Across all sectors, advances in technology are raising customer expectations about how they should be able to interact with brands.
The banking and financial sector has long focused on product strategy over customer experience (CX), but it faces increasing pressure from brick-and-mortar, online and fintech competition. This makes it important for brands in the industry, especially established brands that rely heavily on the human touch, to deliver a CX that delivers what customers really want and need.
Millennial and Gen Z banking customers, in particular, are demanding a frictionless CX that mirrors non-financial digital CX and helps them live a more convenient life, including interactions with retail, travel, and entertainment brands.
A recent HSBC survey found that two-thirds of Hong Kong millennials rate the seamless integration of banking services as “very” or “extremely” important. Attracting these consumers and encouraging them to expand their relationships with banks requires increased focus on building a CX that helps people integrate and navigate their financial lives.
A seamless banking experience benefits all customers, so every bank needs to deliver a consistent, personalized experience and build brand loyalty across customers’ diverse visions, priorities, and life stages. You need a CX roadmap that outlines your needs.
HSBC Hong Kong’s customer-centric approach to building better CX both online and offline relies on a framework built around customer experience model (CEM) and customer lifecycle management (CLCM) .
Improving customer experience and Customer experience model and customer lifecycle management
To deeply understand customer pain points, HSBC builds its CEM by conducting Net Promoter Score (NPS) research across different touchpoints and channels. CEM can derive customer insights from raw data using an automated voice of the customer engine, enabling HSBC to quickly address negative CX.
HSBC will apply the findings to customer forums. The Customer Forum is a governance and discussion platform where all departments can review their efforts through the customer’s perspective to help the bank prioritize improvements to the journeys that matter most to customers.
The introduction of this ‘NPS ecosystem’ revolutionized the bank’s culture by putting customer centricity at the core of its business strategy for the first time and making NPS part of every staff scorecard.
The CLCM framework applies a centralized, data-driven approach to analyze massive amounts of data points from transactional and non-transactional behavior and integrates predictive capabilities to provide users with a seamless and customized CX. , improve customer engagement.
CLCM has transformed the way HSBC interacts with customers by enabling them to identify and meet their banking needs in real time. Additionally, the interplay between CEM-generated insights and CLCM-prescribed actions drives regular and systematic customer engagement, improves products and services, and enables more effective lifecycle management. .
Turn customer insights into action
To enhance CX across the four lifecycle stages of acquisition, activation, engagement, and retention, HSBC employs machine learning (ML) and real-time computing to understand transactions, card usage, digital footprint, and customer We analyze 1.3 million customer behavior signals, including behavior, every day. and app signals. These insights help HSBC generate customer profiles and inform strategic responses.
Real-time artificial intelligence (AI)-driven findings show that the CLCM framework improves customers’ financial well-being and also moves them closer to achieving their wealth goals through automated, customized onboarding and relationship-building communications. Helpful.
HSBC puts those insights into action by creating products and offers that respond to individual needs and changing trends. CLCM tracks customer inputs and activities in real-time with powerful data analytics capabilities that help banks further evaluate and improve customer engagement.
Insights from CEM show that the end-to-end banking experience is more important to customers than product features. It also revealed that customers prefer digital-first interactions over branch visits, with 90% of respondents saying digital is key to their experience. As a result, HSBC has committed more resources to improving its digital capabilities to deliver a true ‘bank in your pocket’ experience.
The journey to open a digital account
HSBC Hong Kong leveraged insights from its CEM and CLCM platforms to transform its customers’ digital account opening process. Streamlining processes is one of the key areas for improving CX.
NPS research shows that customers find the account opening process too long and complicated, requiring in-person branch visits and paper documents. This was a significant pain point that led HSBC to restructure and simplify the account opening process, which used to take 45 to 45 minutes. He completes the process at a bank branch in 5 minutes, and on his mobile device he is available 24/7. This change established an industry standard when it was introduced in 2021.
In response to customer demand for an easier application process, HSBC has integrated the credit card application and investment account opening processes into the same journey, allowing most customers to instantly save, spend and invest all at once in just 12 minutes. I made it possible to do so.
Recognizing that new customers have diverse interests and needs, HSBC has also developed 60 automated and personalized messaging modules that explain account features and exclusive offers over a customer’s first 90 days. All of this is based on data-driven insights and customer behavior.
In addition to the HSBC account welcome email, the messaging engine inspects the customer’s identity, discovers their messaging preferences, and provides additional onboarding modules tailored to their specific banking needs.
Improved customer experience led to 20% more new customers choosing HSBC as their primary bank. As of 2023, 8 out of 10 of his 10 millennial banks in Hong Kong have partnered with his HSBC, a testament to the bank’s focus on customer experience.
new banking experience
After four years of transforming customer experiences through CEM and CLCM, HSBC achieved market-leading NPS scores for the second year in a row in 2023. This indicates that the customer prefers his HSBC over other banks and recommends the bank more actively. their friends and family.
“CLCM is at the core of our customer experience promise, leveraging technology, data and analytics to deliver the best personalized customer engagement at the right time and right place.” said Maggie Jean, Head of Wealth and Personal Banking at HSBC. For Hong Kong.
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