What is CX?

Having a low-cost unique product being efficiently marketed is not enough now. Good product coupled with bad customer experiences easily results in a disaster. The power of the internet means companies are now being held more accountable. One bad review can go viral and damage the brand’s image and can even fatally cripple the brand. Good customer experiences result in satisfaction and increased brand loyalty. This also ensures free word-of-mouth positive publicity of the brand. The purchase process starting from pondering about what product to buy and ending with purchase and after sales service is called ‘customer journey’ and the overall impact on the customer during the process is known as customer experience or CX.

Why do we need CX in digital payment?

CX is essential to drive the growth of any business. This includes financial players as well. Even as virtualization takes banking into virtual territory, customers are looking beyond basic banking functions. In an extremely competitive sector like payments, retaining and adding customers is key to growth. Financial institutions need to cater to customers’ ever-increasing digital expectations. For this, CX is a great asset. Most financial institutions have already begun incorporating CX into their operations, and the trend will keep rising.

Concerning competition, banks have lost their monopoly over banking functions. The industry landscape is changing with addition of startups, fintech firms, and mobile payments companies to the mix. The race to retain customers is heating up and integrating CX will prove to be an ace in the hole, as loyal and happy customers are good for better margins. And what better way to maintain customer loyalty than ensuring a great customer experience?

One angle the financial institutions must consider is the competency of the CX software. Due to extreme competition, retaining customers has assumed massive significance. With so many options literally at their fingertips due to mobile phones, customers may opt to switch to another brand after just one bad experience. Higher attrition is never good for the organization. Switching to a better CX software will help FIs to find out more hurdles in the journey (pain points in marketing lingo), both physical and technological, and remove them to avoid possible customer attrition.

Another factor to consider is personalization. While most FIs are adapting to digital transformation and have incorporated CX software, the consumers want more. A Salesforce survey showed that 62 percent of surveyed people expected companies to adapt as per consumer actions or behavior, and 47 percent believed they were getting this level of personalization. Technological advancements are now enabling marketing professionals to deliver content at less cost and at greater speed. Customer service is another factor enabling increased integration of CX. As stated above, keeping customers happy has become essential due to increased competition in the finance marketplace. One area every organization can always improve is customer service. While using a CX software will help organizations spot issues customers face and fix them, companies can become proactive in their approach by combining their data about complaint tickets with a CX platform to anticipate potential issues and fix them in advance.