Customer experience professionals should now be aware of the significance of personalization. In an era of growing consumer empowerment, built on a foundation of digital connectivity and increased choice, personalized customer experiences can be a powerful competitive differentiator for any brand that can effectively prove that consumers matter as individuals.
Most brands will agree that personalization is important, but the actual extent of its importance is not yet well understood. However, a new study by Collinson Group, a London-based agency that drives brand loyalty and customer engagement for a wide range of global clients, has just shed new light on this subject, especially as it relates to the retail banking industry.
After a comprehensive survey of 4,400 people across the UK, the United Arab Emirates, China, India, Italy, Singapore and North America, Collinson Group found that almost two-thirds (64%) of global affluent middle class consumers expect greater recognition for their loyalty. This attitude was especially high in Asia, where 82% in China, 75% in India and 66% in Singapore now expect more personalized communications and services.
In the UK, 83% of customers did not feel as if their bank acknowledged them as an individual.
"Whilst today the percentage of customers switching their current accounts is low, it is rising year-on-year,” said Christopher Evans, Director at Collinson Group. “Increased competition, a growing range of comparison websites and switching services that are easier to use, are providing more choice and higher expectation amongst middle-class mass affluent consumers. Knowing your customer and ensuring they feel valued are the key tenets of customer loyalty and banks need to act now if they are to retain their most affluent consumers."
The study also discovered that more than 50% of all consumers across all regions are not satisfied with their banks. As noted above, some consumers are already forgoing traditional baking interactions in favor of more convenient channels and digital services.
Banks are no longer a “one-stop shop” for financial services. Without an increased emphasis on a customer experience that offers personalized rewards, banks may only continue to lose customers.
"Banks need to act now to stop their customers switching and to protect their current revenue,” Evans said. “Middle class mass affluent consumers are increasingly mobile and demand more from their banks. Transparent, ethical behavior is increasingly important and financial services organizations also need to demonstrate the value of their loyalty programs to encourage active participation. Personalized, aspirational and more lifestyle orientated benefits and rewards, which are more accessible to earn and redeem will enable banking brands to differentiate themselves and attract and retain the most affluent consumers."