Boosting Retention: How CEM Transforms Customer Loyalty in BFSI

As we head towards a new era of customer engagement, businesses, including BFSI firms, are undergoing a transformation to keep up with the evolving industry standards and requirements. With increasing customer demands for personalized and seamless experiences, the importance of CEM or customer experience management in BFSI is being recognized. 

Recent news highlights the growing emphasis on CEM in the BFSI sector. For instance, Kotak Mahindra Bank announced a new distribution structure to enhance customer experience. It integrates branches, digital platforms, and voice channels for a seamless customer experience.  This initiative is designed to enhance service standards and operational efficiency by integrating customer interactions across all products and services. 

Numerous BFSI foundations are vigorously investing in digital transformation to adjust to the changing landscape and mitigate the risk of losing market shares. To improve customer experience management in BFSI, they are also implementing cutting-edge tech like artificial intelligence and machine learning.

Let's discover strategies to provide better customer service and learn about the significance of customer experience management in BFSI.

What is Customer Experience Management in BFSI?

CXM, CEM, or customer experience management in BFSI refers to the strategic approach of comprehending and addressing customers' requirements, preferences, and pain points throughout their journey. Simply put, CXM in BFSI requires businesses to design and deliver unparalleled, seamless, personalized experiences from the first interaction. It allows businesses to stand out from their competitors, win over customers, build a better brand, and grow faster.

Understanding the Importance of Customer Experience Management in the BFSI Sector

Customer satisfaction is seen as the most crucial factor in success. Hence, implementing robust strategies for customer experience management in BFSI firms can significantly impact their profitability and reputation.

Customers tend to change banks due to poor service quality, such as long wait times, arrogant staff, and technical difficulties. Businesses can overcome these challenges by carrying out effective customer experience management in banking, fostering loyalty, reducing churn, and achieving increased ROI. 

It has been proven that investing in CEM and cultivating customer loyalty is more effective than constantly seeking new customers. According to Harvard Business Review, acquiring a new customer can be 5 to 25 times more expensive than retaining an existing one. Increasing customer retention by just 5% can boost profits by 25% to 95%. Managing customer churn and retention is key to improving long-term business profitability and customer relationships.

Customers who are loyal are less likely to switch to a competitor and also recommend your brand to their close ones. Therefore, executing CEM in BFSI not only increases customer loyalty but also contributes to the retention of existing customers, which is essential for a company’s long-term success.

Top 4 Customer Experience Management Strategies for BFSI Industry to Improve Their Customer Service

Now that we know the importance of customer experience management in BFSI. Let’s examine the four most important strategies to remain competitive, drive customer loyalty, and achieve long-term success.

1. Leveraging Technology & Digital Tools: Advanced technology and digital tools aid BFSI firms in offering mobile apps, online banking portals, and AI-powered chatbots. This reduces wait times, increases customer convenience, and provides 24/7, instant services. 
2. Personalized CX & Data-Driven Decision Making: Data analytics tools provide insights into customer behavior, preferences, and satisfaction levels. By understanding individual customers, businesses can make informed decisions and customize their services accordingly.  
3. Employee Training & Culture: While training programs equip agents with the knowledge, skills, and tools necessary for executing CEM in BFSI, a positive company culture fosters a customer-centric mindset that empowers them to deliver exceptional customer service.
4. Innovation in Product & Service Offerings: Customer experience in BFSI equips businesses with upcoming BFSI trends and evolving customer needs. By leveraging these insights, BFSI organizations can stay ahead of the curve and provide customers with unique and valuable solutions. 

Benefits of Leveraging SquadStack’s Solutions for CEM in BFSI

SquadStack, a recent “CX Leader of the Year” awardee, is well known for its commitment to delivering exceptional customer experiences through unparalleled service offerings. Here are a few benefits you can avail of by leveraging SquadStack’s solutions for customer experience management in BFSI.

• Enhanced Customer Experience: By leveraging AI to analyze customer interactions, such as call recordings, SquadStack enables BFSI companies to understand customer preferences and tailor their approach accordingly. Moreover, our omnichannel outreach strategy systematically uses communication channels, including SMS, IVR, WhatsApp, etc., allowing businesses to connect with customers on their preferred platforms.    

• Improved Operational Efficiency: We automate various manual tasks, allowing agents to focus on more complicated activities. Further, we ensure enhanced operational efficiency and increased lead conversion rates by connecting customers with the most eligible agents through our lead matching engine.

• Increased Sales and Conversion Rates: SquadStack’s systematic lead prioritization system, coupled with A/B tests, empowers BFSI institutions to drive sales and improve conversion rates. Our system divides leads based on data and configures the best day, time, and channel for outreach, allowing sales teams to focus on the most promising opportunities.

• Regulatory Compliance and Security: Our solutions are designed to help BFSI institutions meet stringent regulatory requirements while ensuring data security. By incorporating robust security measures and adhering to industry standards, we help protect sensitive customer information and maintain customer trust. 

• Scalability and Flexibility: SquadStack is a cloud-based platform with a usage-based pricing model, allowing BFSI firms to scale their operations without worrying about overhead costs. With an extensive network of over ten thousand telecallers, we can quickly adapt to your fluctuating call volumes and business requirements. 

• Real-Time Performance Monitoring: Besides the solutions mentioned above, SquadStack’s AI-powered quality analysis allows businesses to identify pain points and make informed decisions to enhance CX. Through our analytics and reporting dashboard, you can monitor comprehensive campaign performance and gain real-time insights into KPIs.   

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Discover How SquadStack is Revolutionizing CX for Leading BFSI Firms

SquadStack, a tech-powered contact center for modern businesses and a leading provider of customer experience solutions has empowered numerous BFSI firms, including Choice India, Kotak Securities, Upstox, Moneyview, and many more, to transform their operations and achieve remarkable results. By leveraging our solutions, these institutions have been able to enhance customer satisfaction, drive revenue growth, and gain a competitive edge.

Customer Success Story: SquadStack x MoneyView

Moneyview, a fintech company, was struggling with scalability and security issues. With the help of our fully managed telecalling stack and data-driven insights, we helped them improve their internal team processes and achieve 40% more loan applications. Additionally, our guided calling app helped bring greater structure and discipline to MoneyView's outbound calling efforts, leading to improved lead connectivity. This resulted in increased customer satisfaction and enhanced customer experience. 

Check out the full story here.