Paul Holland, CEO at Beyond Encryption
It’s safe to say that the road to successfully digitising services is a long one, with one wrong turn excluding or alienating whole sections of your customer base. This is especially true with client comms, with firms now finding themselves in the position of comparing and deliberating over a host of digital options.
Portals, chatbots, social media… the choices are widening each year. Yet, businesses cannot afford to stand still on these decisions for too long. As more and more businesses look to take their operations online, delaying the implementation of digital services and communications only means that others will storm ahead and reap the rewards of increased efficiency and customer loyalty. So, how can financial organisations avoid the key pitfalls that can come with digitalisation and choose the right path to walk?
Consumer choice
When it comes to navigating the challenges that arise when implementing a digital transformation strategy, a robust understanding of consumer attitudes is crucial. Introducing a solution that your customer base won’t or can’t use is counterproductive – you need to meet them where they’re at.
Our latest research shows that, when it comes to preferred communication channels, email is the top choice, with 39% of consumers opting to use email when interacting with a business compared to the 16% who chose portals and the 13% who prefer post. With an estimated 347 billion messages sent and received each day, email is by far one of the most utilised communication channels for both business and personal use. With email being one of the initial digital comms to be introduced to the market, it also bridges the gap for those in the older generations who may be uncomfortable with more modern approaches. In other words, email is a familiar face in a sea of new technology.
However, we must remember that a one size fits all approach is not the way to go. Our research also took a deeper dive into the generational differences between consumers, and the results show that there are significant variations. For example, Gen X is the most likely of all generations to want to use an organisation’s app, with 35% stating it as their platform of choice. On the other hand, Gen Z is the most likely to want to use online portals or receive postal comms, with 15% stating it as their chosen platform.
So, while email is still the go-to for consumers, businesses that offer one channel of communication at the expense of all others risk leaving a selection of their clientele out in the cold. Even if 95% of your customer base is happy using one solution, you should be asking yourself – what about the other 5%? Firms must cater to customers of all demographics and digital abilities, offering a range of communication channels to suit their entire audience. Businesses that just cater to the majority and fail to consider each segment of the market are those that risk losing out in the long run to organisations that do.
Climate Concerns
Efforts to reduce individual and collective carbon footprints have become a top priority for many UK consumers and companies. A study of more than 1,500 UK businesses found that climate change has become a significant challenge, with nearly three-quarters of business leaders concerned about the potential impact over the next 10 years. Of those businesses that are planning to protect themselves against climate change, the most common proposed strategies include investing in environmentally friendly technologies (32%) and reducing paper use (63%).
On the customer side, research by Deloitte suggests that at least 40% of consumers are now actively choosing brands that have environmentally sustainable practices and values. When applying this specifically to digital comms, our own research finds that 70% of consumers feel that businesses should reduce their postal communications to reduce their carbon footprint.
Financial organisations wishing to lead the digital transformation charge will need to take this into account as they build out their digital strategies. Digital solutions could be the key to removing environmentally impactful communication methods, such as print, pack, and post – but only if they are done correctly. Therefore, introducing solutions that are unsustainable at this stage in the game are extremely unlikely to meet the mark for a large portion of consumers.
Combating security risks
With digital threats increasing year on year, the final consideration when it comes to digital transformation must be security. Consumers are increasingly demanding seamless and frictionless user experiences, but only if this does not come at the cost of the security of their private information and data. This has put intense pressure on the financial services industry to digitise their services in a way that is both efficient and secure.
Our research has shown that, while consumers display a keen knowledge of the need for cybersecurity, their awareness of their own behaviours is lacking, creating a severe disconnect between theory and what they put into practice. While the majority of consumers believe in their ability to spot cyber threats and protect themselves online, they still undertake actions that put them at risk. Our data shows that over ½ of consumers have shared personal data over email, and a ¼ have done so with the wrong recipient. Unfortunately, this risk is only exacerbated by businesses, with 73% of consumers being asked by businesses to share personal data over email.
As individuals become increasingly keen to have the final say over their online data, relations are in danger of turning sour between financial service providers and their clients if they lack the appropriate protections and risk compromising their financial security.
The takeaway
No matter which way you decide to tackle digital transformation within your business, there are a key set of factors for you to consider before putting a solution into play. Climate and security concerns are vital elements, but when you truly get to the heart of digitisation and what it means for your business, consumer choice must be the north star that financial firms journey towards. After all, offering clients the service and communications they require is imperative for future-proofing your business and ensuring brand loyalty remains steadfast.
