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Compete with the Big Dogs Using Customer Experience

  • by Jason Young
  • Jan 06, 2016

In today’s banking landscape, consumers have more power than ever. Your customers and prospects have several choices about how they want to bank—online, in the branch, on their mobile devices—and traditional industry boundaries are fading.  

But how do community banks compete with the largest financial institutions, or “big dogs,” in the industry? Many say customer experience is the next battleground. And community banks are better positioned—and have been for years—to perpetuate a quality customer experience.

3 Ways to Develop a Unique Customer Experience

Conventional marketing tactics may no longer be effective in the digital age. And with the big dogs making huge investments in such technology as social media, mobile banking apps and Internet banking solutions, community banks have to be innovative with the products and services you offer customers.

No matter what channel your customers are using, they should be the center of your universe going forward. And doing so in a way that creates a unique customer experience is something that the big dogs can’t touch.

These are just a few examples of how community banks can develop that unique customer experience:

  1. Embrace the Millennial Opportunity

    It’s time to change how you interact with your customers. Community banks have to make sure that they continue to develop and offer the services that millennials demand.

    According to CCG Catalyst, the millennial generation is 77 million strong, and two in five would prefer banking at a community bank providing:

    • a robust loyalty program
    • customer-centric mobile apps
    • home ownership guidance

       

  2. Create Non-Interest Income Opportunities

    The baby boomer segment (now the second largest market behind millennials) is looking to replace lost wealth through a trusted advisor. Making wealth management products and services available to more affluent customers is a huge fee income opportunity.

    Use knowledge of your customer base to inform which customers may have propensity to buy wealth and treasury management products and services. Then, target those individuals and small business customers specifically—your customers may not even realize you offer wealth management solutions.

     

  3. Utilize a CRM
  4. Managing the touch points and interactions of customers, prospects and affiliates is how you differentiate customer service. Integrated CRMs use data from the core to help connect interactions across multiple channels—branch interactions, mobile transactions, etc.—so that you can see the comprehensive relationship you have with each customer.

    The ideal CRM for banking has:

    • customer contact management
    • issue tracking
    • incentive planning
    • relationship management
    • campaign management
    • referral and sales tracking
    • predictive modeling and cross selling capabilities

 

Survive, Thrive and Excel

Community banks should consider redefining goals, priorities and expectations for customer experience if you want to survive, thrive and excel in the future of banking. That’s because community banking is about relationships. 

Embrace the changing banking landscape by implementing strategic initiatives managed by the business processes, practices and capabilities of not only technology, but also people. 

 

Jason Young oversees CSI's robust suite of Business Intelligence solutions. He also has supervised the development and integration of many products with into CSI's NuPoint core processing platform. Jason holds a diverse banking background, having served as a credit underwriter and commercial lender with Regions Bank before joining CSI. Jason was also a recent speaker in CSI's Banking Unleashed webinar series