Digital transformation is essential to your bank’s survival and success in the current environment where competition is on the rise, client expectations are high, and budgets are tight. To serve more clients with lower operational costs, your bank should be encouraged to adopt digital — the best way to achieve this is to increase client communication. An effective end-to-end CCM solution can also help banks reduce communication costs.
Increasing client communications can often mean sending more communications and making it harder to estimate the cost. CCM vendors usually charge per communication, which means that the more successful you are in communicating with clients, the more you will spend. This can lead to a situation where you have to succeed on your own, as your digital adoption measures exceed expectations, meaning your digital volume skyrockets and your communications budget is blown.
Double dippers are eating up your communications budget
There is another risk associated with increased digital adoption. What if clients agree to have digital communication, but are not fully paperless? These ‘double dippers’ want digital communication facilities but are not yet ready to give up the habit of receiving envelopes in the mail. At traditional vendor prices, this would mean doubling the cost of messaging. Your bank does not receive any postage savings, but it is important to include the cost of each digital communication.
The cost of communicating with these clients is higher than that of those in print simply because you are paying for both print and digital communications.
The Key Point Intelligence Report shows that when it comes to financial services users, more than a third (37%) receive the print only, a third (32%) receive digital-only, and the remaining third (32%) receive both. This doubling of costs, while positive for your omnichannel communication strategy, can be devastating to your budget.
In two years, the percentage of digital users alone is expected to increase to 36%, down from 31%, at a print-only price. But the number of double dumpers is expected to remain the same. This means that banks must either adjust their communications budgets to accommodate double dumpers or find innovative ways to encourage them to go completely paperless.
Seek cost confirmation while preserving client engagement.
Unexpected communication costs can wreak havoc with the bank’s annual budget. At the same time, digital communications are an important way to increase client engagement and serve as many clients as possible at a low cost, so postponing communication plans can lead to long-term problems. By communicating less efficiently or less frequently, you run the risk of losing clients and prospects to larger banks or unconventional options that offer more attractive client experience strategies.
The solution to this thorny problem is to find ways to simplify your communications budget so that you know what to expect on your monthly communication invoice. The truth is that your digital transformation project will not be approved if the return on investment is not attractive or cannot be calculated at all. ROI calculations become more accurate when the annual fee (ex-post) is fixed.
All you need is cost assurance — an expected fee structure that covers all communications in print and digital. As you move clients digitally, the monthly fee (excluding postage) remains constant. This approach simplifies budgeting and eliminates the need for complex volume-based receipts that need to be audited. It also gives you the flexibility to experiment with a variety of communications, such as targeted offers to encourage your “double dippers” to close the paper.
How can Bentech help reduce communication costs for banks?
Bentec provides end-to-end solutions for managing customer communication in banking. Our CX and digital transformation experts work with banking clients to map existing communications, identify gaps and draft a framework that will inform communication strategies.
Bentech CCM platform (in SaaS and Cloud) provides a fast, low-cost option to connect channels, consolidate data sources, and create consistent messaging across all types of communication. We offer a flexible pricing model with an expected monthly fee for all member communications regardless of channel, so that the bank can expand its digital channels and save on postage.
Using a single CCM vendor also eliminates other challenges, such as managing multiple vendors, maintaining regulatory compliance, and staying up-to-date with information security requirements. Outsourcing these requirements allows bank employees to focus on providing the level of services needed to grow the client base.
Would you like to improve your Customer Communications Management to increase retention and protect your investment in member acquisition? No more worries, BENEVOLENCE TECHNOLOGIES is the right choice, and it is a leader in the ccm solutions for both business-to-business (B2B) and business-to-consumer (B2C).
How a Comprehensive Customer Communication Management (CCM) solution can help pave the way for effective communication?As the financial services industry emerges from a difficult 18-month period, banks that have accelerated their digital transformation in response to the crisis now need to review all the print and digital communications that they offer to their customers.
The goal is to ensure that the client experience is smooth, personalized, and customer-centered in banking when interacting through any channel.Why is customer experience an important consideration for customer interaction in banking?Seamless customer communication means the client gets the same experience regardless of how they interact with an organization — via email, logging into a portal, or using a mobile app.
This breach promotes distrust.Personalizing communication does not mean just addressing the client by name.
Personalization means using the available data to customize the communication so that it is highly relevant to the individual.
This means that the bank should provide a consistent experience when it comes to customer interaction, as it will help build a relationship of trust with the customer.Consistency, personalization, and smoothness may seem like an unattainable goal, based on the many barriers that a bank recognizes in its operations.
Lack of Central Communication Authority.
AI has made its presence felt in all walks of life due to its ability to help the user innovate.
It has also enabled users to make faster and more informed decisions with an increased amount of efficiency.Of late, the banking sector is becoming an active adapter of artificial intelligence — exploring and implementing this technology in new ways.
The penetration of artificial intelligence in the banking sector had been unnoticed and sluggish until the advent of the era of internet banking.One of the first steps was taken in 2015 by Ally Bank (USA) — introducing Ally Assist — a chatbot that could respond to voice and text, make payments on behalf of the customer, give an account summary, monitor savings, spending patterns, and use natural language processing to understand and address customer queries.Banks all over the world followed up with their best versions of chatbots: Erica to iPAL, Eva and the most famous one — SBI’s SIA.
Banks are increasingly spending on artificial intelligence and ML in data analytics for personalized and faster customer experiences to garner the interests of the tech-savvy and the millennial class.To Know About: Rise of AI-Powered Chatbots in the Banking IndustryAccording to the FinTech Trends India Report by PwC in 2017, the global spending in artificial intelligence has touched $5.1 billion.
The challenge now is in exploring more ways where the powers of artificial intelligence can be harnessed to streamline internal banking processes and improve customer experiences.Front end operations of artificial intelligence are those that involve direct interaction with the clients.
It includes applications and payment interfaces, digital wallets, chatbots, or interactive voice response systems.
In the list of scenarios and instances that feel nostalgic today, we could clearly add visiting the bank.
Today, visits to banks are only limited to circumstances that involve paperwork for loans, approvals & statements that require physical verification.
Otherwise, pretty much every banking-related action can be carried out through apps or online portals.
Digital transformation in banking has made our lives simpler instances of stepping out and personally visiting a bank.
Today, we have IoT-enabled banking services, tap and chip-based cards with added encryptions & app-based payment systems.
From the elderly to the young population, banking has become accessible, banking functions more understandable and services more streamlined.
It includes the size, share, growth, trends, key players, segments and regional analysis in detail during the study year 2020-2027.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the iron chloride market include Akzonobel Industrial Chemicals, BASF, Basic Chemical Industries, Borsodchem (Wanhua Industrial Group), BPS Products Pvt.
Ltd., CCM Chemicals, Chemical Company of Malaysia, Chemifloc Limited, Cnsg Anhui Hong Sifang, Da’An Fine Chemical, FeralcGroup, Gulbrandsen.
This section consists of a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Iron Chloride Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/iron-chloride-market/download-sampleMarket Dynamics The global iron chloride market is projected to grow at a significant rate during the forecast period.
The key factors driving demand for iron chloride are the rising water treatment activities, spurring manufacturing of circuit board and iron-derived compounds, and swelling pigments demand.
However, the presence of other substitute products is likely to hamper the market growth.The research report covers Porter’s Five Forces Model, Market Attractiveness Analysis, and Value Chain analysis.
