it comes to the lending industry. Now, low rates are not enough for lending firms/ banks to attract clients or, more importantly, retain them. So, they must personalize their customer journey at all stages, and that includes every step from initial interaction to onboarding to loan origination and more.
How can businesses successfully transform their customer experience to get results?
Today’s tech-savvy customers expect to provide access to funds anytime, anywhere. Customers have no patience for hours of time-consuming and lengthy processes. Many lending firms are still supported by legacy back-end systems built several decades ago. These systems have resulted in inefficient manual and paper-based processes, significantly affecting the consumer experience.
Businesses can improve customer loyalty and fuel growth by offering services beyond traditional coverage and focusing on digitization. Digitization fulfills the customers’ need for convenience, at the same time offering lending firms many new opportunities for growth, both top line, and bottom line.
Research shows that 35% of business executives claim that digital transformation helps them to better meet customer expectations and improve operational efficiency (40%), and38% of executives plan to invest more in technology to make it their competitive advantage.
Here are 4 steps in which digital transformation needs to happen to impact the customer journey in a positive way.
Define digital strategy: The business world is face-paced due to rapidly changing technologies and innovations. Even established companies are being disrupted every year by evolving and advancing technologies. Companies need a plan that not only outlines which technologies need to be adopted but also protection from digital disruption. That’s why understanding your core systems and processes to identify opportunities is critical before harnessing the potential of digital transformation.
Re-imagine customer journey: With customers gaining control over the way companies deliver experiences, it’s time to build new experiences that meet their demands. Businesses looking to improve customer experience during the first interaction should consider collecting data and documents in digital format (digital onboarding)
Omnichannel strategy: Customer expectations are changing rapidly, and they expect to be able to transact digitally on any device and the experience to be connected across all channels. Implementing an effective omnichannel strategy is a powerful weapon for businesses to win customers who demand convenience and simplicity irrespective of the kind of electronic devices or physical channels they use. Firms need to introduce a single platform that manages most (if not all) of the channels
Personalization: Today’s customers actively look for relevant inputs that might either improve their financial health or help them make smarter decisions, causing wellness programs for finance and financial management tools to increase in popularity. This has led to the integration of data sources to reduce documentation, personalize pricing, and make the overall process experience more effective.
In fact, lenders are now using digital tools to unlock varied forms of customer interactions and services previously not accessible to borrowers. Customer data, combined with machine learning, helps personalize the offerings and delivers effective customer-centric communication at the right time.
Top benefits of adopting digital mode
a. Improve operational efficiency
b. Meet changing customer expectations
c. Improve product quality
d. Increase design reuse
e. Reduce product development cost
f. Introduce new revenue streams
Digitization isn’t just doing the same thing in a better way, but rather creating something new. It implies an end-to-end process of developing and delivering data-driven financial products that are applied for, disbursed, and managed through the digital channel.
The new, digitally conscious customer
Truly understanding customer needs may help firms improve not only the buying experience but also their bottom line. In an environment that becomes increasingly globally competitive, service quality is an important measure of customer satisfaction, which ultimately leads to customer loyalty. Today’s customer has zillions of alternatives, and bad customer experiences will certainly make him switch to better avenues to serve his needs.
Hence, retaining your loyal customers and attracting new customers can only be possible by providing seamless and personalized experiences, and making them a top priority every time. The need for an intuitive, frictionless digital borrower experience is increasingly becoming the key to lenders’ success.
Through digitization, you can potentially expand your business, likely increase the number of customers who will stay with you, and help ensure your business is profitable long-term.
Have you started digital transformation yet?
Find out how Insight Consultants can help you in your digital transformation journey by Contacting Us
