A customer experience is made up of multiple touch points in a given context (rawson et al 2013) and therefore comprises of all the little things that happen in customer interactions.
Customer experience initiatives are being deployed at a rapid pace in the broader private banking and retail wealth management industry. New value propositions, operating model designs, mobile apps, remote financial advice solutions, you name it. Many wealth managers (I use wealth management in the broader context, which includes both private banks and retail wealth managers) approach these initiatives in isolation and not as part of a broader customer strategy.
This doesn’t mean to say that the initiatives undertaken are not good, no! Some of them are great and (aim to) fulfil a defined customer demand. But there are risks involved with the approach as mentioned above, like:
- Wealth managers focus on areas that don’t have the highest priority for their HNWI (High Net Worth Individual) clients as they haven’t assessed in detail what the real customer priorities are
- Fragmented approach of multiple initiatives, each with the idea to improve customer experience
- Losing “eye on the bigger picture” (fulfilling the customer needs)
- Initiatives are driven by internal organisational desires rather than a focus on end users and enabling value exchange between customers and the organisation
Note: This blog is addressing the role a customer centric focus plays in driving ROI for private banks and retail wealth managers. It covers both obvious and less obvious drivers and influencers on these entities.