The key to delivering devotion through customer-centric digital banking.
Best practice involves the ability to take a single view snapshot of the customer's activity: SingleBrain. Think of it as a dashboard.
The following is an excerpt from our detailed report: Racing from digital engagement to customer intimacy
The Command Centre
The command centre monitors events via analytics and insight gathering engines. This could be transactional in the back office or directly – and potentially externally – through a front-office channel like mobile. The data is pulled, analysed in real time, then an appropriate decision is made and communication channels respond within the parameters of underlying credit and business constraints. On a basic level, that communication might be offering a valued customer the best possible rate on a credit product or alerting an overdraft limit or pending currency transaction. Or it could be more complex, like using geo-location tagging to signal retail offers or rewards in the vicinity, giving the bank the opportunity to build partnerships. All of this happens in real time. Leveraging social media channels is an important part of the story – and certain banks are ahead of the curve in this area.
The 4 Ds to delivering customer devotion
Detect: trap real time events and respond.
This could be something relatively mundane like a salary payment landing, a credit limit being approached or logging into the site. It could even come from an external link, for example news of a swing in the stock market or a change in base rates. The system logs or snatches the event, ready for the next step.
Decide: the response is based on data/analytics.
Here, the 'SingleBrain' chooses whether or what to communicate by instantly asking profile-adapted algorithms, and it can go well beyond mere sales offers or marketing (customer relationship management or CRM). The use of intricate personal financial management (PFM) tools in particular can play a role, replacing a service that was once provided on a face-to-face basis.
Deliver: communicate through most effective channel.
Next, the front office is instructed on whether, how and when to issue the appropriate communication. That could be via mobile, internet, text, social media messaging, phone or (heaven forbid!) a letter. Alternatively, a communication might not be appropriate at this juncture.
Discover: record all communications and responses and understand what works and what doesn't.
Finally, the whole process is assessed within the system. What was the feedback to the communication? Was the communication appropriate? All the data and related responses are stored and form a continuous feedback survey, continually learning and improving best practice. None of those annoying (and time-sapping) marketing surveys will be required again!
At the end of the cycle, the data will be analysed to discover the effectiveness of the communication (or decision not to interact) and best practice logged to ensure customer satisfaction and relate findings to other clients. All being well, accompanying the customer through this process allows banks to better know clients and transform them into advocates, growing the bottom line.
New Tools in the box
There is a burgeoning number of new tools, applications and features that can be embedded, exploited and controlled in real time within the single command centre. These can be added to a single platform over time to suit the lender and their clients' needs. Some of these include:
- Incorporating offers – whether from the bank or incorporating third parties
- Advice – especially with regard to personal financial management (PFM) and investment planning
- Retention and reward – incentivising customers to remain in-house, driving loyalty
- Influencing behaviour – for example via 'gamification', scenarios and forums to retain loyalty and train clients to resolve their own problems
- Improving experience – optimising UX, especially through design innovation in the online and mobile channels
And that unleashes the shackles to allow banks to push further and challenge the new disruptors – often fintech companies – that are threatening to eat their lunch through value-added intermediary services including:
- 'Freemium' services – these are provided free of charge, but bring loyalty and potentially new business when proprietary features are added or related services bought
- Pay-for-what-you-use in areas like wealth management
- Free equity trading, to rival the likes of Robinhood
- P2P lending and crowd funding
- Creating a virtual market in the way that Fidor already does as an aggregator
Avoid spaghetti junction
When these apps or services are patched on to legacy back-end systems, the front end is left looking like 'spaghetti junction' – a tangled mess. The chance of acute customer dissatisfaction increases exponentially.
Those banks that want to excel in customer engagement will need to take a holistic view of design for future flexibility as customer demands change and as banks move to a more customer-centric approach. This requires avoiding point-to-point integration of data sources and channels.
The latest engagement applications and tools for sales optimisation (CRM) and content targeting (CMS) for example around loyalty/rewards and 'gamification' should slot into a single decision platform, the 'SingleBrain,' so that new channels and data sources can be incorporated through a single point rather than layering each separate application. A simple, clean architecture is available.