The lines are blurring between customer service and CX

It only makes sense that American consumers would by now expect that the customer service they receive from their banking institutions be on a par with the customer service they get from retailers, hospitality providers and other commercial sectors.

Over the years, banks and credit unions have expanded the notion of customer service far beyond the old standards of having a polite and well-trained branch staff and call-center representatives answering questions and solving problems. The rapid growth of digital banking and its focus on do-it-yourself has contributed much to a greater Venn overlap between customer service and the banking customer experience overall.

In this month’s BAI Executive Report, we get more into that convergence and offer actionable insights on other customer service-related topics that can benefit banking institutions.

Our lead article from contributing writer Lauri Giesen explores how banks and credit unions are transforming their customer service centers into customer experience centers through better use of data and tools—an approach pioneered by retailers as commerce started shifting away from brick-and-mortar locations.

Banking institutions following retail’s data-driven lead are seeing the benefits in terms of customer engagement and in the profit-and-loss statement. “We can offer the most efficient and best quality of service,” a credit union leader says. “And we can also drive revenue growth from our contact centers by talking about products consumers are likely to be interested in.”

Another area in which banks have much to learn from non-financial companies is making social media an integral and effective part of their customer service strategy. Contributing writer Katie Kuehner-Hebert says, while many banks rely on social channels for branding and calling attention to new products and services, some are broadening their use to include customer service inquiries.

In her article, Kuehner-Hebert profiles a small New England bank that is fully invested in monitoring and responding to social media comments and queries, including during times when the bank is closed.

“(If) they need help or they describe a situation where they needed help—or a situation where they weren’t helped—we will get back to them the same day,” the bank’s president says. “This also shows other clients that we’re responding promptly and trying to resolve their issue.”

In this month’s Executive Report Q&A, I speak with Jennifer Timbrook, director of technology integration at STAR Financial Bank in Indiana, about how her $3-billion-asset institution is striking the balance between human and digital customer service. BAI research shows that more personalized customer service is a key reason why customers stay with a bank.

Also in this month’s Executive Report:

Banking customers demand better service: Kelly Horn from Salesforce says banks and credit unions can provide better customer service by investing in the right data, tools and solutions. “With experience becoming central to relationships, customer service in banking must be connected and seamless—anytime, anywhere and on every channel,” she writes. “This starts with putting the customer at the center of everything. Customers want their needs to come first, and banks that can deliver on this will come out on top.”

Top strategies to keep customers coming back for more: Charlie Arcella from Vericast suggests actions that banks can take to meet customers’ rising expectations when it comes to service and convenience. The most impactful may be to make experiences more personalized. “It’s important to understand what offers customers want to receive,” he writes. “By using this information, banks can tailor their offers to their customers’ preferences and increase the likelihood of retaining them.”

Boosting digital banking while cutting costs: ServiceNow’s Greg Kanevski tells us that the key to higher-quality customer service is razing the silos built and reinforced long before the advent of digital banking. “By intelligently orchestrating and automating work across existing processes and technologies, banks can create new ways of interacting with customers while streamlining cumbersome processes,” he writes. “Instead of having to decide between investing in digital banking or cutting costs, they can have a win-win scenario.

The overlooked employee experience opportunity: Hunter Croft from Advanced Call Center Technologies says that banking institutions can upgrade their customer service by improving the technology and processes used by the employees interacting with those customers. “Total experience takes a comprehensive look at EX, CX, multichannel experience, digital experience and user experience as a holistic system,” he writes. “Taking this ‘big picture’ approach helps you break down your operations in a simpler, more connected perspective.”

Terry Badger, CFA, is the managing editor at BAI.

We offer actionable insights on other customer service-related topics that can benefit banking institutions in the BAI Executive Report, “Keeping the customer at the center of customer service.”