Insurance & Technology

Customer Analytics

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in meeting the evolving demands and high expectations of digitally savvy Gen Y customers, and requires banks to digi- tally transform as well as leverage social media. This year, for the first time, the report measured the impact of positive experiences on a number of behaviors linked to increased profits. Specifically, the report found that customers with positive experiences are more than three times more likely to stay with their bank than those who have negative ones. Customers with positive experiences are also three to five times more likely to refer others and purchase another prod- uct, the report finds. According to Capgemini, since Gen Y consumers make up anywhere from one-quarter to one-third of the popula- tion in many markets, catering to their tastes is key for banks. "This group's expectations of how banks should serve their customers, particularly via digital platforms, are significantly higher than those of the general population thanks to their prolific and sophisticated use of technology," the report adds. In North America, Gen Y consumers are significantly less likely to have a positive experience with their bank, the report found. Only 41.7% in North America of those between 18 and 34 years cited positive experiences with their bank, com- pared with 63.4% of those of other ages, a difference of 21.7%. In other regions, positive experiences for Gen Y lag those of other age groups by anywhere from only 7% to nearly 10%. The need to address the requirements of digitally savvy customers must be balanced against the reality that tradi- tional channels still play a role, the report found. "Banks are no longer a branch or a place where customers go, but a collec- tion of services that take place anywhere, anytime," said Patrick Desmares, secretary general of Efma, in the report. "Banks need to be prepared to respond to all customers, no matter how, when, and where they want to do their banking."p 18 Bank Systems & Technology MUSTReads

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