The RE-banking Revolution - Innovative Practices from Non-Banking Companies That Banks Can Use to Improve Customer Engagement
Banking executives are acutely aware of the uncertain environment in which their businesses operate and the challenges they encounter in rebuilding trust and loyalty among customers. In fact, given the ongoing growth and profitability pressures banks face, one of the top priorities for banks around the world is rethinking how they engage with customers. In this paper, we present a new customer engagement model for banks that is based on leading customer-facing practices currently employed by some of the most successful and influential non-banking companies around the world. This new model can provide guidance and inspiration to banks as they seek to find better ways to connect with, and meet the needs of, today’s constantly changing customer.
The global banking crisis had an undeniable impact on how customers perceived banks and their relationships with those institutions. Customers are less trusting of banks, find their experiences with banks to be less than fulfilling, and in general believe banks do not fully meet their needs. These sentiments, of course, have had a direct impact on banks’ financial performance, as banks have increasingly struggled to win back customers who have switched providers, attract new customers to the fold, and ancourage existing customers to take greater advantage of higher-value products and services.
The key to addressing the challenge is a fundamental change in how banks interact with and engage customers. As we discussed in this paper, banks can learn much in this regard from leading companies outside the banking industry that enjoy a stellar brand identity, enviable reputation among the buying public, and strong customer loyalty and advocacy. Effectively building and sustaining a strong connection with today’s customer requires a holictic and integrated approach that is supported by the capability areas identified in the RE-banking customer engagement model, and that was validated through our interviews with retail banking marketing leaders.
While they face challenges, banks today also have a significant opportunity to rethink their approach to customers. By embracing the RE-banking revolution in marketing and distribution, banks can position to emulate the status, success and track record for grows that the most successful and admired retailers enjoy.