4 Things Banks Can Do To Improve Millennial Loyalty
Although a late realization, the banking ecosystem has finally realized that they can no longer ignore the millennial customers. Popular perception about millennials is that they are impatient, always in a hurry and want ease of doing things. In case you have not already noticed, most banking commercials, hoarding and flyers aptly communicate that very thought.
Take the example of the following advert from ANZ bank that enunciates the need for a simple banking system. The message is clear – life is complicated and full of struggles, why add more woes to it through a very complex and sketchy banking infrastructure. But the real question is – are banks really able to deliver seamless and hassle-free banking experiences to their millennial customers? However, before we answer that question, let’s explore, why millennial need special attention.
To begin with, millennials form a formidable size of the adult population, secondly unlike the older generation, millennial have proven to be financially more reliable. This is evident from the Bank of America survey that found – “one in six Millennial with more than $100K worth of savings”. This is good news for the bank, as more savings allows banks to channelize loans and stay in profit. On the flip side, thanks to so many public and private banks operating simultaneously, millennial are 2-3 times more likely to switch banks. This why customer experience matters a lot.
So, what does it take to reduce customer churn from this group of customers? Well, here are some recommendations in that direction –
#1. Omnichannel Presence Is Imperative
Unlike the preceding generation, millennial customers are not looking for banking representatives to walk them through their investment. The new age “digital native” is aware and it is difficult to influence them. They want to steer the wheels of their own finances. This means that banks must be present at every communication touchpoint. Whether it is social media, web or mobile apps, the message should be consistent. All the information about new services & features should be directly pushed to the mobile app.
Aggressive campaigns and advertising notification is such a passé. Instead, banks need to adopt a more data-driven approach to launch new services and product to their customers. Personalization of services is the call of the day.
#2. More Digital Payment Options
The new generation of banking customers is technologically savvy and is more likely to rely on non-traditional payment options to make payments or peer-to-peer lending. The rise in the use of third-party payment options like Apple Pay, Google Wallet and WhatsApp Waller indicate that. However, despite these alternative payment options, millennial are looking towards the traditional banks to improve the existing digital payment options.
In order to woo the millennial customers, banks need to make the following changes –
- Make payment a hassle-free exercise with a well designed and re-imagined payment journey
- Consider collaborating with third-party fintech company in a bid to retain customer base
- Offer rewards points and cash back to achieve cross-selling and customer acquisition
#3. Self Help Apps
Financially more conscious and better informed, millennial customers want the freedom to manage their money from any location. They do not want to take the traditional route of calling the customer service desk for support. If a customer misplaces her credit card, she should be able to block the card from the mobile app. Secondly, every small yet significant service that includes ATM location, branch location, ability to see payment history, download bank statement etc, the customer should be able to do it from the mobile app.
Banks must workout and include such self-help services to satisfy customer expectation as well as reduce the burden on their customer service agents.
Read: Five Important Things You Should Know About Millennials
#4. Empower Employees
This is a very crucial aspect of dealing with young and informed customers. Most millennial customers are well informed and maybe already aware of the offering of the bank, for instance, information on credit card interest rates, counter offer on mortgage and so on. As the face of the bank, front-end agents should not only be aware of the different products and services of the bank, they should also be backed by technology.
For example, a customer calls in to inquire about a Personal loan, based on the credit score of the caller; the customer is eligible for a new offer that guarantees lowest interest rate. If the agent can procure accurate information in a quick turnaround time, the customer well feels satisfied and happy with the service.
Therefore, empowering agents play an incremental role in wooing millennial customers who always look for personalized and quick service.
Conclusion –
The fintech market is growing at a very fast pace. Even if the banks are able to solve the current challenges of customer service, innovation should not stop. Banks are required to constantly innovate to solve customer challenges that change with every generation.
Kamna Datt is a CX expert and content contributor at Ameyo, leading provider of omnichannel call center software, customer experience platform and, debt collection software. Her expertise lies in tracking and analyzing trends in the CX and customer service domain and assist businesses to develop and understand key strategies through her writing.
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