March 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.

Mobile Banking Trends for 2014

2013 was a big year for mobile banking, driven by trends such as increased smart phone adoption and the popularity of mobile check deposit. Looking into 2014, we see several areas that will drive mobile banking adoption even higher.

Top trends with respect to Mobile Banking this year are:-

Cross Selling will accelerate

Mobile devices provide a new opportunity to cross-sell and promote other banking products and services. Some banks have begun to roll out merchant-funded rewards program, which allows customers to receive coupons from retailers by clicking on offers sent directly to their online banking accounts. We will also start to see applications using geo-location technology to alert customers of coupons while they are in the vicinity of retailers.

Gamification continues to be a hot topic

Gamification continues to be a hot topic among financial institutions as they look for new ways to both win new customers and increase loyalty. Banks are looking at how they can advance from promotional marketing to employing gamification techniques to ingrain desired behaviours that make their products and services stickier. Points, badges, rewards and leader boards used in product engagement strategies are positive experiences for the consumer and ensure profits for the bank. Several banks have rolled out initial attempts here but most are still largely at the reward level.

Mobile Payments

Various studies have shown that mobile P2P is being used by less than 10% of mobile banking customers. Forrester predicts an explosion in the mobile payments market, growing from $12.8 billion in 2012 to $90 billion in 2017. Visa, MasterCard and American Express have announced initiatives that look to leverage dynamic tokens for mobile payments instead of storing card numbers and personal information.

Mobile Wallets will get a lot of attention and make some strides

Mobile wallet usage has struggled in the mainstream primarily due to concerns around security, technologies (barcode/NFC) and confusion over what is a mobile wallet exactly. According to a study done by Parks Associates, by 2017 mobile wallet use will grow 183% to over 43% of smart phone owners. The key to mobile wallet growth will be adding value to both consumers and merchants while addressing concerns around fraud and security. Convenience features such as making it easier to organize consumer loyalty programs, location based offers, the ability to skip long checkout lines and rewards for using mobile will begin to spur user adoption. Of course, broad consumer adoption will only come when users feel the digital wallet is more secure than conventional credit cards and ease of use is comparable.

Source: Banktech

Australian businesses losing $720 per negative customer experience: EY report

Australian service businesses are losing $720 for every negative customer experience, with a survey by Ernst & Young showing poor customer experience could impact $40 billion worth of spending.

The latest EY Customer Experience survey explored the impact of poor customer experiences on businesses in the telecommunications, utilities, general insurance, private health insurance and banking sectors.

It found 56% of the 950 respondents had reported a poor service experience over ...

How to Create an In-Branch Mobile Experience

While banks have made good progress around mobile banking applications, when it comes to combining their branch and mobile channels, they lag far behind other retailers. Consumers generally dip into their pockets or purses about every five minutes to look at their mobile phones.  So customers could take three or four glances at their phones while they are waiting to meet with a teller or a banker.  Each glance at the phone is a prime opportunity to interact with a consumer while standing ...

Role of Customer Analytics in transforming Customer Experience

Banks have come a long way since online banking was introduced way back in 1990s. Amidst strict banking regulations and slow economic growth, banks have strived hard and opened up to newer channels of communications that are aimed at providing ease of banking to customers. Mobile banking, for instance, has gained tremendous popularity within a few years of its inception. With these ever increasing customer-touch points over non-traditional channels, it has become imperative for banks to provide ...

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