How to Integrate Digital Delivery and Human Connections to Boost Retention

New data from Salesforces presents a tricky conundrum for banks: Excellence in digital services is now table stakes when it comes to customer satisfaction. But fashioning a pervasive digital experience risks alienating customers who still crave human connections at critical junctures. Note: They generally hate chatbots.

By David Evans, Chief Content Officer

Published on October 24th, 2024 in Customer Experience

The report: The Connected Financial Services Report

Source: Salesforce

Why we picked this report: Banks often feel like they are ping ponging between two conflicting priorities – building and scaling advanced digital delivery while struggling to retain customers whose loyalty is predicated on personal attention. How can we find the right balance?

Executive Summary

While digital capabilities remain a primary driver of customer switching behavior, the human element proves equally vital for retention, according to a recent report from Salesforce.

The global survey of 6,058 financial services customers also reveals that 79% feel their providers haven’t adequately prepared them for economic uncertainty, highlighting a significant opportunity for banks to strengthen relationships through personalized service and proactive guidance. The findings underscore the importance of delivering an integrated experience that combines digital efficiency with human empathy.

Key Takeaways

  • Digital experience is the leading reason customers switch financial providers, with 51% of banking customers citing it as their primary motivation for changing institutions.
  • Despite digital preferences for routine transactions, 54% of banking customers prefer human interaction through phone calls, and 50% prefer in-person communication for important matters.
  • 62% of customers would switch providers if they felt treated like a number rather than a human.
  • While 56% of customers are willing to share data for improved experiences, only 45% understand how their data is used, creating a trust gap that institutions must address.
  • 78% would switch providers over mishandled data, making security and transparency critical priorities.

Key Data Points

  • 35% of customers switched banks in the past year.
  • Only 21% of customers say their financial institution helped them significantly prepare for economic uncertainty.
  • 73% of customers expect companies to understand their unique needs and expectations, up from 66% in 2020.
  • Just 48% of customers say their financial services providers proactively communicate with them.

What we liked about this report: It concisely frames the conundrum of how to balance consumers’ simultaneous expectation of digital excellence and personalized human connections, without tooting Salesforce’s own horn excessively.

What we didn’t: The report’s recommendation for achieving the right balance are more suggestive than actionable.

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The Evolution of Financial Services: Balancing Digital and Human Touch

Digital excellence is now essential for customer retention The Salesforce research definitively shows that digital capabilities have become the primary differentiator in financial services, with far-reaching implications for customer acquisition and retention. The 35% of customers who switched banks in the past year represent a massive shift in customer loyalty, with digital experience emerging as the decisive factor in these changes.

Digital friction points have become major catalysts for customer attrition. The research identifies several critical areas where banks must improve their digital offerings:

  • Chatbot integration: 39% of customers report challenges with chatbot interactions, suggesting current implementations often create more friction than they resolve
  • Information access: 29% struggle to find needed information through digital channels
  • Mobile experience: 20% report difficulties with mobile banking applications
  • Platform integration: 17% cite problems with digital activities not syncing across channels

The data shows clear customer preferences for digital self-service in routine transactions:

  • 72% prefer to apply for debit cards online
  • 71% want digital credit card application processes
  • 69% expect to open savings accounts through digital channels

To meet these expectations, banks must ensure their digital infrastructure supports seamless, intuitive experiences across all touchpoints.

Dig deeper:

However, the research suggests that simply offering digital services isn’t enough – these services must be comprehensive, well-integrated, and user-friendly to prevent customer defection.

The human connection remains critical for complex services While digital excellence is crucial, the research reveals a strong preference for human interaction in complex or high-stakes financial situations. This finding challenges the notion that digitalization should be pursued at the expense of traditional service channels. The data shows nuanced customer preferences that vary by interaction type and complexity:

Among consumers’ communication channel preferences:

  • 54% prefer phone calls for important financial discussions
  • 50% value in-person branch interactions
  • 40% opt for email communication
  • Only 19% choose online chat as their preferred channel

The research indicates that successful banks will be those that maintain strong human connections while digitalizing routine transactions. This requires strategic decisions about:

  • Branch transformation: Evolving physical locations from transaction centers to advisory hubs
  • Staff training: Developing employees’ consultative skills for complex financial discussions
  • Channel integration: Ensuring smooth transitions between digital and human touchpoints
  • Relationship management: Using digital data to inform and enhance human interactions
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Trust and Personalization Drive Customer Loyalty

Financial institutions must navigate a complex landscape of data sharing and privacy concerns. While 56% of customers are willing to share data for improved experiences, only 45% understand how their data is used. This transparency gap presents both a challenge and an opportunity for banks to build trust through clear communication about data practices. Importantly, 78% of customers would switch providers over mishandled data, making security and transparency critical priorities.

Proactive Communication Gap Presents Opportunity

The research identifies a significant opportunity in proactive customer communication, with only 48% of customers reporting that their providers reach out proactively. Given that 79% of customers feel inadequately prepared for economic uncertainty, financial institutions that step up with timely, personalized guidance can differentiate themselves in the market. This is particularly relevant as customers seek support in navigating challenging economic conditions.

Editor’s note: This article was prepared with AI language software and edited for clarity and accuracy by The Financial Brand editorial team.

About the Author

Profile PhotoDavid Evans is an experienced, strategic leader of global content programs. Core skill sets include the creation, management, execution of multiplatform content strategies, with a focus on quality and user experience and leadership of complex organizations, often matrixed and multi-function, frequently international, as well as complex ecosystems of external partners, vendors, and platforms.

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