Connect with us

Business

12 STEPS TO ELEVATE CUSTOMER EXPERIENCE MANAGEMENT THROUGH COMMUNICATION

Published

on

By James Hall, Commercial Director, Doxim

 

One of the most important business lessons from the past 18 or so months has been the importance of customer experience. This is especially true for insurers, who have dramatically had to alter how they service their clients, as well as their communication around those services.

In the wake of COVID-19, thousands of businesses faced unprecedented levels of disruption. Those businesses turned to their insurance companies to help make the shortfall from that time. Many of them are still waiting for their payouts. Insurance companies, ordered by Britain’s highest court to pay thousands of small businesses millions of pounds in claims for COVID-19 disruption, are facing a battle with reinsurers over who should foot the bill.

Coupled with a slew of insurtech companies coming for their lunch, this situation only makes it more important that insurers use communication to retain and grow customer bases. Historically, that’s not something insurers have been good at. Within the last few years, more than 90% of insurers worldwide did not communicate with their customers even once a year, and many customers did not receive a single communication all year. Of those interactions, many were limited to claims and related advice. Digital communication is, obviously, the best way around this, allowing organisations to talk to customers on the channels they want to be reached on.

But simply adopting digital communication isn’t enough. Organisations also need to ensure they’re doing everything they can to provide their customers with the best possible experience. This is known as customer experience management (CXM). While customer experience is the sum of all their interactions and exposure with and to that brand, CXM is what the organisation does to manage and optimize customer experience; it is a combination of all the strategies, processes, systems, and technologies that a business employs for this purpose.

While the task of enhancing CX can seem daunting, organisations can make it a great deal easier by making 12 simple adjustments to their customer communications. These steps can, in turn, be broken down into four categories of progression.

 

Audit

The first few steps when it comes to enhancing CXM involve assessing the current status of your customer communications. Doing so means auditing all the communications your customers currently receive. Initially, at least, it’s probably best to start with one or two customer journeys such as onboarding or renewals.

1. Step one in the audit process is to fully visualise the customer journey you’ve chosen. One way of doing this is to print out every piece of communication for this journey and stick them up on a large, blank wall. Ideally, they should be put up in the order the customer receives them in. If you notice that they’re dealing with differences in design and tone, and calls to action, you know for certain that you need to take action.

2. Even if your communications are aligned from a design perspective, you should identify the best performing piece of communication. Importantly, this shouldn’t be the piece of communication that you like the most, but the one that gets the best results. As a team, you can then discuss what elements made it so successful and how to integrate them.

3. The third step in the auditing process is to take your team through each step in the customer journey from the customer’s perspective. Here, you can note where your communication is lacking and can be improved.

 

Design

With the audit step having given you an idea of how much work you have to do, you can begin to address the communication issues you’ve identified. Design is the best place to start on this front.

4. Using cues from the best performing communication which you identified, you can design your communication standard. This standard should also incorporate best practice on layout, accessibility and readability.

5. You also need to ensure that your designs clearly display the most important information and include a clear call to action. As well as it being immediately clear what the communication is about, it should be obvious to the customer what they’re expected to do.

6. With those elements in place, you should do as much testing as possible. Assess whether your communications adhere to your design guidelines, and if they meet accessibility requirements and are compliant with industry regulations, such as GDPR. You can also use A/B testing to further refine the message and your call to action.

 

Align

The outcome of the first six steps you’ve taken should give you a design template on which to base your future communications. With this template in place, you can begin to align all your communications so that your public body has a consistent brand voice.

7. The first step in the alignment process is to build out a plan for consistent creative design and tone of content in your communications. This will help you create a customer experience that lines up across all your target communications.

8. Another important aspect of alignment is timing. By reviewing the frequency of customer communications across the customer journey, you can hit the communication sweet spot, rather than too frequently or not frequently enough.

9.The next step can be the hardest, especially in public service organisations where people can easily get stuck in their ways. It is nonetheless critical to align the objectives of everyone involved in communication. Organisation-wide buy-in is crucial to creating a consistent customer experience.

 

Enhance

Now that you have communication that does what it’s meant to, is set up and designed to achieve the intended results, and is aligned across the organisation, you can look at ways to keep enhancing it.

10. The first thing you need to know about enhancing your customer communications is that the design needs to be refreshed regularly. People stop paying attention to things that are familiar to them. Additionally, standards, regulator requirements, and best practises evolve. It’s therefore imperative that your organisation also adapt.

11. Another important part of enhancing your communication is to listen to how your customers react to it. This can take the shape of direct feedback as well as analysis of their interactions with each piece of communication. The more data you have, the better equipped you’ll be to refine your communication and optimise performance.

12. If you’ve done all of the above successfully and seen positive results, you can apply these steps to other customer journeys.

 

For the good of public service

Insurers are under pressure from all angles to meet increasingly high customer expectations. Their best hope of doing so on a consistent basis is to use enhanced communication to manage their experiences.

 

Business

Financial Stability Board Gives Full Support to Wide LEI Use in Global Payments

Published

on

By

Clare Rowley, Head of Business Operations at the Global Legal Entity Identifier Foundation

The strongest recommendation yet by the Financial Stability Board (FSB) that the LEI should be used more widely in payments will catalyze increased global LEI adoption. The most immediate intention is in facilitating cross-border payments. GLEIF explains why this makes it the perfect time for financial institutions to become Validation Agents within the Global LEI System.

The Financial Stability Board (FSB) has put its full weight behind a landmark recommendation that the LEI should be widely adopted across the global payments ecosystem. In July 2022, the FSB published a report encouraging global standards-setting bodies and international organizations with authority in the financial, banking, and payments space to drive forward LEI references in their work. The report also recommends guidance and further outreach on the use of the LEI as a standardized identifier for sanctions lists and as the primary means of identification for legal entity customers or beneficiaries, with specific reference to customer due diligence and wire transfers.

A primary near-term goal of the FSB’s most recent report, published as part of the G20 Roadmap for Enhancing Cross-Border Payments, is to stimulate LEI to use initially in cross-border payment transactions. By helping to make these transactions faster, cheaper, more transparent, and more inclusive, while maintaining their safety and security, the LEI has been deemed by the FSB to support the goals of the G20 roadmap.

As a result, banks and financial institutions will now be compelled to move quickly to incorporate the LEI as an integral component of their cross-border payments infrastructure, since there are huge benefits in doing so. In addition to supporting lower costs and enhanced transaction speed and transparency, the LEI can also facilitate straight-through processing (STP) and sanctions screening, while easing compliance with Know-Your-Customer (KYC) due diligence.

Additionally, the report recommends that standards bodies (e.g., BCBS, CPMI, IOSCO, FATF) and international organizations (IMF, OECD, World Bank) should consider how the LEI may be used as a standardized identifier for sanctions lists or as the primary means of identification of legal entity customers or beneficiaries. This demonstrates the broader ecosystem needed to support cross-border payments evolution – an ecosystem based on a single global identifier for legal entities that can be used to facilitate compliance checks across various resources.

With this in mind, banks and financial institutions who may soon need to ensure their legal entity clients possess an LEI to engage in certain payment transactions, cross-border or other, should feel motivated to leverage the benefits of becoming a Validation Agent within the Global LEI System. The advantages are two-fold: enhanced customer service, through a simpler, faster, and more convenient LEI issuance process for customers; and huge efficiencies in client onboarding and lifecycle management for the bank or financial institution. It really is a win-win scenario.

 

The wider impact of LEI adoption in cross-border payments

While the FSB’s report is intended to promote LEI use in cross-border transactions, both the strength and far-reaching scope of its recommendations are likely to be a catalyst for the LEI to be more broadly implemented across many other payment scenarios too. After all, if banks and financial institutions need to equip customers with an LEI to participate in cross-border transactions, then it’s a logical next step for participants in the payments ecosystem to leverage and optimize those LEIs to drive efficiencies across their other payment operations, and to bring enhanced transparency and trust benefits for customers.

There is already a healthy pipeline of active consultations and commitments by financial regulators aimed at recommending or mandating LEI use more broadly within the global payments space.

  • Last year, the European Commission (EC) officially recognized the value of the LEI as a unique mechanism capable of supporting transparency in AML and countering the financing of terrorism (CFT) efforts. It issued two legislative proposals that call for the LEI to be used in certain customer identification and verification scenarios where available.
  • The EC also launched a separate initiative last year to identify obstacles to the creation of efficient pan-European instant payments solutions. As part of its consultation strategy, the EC issued a survey for the purpose of exploring the potential for the LEI to support the screening of instant payment transactions against sanction and watch lists.
  • The Bank of England (BoE) affirmed its position to support wider uptake of the LEI and will introduce the LEI into ISO 20022 standard for CHAPS payment messages on an ‘optional to send’ basis in February 2023. While the BoE encourages all CHAPS Direct Participants to start using LEIs as early as possible, it will not become mandatory until spring 2024, at which time the BoE will begin mandating LEIs to be used in certain circumstances, with a vision to widen out the requirement to all participants over time. In particular, the BoE will mandate the use of the LEI where the payment involves a transfer of funds between financial institutions. The BoE will also monitor the use of the LEI for all transactions, with a view to assessing whether the mandatory requirement to include LEI data should be extended to all CHAPS payments.
  • In order to further the use of LEI in cross-border transactions and facilitate cross-border trade and investment, the Chinese Cross-border Interbank Payment System (CIPS) designed an innovative product “CIPS Connector”, which provides an integrated “one-step” service for a variety of cross-border RMB transactions between banks and enterprises. Every CIPS Connector user is assigned with an LEI, which is used for activating the tool as well as a mandatory business element in their business transaction.
  • In January 2021, and in a move that was the first of its kind, the Reserve Bank of India issued a mandate for the LEI in all payment transactions totaling ₹ 50 crore and more undertaken by entities for Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

 

Why the LEI in payments?

The LEI is considered an important tool in payments as it is designed for identifying unique parties to each transaction. It meets a fundamental requirement in payment processing – precise identification of the payer and payee. No other current identifier in payments offers this. International Bank Account Numbers (IBANs) for example are used for uniquely identifying payer/payee accounts, while Business Identifier Codes (BICs) are used for routing the payments to the relevant divisions/sub-divisions of financial institutions.

Today’s highly digitized payment networks require faster, cheaper, and more secure transactions. When the LEI is added as a data attribute in the payment messages, any originator or beneficiary legal entity can be instantly and automatically identified.

 

Become a Validation Agent

When viewed collectively, these developments show that LEI advocacy has never been stronger in the payments space. This signals that the LEI could be the widely implemented trust tool of choice for payments in the near future. With that in mind, GLEIF urges banks, and financial institutions to consider taking a proactive approach to supporting voluntary customer adoption of the LEI and getting ahead of recommendations or mandates in the payments space.

Becoming a Validation Agent in the Global LEI System is now the obvious choice. In addition to easing the process of LEI implementation further down the line by making LEI issuance more convenient and accessible for customers, becoming a Validation Agent can deliver some significant advantages for financial institutions themselves. By utilizing ‘business-as-usual’ onboarding processes to obtain LEIs for clients, financial institutions can improve customer experience, facilitate digital transformation, and reduce client lifecycle management costs.

Continue Reading

Business

On-demand pay: why payroll needs a modern approach

Published

on

By

Byline:  Paul Bartlett, CEO, CloudPay

 

While the world of work has evolved drastically over the last decade, payroll has arguably fallen behind the curve. In fact, how businesses view employee pay today is outdated and fails to meet the expectations of the modern workforce which, with the UK’s critical skills short labour market, could prove detrimental. People now expect on-demand services in their personal lives, from their shopping experience to their access to entertainment, and this need for a ‘consumerised’ experience has filtered into many business practices. But payroll has yet to catch up.

Financial technology is certainly gaining prominence across the globe as it gradually replaces traditional financial services such as banking, payments and electronic commerce. In fact, a recent fintech market report shows that the global financial technology remit is expected to reach a market value of approximately $324 billion by 2026, growing at an annual rate of around 25.18% over the 2022-2027 forecast period. So, soon enough, payroll will be expected to keep pace with the rest of the fintech field.

Paul Bartlett

A shift in mindset

Ultimately, most employees are consumers and our digitalised world means that consumers are able to instantly access almost anything through an app. Getting to your next destination and accessing a range of takeaways has never been easier with Uber and same day deliveries through Amazon have meant that shopping online has grown in popularity. In an era where instant results are the norm, it should come as little surprise that individuals are now asking why they should wait to access wages they’ve already earnt. With technology making it so easy to consume, why should they wait for payday to get paid for the work they’ve done?

It’s also important to consider how the world of work itself has changed. The pandemic has led to a general consensus that it’s ok to question norms in society, and workers are now expecting more from their employers, including how and where they work. As we all know, mass remote working wasn’t commonplace before the pandemic, but now the benefits that businesses and employees have experienced have resulted in new ways of working, with some countries even making the work from home option a legal right. Eventually, the same could be said for how people get paid as greater flexibility and a better work-life balance rises in demand.

Pay on-demand

In line with the progression of the working world, employees are increasingly beginning to question how and when they get paid. For staff in the UK, the cost-of-living crisis has increased the desire for more flexibility around access to pay. Businesses themselves are also questioning how age-old processes can be improved and we’re seeing more firms seeking to update legacy systems and processes, which has led to demand for digital payment capabilities for employee pay.

However, there’s a fundamental question about paying employees in arrears – why should employees effectively loan money to their employer until payday? It’s now possible to allow employees to effectively choose their own payday (or paydays) with on-demand access to earned wages via a mobile app. Progressive employers, such as Nando’s, are offering this pay on-demand facility as a low-cost, high-value benefit to employees, giving them control and flexibility over how and when they receive their salary.

Nando’s Singapore

In the case of Nando’s Singapore, a brand that revolves around its people, the firm recognised that its payroll system needed to be updated. The main business challenges centred around a highly competitive jobs market, with many more vacancies than people available to work in the country, making it tough to recruit front-line staff. This, coupled with the difficulties of retaining talent when competing with the gig economy, a segment of the workforce known for paying workers frequently, was presenting a significant challenge for the firm. Furthermore, monthly pay cycles were necessitated by Singapore’s requirement for employees to have a monthly payslip to qualify for access to government benefits and the 80% government-owned housing market.

The combination of these challenges and the delicate balance of the need for monthly pay vs. pay flexibility led Nando’s Singapore to look for a more flexible solution. The solution? Pay on demand options for staff. So, what does this change and what does it mean for the firm and its workers?

When a pay on demand solution is in place, Nando’s employees will receive their monthly payslips as usual. There are also no adjustments to existing payroll processes and finance reporting, which means no extra administrative burden on the payroll team. What will change, though, is that Nando’s staff will no longer have to wait until the end-of-month payday to receive wages they’ve already worked for. Pay on demand and pay to card gives employees more control of managing their own cashflow, allowing them to instantly access their earned wages when they need them, via a mobile app rather than requesting pay advances from their employer.

Overall, the decision to seek an earned wage access solution will mean that staff will have flexible pay, supporting Nando’s recruitment and retention efforts while also delivering an enhanced employee value proposition. As Moji Neshat, General Manager at Nando’s Singapore explained, “We know unexpected bills and short-term cashflow challenges can create a lot of stress for our teams. With CloudPay NOW all our team members will be able to access their wages the very next day after working, removing that stressful wait until payday.”

Moving forwards

Sophisticated technology is playing a role in making tedious or labour-intensive processes quicker and easier in our everyday lives, and it can – and should – have the same impact for payroll. The likes of pay on demand may appear on the surface to be complex to manage, but can in fact streamline processes.

When we think back to when online payments were first introduced, there were understandable concerns around the change – but very few of us today could imagine life without mobile banking, and the ease and speed it brings to making and receiving payments. Why shouldn’t payroll follow the same path?

Continue Reading

Magazine

Trending

Business2 days ago

Financial Stability Board Gives Full Support to Wide LEI Use in Global Payments

Clare Rowley, Head of Business Operations at the Global Legal Entity Identifier Foundation The strongest recommendation yet by the Financial...

Business2 days ago

On-demand pay: why payroll needs a modern approach

Byline:  Paul Bartlett, CEO, CloudPay   While the world of work has evolved drastically over the last decade, payroll has...

Business2 days ago

 ‘What should real estate investors be doing now – has the market hit rock bottom or is now the time to buy?’

Following many years of housing prices soaring and competition steadily increasing, real estate growth has finally started to slow, likely...

Business3 days ago

Expert Guide for Email Marketing to Improving Your Conversion Rates

If you talk about email marketing campaigns, it would seem like an old-fashioned advertising style. But it is still an...

Banking5 days ago

Augmented automated underwriting and the evolution of the life insurance market

By Alby van Wyk, Chief Commercial Officer at Munich Re Automation Solutions   It’s almost inevitable. Spend your working life...

Banking6 days ago

ESG in the finance and banking industry – are you ready?

By Julian Moffett, CTO BFSI, EDB   Environmental, Social and Governance (ESG) has soared towards the top of banking, financial...

Top 107 days ago

An Entrepreneur’s Guide to Investing in Bitcoin

Marcus de Maria, Founder and Chairman of Investment Mastery.   Over recent years, Bitcoin has been steadily growing in popularity...

Business7 days ago

Overcoming macroeconomic challenges

By Mike Chambers, formerly CEO of Bacs and a consultant at Access PaySuite.   For businesses offering a subscription-based service, the...

Banking1 week ago

How unlocking the potential of tokenised markets can help banks keep pace with the digital economy

Giulia Secco is the Strategic Partnership & Ecosystem Manager at Fnality International.   In the aftermath of the 2008 financial...

Banking1 week ago

The role of Artificial intelligence in compliance at banks

Sujata Dasgupta, Global Head – Financial Crime Compliance Advisory, Tata Consultancy Services   There’s not a financial institution across the...

Technology1 week ago

Scaling securely in the automation-first era

By Brandon Traffanstedt, Sr. Director, Field Technology Office at CyberArk   Robotic process automation (RPA) has been one of the...

Business2 weeks ago

Putting technology to work on entrepreneur fund-raising

By Simon Glass, CEO, Qodeo   Human relationships are behind the most successful venture capital deals. The chemistry between an...

Finance2 weeks ago

Why leveraging strong identity verification is the key to remaining competitive for financial services

By Philipp Pointner, Chief of Digital Identity at Jumio   With the recent revelation that Facebook is allowing sales of...

Business2 weeks ago

AI and Super Apps to BNPL : How fintech can help the cost-of-living crisis

By Anna Porra, European Strategy Director at Marqeta   As the cost-of-living continues to increase, financial wellbeing is becoming a...

Interviews2 weeks ago

Interview with Devin de Vries, founder and CEO at WhereIsMyTransport

Where did the idea for WhereIsMyTransport come from? At WhereIsMyTransport, we are working to ensure that better data and technology...

Business2 weeks ago

Tips to Overcome ESG Data Selection Challenges

Gediminas Rickevičius, VP of Global Partnerships at Oxylabs   Environmental, Social, and Governance (ESG) guidelines promise better investment outcomes with...

Business2 weeks ago

The payments boom explained…  

Kosta Du   It has been clear for a while that we are quickly moving into a cashless society –...

Business2 weeks ago

Automation – the key to ensuring your organisation survives tough times and thrives

By Paul Sparkes, Commercial Director   Business is going to get tougher Your cashflow is under increasing pressure. The very...

Business2 weeks ago

How automated Digital Adoption Platforms (DAPs) improve customer engagement within financial services

By Khadim Batti, Co-founder and CEO of Whatfix   Automation is everywhere across financial services;. McKinsey notes that up to...

News2 weeks ago

Why Anti-Money Laundering is no longer just a tick box exercise

Tremors following Russia’s invasion of Ukraine have been felt around the world. At a time when customers are already demanding...

Trending