For the first time in three years, global Customer Experience has declined reflecting an inflection point in customer expectations finds the World Retail Banking Report 2014. Future customers, mainly Gen Y or millennial, value technology, have high digital expectations, and are the largest users of social media, requiring banks to digitally transform to meet this segment’s expectations. Read the global press release announcing the launch of the World Retail Banking Report from Capgemini and Efma.
You can also download the full 2014 report here.
The press release has been published by the Wall Street Journal and the story covered by Bank Systems & Technology - see also this blog piece by Capgemini's Jean Lassignardie, chief sales and marketing officer for Capgemini Global Financial Services.
This video (2m29s) covers the main findings of this year's report, which are also summarised below:
Key findings of the report:
- Customer experience declines. The 2014 Customer Experience Index results indicate a downshift in customer experience which should act as a wake-up call for the industry. Left unchecked, bankers can expect negative impact on customer retention, referrals, cross-selling, and ultimately, profitability.
- Gen Y will drive digital transformation. Digitally-savvy Gen Y customers will ultimately drive demand for digital servicing. Comprising up to a third of the population in many markets, banks need to digitally transform for Gen Y customers, while still supplying high-quality baseline services.
- Investments in social media. Social media banking will gradually become a permanent channel for retail banking as growth in social media penetration and adoption continues among customers and as banks look to leverage this channel in innovative ways for building a personalised customer-bank relationship.
Simon Short, Head of Capgemini’s Digital Customer Experience Global Service Line said: "We know that today’s end-users expect seamless interactions via multiple channels with faster, almost instantaneous responses. The findings in this year’s World Retail Banking Report demonstrate that retail banks need to be more agile, innovative, social, and mobile in order to create a more meaningful experience to engage their Generation Y customer base."
Finally, this infographic summarises how customer experience is worsening, and the 'great social media divide':