A Dire Need for Customer Engagement in Financial Services

Consumer trust in financial service companies rose slightly this year according to the Edleman Trust Barometer, but banks and financial institutions still came in last in the business industry category. Only 50% of the 30,000 respondents indicated trust in financial institutions. In contrast, the technology category came in at the top of the consumer trust index with 77%. Financial institutions have a ways to go in building consumer trust, but there is a simple solution: linking financial services and customer engagement.

Customers are more likely to trust companies when they have a high level of engagement and the perception of a relationship with them. According to the study, respondents listed the following categories as key in building consumer trust:

  1. Offering high quality products or services (63%)
  2. Listening to customer needs and feedback (62%)
  3. Treating employees well (61%)
  4. Placing customers ahead of profits (59%)
  5. Taking responsible action to address an issue or a crisis (58%).

What all five of these attributes have in common is a high level of communication and engagement with customers. One way financial service companies can leverage their customer engagement strategies is by integrating social media into their CRM strategy. While the unique nature of financial institutions does present some hurdles for using social media effectively, there are also huge benefits. Engaging customers on social media can provide financial service companies with data they can use to develop customer specific offers. Social media engagement can also boost customer satisfaction. One of the main reasons customers leave their banks is because of long customer service response time. Including a social complaint management solution as part of their CRM strategy can help financial service companies improve their reputation for customer service and save costs. Social customer service costs are only a fraction of the cost of a phone call.

USAN can help financial service companies improve their customer engagement strategies. Our customer engagement software platform provides everything businesses need to design, launch, and refine cross-channel, multi-wave customer engagement campaigns. Contact us for more information.