October 2014 Issue

The 'Customer Experience Management Newsletter' from CustomerXPs is your monthly insight on how customer experience is re-shaping the banking business domain.

This would keep you abreast of all the latest trends in Customer Experience Management space and help you leverage your customer experience efforts to the maximum.

Secrets of Customer Acquisition in Banking

The process of shopping for a new banking relationship has changed, with consumers using new channels to research, shop and open new accounts. Unfortunately, the financial services industry has not kept pace, using old school methods to reach customers. Understanding the new checking path-to-purchase is the key to success.

So, how do consumers decide on a primary financial institution for their checking account? What makes them switch? What can financial marketers do to influence the decision-making process? AOL conducted a study “Making the Switch: Checking Path to Purchase” that explored the motivations, influences and behaviors of consumers who recently switched banks and opened a new primary checking account.

The analysis found that marketing, negative experiences and life events drive switchers into the marketplace, but that traditional methods of reaching out to checking account shoppers no longer work. Below are insights that can help product managers and financial marketers improve acquisition efforts.

Branches Still Play a Role- Despite all the talk about digital channels, the research found that more than seven out of ten bank switchers reported that they opened their checking account in a branch. While this may seem to support keeping branches, the study found that the branch was used in many cases because a more convenient online alternative was either not available, too cumbersome or does not meet the needs of the switcher.

An ‘Always On’ Brand is Important- Two out of three potential switchers have only one bank in mind when they start thinking about switching to a new bank. In other words, to be effective in acquiring new checking households, your brand must in the consumer’s mind 24/7/365.

Evaluating Checking Options is a Multichannel Experience- Despite the power of recommendations from friends and family, traditional marketing still has an impact both as a brand builder as well as a way to stay in the consideration set of institutions when a consumer is looking to switch banks. What also must be considered is the channel used to shop, which is no longer just a desktop computer. With more shopping being done via mobile devices, the importance of targeted and concise digital marketing becomes more important.

The Biggest Secret- The secret to success is to generate new customers and members at a rate that is incrementally superior to your overall market share. To outperform your competition requires focusing on a great checking customer experience that people will talk about, finding ways to keep your brand front and center 24/7/365 with traditional as well as digital channels and to measure results.

New customer acquisition has never been more challenging or rewarding. Only those who understand the changing dynamics of the process will succeed in the future.

Source: The Financial Brand

IndusInd Bank inaugurates India’s first digital branch

IndusInd Bank has inaugurated its first Digital Branch at Gurgaon. With this launch, IndusInd Bank has become the first bank in India to have a fully Digital Branch at a metro station, whose branding rights are owned by the Bank. The bank’s fully digital branch aims to deliver best-in-class service to its growing tech savvy customer base.

One of the USPs of the Digital Branch is the Interactive Video Branch machine - another ...

Doha Bank launches 1st e-bank branch in Dubai

Doha Bank has announced the inauguration of its first electronic branch in Dubai.

Doha Bank Group CEO Dr. R Seetharaman led the inauguration of the electronic banking branch at a ceremony held at the bank’s premises. Also present at the ceremony were Nael Zahi al-Zagha, head of Dubai branch, and Mohamed Akram Hashim, head of retail banking for Dubai. The bank is aiming for a positive and aggressive ambition to expand its foot-print ...

Effective Customer Retention through early Customer Attrition Detection

Traditionally, banks focus more on acquiring new customers since it leads to higher sales and profits. But it is imperative for banks to understand that current customers may actually contain more untapped potential than theoretical new ones. Banks do have dedicated teams and specialized offers that they can extend to prevent a potential churner from abandoning the bank. In very few instances, however, the save rate exceeds 30 to 40%, meaning that the majority of all ...

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