November 28, 2023
Customizing Digital Products to Drive Higher ROI – Part 2
The digital world is transforming quickly. As we discussed in part one, banking and financial services consumers expect today’s digital products to be convenient and tailored to their individual needs and preferences. The growing sophistication of digital product technology has now made it easier than ever for banks and credit unions to offer a variety of customized solutions that increase customer engagement and satisfaction, while driving revenue. But when creating these products, development teams should keep these factors in mind.
Digital products should offer personalization
One of the primary ways that banks and credit unions can increase engagement with their digital technology is by offering increased customization and personalization. To achieve this goal, digital products should include the ability for back-end users to carefully analyze data, such as search history, past transactions, and user behavior. Armed with this information, financial services companies can provide product and service recommendations that are tailored to each of their customers.
As part of this customization, personalized communication should also be included. Customers appreciate timely and relevant updates, especially from their financial institutions. Customizing the timing and frequency of communication can also enhance engagement and build a more “sticky” relationship with customers.
Sophisticated digital products now allow banks and credit unions to determine the best time and frequency to send important messages that may either need immediate attention or are more likely to land when customers are more receptive to the content. Customized timing can also help organizations deploy bespoke marketing emails and push notifications.
Today’s digital products also allow banks and credit unions to segment customer lists based on topic interest or preference, past transactions, or other factors. Targeted campaigns can then be created to address these interests. This approach will further enhance the banking-consumer relationship, and depending on the nature of the campaign, can drive significant revenue.
Digital products should also have the capability of leveraging customer feedback. Since customers have come to expect the sharing of their feedback and opinions on a variety of digital platforms, smart financial services companies should proactively solicit that feedback to gain valuable insight into how well their customers’ needs are being met. The feedback should be used to refine and improve the user experience over time, as well as help the company gain valuable information for developing their future digital products.
Keep in mind that financial services businesses must be willing to adapt and refine their digital products and technology strategies over time. Since technology is always changing, the investment in upgrades will be critical to staying on the cutting edge of customer needs.
Digital products should offer self-service options
With most of the world now fully digital and 24/7, customers are increasingly seeking self – service options that allow them to access information and make transactions whenever they want, including making deposits, checking balances, and resolving issues without the need for human contact. Digital products should offer these conveniences and flexibility for their customers around the clock.
Because most people today value their independence, and many customers prefer to handle their own banking needs rather than relying on a customer service representative, banks and credit unions must offer self – service options, such as online chatbots, touch screens, messaging centers, and even mobile apps. These options empower consumers to find solutions to their problems at their own time and convenience. Mobile apps allow customers the ability to access information more easily, or transact business from their smartphone, which today’s users expect.
This digital access is especially important for customers who are unable to do business with their bank during traditional business hours, or who may be in a different time zone. Self-service options also reduce wait times for customers, allowing them to complete transactions more quickly and efficiently. They also improve customer satisfaction by reducing frustration and stress. End-users may become frustrated when they are unable to access information or complete a transaction quickly and easily. This can lead to a negative experience and potentially cause the customer to switch to a competitor.
By offering all these digital self- service options, tailored to consumers’ individual needs, financial services companies can create a more emotional connection with their customers, which can lead to increased loyalty, repeat business, and added revenue.
As more customers seek out digital options for interacting with their bank, credit union, or other financial services company, offering self-service options has become an essential part of providing exceptional customer service. Financial institutions that invest in digital products that offer these options will not only improve customer satisfaction but can also gain a competitive advantage in their respective markets.
Digital products should leverage artificial intelligence
Artificial intelligence (AI) is revolutionizing the way the financial services sector operates by providing powerful tools to analyze data, automate processes, and deliver services.
Not only can AI analyze customer data to identify behavioral patterns and trends, but it can also assist in gaining insights into customer desires, needs, and challenges. Tracking this information will allow banks and credit unions to provide better service, more efficiently target their marketing, and pinpoint areas of the user experience that are weak or lacking.
Additionally, today’s digital products utilize AI to provide chatbots, virtual assistance, and natural language processing algorithms. These components can personalize customer support and assistance, while elevating the experience that customers have come to expect, even demand, from their financial services institutions.
Perhaps one of the strongest areas where the marriage of AI and digital products can make a profound difference is in predictive analytics. Financial institutions can use this technology to predict the future behavior of their customers. Utilizing data mining, predictive modeling, and machine learning, financial services companies can better map end-to-end customer journeys, and use that information to better predict buying and transaction behavior.
Banks and credit unions who are considering developing or upgrading their digital products should take advantage of all the current technology that is available today to streamline operations, unlock valuable data, and delight their customers with an enhanced user experience.
Developing and employing digital products can increase customer loyalty, drive repeat business, help differentiate a company in a crowded marketplace and, ultimately, lead to increased revenue and growth for the organization.
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