Reimagining Banking Standards: How we create Pioneering Approaches to Customer Satisfaction Metrics
How frequently do you ponder the quality of service you receive? Almost every interaction we have is followed by small surveys, which, at first glance, might seem to collect trivial data. However, it’s this information that enables businesses to gauge customer satisfaction more accurately. In today’s environment, where almost every organization requests feedback, a challenge has emerged: many customers respond to surveys only when they are extremely dissatisfied and wish to complain. This tendency can make it difficult for businesses to obtain true statistical representations and genuine assessments of their service quality. The prevalence of surveys has led to a certain degree of survey fatigue among consumers, often resulting in lower response rates or skewed data that predominantly reflect negative experiences. Therefore, acquiring accurate and balanced customer feedback necessitates innovative approaches that go beyond traditional survey methods.
Recognizing this, we embarked on a transformative journey with our client, a European financial institution, to implement a sophisticated customer satisfaction measurement tool. This tool was not only designed to measure customer sentiments but also to propel the institution toward excellence.
The challenge – paving the way for customer-centricity
The bank aimed to redefine banking by epitomizing customer-centricity. Their goal was to deliver seamless, personalized, and convenient experiences across all channels. To measure and foster this goal, they needed a universal tool that not only tracked customer satisfaction across various bank branches but also introduced a competitive element for managers. This tool would enable bank leaders to view and compare the performance of different branches, creating a sense of healthy competition among them.
In our analysis of the bank’s operations, we identified several key shortcomings:
- a lack of deep understanding of client needs
- inefficiencies in service delivery across different physical branches and digital channels
- a lack of systematic feedback collection
These issues were leading to high customer attrition and negatively impacting the bank’s reputation.
These challenges prompted us to propose the implementation of the Multichannel NPS service – a tool that allows banks to assess the level of loyalty and satisfaction of their customers through various communication channels. It includes diverse feedback collection methods, such as SMS surveys, online surveys, QR codes in offline locations, as well as integrated rating functions in mobile apps and websites. The Multichannel NPS system ensures a comprehensive approach to measuring customer satisfaction, enabling banks to analyze data and respond timely to customer needs.
For instance, according to a Bain & Company study, companies with a high NPS are 30% more likely to demonstrate revenue growth compared to those with a low NPS. Moreover, companies with a high NPS are 50% less likely to lose customers.
Implementing the Multichannel NPS service
In the rollout of the Multichannel NPS service, we began with the implementation of QR codes at physical locations. This initial step yielded a response rate of 1.5% – a valuable insight that guided our next steps. Recognizing the need for broader engagement, we incorporated SMS surveys post-service. This method significantly improved our engagement, elevating the response rate to over 30%.
Building on this, we then introduced a web-based 5-star rating system. This addition was a deliberate move to further enhance user interaction, which successfully increased the response rate to over 50%. To complement these strategies, we integrated a rating prompt within the main menu of the mobile app. This feature, periodically boosted by push notifications, achieved a 15% response rate.
While the response to self-service terminal prompts was relatively lower, the overall strategy represented a thoughtful and systematic approach to optimizing the Multichannel NPS service.
Results and wins
Ultimately, all our activities led to the creation of a core system that collects feedback through various channels, with an API to gather these responses. This system is crucial for banks as acquiring new customers is 5-6 times more expensive than retaining existing ones. Quick identification and resolution of issues can actually increase customer loyalty.
After the service was up and running, we identified certain challenges, such as inconsistent customer satisfaction across different branches and during various shifts. To address this, we established customer satisfaction-based KPIs for branch directors, which significantly improved customer loyalty and reduced client attrition, ultimately leading to the formation of a dedicated customer experience department. This was a direct response to the substantial impact these factors had on customer churn and revenue.
This service has been successfully implemented in banks like Maib and National Insurance Cash Desks. However, we’ve observed that when banks try to implement the system independently, there are often challenges due to the complexity of the integration into operational processes. A comprehensive approach is crucial for success, a fact that became evident in our real-world deployments. Therefore, integration of the service with the help of experts is very important, considering that banks might not possess the necessary experience in customer experience management, a gap that we are happy to fill effectively.
The Impact of Multichannel NPS Service
Enhanced survey response – a 43% increase in survey response rates bolstered the representativeness and validity of gathered data.
Overall satisfaction surge – a remarkable 12% increase in overall customer satisfaction underscored heightened loyalty and retention.
Advocacy amplification – a 15% rise in Net Promoter Score reflected elevated customer advocacy and increased referrals.
Reduced customer effort – a 22% drop in Customer Effort Score signaled diminished frustration and churn.
Pain point resolution – identification and resolution of key pain points, including long wait times and technical glitches, contributed to improved satisfaction.
Revitalized customer journey – introduction of innovative features like chatbots, biometric authentication, and personalized offers enriched the customer journey.
The implementation of the Multichannel NPS service offered a solution to many of the bank’s problems, providing a powerful tool for collecting, analyzing, and responding to customer feedback across various channels. This allowed the bank to enhance customer satisfaction, improve service quality, optimize products and services, and consequently, strengthen its reputation and reduce customer attrition.
