Customer experience excellence is the key to rapid financial growth

Customer experience excellence is the key to rapid financial growth

KPMG Nunwood has published the report titled ‘2016 Banking Sector Briefing: Banking the Customer Experience Dividend’ which evaluates business performance in banking based on the customer experience trends. Over a period of six years, KPMG Nunwood’s Customer Experience Excellence Centre examined the performance of 927 brands across 3 continents. More than one million consumer evaluations revealed the fact as to how the customer experience services are helping them to excel and achieve success.
The report evaluates 63 banks worldwide alongside other brands. As per the findings, the banking sector is performing well overall for customer experience, with 58% of the banks and mutuals making in the list of top 100% customer brands. The list includes First Direct, Skipton Building Society, M&S Bank, Nationwide, Yorkshire Building Society, Santander and Halifax. But UK’s Big 4 – Barclays, HSBC, Lloyds and RBS which hold 77% of customer accounts are noticeably absent from the top 100 indicating the fact that majority of the UK customers does not have excellent customer experience. A top 100 ranking for the Big 4 banks, would mean average additional revenue of GBP 3.7 billion each bank over the next three years.
Customer experience is becoming an important aspect across businesses in different sectors. Companies which are able to provide an excellent customer experience are rewarded with higher revenues and profits.
The report lists 6 pillars that the leading brands master for achieving customer excellence. These pillars are the key to unlock more rapid growth for the banking sectors. These pillars include Personalisation, Integrity, Expectations, Resolution, Time & Effort and Empathy. These pillars have different impacts on customer experience. For example, Personalisation is the key factor in improving Net Promoter Score (NPS) and Loyalty. Personalisation is critical for transformation of sector and alone accounts for 23% of the overall customer experience.
Banks were able to generate acceptable profits till now by providing poor customer experience. As per the report, it will be difficult in future as the new generation of digitally-enabled millennials are forecasted to account for 30% of all global spends and they reject brands which don’t meet their needs. They want the bank that can understand their need and lifestyle and can support that lifestyle innovatively and proactively. Transformation is not easy but if banks want to stay relevant and become the leaders of customer experience across all industry sectors they need to transform.
The full report can be downloaded from here.

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