Consumer behavior is constantly evolving. This goes for every aspect of our lives: how we commute, where we shop, what music we listen to… the list goes on. And, while some might dub these changes as “trends”, others see them as a disruption of how things used to be, leading to new habits, preferences and needs. This is definitely true for the payments and banking space. Financial institutions not only want to answer consumer needs, but to deeply understand them to increase satisfaction and loyalty. But how?
My suggestion is two pronged:
- Understand: Measure the satisfaction and loyalty, analyze the results
- React: Adapt the offering and value proposition according to the results
Understanding satisfaction and loyalty
We could say that customer satisfaction measures the past, i.e. what was the feeling a customer had after an interaction with the bank? How did it perform compared to their expectations? Conversely, customer loyalty evaluates the future: will the customer keep using the bank’s services? Will they stay loyal to the brand?
To start with, measuring satisfaction can be done as simply as through a customer satisfaction survey conducted after the interaction you’d like to measure. A bank could also use an external research firm to survey relevant target audiences to understand their preferences and habits, giving you a broader view of what consumers need.
Measuring customer loyalty is a bit more difficult to do. Companies typically measure this by using the net promoter score, customer engagement, customer lifetime value or customer retention rate. Regardless of approach, measuring both satisfaction and loyalty will give the financial institution a better understanding of how customers feel about them and their products and services.
React: Adapt your card issuance offering
Once you’ve determined what customers satisfaction and loyalty levels are, I’d recommend matching the findings to your current offering to determine where the gaps are in the experience offered to customers. Key questions to ask are: Are you providing the services your customers are asking for? Are you providing all the necessary touchpoints? Are you offering enough payment flexibility, or the right account on-boarding experience?
So, what does the data tell us?
At Entrust, we’ve conducted several recent surveys to determine the habits and attitudes of consumers toward payments and banking. As you look to elevate the cardholder experiences you offer, consider the following key learnings:
- Consumers want more control over their payment experience – According to our recent data study, The Great Payments Disruption, the most important factors for customers when they consider choosing a bank are online banking capabilities, mobile app availability and flexible payment options. Further, a separate study Entrust conducted revealed that 85% of cardholders say card controls (e.g. transaction thresholds, alerts, etc.) would make them more likely to use this card as their primary payment method.. A digital card issuance strategy allows banks to enable their cardholder with full access and control over their digital card from day one. These capabilities provide a truly digital-first, seamless and instant payment experience from anywhere, at any time.
- Physical cards are equally important – The same study also revealed that approximately 68% prefer to use physical cards for in-store transactions. This means that while digital payments are becoming more prevalent, physical cards still have a place within a bank’s payments platform offerings.
- Expedited click to pay checkout are increasingly preferred – The new study just released by Entrust of 1,000 U.S. survey respondents indicates that more than half (53%) opt to either use the stored card on file or use an expedited checkout button for an easier checkout experience. While both methods are convenient, banks that provide the ability to use an expedited checkout button are giving customers an added layer of security as the payment information becomes tokenized. Providing tokenization and token management capabilities can empower the cardholder with more security and self-care and avoid manual entry of card information into dozens of vendor websites.
Taking a consumer-centric approach by digging into what they really want and need from their bank is critical to driving higher customer satisfaction, and ultimately, loyalty. Afterall, its less costly to retain a customer than it is to acquire one. And, satisfied customers is your most authentic ambassador for your brand, and can support your customer acquisition efforts.
To learn more, check out these other resources:
- Read this blog to learn how to increase customer acquisition with a unified payment portfolio.
- Download The Great Payments Disruption Report to learn more about our findings.
- Read the press release about our most recent digital payments and banking U.S. consumer survey.
- Visit our website to learn more about how Entrust can enable superior cardholder experiences.