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.
Featuring one of the industry’s largest customer experience surveys of its kind, Capgemini Customer Experience Index (CEI) analysed responses from more than 17,000 customers across 32 countries. An additional 132 in-depth executive interviews and case studies complement the report findings which span across six regions: Asia-Pacific, Central and Western Europe, Middle East & Africa as well as North and Latin America.
Key findings of the Report:
- Customer experience declines. The 2014 Customer Experience Index results indicate a downshift in customer experience for the first time in 3 years and 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. Up and coming, 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.