The customer experience outlook in 2024: Personalisation and AI to bring finservs closer to consumer

In 2023, the UK’s business sector weathered storms such as geopolitical tensions, the cost-of-living crisis, and an economic downturn. This turbulence looks set to continue well into 2024, forcing organisations to tread cautiously and make more informed decisions regarding investments, product development, and overall strategy.

Central to this will be a need to prioritise the customer, and, as such, the financial services sector can be expected to double down on customer experience (CX) strategies over the months ahead. For those looking to stride ahead of the competition, these CX practices must evolve in line with customer expectations, leaning on next-generation technology, such as AI, to deliver more personalised services that better cater to their needs and preferences.

Finservs will hyper-focus on customer experience and outcomes
Customer experience within the financial services arena has never been more in the spotlight. Not only are customers demanding more from their financial services providers but the sector is under greater regulatory scrutiny with the introduction of the Consumer Duty rules, mandating better customer care and a more rigorous, data-driven approach to compliance. This means that in 2024, it’s no longer enough to have a dedicated customer experience strategy – finservs will have to evidence the effectiveness of their CX programmes in helping customers reach their goals.

Embracing a customer-first culture, while important in terms of compliance, is also essential for long-term success and competitive advantage. The latest UK Customer Satisfaction Index shows that 80 percent of customers who asked a brand for help in managing their financial situation during the cost-of-living crisis said that after the contact, their trust in the organisation increased. Similarly, 75 percent of customers who were approached by an organisation offering help or advice affirmed that their level of trust in it rose. Fostering positive customer experiences clearly pays dividends for finservs.

Establishing trust is the foundational element to customer loyalty, but in 2024, finservs must go beyond this and put in place a robust, AI-driven CX programme that provides the personalised service consumers desire. This approach will not only enhance customer satisfaction and foster long-term loyalty, but will also set the stage for sustained growth and success in an increasingly competitive landscape.

Personalisation will become more granular
Research shows that the majority of customers now expect personalised experiences, and most will get frustrated when they don’t get them. In fact, 61 percent are willing to spend more when such a service is offered. In 2024, personalisation is not just a nice-to-have but a necessity in meeting customers’ evolving expectations and ensuring a positive and relevant experience for them.

To achieve personalisation at scale in 2024, finservs should:

• Adopt a customer journey mindset by mapping out the entire journey a customer has with their brand, identifying key touchpoints, and pinpointing opportunities for personalisation. No two customers are the same, so understanding where and how to tailor interactions based on individual preferences contributes to a more relevant customer experience.
• Remove data silos between different departments to obtain a holistic view of customer interactions. After all, to achieve more granular personalisation, it is imperative that finservs first understand the customer as a whole.
• Gather feedback from different sources, including surveys, social media, customer service interactions, and video, to extract meaningful insights. Finservs can analyse these feedback signals not just for their content, but also for sentiments they convey, to develop a deeper understanding of customers’ experiences and better respond to their needs in the moment.
• Segment customers based on demographics, behaviours, preferences, and transaction history, and offer tailored services and communications to each group accordingly. This is particularly important when dealing with vulnerable customers.

Finservs also need to know when exactly to offer highly personalised experiences, and when to leave them out of the mix. For example, in the case of contact centres, employees are typically expected to focus on resolving customers’ issues efficiently and adhere to a predefined script. In such cases, extensive personalisation might prove impractical and frustrate the customer if they are looking for a quick solution, while generic or automated responses may be more fitting. However, for vulnerable customers, demonstrating empathy and providing the human touch, can be truly appreciated.

To achieve this level of granular detail, finservs can use tools that analyse vast datasets to deliver highly tailored experiences for individual customers. These tools can also help guide teams in determining the level of personalisation needed at specific moments in the customer journey. This is where AI comes into the mix.

AI will make vital customer insights more readily accessible
AI can provide finservs with real-time insights that can make or break the customer experience. In 2024, personalisation will go hand-in-hand with AI, so laying down the foundations for this technology is crucial. To do so, organisations can leverage:

• Text analytics, which uses AI-powered Natural Language Understanding to derive insights from text feedback – analysing data for intent, empathy, sentiment, and more.
• Speech analytics, to operationalise acoustic sentiment from calls, voicemails, and other voice recordings. Using speech analytics to surface actionable insights can result in customer satisfaction score improvements of at least 10 percent.
• Video analytics help finservs unearth rich insight from non-verbal cues that may otherwise not be detected or noted down, such as facial expressions, tone of voice, and emotions.
• Finally, AI-powered alerts are key to infusing the customer experience with a real-time response element. These alerts help teams identify opportunities for customer retention and respond promptly to customer needs by recommending high-value actions, in the context of specific situations.

2024: The year of customer-centricity

While 2023 served as an introduction to the enormity of AI, 2024 will delve into the practical aspects as organisations explore how it can be used to assist, rather than replace, humans. In the finance sector, where customers must take precedence above all else, AI will be a valuable asset, aiding professionals in delivering personalised and meaningful customer experiences. However, the human touch will remain crucial, especially in moments requiring empathy or a listening ear, and further enhance the level of personalisation.

As the financial sector looks upon a year of customer-centricity and personalised experiences, a robust and AI-enabled strategy will help organisations maintain a competitive edge and a loyal customer base. Success in 2024 will hinge on finservs’ ability to navigate these trends carefully and meet the evolving needs of their customers.