LONDON--(BUSINESS WIRE)--A well-known market intelligence company, Infiniti Research, has announced the completion of their latest article on winning in the German retail banking battleground with customer experience. In this blog, experts at Infiniti Research examine some key trends and common pitfalls that affect the performance of German retail banking companies.
The German retail banking sector faced a rough ride during the financial crisis. While some banks almost drove off the road, others managed to stay on track, allowing them to overtake their competitors. However, the road ahead remains unclear for German retail banking companies. Innovative trends are shaping new traffic patterns, putting additional pressure on all types of banks, even those that are in decent shape today. The next five years will be crucial for the German retail banking sector to decide which turn to take to avoid a dead end. The German banking market has a unique three-pillar structure of private, savings, and cooperative banks. This distinguishes it substantially from banking sector companies elsewhere.
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Common pitfalls of German retail banking companies in enhancing CX
Focusing on isolated touchpoints
Customer experience is often misunderstood as customer pain points that need to be addressed. While these efforts are certainly vital to improve the overall customer experience, focusing only on these factors leads companies in the retail banking sector to ignore the root cause of these pinpoints. Furthermore, simplistic solutions that have been merely copied from competitors could sometimes prove to be misleading. Customers who rate single points of contact as satisfactory often tend to rate the whole journey as a negative experience. In such cases, these customers are less likely to become engaged, valuable customers that banks strive for.
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Ignoring key customer journeys
Once banks in the German retail sector have realigned their thinking toward holistic customer journeys, the next step is to map their customer journeys and figure out which ones are most critical to business. This includes taking into consideration factors such as the areas of improvement, factors that could have an impact on brand image, and other value considerations. For improving critical journeys, banks should determine what degree of improvement will make the most economic sense and generate the most value. German Retail banking sector companies must arrive at a decision on how much needs to be invested to create that “wow” experience for customers and whether the effort is worth it, given the expected additional revenue.
Choosing right customer segments to prioritize
Direct banking companies often show the highest customer satisfaction levels when compared to big private banks, corporative banks, and savings banks. This is because the latter has a more diverse customer base with a range of differing needs, making it harder to provide superior service across the board. This necessitates banks to identify their various customer groups and determine how important each is to the bank’s business. The value of a customer to a bank can vary based on the product or service being offered and can be measured by number of products, loyalty, credit, or future financial opportunity. Companies in the German retail banking sector must understand the needs of each group in detail and target the segment with an exceptional and differentiated experience across the end-to-end customer journey.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us