Imagine a busy Monday morning at the bank. As you’re reviewing the weekend's customer interactions, a recurring issue catches your eye: a significant spike in complaints about an online loan application process that customers find confusing and cumbersome.
Despite multiple feedback forms being filled out, the real challenge for the customers remains unclear, buried under a mountain of customer data.
This scenario illustrates a critical issue: the struggle to collect customer feedback, analyze it, and act on it effectively.
In the BFSI sector, customer satisfaction is directly linked to business success, and missing out on these insights means potentially overlooking fundamental improvements.
In fact, most businesses can capture only about 4% of their customer's feedback.
The challenge lies in deploying the right customer tools and strategies to decode this vast array of customer voices into actionable intelligence that can lead to meaningful, customer-driven enhancements.
In this blog, we will explore the different ways to use the voice of customer analytics using real-life examples.
What is Voice of Customer in BFSI?
In the Banking, Financial Services, and Insurance (BFSI) sector, Voice of the Customer (VoC) involves the comprehensive process of capturing, analyzing customer feedback, and utilizing feedback from various channels, such as surveys, social media, service interactions, and unsolicited communication.
VoC is an essential customer program analytics for identifying pain points, improving service delivery, innovating products, ensuring regulatory compliance, and enhancing customer loyalty.
By embedding VoC into strategic and operational frameworks, BFSI organizations can address immediate customer concerns and shape future offerings and strategies to meet evolving customer expectations, thus securing a competitive edge in a tightly contested market.
I want to ensure regulatory compliance and enhance customer loyalty.
Why is VoC Important?
Understanding and prioritizing the Voice of the Customer (VoC) is more than just a service enhancement tactic; it's a strategic necessity that drives the entire BFSI sector toward greater efficiency and customer-centricity.
Here's why VoC is indispensable in the banking, financial services, and insurance industries:
- Enhanced Customer Experience: VoC allows institutions to identify and rectify issues that negatively affect the customer journey, and improve customer satisfaction and loyalty.
- Increased Operational Efficiency: By understanding customer feedback, BFSI organizations can streamline processes, reduce service times, and eliminate inefficiencies, enhancing overall operational performance.
- Regulatory Compliance: VoC helps identify areas where services may not align with legal standards, enabling timely adjustments to maintain compliance and avoid potential penalties.
- Product and Service Innovation: Insights gathered from VoC can highlight unmet needs or new opportunities, driving innovation in products and services to meet customer demands better.
- Competitive Advantage: Institutions that effectively implement VoC are better positioned to respond to market changes and customer preferences, maintaining a competitive edge in a crowded market.
- Risk Mitigation: Proactively addressing customer feedback can help financial institutions identify and mitigate risks before they escalate into more significant issues.
- Brand Reputation and Trust: Regularly engaging with and responding to customer feedback helps build trust and strengthens the brand, essential components in the relationship-driven BFSI sector.
What are Some Voice of Customer Examples in the BFSI Sector?
Bain & Company reports that programs analyzing customer feedback can increase retention rates by 55%.
So, let’s look into some real-life prominent examples of VoC in the BFSI sector with the results these companies yielded.
Keep reading until the end, a bonus example is waiting for you.
1. Insurance company debugs NOT INTERESTED cases
An insurtech company faced a high volume of cases where potential customers indicated they were "not interested" in proceeding after initial contact.
By analyzing VoC data, they identified that most of the issues were “Dead air” and the agents' lack of active listening.
The solution involved redesigning communication strategies to include clearer, more engaging information upfront, resulting in a 36.5% decrease in "not interested" responses.
2. “Staying ahead of the competition helped us ace in pre-sales” -Insurance company
This statement was made after an insurance company utilized customer analysis derived from VoC insights by Convin to point out occurrences of competitor mentions during customer service interactions.
They identified key areas where competitors were underperforming and optimized their own offerings to address these gaps, leading to an increase in customer acquisition by 28%.
3. Fintech aces sales with faster feedback cycles
An online payment platform accelerated its feedback loop, allowing it to gather and analyze customer feedback on new features quickly.
This rapid iteration helped the company make adjustments in real-time, boosting user satisfaction and increasing transaction volumes by a whopping 49%.
4. Insurance company unveils reasons behind policy cancellations
When an insurance company analyzed VoC data, significant actionable insights were gained to understand why customers were canceling their policies.
They found that the primary reasons were high premiums and unclear openings, which led to dissatisfaction with customer service. The company adjusted its pricing model and invested in customer service training, which reduced cancellation rates by 18%.
5. Fintech company finds out payment dispute triggers
A fintech giant analyzed customer feedback to identify common triggers for payment disputes. The analysis revealed that the main issues were unclear billing statements and delayed notification of charges.
The fintech company addressed these by redesigning its billing communication and improving notification timeliness.
6. Insurance company conquers customers’ trust by solving claim-related concerns
A longstanding insurance provider leveraged Voice of Customer to identify customer trends, pinpoint issues, and resolve them in claims processing.
By streamlining the process and enhancing transparency during claim handling, they rebuilt trust and improved customer retention by 33%.
7. Insurance company finds shocking insights with negative sentiment analysis
An insurtech startup utilized negative sentiment analysis from customer feedback to identify trends and uncover underlying dissatisfaction with certain policy terms and customer service responsiveness.
They immediately implemented targeted changes to these areas, improving customer satisfaction.
With this, we come to the bonus example. Since these case studies have shown promising results, there’s no doubt that your business can achieve the same.
I want to see VoC in action.
#Bonus: Insurance company discovers the most preferred language of their customers
An insurance company used Convin to determine which language were most of their customers most comfortable with. They found out English was their customers' most commonly used language followed by some other languages.
They enhanced customer engagement by providing English content and customer support in preferred languages, increasing policy renewals by 55%.
Results first, payment later.
4 Ways to Increase Your Revenue Through The Voice of The Customer
Leveraging the Voice of the Customer (VoC) is a strategic approach for enhancing customer satisfaction and boosting revenue.
Here are four unique and effective ways to increase your revenue through focused VoC initiatives:
1. Personalized Upselling and Cross-selling
Utilize customer data to understand the specific needs and preferences of your customers. This insight allows you to tailor your upselling and cross-selling strategies more effectively.
For instance, if VoC feedback reveals that customers seeking mortgage loans are also interested in home insurance, you can create bundled offers or personalized promotions that cater directly to these interests.
2. Optimized Customer Journey
Analyze customer feedback to identify bottlenecks or pain points in the customer journey that might be causing dissatisfaction or churn.
Streamlining these processes and ensuring a smoother customer experience can enhance customer retention and encourage repeat business. A satisfied customer is likelier to increase spending and engage more deeply with your offerings.
3. Refined Product Offerings
Use customer insights to refine or develop new products that meet evolving needs. For example, if VoC indicates a demand for more flexible loan repayment options in your financial services business, introducing such features can attract a broader customer base and open new revenue streams.
4. Enhanced Customer Loyalty Programs
Design loyalty programs based on VoC insights recognizing and rewarding customer preferences and behaviors. Tailored rewards not only enhance customer loyalty but also encourage higher spending.
For example, offering premium services, like expedited support or personalized financial advising, can make customers more likely to engage and invest in higher-tier services.
Key Takeaways
The effective use of Voice of Customer data not only solves immediate issues but also positions BFSI companies for long-term success.
This strategic approach enhances customer satisfaction, ensures competitive advantage, and fosters an agile operational environment, which is crucial for thriving in today's dynamic market. Here are the key takeaways in a nutshell.
- Strategic Insight: VoC data offers critical insights, guiding BFSI companies to refine their services and better cater to customer needs.
- Enhanced Competitiveness: By addressing gaps identified through VoC, companies can outshine competitors and attract more customers.
- Responsive Operations: Rapid feedback loops and proactive resolutions based on VoC ensure businesses are agile and can quickly adapt to changing customer expectations.
Want a free demo with Convin to ace your business? Here you go.
Frequently Asked Questions
1. What is Voice of the Customer examples in banking?
Examples of Voice of the Customer in banking include feedback on online banking experiences, customer satisfaction surveys about loan application processes, and direct customer comments regarding ATM functionality and availability.
2. What is the Voice of the Customer in finance?
In finance, Voice of the Customer can refer to investor feedback on brokerage services, client reactions to insurance claims handling, or evaluations of advisory services. This feedback helps financial institutions tailor their products and services more effectively.
3. What is the role of customer service in banking sector?
The role of customer service in the banking sector is crucial, as it directly influences customer satisfaction and retention. It involves addressing customer inquiries, resolving issues efficiently, providing information about products and services, and helping customers navigate banking processes.
4. What is good feedback for bank employees sample?
A good feedback sample for bank employees could be: "Your attention to detail and patience in explaining the different mortgage options available helped me make an informed decision. I appreciate the personalized service and the time you took to ensure all my questions were answered."
5. What are three key benefits of knowing your company’s VoC?
- Enhanced Customer Insights: Knowing your VoC helps understand customer needs and expectations, allowing for better service and product offerings.
- Improved Customer Retention: By responding to customer feedback, companies can solve problems effectively, enhancing loyalty and reducing churn.
- Strategic Decision Making: VoC provides data-driven insights that guide strategic decisions, from product development to marketing strategies, ensuring they align with customer preferences and market demands.
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