Companies of different shapes and sizes face similar seismic challenges to their existing operations. Banks are a prime example of this need to shift towards Outside In thinking and practice.
In the current demanding environment, banks need to win new customers and seek – and realize – recurring revenues from new and existing customers.
Winning new business and retaining existing customers in a volatile market can be a massive challenge; however, providing an efficient, cost effective and differentiated customer service has become the key to any banks ability to not only survive, but to thrive.A successful bank needs to tailor its service propositions to deliver sustainable margin-earning business across legacy functional and product silos.
The old industrialised approach based on selling a specific product to a segmented customer via a dedicated and discrete silo no longer meets 21st century customer needs. Fundamentally, banks now need to optimize the share of business that they win (and retain) from each customer. This in turn requires adopting a customer centric and service oriented mindset, and developing an unprecedented depth of customer insight to enhance the quality and consistency of the service provided.
However, the embedded structure, operational culture and processes of many banks mitigate against this objective. Experience shows that customers are increasingly disappointed by banks’ inability to operate effectively across silos and fail to understand specific customer needs. New capabilities are required to enable banks to take an increasingly ‘customer oriented’ view on how to serve their clients. The customer service strategy of banks should progressively make customers lives easier, simpler and more successful.
Banks must become Outside In and see all their business operations in the context of achieving Successful Customer Outcomes. Those organizations who make customers lives easier and more successful are winning, and more importantly retaining customers trust and future business. Customers should therefore enjoy the total banking experience so they will stay with you and spend more.
When was the last time you enjoyed a banking experience?