With 63% of Financial Services organizations either planning or formally engaged in digital transformation initiatives, how does a financial brand drive conversion, create loyalty and maintain a competitive edge? Customer experience is a catalyst in many digital transformation projects, as businesses invest in new digital technologies and processes to more effectively engage customers, partners or employees. Companies that anticipate and fulfill their customers’ needs before they even know they have them, create a remarkable customer experience.
With the goal of putting digital tools to work in a transformative way, Financial Services organizations can ensure that data and insights connect people with information and processes that ultimately lead to a better experience for customers. In today’s digital economy, companies are competing for customers like never before as price and product are no longer enough and the value of customer experiences rise.
As shown in Figure 1, improving customer experience is the top driver for financial software investments over the next year. Organizations can digitally transform their businesses to best attract, win, retain and support customers by leveraging the latest applications, analytics and infrastructure to deliver a differentiated experience that is not a luxury, but a necessity for survival.
Source: 451 Research
Since emotion is the currency of experience, financial services organizations will strive to drive spending by harnessing the power of human behavior to brand loyalty. Whether you are a wealth management company, a retail bank, or a credit union, the continued pressure to create more meaningful relationships with customers places new emphasis on orchestrating contextually relevant experiences, across a variety of interaction channels.
New technologies can achieve scalable contextual relevance as intelligent applications take over execution. Figure 2 illustrates how the power of three key advancements in: dynamic content, prescriptive insight and intelligent automation, are key in orchestrating contextual experiences.
Source: 451 Research
By combining these key technologies, it’s possible to transform everyday essential communications into meaningful conversations. Adapt to customer demand by providing visually appealing statements and account summaries that simplify complex information with features like data-driven charts and graphs, to personalized email and SMS notifications. According to data from 451 Research’s Voice of the Connected User Landscape (VoCUL): 1H 2017 Corporate Mobility and Digital Transformation study, 82% of financial services organizations say that machine learning for automated contextual recommendations is important to creating personalized customer experiences.
Financial Services businesses embrace digital transformation as a prominent topic because they understand the value of data, technology and the role it plays in creating innovative new products. Alternative models for customer engagement such as dynamically interacting with customers have historically been riddled with manual and paper-based processes including new account openings, welcome kits, new product information packages and more. Delivering critical communications through customer-preferred channels, whether digital or physical, results in an opportunity for businesses to regain their footing by creating more interactive and personalized engagements with customers.
Growth in customer data for contextualized experiences empowered by technologies will create a significant gap between digital leaders and laggards when it comes to using technologies for strategic innovation. As businesses adjust to the age of empowered customers and their changing expectations, it is important to realize that digital transformation is more than just an IT strategy. It is a well-planned business and IT innovation strategy with the goal of aligning around a digital culture, that drives investments in new approaches to remain relevant in the eyes of customers.
You can learn more by joining 451 Research and OpenText™ on Tuesday, March 27th for a live webinar about Digital Strategies for Financial Companies to Engage Customers, where they will share recent industry data on the state of digital transformation.