Has Your Bank Been Taking the Wrong Road to CX Excellence?

“Banking is boring.”

Acknowledge that, and you have started the journey toward really improving your bank or credit union’s customer experience, according to Derek Corcoran, author of “Designing for Need: The New Rules of Customer Experience in Banking.”

Why is that premise important?

Corcoran maintains that the industry has to stop trying to “delight” its customers, at least in the way that other industries try to do. Banking tasks don’t begin to approach the pleasure of a day at Disney, a stay at a five-star resort, nor even the experience of ordering shoes from Zappos. Corcoran believes that many banking executives set themselves up for frustration by striving to apply the same approaches that successful consumer brands take to CX.

“A bank isn’t Disneyland,” Corcoran writes. “Its job is to deliver on customer needs, not to entertain or delight them.”

Key insight: CX actually consists of two separate disciplines, in Corcoran’s view. There’s CX for “want to do” activities, like vacations, fine dining and some kinds of shopping. But then there’s CX for “need to dos” like paying taxes and banking.

Understanding the difference is critical. In fact, when Corcoran, a veteran financial services CX consultant, began writing his book, he says his working title was “Nobody Wants to Bank.”

“Think about the last time you went to the bank,” writes Corcoran. “Did you savor the experience and take your time? Or were you looking to get in and out with a minimal amount of effort? In fact, did you do your banking online or on your mobile app because that was the fastest and most convenient way to transact?”

Need to Know:

• Corcoran says “want to do” activities conjure words like “fun,” “enjoyable,” and “delightful” and people can’t wait to engage in them.
• By contrast, “need to do” activities like banking that go well earn descriptors like “fast,” “easy,” and “painless,” which over time can get people to handle tasks they might otherwise put off.
• “Need to do” industries like banking demand a different CX focus and goal.
• Think of your institution’s services as what they are being “hired” to do, he says. The simpler and faster they do it, the more likely the bank won’t be “fired” in favor of a provider who does a better job.
• Design what’s easy for the customer, not for the bank. A key first step is to open accounts with your own institution, not internally, but using the channels customers use. It can be eye-opening.

Corcoran’s book takes a three-pronged approach. First, he explodes some of the misconceptions about CX in banking. Then he expands on his concepts about improving the industry’s CX. Finally, in 17 mini chapters he presents practical examples of how to design effective need-to-do experiences.

How and Why Banks Headed Down the Wrong Road to Good CX

Corcoran pins some of banking’s CX missteps on social media raves about this or that nonfinancial company’s service. Bankers wanted to reap similar glowing notices that could go viral. But banking and many other businesses are very different.

“If I’m buying a $20 pair of shoes from Zappos, and I tell them, ‘Hey, they were damaged when they arrived,’ their call center agent has the discretion to say, “Don’t even bother sending them back to us. Just throw them in the bin. We’ll send you a new pair’.”

Key insight: While that’s a great customer experience for a footwear company, “you can’t do that in financial services,” says Corcoran. If a customer says their mortgage payment is higher than they expected, it’s not as if the bank can simply say, “Oh, we’ll reset it to what it was previously, and everything will be fine.”

“Banks have regulations and rules, aside from the financial implications,” Corcoran says, making it much less likely that they can successfully adopt such CX tactics.

Read more: Why Your Bank Needs a ‘Crown & Anchor Society’