For the financial sector, two critical elements of business success are increasing customer retention and maintaining a high return on investment (ROI). A strategic communications plan, for example, is one of the most effective ways to improve the customer experience (CX), leading to better customer retention and reduced churn.
Currently, customer satisfaction is on the decline. In fact, it’s nearly at its lowest in almost 20 years, meaning that the new battlefield for banks and financial institutions will be CX. (Harvard Business Review, 2023). However, as brands invest in communication solutions to enhance CX and increase customer retention, they should be mindful of ROI, the main factor to consider before spending money.
Why is a positive CX so important?
Creating a positive CX is a challenge for every business right now. However, in the FinServ industry, organizations face an even bigger challenge because of varying consumer preferences when fulfilling customer service requests. 42% of customers prefer to resolve their customer service issues over the phone, 38% prefer digital channels such as chatbots, instant messaging, or direct messaging through social media, and 20% prefer email. (Zippia, 2023)
Fulfilling these requests on time is critical for maintaining a positive CX and keeping your customers happy. 90% of people are willing to not do business with a company again after having an experience that left them unhappy. (Zippia, 2023)
Creating customized experiences for your customers is crucial to keeping them happy and retaining them. While 60% of customers would like their banking experience to be as personalized as Amazon (instictools, 2023), only 14% of banks or financial institutions have an effective personalization program, the fourth lowest out of five major industries. (blend, 2023)
The longer a business can retain a customer, the more likely they are to try out new products or services and avoid doing business with competitors. On average, it can cost a company up to seven times more to acquire a new customer than retain returning ones. As important as it is to continue to grow and obtain new customers, up to 65% of a businesses can come from existing customers, highlighting the importance of continually improving CX. (Influx, 2022)
Maximizing ROI with communication automation solutions
Due to evolving customer demands and labor shortages, FinServ companies must find new ways to meet customer demands with a workforce stretched thin from staffing shortages and overhead costs. With the acceleration of digitalization, many customers prefer a “one-stop shop” for all their banking needs. FinServ firms that don’t invest in technology will fall behind their competition. Currently, 73% of contact center C-suites prioritize customer service improvement through digital technology in 2023. (LiveVox, 2023)
FinServ firms must invest in AI-powered automation solutions, like chatbots, conversational AI, and generative AI, to stay competitive and achieve high ROI. Low-effort communications solutions, for example, can seamlessly integrate into a firm’s current infrastructure, immediately providing improved customer service. In fact, automation could easily pay for itself in just six months. Investing in a best-in-class low-effort communications automation platform can instantly lower the cost of business, improve CX, and accelerate a firm’s ROI after implementation.
IntelePeer’s smart automation powered by AI enhances CX and ROI
IntelePeer’s AI-powered communication automation platform, Smart Automation, enables FinServ organizations to deliver a seamless and automated experience that boosts productivity, reduces labor costs, and allows financial institutions to focus on satisfying customers while improving retention rates and ROI. It also lets them to build, automate, and integrate communications for a smooth experience across voice, SMS, social messaging, and more. Plus, our Managed Solutions team is available for white-glove service and support.
Contact us today to learn how businesses can quickly implement Smart Automation into their current infrastructure and immediately accelerate their ROI.