The Future of Customer Journeys in FSI
- By Paul Mah
- September 20, 2022
Change is arguably the only constant as succeeding generations of digitally savvy consumers enter the workforce. As the financial services and insurance sectors reshape customer journeys for increasingly demanding consumers, can artificial intelligence (AI) play a part to enhance customer engagements and enable data-driven personalization?
At a recent lunch event organized by CDOTrends and Pegasystems at One Fullerton on “AI & Beyond: The Future of Customer Journeys in FSI”, panelists sat down to explore the meaning of customer centricity, the role of AI, and what the future of customer loyalty looks like.
The customer matters
Alan Trefler, CEO of Pegasystems thinks that customer centricity for today’s customers boils down to knowing what customers want and leveraging that to deliver a differentiated customer experience – instead of focusing solely on creating new products or services.
“Product differentiation is critical to our customers, but even more important than that is the need to establish a level of customer intimacy. This happens when brands come to understand their customers, where they're doing things that show that they value them by respecting their time, being efficient, not being repetitive, or showing them the things that they don't care about,” said Trefler.
“Traditionally, banks focused on selling as many products as you can to as many customers as you can all the time,” admitted Khachig Kabakjian, the global chapter head for Real-time Engagement at Standard Chartered Bank.
But making a pitch at the wrong time can produce a negative customer experience. Kabakjian shared an anecdote from his time in Australia, where parts of the country are prone to bushfires and floods, he noted.
“Imagine a small town where you just had a bushfire. And on that same day, have someone call you and say, ‘Hey, would you want to take a home loan?’, or receive an email that goes, ‘Hey, do you want to check out our new credit card offering?’. It’s terrible, right? It’s so insensitive. Customers will think that you are just here for their money.”
To address this, Khachig and his team at his previous organization built the capability to extract weather data from the Bureau of Meteorology and other sources. When a disaster happens, all sales and marketing communications to affected regions are immediately halted across all channels. They subsequently sent out messages expressing sympathies, information on where to access support, and in some cases even offering deferments on home loans.
“It was just a game changer for us. It’s not all about selling, it’s about showing empathy and being with the customers at times of need, which in turn builds trust.” said Kabakjian.
Smita Saran, the head of Digital First Solutions at Singlife with Aviva, noted that while the insurance industry has traditionally been a step behind banks and payment providers when it comes to delivering a digital-first experience, this is changing in part due to evolving customer expectations.
“Now, customers expect organizations to meet them where they are. We not only need to deliver products digitally, but we also need to ensure that we continue to bring that intelligence into every service request and each online experience. And should there be an insurance claim, even if it’s for a small sum such as a travel insurance payment, you can be sure that they will share their positive experiences with their friends,” she noted.
How AI brings everything together
But where does AI come into the picture? Pointing to the inevitable data silos and differing priorities of different departments in a typical bank, Trefler noted that AI can help bring everything together to help businesses gain a better understanding of their customers.
“I think AI as augmented intelligence; you are making it easier to utilize the other capabilities you already have in a way that makes the experience seem smart,” said Trefler.
Kabakjian pointed to digital-native firms such as Uber, Airbnb, and Booking.com and how they have achieved runaway success through superior experiences. “These top brands did not invent new products. They simply invested in delivering an excellent customer experience. I think what we can do with AI is build a new level of trust with customers. Not through products, which anyone can do, but to enhance and improve the customer experience.”
Kabakjian offered another anecdote of a customer paying for an airline ticket: “I can see that they are traveling. And I can see from the data points that we have, that they are entitled to get travel insurance. Why not jump in and tell them, ‘Remember to activate your credit card, this is complimentary.’”
“This is one of many, many more that will help us to bring out the human element using AI. AI is not just about cold-hearted robots, but it's really to help and empower customers,” he summed up.
Strengthening customer loyalty
Ultimately, organizations can strengthen customer loyalty by simply demonstrating that they matter and that they have their well-being at heart.
“When the customer logs on and reaches out to you, you treat them like family. Show them that you value the relationship of several years that they had with you. And tell them you have their information at hand, you know why they are reaching out, and that you stand ready to assist them,” said Saran.
“One of the keys to loyalty is not messing it up. Because people will remember the bad experiences and will tell others about it,” said Trefler. “Ultimately, customers want to have a sense that they are recognized as an individual – we live in a time of peak individuality. And the way you can achieve that is by synchronizing the different inputs in real-time such that customer interactions are retained and not lost.”
“Think of AI as a unifier, while low code allows you to operate across channels, as opposed to building capabilities that are limited to one channel. This is one way you can truly differentiate your organization and build loyalty. And because you respected them, the customer respects you,” summed up Trefler.
Paul Mah is the editor of DSAITrends. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose. You can reach him at [email protected]
Image credit: iStockphoto/picture
Paul Mah
Paul Mah is the editor of DSAITrends, where he report on the latest developments in data science and AI. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose.