The metrics that matter

How banks are using data to monitor and manage their customer experience performance

It’s 2023, and banks are still being asked to go in two directions at once
On one hand, banks must keep up with customers’ evolving expectations, while on the other, they must continuously improve business profitability. It’s a challenge that requires a high degree of coordination and strategic planning. Unfortunately, for many banks a lack of effective metrics and processes is hindering their ability to make informed, real-time decisions, and that’s holding them back. This blog will explore how effective customer experience performance management can help banks achieve their business objectives with optimal customer satisfaction.

The intersection of business and customer experience
Banks must focus on achieving specific business improvements such as cost reduction and revenue enhancement – without sacrificing customer experience. Preference should be given for transformation projects that meet these expectations­. Projects such as omnichannel communication, self-service adoption, knowledge management, mobile-first design, and CCaaS all have the potential to improve the customer experience and drive business results.

To improve customer service, banks must define specific, controllable customer service activities that can be performed, measured, and improved at each level of the organisation. This should include coordination across the customer life cycle, technology acquisition, processes, customer interactions, and collaboration with partners. There’s a term for this process: customer service performance management. The benefits of customer service performance management are clear – streamlined decision making, faster process delivery, and lower customer service expenditures. So… where’s the snag?

Defining metrics…
If you can’t measure it, you can’t master it. The key to focusing attention and effort is to define the right metrics. This means leveraging data analytics and customer feedback to gain insights into customers’ behavior and preferences. In means enhancing data-sharing capabilities between departments. Do your customer service agents have access to your CRM data? Are salespeople leveraging customers’ unique histories? By defining and tracking metrics, and by sharing them securely between teams, banks can improve customer experience and drive profitability, ultimately achieving sustainable growth and long-term success in the dynamic banking industry.

…that drive improvement
With a set of data-driven metrics, step two is using those metrics to inform decisioning at every level. Some banks find it helpful to appoint a Customer Experience Officer with the authority to determine whether the defined metrics and activities support or inhibit CX goals. They should also groom and compensate customer service managers based on their enterprise vision of customer service. Additionally, banks must build a real-time analytical framework to ensure that a customer is treated appropriately at every phase in the customer life cycle.

Here are several more recommendations for improving service for banking customers:

1. Appoint a Customer Experience Officer with authority to determine whether the defined metrics and activities support or inhibit collaboration between and among multiple groups.
2. Groom and compensate customer service managers based on their enterprise vision of customer service.
3. Evolve the concept of customer life cycle management from an often discussed but poorly administered concept to a more practical approach.
4. Measure the specific effects technology has on decision making, organisational structures, business processes and customer expectations.
5. Build a real-time analytical framework to ensure that a customer is treated appropriately at every phase in the customer life cycle.

Customer Experience Analytics & Insights

A foundation for lasting customer loyalty
By making customer experience an integral part of the overall business strategy, banks can improve customer satisfaction, build customer loyalty, and enhance overall business performance. This process can also help break down silos within the organisation, leading to better collaboration and communication across departments, for a more unified and cohesive customer experience.

Ultimately, banks must view customer service as an enterprise-wide business objective and prioritise effective performance management to achieve their business objectives. By leveraging customer initiatives across departments, mapping touchpoints to ensure consistency, and communicating a clear customer service roadmap to employees, banks can better meet customer expectations and achieve their business objectives.