Win the checkout experience battle with a customer-centric approach
Consumer behavior is constantly changing. This goes for all aspects of our lives: how we get around, where we shop, what music we listen to… the list goes on. And, while some might call these changes “trends,” others see them as a disruption of the way things used to be, leading to new habits, preferences, and needs. This is certainly true for payments and the banking space. Financial institutions not only want to meet consumer needs, but understand them in depth to increase their satisfaction and loyalty. But how?
My suggestion is twofold:
- To understand: Measure satisfaction and loyalty, analyze results
- React: Adapt the offer and the value proposition according to the results
Understanding Satisfaction and Loyalty
You could say that customer satisfaction measures the past, ie how did a customer feel after an interaction with the bank? How did it perform compared to their expectations? Conversely, customer loyalty assesses the future: will the customer continue to use the bank’s services? Will they stay loyal to the brand?
To start, measuring satisfaction can be done as simply as through a customer satisfaction survey conducted after the interaction you want to measure. A bank could also hire an outside research firm to survey relevant target audiences to understand their preferences and habits, giving you a broader view of consumer needs.
Measuring customer loyalty is a little harder to do. Companies typically measure this using Net Promoter Score, Customer Engagement, Customer Lifetime Value, or Customer Retention Rate. Whatever the approach, measuring both satisfaction and loyalty will allow the financial institution to better understand what customers think of them and their products and services.
React: Adapt your card issuance offer
Once you’ve determined customer satisfaction and loyalty levels, I recommend matching the results to your current offering to determine where the gaps in the customer experience are. The main questions to ask are: Are you providing the services your customers are asking for? Are you providing all the necessary touchpoints? Do you offer enough payment flexibility or the right account integration experience?
So what does the data tell us?
At Entrust, we have conducted several recent surveys to determine consumer habits and attitudes toward payments and banking. As you look to improve the cardholder experiences you offer, consider the following key learnings:
- Consumers want more control over their payment experience – According to our recent data study, The Great Payments Disruption, the most important factors for customers when considering choosing a bank are online banking capabilities, availability of mobile apps, and flexible payment options. Additionally, a separate study Entrust found that 85% of cardholders say card controls (eg, transaction thresholds, alerts, etc.) would make them more likely to use that card as their primary payment method. A digital card issuance strategy allows banks to give their cardholder access and control of their digital card from day one. These capabilities provide a truly digital, seamless and instant payment experience from anywhere, anytime.
- Physical cards are just as important – The same study also revealed that around 68% prefer to use physical cards for in-store transactions. This means that even though digital payments are becoming more prevalent, physical cards still have a place in a bank’s payment platform offerings.
- Accelerated one-click checkout is increasingly preferred – New research just released by Entrust of 1,000 US survey respondents indicates that more than half (53%) choose to either use the card on file or use a payment button accelerated for an easier checkout experience. While both methods are convenient, banks that offer the option of using an expedited payment button provide customers with an additional layer of security as payment information is tokenized. Providing tokenization and token management capabilities can give the cardholder more security and personal care and avoid manually entering card information into dozens of vendor websites.
Taking a consumer-centric approach by exploring what they really want and need from their bank is key to increasing customer satisfaction and ultimately loyalty. After all, it costs less to retain a customer than to acquire one. Additionally, happy customers are your most authentic ambassador for your brand and can support your customer acquisition efforts.
To learn more, check out these other resources:
- Lily this blog to learn how to increase customer acquisition with a unified payment wallet.
- To download The Big Payments Disruption Report to learn more about our findings.
- Read it Press release about our most recent US consumer survey on digital payments and banking.
- Visit our website to learn more about how Entrust can empower cardholders with superior experiences.
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*** This is a syndicated blog from the Security Bloggers Network of entrust the blog Written by Miriam Diffenhard. Read the original post at: https://www.entrust.com/blog/2022/11/win-the-payment-experience-battle-with-a-customer-centric-approach/