Gone are the days consumers had one option for banking: in-branch. Now, consumers frequently turn to multichannel and digital platforms to conduct banking activities – with an estimated 28 percent saying they prefer to do so. Winning the loyalty of these “digital consumers” starts by understanding what makes them tick.
In a recent webinar the TMG team attended, “digital consumers” were defined by their preferences to transact, shop, open new accounts and receive consumer support in a digital environment. Consumers choosing to perform at least three out of the four actions listed in a digital setting met the criteria to be “digital.”
Research conducted by CEB revealed the majority of digital consumers believe their financial institutions (FIs) should provide resources facilitating financial well-being. How successfully FIs help consumers meet their financial goals is key to gaining and retaining digital consumer loyalty.
FIs should consider the following strategies when helping consumers reach their financial objectives:
- Understand what consumers want. Each consumer has a unique set of financial priorities based on lifestyle and life stage. By first determining what consumers hope to achieve and when, FIs can help get them there.
- Adopt a consumer-first approach. Prioritizing consumers’ needs increases the likelihood consumers will achieve their desired financial outcomes and FIs will meet their bottom-line objectives.
- Go beyond information sharing. Although consumers like when FIs provide materials to help with their financial steps, they prefer FIs to motivate action instead. Making recommendations, like skipping daily Starbucks orders, can have a positive impact on their long-term finances.