Customer management has long been an issue with many organisations however, in a survey of the banking sector, the issue has come to the forefront of peoples minds.
In a clear message, Australian high street banks need to look at the products and services they offer in order to stay competitive. This was confirmed by a large-scale survey of retail banking customers *
The average bank customer expects to be able to choose between a range of service levels and costs according to new research.
The survey of 1,000 banking customers in Australia, highlights that banks need to develop a greater focus on their customers.
“Banks need to re-evaluate consumer trends to prioritise products, improve services and, ultimately, give customers what they want,” said Paul Siviour, Ernst & Young’s Oceania banking and capital markets leader.
According to Ernst Young, only 39 per cent of Australian customers surveyed thought their bank adapted the products and services it offered them to suit their changing needs over time.
“Interestingly, 72 per cent of Australian customers also said they would be willing to provide their bank with more personal information if it resulted in tangible improvements to the suitability of products and services they were offered. Banks have an opportunity to build on customers’ willingness to provide them with more information, but should note that customers want to do this on their own terms,” Siviour said.
Half of Australian consumers surveyed said they wanted to be able to update information at their discretion or when their circumstances changed. The banks need to let customers decide how this process works, not the other way around.
More than half of Australian consumers (56 per cent) are already using two or more banks with the most common reason cited was to ensure the best rates or fees for each product. Price was also the primary driver of customer satisfaction, with 35 per cent of Australian consumers listing fees and charging structures as an area their bank could improve on to increase satisfaction.
The banking environment (similar to retail) is changing and Australian banks are facing increased competition from non-traditional entrants to the market, such as technology companies and telcos,
The research found that Australian customers would consider using a non-traditional financial provider for some or all of their banking services if they could offer lower fees, better rates, tailored products or a more personalised service.
The new market entrants are leveraging technology, social media and more agile business models to differentiate themselves from the traditional players and consumers are clearly starting to take notice. The use of social networking as a source of banking information is amplifying customers’ voices further, giving them greater power as advocates or critics.
Customers are beginning to demand products and services aligned with their lifestyles. One way in which Nexa is helping the banking sector is by using Q-Flow Customer Management as the underlying technology in order to initiate change.
Q-Flow Appointment Manager solution helps banks capture more detailed information about customer visits in order that banks can better plan for future visits.
Q-Flow Appointment Manager allows customers to pre-book appointments with the bank or financial institution on-line, via their mobile phone or call centre. The advantage that this provides is that the bank or financial institution can then align the products they offer and ensure that they have the right level of staff with the experience required to answer the customer’s questions as well as upsell product.
V-Flow is also making a marked difference. As well as utilising Q-Flow Appointment Manager, V-Flow is used as in-branch digital media. Both products are powerful in their own right however, when combined, are proving a powerful sales aid. V-Flow allows branch staff to play media that is relevant for a specific time of day, day within the week or even specific to appointment type. As an example, if you have a range of customers that have pre-booked appointments to discuss mortgages, the in branch digital displays should be playing advertising related to mortgage protection products.
Times are definitely changing but the question is, are you ready?
*Ernst & Young’s 2012 global banking customer survey