Financial services brands are facing more complex challenges than ever before, especially when it comes to customer experience (CX) and sparking business growth. Additionally, the added stress of COVID-19 makes finance an even more sensitive topic for customers than usual, making the experiences brands provide even higher risk.
Lucily, there is good news for brands even in these troubled times—if they play their cards right, they can use their experience programs to not only create great experiences for customers, but also grow their business simultaneously. There are four key business goals finserv brands can accomplish with their CX programs (we talk about them in our latest eBook here), but today we are going to focus on just one: growing share of wallet.
The Importance of Wallet Share
Growing your share of wallet can be achieved by growing your customer base (acquiring new customers or expanding the financial institution’s geographic or product/service footprint) or by capturing a greater share of current customers’ financial wallet with additional products and services.
Growing wallet share means more than just maintaining the customers you already have—it means understanding if they are also utilizing services from your competitors, which services, and why those customers are going elsewhere. With this knowledge, you can make changes that help you go from being one of a few brands a customer utilizes to the only brand your customers trust.
Being your customer’s one and only has some major implications for your bottom line. In fact, according to Harvard Business Review, if your brand is one of only two a customer uses for a given purpose, the difference between being their first choice and being their second choice can mean that “half of each dollar you could be collecting from the customer is going to your competitor instead.”
With the right CX program, however, you can narrow that gap. Here are two specific examples of how experience tools can be leveraged to grow wallet share:
CX Benefit #1: Acquire More Customers
Customer acquisition is one of what we at InMoment like to call the four economic pillars of customer experience return on investment (ROI). Why? Because it’s absolutely key to making sure that your CX efforts (along with marketing campaigns, promotions, and more) are paying off. Understanding the effects your actions as a brand have on different customer segments is crucial, as it allows you to further target your initiatives. You can then acquire more of that type of customer, then quantify the value of those new customers for your bottom line.
For example, an InMoment client sought to capitalize on acquisitions by optimizing its surveys to find new types of customers. By targeting respondents between the ages of 18 and 35 with specific questions, the company was able understand this demographic and what drove it so that this intelligence could be included in the brand’s expansion initiatives. The practitioners who ran this initiative were then able to prove its worth by tracking the new customer acquisition, increases in unique customers, and market share growth that it generated.
CX Benefit #2: Understand How You Measure Up
Equally important to acquiring more customers is understanding what your competitors are doing that convinces those individuals to choose a brand other than yours. Understanding competitive differentiation in terms of brand, experiences, and product and servicing offerings can inform the organization on target audiences, competitive customers who are most vulnerable, and how to position the organization’s product and servicing offering in the most attractive way.
With competitive perceptions, a financial institution may find a specific opportunity to attract competitive customers who may not be happy with the digital offering available with a current provider. An institution may also spot a chance to attract customers’ attention with a specific product offering targeting their defined needs.
Intelligence is Key
There are plenty of other benefits a CX program can bring to a financial services brand, but they all have one thing in common: intelligence. With an experience initiative that is able to collect data from anywhere and everywhere, apply powerful technology, and give you access to experts who can guide you on your journey, you gain the kind of intelligence that helps you make informed decisions about your experience. And when you make informed decisions, you can truly delight your customers and transform your business. Sounds like a win-win, doesn’t it?
Want to learn about the other three business goals financial services brands can accomplish with their CX program? Read the full eBook here for free!