Omnichannel Analytics and Strategy
Customers are embracing digital technology in every possible sector. The banking sector is no exception and it has seen unprecedented disruption in the past decade. The way customers are banking globally has seen a shift from physical bank networks to digital channels. Today’s digital customer is no longer satisfied with the traditional nine to five bank networks They are increasingly seeking seamless, real-time online services such that they can perform all banking operations agnostic of the channel they are using without having to provide the same data over and over again.
From multichannel banking to omnichannel banking
Multichannel banking entails providing banking services through different channels, working in silos, where one channel does not interact with the other. Consumers starts and ends in one single channel and there is little to no overlap.
On the other hand, with omnichannel banking, consumers can swiftly float between channels. The customer can buy across all channels, and all the information about the buying process is available on all channels, ideally in real time. It allows real-time data synchronization between different channels. This has mainly been driven by digitalization and changing customer behavior where customers want convenience, accessibility, innovation, and easy-to-use platforms with utmost importance to security.
How to implement omnichannel strategy effectively:
· Design a customer journey that reflects customers’ specific needs. While segmenting customers, go beyond purely demographic and monetary factors and build personas on multidimensional basis. This includes various combinations of customer, channel and product along the customer journey considering specific banking habits and preferences.
· A good technical infrastructure, enhanced data capabilities and high level of system integration and performance is required. To realize smooth customer journeys across different channels, banks need to facilitate data exchange between them.
· A channel management framework must be defined which clearly and specifically lays out which channels to serve in which way.
· Allocate the resources and use technology to achieve smooth and seamless experience across the channels and along the customer journey.
· A motivated sales force equipped with the tools to operate in an omnichannel environment will help deliver better results.
What the banking sector is looking for?
Two major focus for the financial sector at present are:
1. Enhanced customer service while reducing the cost of sales.
2. Wide-scale reduction in the number of branches has begun.
Below are the values that Omnichannel Banking brings to Financial Services:
Improved Customer Service
Customers want to access their bank services through mobile phones, computers and tablets in the fastest and easiest way. Omnichannel strategy provides customer the flexibility to switch between channels smoothly such that customers can start from where they left on the previous channel.
Data Synchronization
Data synchronization reduces the pain of the customer by retaining the data even if they switch channels. While making a transaction, if there is interruption or an issue, customers can continue their journeys without having to re-enter the data.
Data Analytics
The system stores all customer related data- credit cards purchases, buying patterns, location data- to forecast future spending of its clients. Omni channel advanced analytics gives deep insights about the customer and automatically generate offers, discounts, and rebates for certain stores or product categories helping achieve customer satisfaction and targeted marketing.
Digital security
Omnichannel banking transactions offers multi-factor authentication transactions. A combination of the many security tools like passwords, SMS verification, mobile app verification, etc. makes digital banking convenient while keeping users’ data safe.
Reduced Costs
Omnichannel banking offers a great ROI to financial institutions. It reduces the operational costs by both minimizing the need for investment in the workforce and eliminating the possibility of errors and fraud. This enables bank employees to focus on other value-creating activities.
Pioneers in implementing omnichannel strategy
Disney: Disney has been leading this space by providing a seamless experience for customers both online and offline. It does so through its mobile responsive website, My Disney Experience tool and Magic Band Program. With the My Disney Experience tool, customers can plan their trip to Disney World from start to finish. They can purchase and access tickets, order food and merchandise, book hotels, check transportation times, locate the rides and the wait times for rides. The best part is that all of these can be done in real-time. The Magic Bands Wristbands can be used to unlock hotel rooms, get merchandise delivered to their hotel rooms on-site, order food, store memories in form of pictures and make payments, all while on the go. Disney beautifully draws connections between web, mobile, and in-park actions.
Starbucks: Starbucks integrates mobile convenience with instore experience through ‘Starbucks Reward App’. It helps accumulate reward points and track those points with each new order that is placed. What really sets it apart form traditional customer loyalty programs is the feature to reload the card via phone, website, in-store, or on the app. Any change to the card or profile gets updated across all channels, in real-time. The app allows to access the menu, see any new additions to the menu, locate the nearest Starbucks, customise the drinks, place orders through mobile phones to the desired location and also gives an estimate of how long it will take to prepare the drink so as to avoid the hassle of standing in queues. It provides personalised recommendations based on location and season. The recent Spotify integration has taken the experience to any level, by letting consumers view what songs are playing in a specific store and add them to their playlists.
(Link: https://monetate.com/blog/5-instances-of-a-successful-omnichannel-customer-experience/)
Way Forward
Omnichannel banking shows promise as banks can better meet their customers’ expectations and remain competitive with newly emerging players in the financial services industry. But implementing it is going to be tough and requires considerable time, patience, and resources. One of the major challenges that legacy banks face is the poor condition of the legacy infrastructure that is ill equipped for changing times. Omnichannel integration requires huge investment in technology and logistics. While the technical aspects are challenging, the organizational and mindset changes prove much more difficult for companies and require a strong top-down mandate from the leaders. Even with all the challenges entailed, implementing it is worth the effort.
