Changing online expectations

In September 2010, it was reported that over 1.25m official complaints have been made to the Financial Services Authority (FSA) around issues such as poor service, bad advice and bank charges. Shockingly, this only serves to represent an upward trend, with a five percent increase in official complaints since 2009.

Clearly, many financial institutions need to improve the quality of customer service they provide to consumers, but it's not an easy challenge. In today's digital world, the disparity between customer expectation and what is actually delivered is only set to increase unless financial institutions can step up to meet the demands of today's 'social consumer'.

The social consumer

Social media has changed the way society communicates and this has dramatically reshaped the expectations of consumers with regards to engaging with brands. Whether it's banking, shopping, price comparisons or paying bills, these expectations have never been higher.

Consumers want immediacy when using what are now day-to-day applications such as Facebook, Twitter, Wikipedia and Wikitude, and expect the same when interacting with, or seeking information from, brands.

However, the increasing popularity of social media, coupled with growing consumer expectation that information, products and services should be available at the click of a mouse, poses a challenge in the highly competitive financial services sector. 

A multi-channel challenge

While branches and telephone banking still have their place, a vast number of customers are turning online to compare and buy products and interact with their bank or building society. 

In a Moxie Software survey of 2000 British consumers last year, the preferred method of seeking assistance from a banking, insurance or financial provider was email (36 percent), followed by visiting the website's self-service facility (24 percent). Only 19 percent said they would opt to call the customer services team.   

Not surprisingly, there were startling differences of opinion between the 18-24 and 45+ age groups. As many as 61 percent of older online consumers would turn to email or phone for help, compared to just 44 percent of 18-24 year olds. The younger age range was more inclined to use online chat, with around a fifth saying they prefer this communications method and 22 percent trying the website.

Benchmarking the financial services sector

So demand for online customer service is high, and as the younger generation grows up this appetite for online assistance is only set to increase. But are financial companies set to meet these challenges?

In 2010, Moxie Software carried out a benchmarking study to find out how organisations in different vertical sectors were handling customer service. The effectiveness of the email, website and chat channels of 100 companies was assessed, looking at key criteria that make up a positive customer service experience.

The average score across all sectors for online customer experience was a disappointing 33 percent with the financial services sector scoring just 28 percent - behind local government at 29 percent and a long way behind retail (39 percent) and travel and leisure (36 percent). 

While the financial services sector achieved a respectable 81 percent in web self-service, the 20 banks and building societies failed to impress in email - either through an online 'contact us' form or direct email. While it's fair to say there are sensitivities about emailing personal financial data, the question put to the financial companies was asking how to open a new account, so failure to capitalise on this sales opportunity was disappointing.

Meeting expectations

So, what is the answer? In the established digital age, today's 'social consumers' expect to be able to interact with companies in multiple ways. Financial organisations need to make it easy for customers to get the information they want, when they need it; those that don't will be at the mercy of today's increasingly fickle consumers and forced to compete only on price.

Download our Online Customer Service 2010 study at www.moxiesoft.com for recommendations and insights into how to meet the challenges of today's demanding internet user, to engender brand loyalty, increase sales and deliver cost savings back to the business. 

Biography

As VP of EMEA, Jean-Benoit Sorge heads up Moxie Software's EMEA operation, overseeing sales, marketing, customer support and partner activity. He is responsible for spearheading the company's expansion in EMEA, developing new markets and driving strategic sales and marketing initiatives. Sorge has over 20 years' experience working in the technology sector.