The breadth and power of customer conversation data
Over 6 billion “high-risk customer conversations” take place in the United States each year. A regular business hears 4% of its dissatisfied customers, so for every customer who complains, another 24 remain silent. It is estimated that $ 75 billion is lost every year by businesses due to poor customer service.
So how are banks interacting with their customer stories today? Most financial institutions approach conversations with customers in a transactional manner – to meet immediate needs and requirements set by regulators. They do not approach them as strategic assets that can identify problems. As a result, they miss systemic patterns that manifest in complaints and issues that lead to negative headlines or regulatory risks. They are missing out on opportunities to gain competitive advantage and strengthen their businesses.
By turning customer conversations into data and approaching them with artificial intelligence, machine learning and predictive algorithms, banks can assess the severity of complaints and the level of customer frustration, and determine the potential for customer closures. account and prosecution. Banks can understand whether customers have experienced prejudice and discrimination, and measure their institution’s “share of complaints” relative to other institutions and the industry.
Financial institutions can also identify high-risk customer interactions, monitor industry complaints, predict problematic conditions, fix company policies and practices, and prioritize business actions where they matter most. They can create standards, measures and mechanisms to create services that meet the needs of clients.
What are the growing complaints from bank customers? Here are some examples of high-risk stories submitted to the Consumer Financial Protection Bureau that financial institutions can identify and process:
Closed accounts: “My account was suspended with this company for almost 60 days. Initially, I was told that no further action was required on my part, but after several weeks without being able to access my account, I called back to inquire more. They then told me that an unauthorized transfer had been reported to my account… so they suspended my account and was told they had 45 days to make a decision. They didn’t give me any information and they blocked all my funds. “
Health impacts on finances: “I recently took a look at my credit report and noticed these overdue (fees)… During this time my whole family got sick too, just like me…. I didn’t know I was late because XXX had the wrong address and (was sending) statements to the wrong address. I was never informed during this period by (a) call that I was late. I would have paid my balance… but, like I said, I got sick and my health was my main concern… I ask XXX to please remove the late notations.
Buy now, pay later: “I made a purchase in the amount of ($ 8,200), spread over 36 months, resulting in a monthly payment of ($ 220). Before my order shipped, I ended up canceling a few items resulting in a refund of ($ 5,800). Since the refund has been made, I would expect XXX to adjust the new balance and reduce my monthly payments. Even after contacting chat agents and customer service over the phone several times, why hasn’t the new monthly payment amount been adjusted accordingly? “
Overdraft fees: “You charged me excessive overdraft fees and it’s against the law. Especially since it’s not my fault (because) I was sick. This is quite a pandemic (and) these are not normal times, plus the ATM wasn’t working properly… Instead of understanding, you are treating a long-time customer like me extremely rude, without empathy. I need these charges removed as it costs more and my electricity bill is due.
Any financial institution can begin to find value in their customer stories. Start by approaching customer conversations as critical data from which you can extract insights while addressing individual issues that need to be resolved. Identify and act on unintended consequences of business policies and practices. Tie complaints to specific policies and tactics to customer frustrations. Through these steps, banks will be able to generate significant financial value by avoiding regulatory fines and improving customer loyalty.
By analyzing customer voice data and actively listening to customer frustrations, banks will show customers that frustrations are a priority. This will improve their brand reputation, attract new customers and increase their results.
Marcia Tal is the CEO of Tal solutions SARL.