Amy Robinson, Senior Brand Development Manager, Esendex
2020 has certainly thrown a curve ball to all businesses across the world, and the finance industry is no different. This year finance has been the driver for both commercial and personal challenges across the country.
The start of the pandemic saw revenue disappear overnight for many businesses, while exponentially increasing demand for other predominantly online services. This commercial challenge had a knock on effect to personal finance with 9.6 million people being put on furlough between April and October 2020. Sadly, the rate of unemployment also increased by 0.7% and sits at 1.62 million people unemployed in the UK today.
These drastic changes to both personal and commercial finances mean that financial services firms have a unique and challenging task ahead of them. With 2021 planning well underway for most businesses, a key focus for finance firms needs to be around customer communication.
In fact, 1 in 3 firms in the finance sector are sending more messages now compared to before the pandemic, most made up of account updates (17.95%), customer service updates (17.95%), delivery information (17.95%), appointment management (15.38%), marketing activity (12.28%), customer satisfaction surveys (10.26%) and emergency information (7.69%). This trend looks likely to continue well into 2021 with Covid-19 still impacting everyday life.
However, the latest vaccines offer hope to both businesses and the general public that an end might be in sight. Consequently, it’s important for companies to start to plan how they will navigate this next phase alongside their customers, as the country and indeed the world, will hopefully steadily move into a recovery stage. Life, for anyone, is unlikely to return to a pre Covid-19 state, with the country entering into one of the deepest recessions we’ve witnessed in our lifetimes. Mass uncertainty is likely to continue well into 2021 and it’s the role of financial services to understand this, consider customer sentiment, and ensure that brands are adding empathy to their messages when communicating with customers. This is especially important for areas such as debt collection where businesses should look to focus on ethical debt recovery strategies.
Alongside the financial recession, the UK is also witnessing a mental health pandemic more severe and widely spread than ever before. In fact, a report by The Health Foundation found that 69% of adults in the UK report feeling worried about the effect that Covid-19 is having on their life. With this in mind, finance firms need to tread carefully when communicating with their customers. The FCA have recently confirmed support for consumer credit customers impacted by Covid-19, outlining how finance firms will need to behave when collecting monies owed. The theme heavily weighs in the consumers’ favour, allowing payment holidays to those unable to make their usual deposits.
Consequently, the big theme coming out of 2020 for financial institutions is around ethical and empathetic behaviour. Below are some tips and strategies for approaching customer engagement in 2021, while navigating the new government criteria and market trends.
Clear, effective messaging
At a time of high stress and anxiety, various government support schemes, furlough, unemployment and often relationships with multiple financial institutions, it’s easy for customers to become overwhelmed or confused. When communicating with your customers make sure the message is clear and concise; if there are actions required on the customer’s side then ensure this is clearly detailed using a step by step guide.
Support your customers
Aim to support your customers as far as possible and send them a reminder message should a payment be due or you require additional information. It’s easy to forget that you’re not the only business sending a customer an important message, so aim to communicate with them in a simple and timely manner. The channel used for this message can also make a great difference, so using something like SMS can really help to break through the noise and get the required response.
The power of conversation
Something often missing in a digital world is the power of the human touch. With so many emails and Zoom calls flying around the world, something as simple as a telephone call can be the most effective strategy. People can become frustrated and anxious if they feel that they are not being listened to or treated as an individual; by talking to a selection of key customers on the phone, you can help to bring back the human element and improve the perception of your brand. This is especially true when talking to customers from the older generation who may feel uncomfortable talking about finances online.
There’s no doubt that 2021 will look different for us all. By remaining agile, empathetic, and consumer-centric, we can ensure that we navigate the next 12 months in the smoothest way possible. This is a true change for customer engagement in the financial services sector, and while challenging, it will hopefully offer many benefits to this form of communication for years to come.
