For many, everyday interactions with their bank are a headache, to say the least. Poor customer service is “rampant” in major financial institutions, and according to experts like the Harvard Business Review, that’s because it’s profitable for them to hassle their clientele to the greatest degree allowable.
News like that might make any hope for improvement seem pointless, but beleaguered customers might be able to take solace in the potential benefits of customer value management. Applied to banking, it might be enough to spark some serious change to the entire customer experience. Here’s what you need to know.
Customer Value Management Explained
In short, customer value management (CVM) refers to the techniques that companies can use to manage the value journey of their customers — the series of steps they’ll take from initial contact to eventually doing business with the organization.
Successful CVM encompasses many elements, but one of the most critical, in this context, is how businesses are incentivized to build perceived value by providing quality to the customer. Let’s next take a look at ways in which this concept might be used to drive changes that add value to the customer experience in banking.
How Customer Value Management Intersects With Banking
One of the most effective ways in which banks can apply the ideas of CVM to their customer experience is through improved personalization. It’s well-known that the more tailored they perceive their treatment, the better customers typically perceive it to be.
By getting away from a “one size fits all” approach and trying out some targeted interactions, banks can better engage their customers and help make the experience that much more enjoyable. For instance, personalized product and service recommendations delivered at critical points in the customer journey, or a precise cross-sell opportunity that aligns with a customer’s life goals can go a long way to making them feel valued.
There’s also the idea that proper implementation of CVM can help interactions between banks and customers feel less like cold transactions and more like friendly interactions. Garnering good will like that makes customers more likely to stick around and even recommend a financial institution to their friends and family.
Interactions like these don’t just arise from nothing, however. In order for customer value management to become effective, banks also need to prioritize data gathering and customer analytics. This will allow them to pinpoint the unique needs of their clientele, then start making the necessary adjustments to fulfill those needs with the type of care that positively impacts their overall experience.