What’s up with GenAI? I mean, really? On the one hand, (we’re told, anyway) GenAI has the capability to deliver a superior CX (Customer Experience). At the same time, as pointed out by The Financial Brand in their recent blog, Digital is Draining Banks’ Emotional Connections with Customers. GenAI May Make Things Worse, it also has the capability to do just the opposite: “Digital transformation has dominated much of the industry's thinking, so much so that it is eroding customer experience ratings. Forrester’s average customer experience scores fell for the third year in a row, hitting the lowest levels in years. How can banks provide the latest in digital without becoming generic and unsatisfying?”
Alyson Clarke, principal analyst at Forrester, tells us that the industry is in some cases working against its own interests, and I couldn’t agree more. “Primacy1 is back on the table,” she says. “But what’s fascinating is that banks say they want primacy, but they don’t want their customers to interact with them. They keep pursuing cost reduction, but they don’t understand what drives customer loyalty.”
I agree with Ms. Clarke. Banks do want primacy, and, of course, they’re always looking to reduce costs. I do think, however, that the banking industry's CXOs DO understand what drives loyalty and that’s what, as the saying goes, I simply don’t get. Why, when CX is so critical to retaining customers and can clearly be a competitive edge, do banks seem willing to sacrifice share of wallet by taking human beings off their payroll? Are they really saving money? And, of course, banking isn’t the only industry where personalization and customer care has gone the way of the velociraptor, or at the very least is teetering on the brink of extinction. Hardly. Personalized customer service is vanishing, and fast.
Now, Ms. Clark goes on to say that we should look back at the pandemic for insights, and that the reason for the CX score nosedive specific to financial institutions is that during that time, “people were talking to human beings. And, banks and credit card issuers were being far more considerate and empathetic when they were dealing with their customers.” I believe that’s true, but I also believe that it’s not the whole story. Personally, I feel that during that horrific time, we unlearned much of what we’d ever learned about how to relate to each other. Yes, a “new kind of consumer” was born, one who is digitally savvy and has the sky-high expectation that getting what one wants is as easy as going on Amazon.com. Well, as we all know, it isn’t.
People are social animals. We need interaction, trust, affirmation, and a heck of a lot more. A desire for isolation simply isn’t in our DNA. Back in one of our May blogs, we talked a bit about GenAI and the challenges it presents to a bank’s ability to build trust and loyalty. In it, we mentioned HubSpot’s opinion on the matter. This is from “AI in customer service. 11 ways to use it,” with which I agree … in part, anyway:
“Artificial intelligence (AI) can help customer service improve the customer experience and create more personalized interactions with consumers. GenAI can automate routine processes, provide 24/7 support, and analyze large amounts of customer data to understand individual preferences. This can enable personalized interactions, where customers receive tailored recommendations and solutions. AI can also help support teams streamline their workflow, address customer requests more quickly, and proactively anticipate customer needs.”
Here’s where HubSpot and I, along with Ms. Clarke, part ways. If history has taught us anything about how companies use tech to (supposedly) “enhance productivity,” GenAI is not merely SUPPORTING customer service teams, it’s replacing them. HubSpot says that AI “can enable personalized interactions.” But, that can’t happen if there isn’t a human customer service rep professional to be “enabled.”
The way I see it, as individuals are eliminated in the quest to reduce costs, and their “function” replaced with automated solutions such as bots, banks are making short term gains (reducing costs) at a long term loss (customer attrition.) Here’s where marketing can help. Yes, banks should be implementing AI-powered solutions for greater data access, sharing, and security. This can and should enhance their customer experience function. While doing that, I think, they also need to market their “humanness” through their bank marketing, using their social media messaging to maintain customer trust and with it solidify relationships. After all …
- Only human beings – at least, at present – can establish authentic connections with fellow humans, understand the nuances of the relationship, and demonstrate empathy; unlike GenAI, which operates based on predefined algorithms and responses.
- While GenAI excels at handling routine inquiries and tasks, it often falls short when faced with complex or novel situations that require critical thinking and problem-solving skills. Human customer service agents can bring a level of flexibility and creativity to their engagements that a chatbot cannot.
- As customer concerns about data privacy and security continue to rise, many are showing a preference for interacting with human agents rather than bots when discussing sensitive financial matters or seeking assistance with account-related issues. In 25 stats about AI in customer experience that show how consumers really feel from SurveyMonkey: “By emphasizing the trustworthiness and reliability of their human customer service teams and their commitment to customers, organizations can instill confidence in customers and demonstrate their commitment to protecting their privacy and security. What’s a great way to do this? Marketing messaging; on social platforms, in particular.
Lastly …
“Chatbots do have their place, but they’re a far cry from what customers really want: empathy and understanding for complex issues. In fact, 90% of people prefer to get customer service from a human than a chatbot.”2 Ms. Clarke “worries that the tendency for digitization to remove the human element from banking will be amplified as institutions move into GenAI and that the relentless urge to drive down expenses will tempt bankers to try to use GenAI in place of people who face the public.”
I believe it. And, unfortunately, that’s already happening. It’s critical that banks seek AI efficiencies, but they must, at the same time, “shore up” their reputation with customers and potential customers. Create that “primacy” that is so essential. While it’s great to offer quick and easy, AI-powered solutions in areas such as on-boarding, loan apps, and basic customer service, it’s also important that banks use the bank marketing tactics at their disposal, such as their social media platforms, to continue to build trust in their brand. Only then will they have a fighting chance of keeping those customers who are looking for just a little bit of humanity.
Bank Marketing Center
Here at bankmarketingcenter.com, our goal is to help you with that topical, compelling communication with customers — developed by bank marketing professionals for bank marketing professionals — that will help you build trust, relationships, and revenue. Like this bank marketing campaign designed to help banks create and maintain the trusted relationship that drives loyalty.
Our web-based platform puts our client partners in complete control of their marketing production process – and for a fraction of traditional marketing costs. We’re also proud of the fact that we currently work with over 300 financial institutions.
Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.
1Primacy: “The fact of being primary, preeminent or more important.
2SurveyMonkey. 25 stats about AI in customer experience that show how consumers really feel.