How financial services can connect better with their customers

In an era where customer expectations are higher than ever, financial services companies face the challenge of standing out in a crowded marketplace. Gone are the days when competitive rates and comprehensive product offerings alone could secure customer loyalty. Today's consumers demand more—they seek personalised experiences, clear communication, and seamless interactions. To meet these demands, financial institutions must rethink their approach to connecting with customers. But how can they do this?

1. Speak the customers' language 

a. Personalisation through language

Language is a powerful tool in shaping customer experience. Financial institutions must move beyond generic communications and embrace a more personalised approach. This means using customer data to tailor messages and recommendations to individual preferences and needs. For example, instead of sending out a one-size-fits-all financial advice newsletter, companies can segment their audience and provide content that addresses specific interests or life stages, such as retirement planning for older clients and student loan advice for younger ones.

b. Clear and transparent communication

Complex financial jargon can be a barrier to understanding for many customers. Financial services companies should strive to communicate in clear, straightforward language. Simplifying terms and using everyday language helps people understand financial products and services, making them more accessible. Providing educational resources in plain language can also empower customers to make informed decisions and create a sense of trust and reliability.

c. Empathy and tone

The tone of communication plays a crucial role in customer relations. Financial services companies should adopt a tone that reflects empathy and understanding, particularly when addressing sensitive topics like financial hardship or significant life changes. An empathetic approach helps build rapport and reassures customers that their financial institution genuinely cares about their well-being.

2. Leveraging technology  

a. Advanced data analytics

Technology has changed how financial services companies understand and interact with their customers. Advanced data analytics allow firms to gain deep insights into customer behaviour, preferences, and financial health. By analysing this data, companies can offer targeted products, personalised advice, and proactive service. For instance, predictive analytics and forecasting can help identify when a customer might need a particular product or service, allowing for timely and relevant offers.

b. AI and chatbots

Artificial intelligence (AI) and chatbots are altering customer service in the financial services sector. AI-driven chatbots can provide instant, 24/7 support, handling routine enquiries and transactions efficiently. This not only improves service availability but also frees up human representatives to focus on more complex issues. Additionally, AI can enhance personalisation by analysing customer interactions and providing tailored recommendations and insights.

c. Mobile and online platforms

In an era where convenience is paramount, robust mobile and online platforms are essential. Financial services companies should invest in user-friendly apps and websites that provide a seamless experience. Features like real-time account monitoring, easy transactions, and personalised notifications enhance customer engagement and satisfaction. Ensuring that these platforms are secure and reliable is also crucial for maintaining trust.

3. Effective communication strategies  

a. Multi-channel engagement

Customers interact with brands across multiple channels, from email and social media to mobile apps and in-person meetings. Financial services companies should adopt a multichannel approach to communication, ensuring consistency and coherence across all touch points. This involves integrating various channels and maintaining a unified message while adapting to the unique characteristics of each platform.

b. Proactive communication

Being proactive rather than reactive can significantly improve customer relationships. Financial services companies should anticipate customer needs and reach out with timely information, updates, and offers. For example, notifying customers about changes in terms, upcoming deadlines, or potential issues before they arise demonstrates attentiveness and helps build trust.

c. Feedback and continuous improvement

Encouraging customer feedback and acting on it is crucial for continuous improvement. Financial services companies should actively seek customer input through surveys, reviews, and direct feedback channels. Analysing this feedback helps identify areas for improvement and shows customers that their opinions are valued and taken seriously. Implementing changes based on feedback can enhance customer satisfaction and loyalty.

Final thoughts

True connection with customers in the financial services industry isn't just about transactions—it's about trust, clarity, and understanding. Companies that prioritise genuine communication, innovative technology, and a customer-first mindset will not only meet expectations but build lasting relationships. In a competitive market, this approach sets the stage for long-term success where customers feel valued, understood, and confident in their financial decisions.