Customer experience (CX) is the sum of all interactions between customers and your brand. This covers your sales team, your website, your product experience, your customer service, third-party partners, Google, and advertising, etc. Attempting to move such a large needle is daunting.

Customer experience is defined as streamlining experiences, eliminating superfluous touchpoints, and strategizing processes to give a superior customer experience – all while maintaining the company’s overall customer score. Do you wonder what has to be done?
It’s a well-known fact that offering a positive customer experience is a critical component of brand success. Customers are no longer solely concerned with pricing and product quality, they want to have an unforgettable experience with the organization with whom they do business, and this is frequently the deciding factor between your brand and your competitor.

Let’s have a closer look customer experience and what it truly entails!

Customer Experience Measurement in Finance Sector

Organizations in the financial services industry are refocusing their strategic efforts on the “customer experience,” or CX. However, operational efficiency and profitability will still remain as a priority, but changing customer expectations and competitive pressures necessitate a fresh approach to dealing with today’s tech-savvy consumer. This commitment to CX has a profound effect on practically every aspect of the company, inspiring game-changing innovation like never before.
CX measures customer experience through survey scores, but Finance uses a different metric — and the two are incompatible.

Customer experience is defined simply as “how customers view their interactions with your organisation,” and good customer experiences include the following:
1. Beneficial: They add value.
2. Usable: They make it simple to locate and engage with the value.
3. They are pleasurable to use because they are emotionally engaging.

Create better customer service experiences through relationships

Certainly, CX initiatives discussed thus far have been digitally driven. However, there is a compelling and essential necessity to keep the customers at the centre of the discussion. Individuals — from consumers to staff of financial services businesses — are at the heart of everything. While consumers may prefer to do more things on their own for better convenience, there is still a need for a helping hand on the other end of the transaction.
Customer interactions with these people are a vital component of their total CX – they must meet their expectations, facilitate their movement, and improve their perception of the company’s brand. As a result, more businesses will focus on developing customer-centric cultures and educating staff to:

Increase your effectiveness in dealing with consumers of all generations

• Solicit feedback from customers
• Determine potential concerns and take proactive measures to resolve them
• Utilize personal service channels such as social media and live chat.

How to assess your customer experience health

Customer experience is a type of business key performance indicator — customers lost vs. gained, order size, repeat orders, and product returns – and I guarantee that they can tell you exactly what’s vital quickly.
Assume the key performance indicator is customer loss.

1. Customer Churn Rate

Churn rate refers to the percentage of customers who discontinue utilising your product or service over a specified time period. In an ideal scenario, your churn rate would be zero, but this is extremely rare.
One extremely clever approach to reduce churn is to ask your consumers why they chose to use a different product or service.
Collect feedback from your customers to determine the most potential business issue.
Speaking with customers is the first step toward determining the cause of churn.

2. Act before it is too late

Unfortunately, sending a churn survey indicates that your consumer is already dissatisfied with you and has decided to leave the relationship. If you want to act before it’s too late, conducting customer surveys to identify “at-risk” customers is always an excellent idea. These are clients that are still using your licence but are on the verge of terminating it. Customer surveys enable you to ascertain a customer’s wants and happiness even before they cancel. This lays the groundwork for future work within the organisation. Okay, but now let’s see what you can do to ascertain the customer’s reason for cancelling.

3. Conduct a consumer experience survey

Communicating with your sales staff and evaluating your operational data is an excellent point to start. However, until you inquire, it is nearly impossible to learn what your clients are thinking. Therefore, get in to the straight action and inquire what they think!

Select the appropriate questions to ensure that you are addressing an issue that is significant to the organisation’s performance. The next critical step is to determine where the most churn occurs. Is it a certain customer type (e.g., large vs. small), a stage in the relationship, or some other characteristic, such as those who order only one product line? This is where operational data comes in, since it can assist you in resolving client issues. After obtaining answers from a sufficiently big sample size, sift through your data to identify common denominators.

What can we learn about large vs. small accounts, new clients, and customers that order only one product line? Redirect this data to your survey platform to learn more about these individual clients and their responses to your surveys.

4. Calculate the numbers

Once you have determined where your consumers are leaving and what they are sharing in your surveys, collaborate with the team along with the help of behavioural intelligence tools to determine where the breakdown may be occurring. The following crucial stage is to determine the return on investment.

What is your 90- to 180-day churn rate, and how much does a typical one-year customer cost you in revenue or (ideally) profit?

(Lost Customers ÷ Total Customers at the Start of Time Period) x 100 is the churn rate calculation. For instance, if your company had 250 customers at the start of the month but lost 10 towards the end, you would divide 10 by 250. 0.04 is the answer.
You now have your ROI calculation. If you currently lose 18% of customers between 90 and 180 days you can cut attrition by 25%, your ROI calculation is as follows:

Money gained – Money spent) / money spent] x 100 = ROI. So, if you invest $100 on customer service and earn $150 as a result of that service, your ROI is 50% (150 – 100 = 50; 50 / 100 = 0.5; 0.5 x 100 = 50%).
You should now have a clear understanding of your business’s problem, journey, and customer.

5. Creating a 360-degree view of the customer:

One of the first steps in leveraging machine learning and advanced analytics to forecast churn is capturing and representing all critical parts of a customer’s relationship with the bank. The cornerstone for not only churn prediction, but also for other use cases such as cross-sell/upsell suggestion, customer lifetime value calculation, and so on, is a scalable, phased approach to building this Customer 360 data. Along with demographic and profile data, the data mart may include transactions on current and savings accounts, product ownership (line of insurance, credit, and debit cards), investment activities, campaign response, channel-specific activity, and customer support interactions. All of them contribute to the consolidation of numerous client touchpoints and activities into a single snapshot.
Adding value to the customer profile via operational data:

Customer profiles (or buyer personas) are used to aid in the identification of your ideal consumers. This enables you to develop marketing messages that directly address their concerns and requirements and hence attract them to your brand.

A customer profile contains detailed information about the individuals you wish to add to your client list.

Take the necessary measure to minimize customer churn

Once you understand the factors that contribute to your customer churn rate, your team may prioritise implementing the necessary improvements.
Is your team lacking the technological/ analytical support to better understand the user journey? Do your customers frequently express a desire for your product to perform a function that it presently does not? Collaborate with your product team—and work with your team bring in new analytical tools to support your marketing efforts and to identify temporary workarounds for customers.
After addressing these critical concerns, your firm can conduct a customer survey to ensure that your actions are indeed improving the customer experience. Additionally, conduct surveys on a more consistent basis to identify and resolve new areas that may generate consumer dissatisfaction.

Takeaway

Customer churn rate reduction is crucial to your organization’s financial success. Reduce customer churn by analysing existing customers and determining why they departed. Take measures to improve the CX. After implementing these insights to enhance the client experience, you’ll be able to increase your organization’s profitability.