Why Companies Need to Put the Customer First in Financial Services

Putting customers first involves the practice of designing a company's products, services, and crafting overall strategy around the needs and wants of the customer, also known as customer-centricity (c-c). In the financial services industry, c-c is becoming increasingly important as customers demand more personalized and convenient experiences. However, many financial services companies have yet to make c-c a central part of their strategy, and this can have serious consequences.

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One of the main consequences of not focusing on c-c is absense of customer loyalty. Customers today have more choices than ever before, and they hesitate not in switching financial service providers if they are not satisfied with the service they are receiving. According to a 2017 survey by Accenture, 36% of customers have switched financial service providers in the past year, and the main reason? You guessed it, poor customer service.

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Another consequence is a lack of innovation. When a company is not focused on the needs and wants of the customer, it is less likely to be able to identify new opportunities and develop new products and services that meet those needs. This can make it difficult for the company to stay competitive and can lead to a decline in revenue.

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In addition, not focusing on c-c can also lead to a lack of trust. In the financial services industry, trust is critical, as customers are entrusting their money and financial well-being to the company. When a company is not attentive to the needs and wants of the customer, it can create the perception that the company is in the business to only serve its own interests, and not on the interests of the customer.

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Conversely, financial services companies who focus on c-c can reap numerous benefits. For example, c-c companies are more likely to have higher customer satisfaction and thus loyalty, which can lead to increased revenue and profitability. According to a study by Deloitte, c-c companies are 60% more profitable than companies that are not customer-centric.

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What’s more, c-c companies are also more likely to be able to identify new opportunities and develop new products and services that meet the needs of their customers. This can help them grow their business and stay competitive.

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Customer-centric companies are also more likely to be able to build trust with their customers. When a company is focused on the needs and wants of the customer, it creates a perception that the company is putting the customer first, which can help build trust.

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A truly c-c approach goes beyond just surveying customers and gathering feedback. It involves deeply understanding the customer's needs, preferences, and pain points through research, data analysis, and empathy. Companies need to be proactive in seeking out customer insights and incorporating them into every aspect of their business, from product development to marketing to customer service. This requires a cultural shift within the organization and a commitment to putting the customer at the center of everything the company does.