The majority of companies are using outdated methods to reach customers and fail to take individual preferences into account, according to a survey of retail banking industry and customer communication trends.
The 2010 Retail Banking Study revealed that one in three companies do not communicate with their customers via their mobile number. More than 450 retail banking executives surveyed nationwide responded to questions about their communications strategies and the inherent challenges.
Despite more consumers turning to mobile devices as their primary communications channel, the survey revealed most companies are not adjusting their strategies to reach customers in this way. In fact, nearly half of the companies surveyed had no idea how many of their contact numbers were mobile phones.
The study was commissioned by Varolii Corporation, a market and technology outbound communications company.
Outdated Customer Communication Methods Hindering Companies
Communications challenges plague the industry even though less expensive and more effective communication methods are emerging that can generate significant results for the retail banking companies that adopt them. When asked what the top customer communication methods were for their organization, virtually all respondents report using traditional methods such as direct mail or manual phone calls to reach customers.
Companies still rely on direct mail and manual phone calls. When asked what was the single most frequently used method to reach customers, respondents clearly use direct mail (29%) and manual phone calls (22%) most often.
Cost-effective methods such as automation and text messaging are taking a backseat. Only 1% of companies are using automated phone communications as the top method to reach customers. Further, none of the respondents chose SMS text or online chat as the top methods.
Social media is not in the game. Despite nationwide growth in the popularity of social media for business purposes, more than half of companies are not currently leveraging social media as a way to communicate with customers. And, only 35% say they plan to utilize social media in the future.
Businesses not taking full advantage of mobile options. Of those that do communicate with customers on their mobile numbers, nearly 70% still use agents to dial the numbers manually. Also, only 16% are utilizing text messages to communicate with mobile customers.
Customer Experience is a Priority, but Majority Fail to Adapt to Customer Preferences
While more than 70% of organizations say that improving the customer experience is very important and an ongoing initiative within the company, the majority of companies are not adapting their communications strategies based on customer preferences.
More than 50% of organizations do not capture customer preferences data - a key way to adapt strategies to improve the customer experience. And, of those that do, less than half apply data such as preferred language (42%), preferred time of day (46%) and customer behavior (41%) to their outbound communications strategies.
"By not leveraging available customer data, companies lose the opportunity to create a highly personalized experience for each customer and that may hinder overall outcomes of their interactions,” says Chris Carlisle, senior technical account manager at Varolii. “With the evolution of new technologies, customer expectations are constantly changing. Consumers require instant engagement and for communications to be highly personalized in order to reach them effectively.”
Study Methodology
The 2010 Retail Banking Survey was conducted online between September 15 and October 4 and was jointly developed by Varolii, Lodestar and SourceMedia - Collections & Credit Risk's parent company. Respondents consisted of American Banker, Bank Technology News and US Banker subscribers and contacts from mid-sized to large retail banking and consumer lending organizations. The results are based on responses from more than 450 participants who responded to 24 questions.
