Significant global events accelerated the rapid transition to digital platforms, reshaping consumer preferences and behaviors across various industries, including the banking, finance, and insurance (BFSI) sector. The demand for remote services led to the rise of fintech and digital banking solutions, emphasizing the importance of seamless, personalized, and secure online experiences.

In the past, shopping and banking were predominantly offline physical experiences. Customers would visit stores or banks, transact face-to-face, and receive in-person assistance. This approach offers customers and businesses limited flexibility, scalability, and convenience.

As people adapted to new lifestyles, the digital world expanded. This growth pushed companies, especially those in the highly regulated banking and finance sector, to adapt to changing customer expectations and stay competitive in the growing digital environment.

Today, a "great" customer experience (CX) encompasses more than just "satisfaction." It comprises the entire customer journey, from the initial brand interaction to post-purchase support. Customers want personalized experiences consistent across all touchpoints and channels, whether online or offline.

But what exactly makes for a great customer experience? In this article, we'll explore next-generation customer experience (CX) and its importance as a critical strategy for BFSI companies and other enterprises to remain competitive. We'll also discuss the solutions and technologies employed to achieve this objective.

What is NextGen Customer Experience?

Next-generation customer experience or NextGen CX refers to the continuous evolution of customer interactions with a brand, using cutting-edge solutions to provide an exceptional and personalized experience. It involves leveraging data, analytics, and digital platforms to understand and meet customers' needs efficiently, effectively, and seamlessly.

In today's fast-paced world, customers expect businesses to deliver an intuitive, omnichannel experience that caters to their unique preferences and needs. NextGen CX is about utilizing the latest technologies, such as artificial intelligence (AI), machine learning (ML), and automation, to deliver this experience.

Why is NextGen CX Important?

Nowadays, businesses aren’t just selling a product or service but an experience. And the numbers prove it:

• 86% of customers are willing to pay up to 16% more after a positive customer experience.
• Positive experiences can boost Customer Lifetime Value (CLV) and spending by up to 140%.
• 96% of customers are likely to react negatively after just one bad interaction.
• According to Temkin Group, 77% of consumers shared positive experiences with friends or on social media and review sites.
• 83% of customers would change brands because of subpar customer service.

NextGen CX in the Financial and Insurance Sector

The financial and insurance industry is witnessing a significant shift towards digitalization. For instance, the rise of digital banks, which employs a “Phygital” model (combining physical and digital channels), has led to an increase of 36% (from 8%) in e-money accounts ownership in the country, according to the 2021 Financial Inclusion Survey (FIS) conducted by BSP.

Similarly, despite only about 2% of the Philippine population having insurance coverage, initiatives by companies like Singlife are making great strides in addressing this gap. By leveraging technology, customers can now easily purchase insurance products through mobile platforms like GCash. This significantly simplifies the process, enabling a broader population, including those previously unbanked, to secure their financial futures.

Components of a Fully Optimized NextGen CX

Based on the result of the survey "The State of Customer Experience" by Genesys, the top technology focus for CX leaders globally is setting up a customer experience platform that combines systems such as unified communications, CRM, ERP, AI tools, and workforce planning.

There are three layers to a fully optimized NextGen CX:

1. Front-End: Customer-Centric Interface

The front-end layer addresses customer-facing elements like websites, digital channels (e.g., social media), and contact center interactions.

This layer focuses on creating a seamless and personalized customer experience at every touchpoint. It uses AI-powered chatbots, virtual assistants, and other digital tools to provide real-time assistance to quickly and accurately handle customer inquiries.

Customers expect smooth interactions with brands across all platforms, including social media, website chatbots, and face-to-face meetings. Hence, businesses must integrate all channels to deliver a seamless omnichannel experience.

2. Back-End: Operational Excellence

The strategic application of different CX technologies, such as AI, chatbots, and advanced analytics, enhances customer interactions and boosts employee productivity. Efficient processes allow employees to focus on proactive problem-solving and root-cause analysis, improving the overall customer experience.

Upgrading legacy systems to advanced platforms like the cloud is crucial for supporting these sophisticated technologies and streamlining operations.

3. Hidden Layer: Security and Privacy

Gartner forecasts that modern privacy laws will safeguard 75% of the global population's personal data. Robust security measures have become more crucial with the evolving data privacy landscape.

Businesses must prioritize strong security protocols and privacy standards to foster trust. This can include:

• Employee education on data privacy
• Strong data encryption
• Transparent data usage
• Centralized data management
• Regular security audits

To know more about how Globe Business can help your business achieve NextGen CX, visit our NextGen CX page or contact your Enterprise Account Manager today.