Survey: What Makes a Great Customer Experience

Today's customers expect exceptional experiences no matter the industry. They aren't just comparing one bank to another or one channel to the next - they are measuring you against the best experience they've had anywhere.

Customer experience (CX) impacts how customers feel during every interaction with your bank throughout their entire journey. From calling the contact center or transferring money via mobile app to routine bill paying, each touchpoint shapes their perception of you and influences their decision to remain loyal.

A recent FICO survey found that 91% of people globally believe that customer experience is as important as a bank's products and services. Furthermore, nearly a third of those people (28% of respondents) say that customer experience is actually more important.

Why Customer Experience Is So Important in Retail Banking

Great customer experience is critical for success in the increasingly competitive and commoditized financial services industry. CX is your biggest differentiator because it drives acquisition and retention, builds loyalty, boosts revenue and lifetime value, and sets your brand apart.

There are many reasons why banks' customer experience is important, including:

• Retention and Loyalty: Happy customers stay longer
• Acquisition and Referrals: Great CX turns customers into advocates
• Revenue Growth: Satisfied clients buy more products and services
• Competitive Edge: Customer experience sets banks apart in a crowded market
• Trust and Reputation: Positive experiences build confidence in the brand
• Lower Churn: Good CX prevents costly customer loss
• Deeper Engagement: Strong CX drives use of high-value services

FICO's survey also revealed that bad customer experience is the #1 reason people will leave their bank. 47% of customers globally say they would leave their bank provider because of bad CX. In fact, bad customer experience ranks higher than data security concerns (43%), a fraud event (40%), and poor value for money (39%).

Bad customer experience will make people leave, but good CX is only part of what attracts new customers. 34% of customers globally say they would switch to a different bank if the new provider has better customer experience. Leading factors that would make customers switch their bank provider include better value for money (47%) and incentives (35%).

How Do Consumers Rate Their Bank's Customer Experience?

Bank customers expect a variety of services and features to enhance their experiences, including easy-to-use apps, personalized offers, and tailored interactions that seamlessly cross all channels. Many banks have evolved their CX quickly in recent years in response to competition and rising consumer demands.

Our survey found that 87% of consumers worldwide rate their main banking provider's customer experience as either 'Generally good' (61%) or 'Excellent' (26%). Conversely, 13% consider their bank's customer experience to be mediocre or worse. This is somewhat positive news for banks, but it is not the end of the road.

Customer experience is a moving target that requires continuous improvement to stay ahead of the competition. With over 90% of consumers weighing customer experience so heavily, we will see CX play an increasingly decisive role in winning new customers and retaining existing ones.

What Makes a Great Bank Customer Experience?

According to FICO's global bank customer survey, the most important aspects of great CX are an easy-to-use website and/or mobile app (32%), empathetic customer support (27%), and personalized services (18%).

Here are 5 factors that matter most to customers and can help banks improve their CX:

Ease of use

Nearly one-third of consumers (32%) worldwide say that easy-to-use websites and mobile apps matter most in delivering a great customer experience. As banks layer on new technology and services, "ease of use" now goes far beyond clean layouts and well-placed buttons.

Customers expect seamless, integrated communication (e.g., private chat, text, email, secure voice) plus intelligent tools that help them quickly find what they need and continue where they left off. Automated notifications, natural language assistants, and guided or automated navigation are no longer extras, they're becoming the baseline for a modern banking experience.

Empathy

More than a quarter of customers (27%) say empathy is the most important aspect of a great customer experience. Customers want to be cared about. They expect their bank to approach and respond with informed, personalized interactions based on intelligent insights. For example, a customer struggling with a payment should be guided to resolution, not pushed an upsell. Meanwhile, a customer victimized by fraud deserves swift support and assurance in resolving the problem. Remember that technology can deliver efficiency, but the human touch remains vital.

Personalization

According to FICO's survey, 18% of consumers think that personalized content and services are crucial for great customer experience. Additionally, 73% of people say that personalization makes them more likely to do business with a financial institution. A personalized customer experience involves tailored interactions - delivering the right message to the right customer at the right time and through their preferred channel. In order to achieve personalization, banks must have a deep understanding of their customers' behaviors and preferences.

Seamlessness

A seamless, positive customer experience fosters trust, reduces churn, inspires referrals, and strengthens both brand reputation and profitability. Customers are frustrated by repetitive processes that keep asking for the same information or being unable to easily transition from one channel to the another (e.g., from a bank's mobile app to its website). Omni-channel engagement, transactional monitoring, and intelligent fraud resolution are examples of capabilities that contribute to a seamless customer experience.

Relevant and timely offers

It's important for financial institutions to understand their customers' behaviors, cater to their preferences, and anticipate their needs. That means banks must harness real-time data, advanced analytics, and intelligent decisioning at scale so they can determine the next best action or experience for each customer.

How FICO Can Help You Improve the Customer Experience and Loyalty