The concept of customer engagement banking is not entirely new. In fact, noted author and speaker Geoffrey Moore is known for saying that this “decade will be about systems of engagement.”
It’s the “systems” portion of his statement that’s the most important for banks to pay attention to however.
Achieving digital transformation is about more than just providing customers with an online account opening solution. It’s about implementing systems of digital engagement throughout the customer journey, making digital part of the experience rather than an end game unto itself. That’s when customer engagement banking truly begins and the full rewards of digital transformation can be realized.
Think about Disney World. It’s the happiest place on earth because every single customer touch point is imbued with the magic of Disney. It’s successful because the entire visitor experience has been thoughtfully executed, not just the iconic castle. Banks need to consider this when they think about the digital experience they provide to their customers — technology should be viewed as a tool to build lifetime relationships, not a burden that has to be shoe horned into existing processes.
American Banker recently conducted a survey of their readership that consisted of 300 high-level executives and line of business managers. The survey aimed to measure the power of providing a strong digital experience. The results are compelling…
• Institutions that had more than 50% of their accounts being opened in a digital channel were more likely to have higher revenue growth rates
• The average cost to acquire customers though digital channels is much lower than for customers acquired in non-digital channels — $77 per customer compared to $138
• 39% of institutions elected to partner with a specialized digital banking provider for account opening – and those that did realized lower than average customer acquisition costs — $55 vs. $77 or even $125 per customer
In the webinar that discussed the survey findings they also covered the importance of mobile in transforming customer engagement, highlighting the power mobile technology has to eliminate friction from the online account opening process — from GPS technology that can provide locational data, cameras that capture needed documentation and on-board payment capabilities to help fund accounts.
By 2020, 35% of the market will be in play due to digital disruption created by demographic shifts, cloud, mobile and big data. Will your user experience win market share? To learn more about the findings of the American Banker survey and to hear case studies of institutions that are finding tremendous success with customer engagement banking, check out the webinar “Digital from the Start: The ROI of Digital Account Opening.”