Feb 12
8
IBM: Banks need to create more customer-centric environment
Tumultuous economic times can present new challenges to banks and large financial institutions. During periods of turmoil, many consumers shop around to make sure they are receiving the best rates, paying minimal fees and have access to premium customer service. Increased competition among banks has given consumers the advantage in choosing an institution that will work for them, making it more important than ever that banks create an atmosphere that is focused more on personal customer attention, a new study shows.
According to the IBM Institute for Business Value, doing away with uniform “cookie cutter” pricing platforms and developing all-inclusive communication channels that are specific to customer needs may help attract more consumers. Both goals require financial institutions to learn more about their customers’ particular needs and the features and products they seek out in an institution, the study concludes.
“To increase satisfaction, banks need to better understand how people bank, how often they bank and what products and services they seek when banking,” according to the study. “Banks then need to use this information to align product and service prices with client needs in the client’s choice of channels.”
Social media is becoming a more cost-effective, simple and popular means of gathering customer data and forging relationships with consumers. A recent report conducted by KMPG reveals more than 70 percent of organizations are now active on social media websites, such as Facebook and Twitter. In addition to providing a fast and personal method of responding to customer inquiries and feedback, social media has allowed banks to unveil new products and services, measure customer sentiment and manage their reputation and online presence. Experts cite these benefits as being pivotal in an industry that is facing new rules, regulations and changes.
Jan 12
31
Innovate customer interactions to strengthen loyalty
Consumers have their pick when it comes to choosing a financial institution and fees, services and products play a significant role in their decision. But the results of a new survey demonstrate that a customer’s loyalty may also be influenced by how financial institutions interact with them.
The study conducted by Bain and Company reveals that customers are likely to be more loyal to institutions that not only provide effective and fast services, but those that take a personalized approach to banking practices. Further, customer loyalty can translate into roughly $10,000 per individual over the life of their banking relationship versus customers who are not loyal, American Banker reports.
When it comes to driving customer loyalty, there are a few key actions that may influence a consumer’s decision.
1. Quickness and efficiency
Online and mobile banking are growing platforms among U.S. banking customers, but a large percentage of Americans continue to make the majority of their financial transactions at physical branch locations, according to American Banker. While this scenario is not harmful or damaging in and of itself, high in-branch transaction levels may slow down banking operations and customer service call centers, adding some frustration for consumers.
2. Level of service
Confronting customer issues, such as statement errors, loan rejections, fraud or lost and stolen debit cards also has a large impact on a customer’s loyalty, American Banker reports. These moments are likely to be emotionally-charged, making it imperative that staff is trained to adequately handle these crises and provide guidance and superb customer service to resolve potential issues.
3. Comprehensive services and technology
Providing a variety of mediums to communicate and transact gives customers more control and options when managing their day-to-day finances. Online banking, mobile applications, social networking pages and email campaigns can help banks build and foster stronger relationships with consumers.
Jan 12
25
Emphasize security, usability when introducing mobile platforms
As I’ve mentioned before, mobile banking is becoming one of the fastest-growing and most popular methods consumers utilize to manage their financial transactions. Although a sizable percentage of Americans rely on smartphones to complete their day-to-day transactions, experts say that mobile banking still has some challenges ahead to becoming more commonplace among users.
According to Javelin Strategy and Research’s Mary Monohan, mobile banking customers are using this platform in different ways, requiring banks and lenders to accommodate the shift and cater to different preferences. For example, Monohan notes that smartphone users prefer a more expedient and to-the-point visit when accessing their accounts, while those using tablets expect a more “interactive” and complete experience, she tells BankInfoSecurity.com’s Tracy Kitten in an interview.
Further, Monohan notes that educating consumers about mobile security features may be a significant step in attracting wary smartphone users to mobile banking initiatives. A separate study reveals that concerns over the security of mobile platforms were the No. 1 factor that may discourage individuals from adoption of this service. According to the study, 53 percent of respondents said they were apprehensive of security features.
“There’s a lot of misinformation out there and consumers are very curious about it,” Monahan told the website. “If you’re going to have a mobile-banking offering, you’ve got to have marketing efforts.”
There are a number of ways institutions can expand their mobile banking platforms and educate customers on its many features. Asking current customers about their perceived thoughts or experiences on mobile banking can be a good first step in knowing where to make changes. Using marketing strategies, such as email campaigns, social networking websites and traditional phone communication can also help banks extend more information about their particular service offerings.
Jan 12
18
Burning a hole in your pocket: The digital wallet wars heat up
You may be familiar with the experience of having cash “burn a hole in your pocket.” Well, it’s not just cash anymore – or credit cards, either. Digital wallets can also do damage to your wardrobe. And things are going to keep heating up.
Visa enters the fray
After shutting down Rightcliq, which it launched last year, Visa has just announced its entry (or reentry) into the wallet wars with V.me.
V.me is taking digital wallets in a different direction by storing payment information remotely – and securely – instead of on the phone itself, which is good because you stand a much better chance of losing your phone than you do of having your account hacked. Visa is promising bank-level encryption and multi-layer authentication.
Visa’s efforts may signal the start of a shift away from phone-based apps to mobile web-based technology, such as we’ve seen with cloud computing. The company already has several technologies in place that should allow it to successfully combine the reliability of its network with digital wallet functionality.
Another V.me advantage is that card information will never be shared with sellers. Remember the old days when you left an imprint of your credit card in the hands of a complete stranger every time you used it, along with your signature?
What Visa offers
Visa brings a lot to the table. It already has one of the world’s largest and most advanced processing networks. V.me will seamlessly integrate vendors into that network to provide simple, reliable checkout and payment solutions.
Vendors using V.me will have access to a single, integrated, online dashboard, allowing them to track V.me transactions, individual charge activity, transactions by day and month, purchases by category, and average and total revenue.
Visa’s future plans
In a combination of visionary thinking and playing catch-up (just a bit), Visa is also developing big things for the future:
- Person-to-person transactions through a credit card
- The ability to keep multiple cards consolidated in a single V.me account
- Support for MasterCard, American Express and Discover cards, all through a single V.me portal
- Integration of targeted offers, smart subscriptions, and flexible payment solutions
Competition
But Visa is not alone in the field.
- The Google Wallet mobile app securely stores credit card information and offers on a smart phone and offers both in-store and online purchasing options.
- PayPal, a unit of eBay Inc., launched X.com, which offers many of the same features as Google Wallet and V.me.
- In 2011, Amex introduced Serve, their version of a digital wallet that allows customers to fund a prepaid account. It later expanded its capabilities through a partnership with Payfone Inc.
Prognostication
While I’m usually hesitant to look too far into the future, I’m willing to go out on a limb on a couple things:
The concept (at least) of cloud computing will continue to grow. Mobile devices will no longer store personal information, but will access it through highly secure networks – such as the one Visa has in place.
Smart phones will be ubiquitous and usage will continue to grow as long as there’s someone around to say, “There’s an app for that.” Mobile devices will be used for more and more activities, from watching streaming video to managing financial transactions, with complete security.
Banking Mobile Banking by .
Jan 12
16
It’s time to lose outdated marketing strategies
As 2012 gets rolling, marketing professionals need to realize that the dynamics of marketing are shifting, and that just keeping the same brand messages may not really work in our changing society.
Here’s a list of a few trends for 2012 from Leo Burnett Chicago which should shape the way financial brands frame their interactive marketing messages to reach new customers and retain current ones.
1. The nuclear family melts down
It’s no surprise that many of today’s families don’t follow the traditional structure of a husband, wife, white picket fence and 2.5 kids. More children are raised by single mothers or raised in a non-traditional setting.
In order to reach those families, the firm says companies need to show varied family images with their messaging in order for them to “ring true” with consumers.
2. Deals are now the new normal
With the expansion and popularity of Groupon and other coupon and deal websites, Leo Burnett Chicago says consumers have adopted a mentality that they shouldn’t have to pay full price for anything.
This kind of culture puts an increased emphasis on programs that reward customer loyalty and give personalized deals to people based on their individual interests.
3. Social media and mobile technologies are everywhere
It already seems like everyone and their mother has a smartphone and Twitter handle, and that trend is only going to continue next year, as the firm says 20 million more people will adopt smartphones in 2012.
Basic online and social strategies also aren’t good enough anymore. The report says consumers are looking for practical ways to use social media in their lives. Just having a presence and Tweeting occasionally isn’t enough.