UK Banking – The Great Customer Experience Swindle

Like your aunt dancing to Daft Punk at a family wedding, when older established companies attempt to plug into the zeitgeist the results are often embarrassing. Across industry established organizations are experiencing a midlife crisis as younger more agile startups begin to erode their customer base. Instead of buying the sports car and dyeing their hair many established companies have lurched towards customer experience as a way to remain cool or relevant with predictably embarrassing results.

Interest in customer experience has been driven by lifestyle brands such as Apple, Disney and Nike, brands we enjoy using because they are associated with leisure experiences. The word “experience” gives the impression that we enjoy using the product or service, yet in our day to day lives we engage with many organizations on a purely transactional basis. Whether it’s a bank, an insurance provider or a utility, most of the time we are simply looking for process or transactional efficiency. Nothing more. Failure to understand this has led many organizations down the wrong path that views customer experience from a leisure rather than a process excellence perspective. I certainly don’t need my bank to start giving me discounted hotel bookings (they do), my ISP to give me tickets to the football (they did) or my dentist to give neck rubs (not yet).

The Great Customer Experience Swindle

The Great Customer Experience Swindle

In financial services and insurance it’s very easy to see the attraction of trying to focus on customer experience in market sector with few other product differentiators. UK banks have been quick to jump on the customer experience bandwagon but are mistakenly taking the leisure rather than process excellence route. Today UK banks currently offer lifestyle benefits such as movie downloads, cinema tickets, hotel booking discounts, airport lounge access, concert tickets and will writing services. The availability of these “benefits” poses a number of questions. First of all why are banks even offering these benefits in the first place? Cinema tickets, movie downloads and hotel discounts are benefits completely unrelated to their core business. Secondly why are banks providing these dubious benefits while they continue to suffer embarrassing outages, IT problems and customers struggle to talk to a human advisor? Also who joins a bank because of their will writing service?

Customer experience is often defined as how customers perceive their interactions with an organization. Each one of these interactions is a business process. Many customer experience leaders just execute their business processes better than their competitors. Take for example customer experience leaders; Amazon, Apple and First Direct. All three organizations execute their key business processes with precision and better than their competitors. Amazon excels in logistics processes, Apple in supply chain and research and development. First Direct show that by focusing on core customer processes and not gimmicks banks can transform customer experience.

This week more service outages hit the UK banking industry. Offering lifestyle benefits while struggling to keep the lights on shows a complete or deliberate misunderstanding of customer experience. A classic case of fur coat and no knickers as my mum used to say. Forget the VIP lounges and the tennis tickets if banks want to transform customer experience they need to focus on process excellence. Instead many UK banks are participating in a great customer experience swindle.

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