How Banks can Engage Customers With Actionable Data [Updated]

Customers are being more demanding from their financial service providers and expect banks to focus on creating customer engagement that nurtures their needs, builds trust and personalizes their expectations.

With emerging financial service providers such as fintechs disrupting the market with digital engagement strategies based on customer data and needs, banks and legacy financial institutions are competing through digital transformation. However, the pandemic has sped up this process with online banking and fintechs becoming the lifeline of people and businesses – and need a data-based digital customer engagement strategy, especially as brick and mortar retail banks are seeing a drop in visitors.

Banks have needed to engage with customers in a more personalized way to make sure they understand what’s available to them. Especially when it comes to educating customers who were used to banking at physical branches and unfamiliar with digital services such as apps.

The online experience needed to match the convenience and human touch of in-person consultancy offered at physical branches to deliver finance and customer support, mortgage repayment holidays, contactless transactions, and credit card and loan repayment holidays based on the way customers have interacted in the past.

Designing for customer experience

Customer experience is defined as a coordinated series of interactions between a customer, and your brand. It’s defined, and judged by the customer each time they interact with you, and your brand. More accurately, the ongoing, constant interaction between you and your customer.

Interactions vary in type, length, and importance to the customer relationship with your brand. According to Gartner, 65% of a company’s business comes from existing customers, and costs five times more to attract new customers than to keep existing ones satisfied.

This is where customer engagement comes in. To keep existing customers and turn potential customers into paying customers, every messaging experience must meet the customer’s expectations.

When it comes to banking, the key customer expectations are:

  • Ease of use: Banks and financial institutions need to provide easy to use digital platforms that can be accessed over multiple devices. As per the PwC survey, 15% of banking customers are mobile-dominant
  • Personalized services: Even when it comes to banks, customers are always looking out for products, and services that match their needs, and banking patterns. Banks can identify the key drivers and deliver personalized offers, and services that help create better engagement

And the key benefits of Text Banking

For financial institutions on the outside looking in, everyone wants to know what the specific benefits of text banking are. Is it worth adding SMS or other messaging channels to your current services? Well, consider the following key benefits and then make your decision.

Convenience for Clients

Perhaps the biggest benefit of text banking is that it provides additional conveniences to clients. When a client can control things like transfers and balance inquiries straight from their mobile phone, they’re able to streamline complicated tasks and focus on other important tasks in their personal life.

Convenience is a big deal when individuals are searching for a bank. People expect a bank to offer simple, yet safe services. If they have to go through a long, drawn-out process just to find out how much money is in their account, they’re going to take their business elsewhere. Text banking is only one aspect of offering convenience, but it’s an important one.

Time Savings for Institutions

From the institution’s point of view, text banking is a significant time-saving technology. Since the majority of phone calls and emails are associated with simple issues and tasks, there’s no reason for a bank to distract employees with these time-consuming tasks.

When clients are able to send a simple message and receive automated updates for their requests, this reduces call center volume and frees your customer service reps to focus on clients who are physically present in branch locations.

Ultimately, this ends up being a major cost-saving benefit, as institutions are able to better utilize their employees’ time on the job.

Enhanced Customer Experience

Ask any individual who has used text banking about the underlying benefit of the technology, and most will tell you about how it significantly reduces frustration. Whether it’s a real-time notification that someone has withdrawn money from their checking account or the ability to verify account balances without logging into a cumbersome online account, text banking dramatically enhances the customer experience.

Increased Loyalty

Finally, all of these factors lead to increased loyalty between clients and their banks. By offering convenient service and security, banks find it easier to facilitate relationships and build long-term client loyalty. This loyalty enhances customer lifetime value and enhances the institution’s chances of selling more products and services to clients over time. It’s a win-win situation for everyone involved.

Getting closer to your customer

Innovation in data collection, analytics, and omnichannel strategies enable banks to engage customers and build better relationships proactively.

Not only does it help customers avail opportunities faster but is able to provide effective insights instead of sticking with location-based offers. To increase your customer engagement, you can:

  • Educate customers: Give your customers better information about products and services so that they make better financial decisions
  • Notify customers: Remind and notify your customers regarding billing, application status or announcements to keep them up to date about their transactions
  • Send surveys: Proactively collect customer feedback to identify and understand the gaps

However, to do this effectively an omnichannel strategy is important.

Offering support over SMS messaging lets you engage your customers quickly and succinctly. Push notifications give you eye-catching features like geo-targeting and advanced scheduling for even deeper engagement. With voice and SMS failover, you can deliver messages even your customer doesn’t have an internet connection, while still offering customers their choice of preferred communications channel.

Immediate responses create lasting relationships, and improve consumer satisfaction. The omnichannel approach to messaging allows your customers to connect and engage with you on their terms and in turn build a stronger relationship with your brand.

But how do you know which channels customers prefer and which channels lead to the strongest relationships?


Data driven, consumer-focused decision making

Analyzing and acting on user data results in an organic shift to a consumer-focused model. If we know (from the data above) that customers want to engage with brands, engaged customers are better customers, and it doesn’t take much to create goodwill. Why are businesses lagging when it comes to interpreting and gathering actionable data that inform customer experience, engagement, and messaging?

First, you need a tool to accurately collect that data. Bad information leads to bad decisions which means you need to trust your data.

Second, actionable data means real-time. If you can’t optimize in real time, that’s a big chunk of potential engagement gone right off the bat—resulting in high customer churn—before you even get started.

Leveraging the data, you collect is tricky.

For financial services expanding their user base, it’s crucial to have a scalable messaging and engagement solution that handles messaging data from 100 to 100,000 users. Not all solutions cover SMS, email, push, and voice into a single interface that also gathers all the data into actionable reports.

To build a user-centric, data-driven, omnichannel messaging solution, you need all of the channels, with all of the data, pulled together into one location.

Data-driven, omnichannel customer engagement solution

Moments gives you complete insight into your campaign performance at a glance. This omnichannel customer engagement platform is supported by a vast portfolio of popular channels and chat apps and create engagement flows that are personalized, data-driven and time saving.

You can optimize your campaigns on the fly, adapting to your customer behavior along with your business needs.

Jul 14th, 2016
6 min read