Table of contents
Adapting to change is about being in tune with consumer behaviour. And for lenders, this means they need to continually curate unique onboarding journeys and propositions to meet evolving customer expectations. Be it fintech, legacy banks or digital lenders - the importance of having a smooth customer experience across the onboarding journey cannot be overstated.
And we’re in the business of optimizing for the best behavioural outcome. 40% of respondents of the EY Future Consumer Index now expect to bank online more over the next 24 months.
More often than not, banks that have a higher Net Promoter Score (NPS), usually adapt to these shifts in consumer behaviour and it reflects in their digital onboarding journeys.
Customer Journey Mapping
There’s what we think customer journey mapping should look like, and then there’s what your customers actually want to experience. How can banks deduce what the customers are actually telling us? Tracking customer journeys.
Journey mapping in a nutshell is a representation of insights, everything from where, how, and when customers are most and least engaged along the lending lifecycle. For retail banking, customer journey mapping can be quite comprehensive and doesn’t just end at tracking the front end. Capturing all the interaction requires organisational and technological investments, and most importantly, closely tracking certain metrics. These metrics must be precisely measured, thoughtfully selected and overall contribute to the achievement of a north-star metric.
What are the metrics lenders need to track to improve their journey outcomes?
1. Conversion funnel journey of a user
Funnel Journey metrics begin the moment your customer creates their profile on your banking website/app till the point that the loan is disbursed. This is a crucial and arguably the most important metric to track. As part of our FinBox Conversion Kit, we track the entire journey of users moving through the entire loan application journey and provide deep analytics across various splices - time periods, geographies, cohorts and more.
This helps us identify trends in the funnel and over time, develop reliable, actionable insights. For instance, if we’ve noticed customers dropping off at the KYC submission stage, it's most likely because uploading their PAN cards is a task. So what’s the journey solution? Implement API-based integrations with external sources to automate data capture. This leads us to the second most important metric to track - Drop off rates.
2. Drop-off/abandonment rate
An extension and result of the journey funnel, drop-off rates need to be watched like a hawk. 97% of online banking applications that are started are abandoned - effectively leaving the conversion rate at 3%. Most customers require an experience like Netflix or Uber — where efficiency, as well as time, coalesce. It’s one issue to ensure the process doesn’t unduly burden the customer, it’s an altogether greater issue to deliver compliance in a way that is cost-effective and scalable.
What happens when you’ve got the API integrations in place, your customer’s KYC application has been approved and there’s still a drop-off? Possibly changed their mind, right? Or got another notification on their phones and couldn’t complete the application? Nobody wants to start a loan application from the start again. In the age of convenience, we have to go where the customer is.
That’s where FinBox’s nudge-driven, Whatsapp journeys come in handy - customers can pick up their applications where they left off, through automated reminders and deep customer engagement via vernacular support.
Turnaround Time or TAT shows how much time it has taken to disburse a loan and how much time a customer spends between each step in the journey. The end goal, obviously, is to reduce the TAT between application to disbursal and between various steps of the journey. For instance, the average time to get an OTP is 10-15 seconds. If it takes longer, say, 1 minute, there is a clear indication that something is broken and well-set up analytics in the backend can help isolate and rectify the issue before thousands of borrowers suffer. . Shorter TAT = Better qualified to disbursal ratio. And a higher NPS!
4. API health
API stands for Application Program Interface. Think of APIs as a library of tools, routines, and protocols. Developers use it when writing code to assign how software applications should interact. Put simply– it defines how programs communicate with one another in the ecosystem.
If you can think about your customer journey like an orchestra, then APIs are the conductors. These APIs facilitate how information is exchanged between systems, devices, and users, creating efficiencies and intelligence without risk to data integrity or security. And how fast information is exchanged.
It's essential then to do routine API health checks to see how fast and reliably they’re functioning and whether there are latencies. If there is even a 5-second delay in going from step one to step two in the loan journey, it's probably time to check your API health. After all, everybody wants what they want and they want it NOW!
Feature Adoption depth
If you’ve been on Twitter long enough, you’ll know that Twitter fleets are a new feature. And how do you know if users have adopted the feature? By users posting on their fleets, they have adopted a feature on Twitter. Banking features may not be as interesting as Twitter fleets, but they’re certainly important.
Some of the best banking apps are riding on the back of continuous feature adoption reviews and improvements thereof. For instance, HDFC's banking app home screen allows users to customize their ‘My Menu’ feature according to their most used features. Tracking feature adoption helps drive your Product adoption strategy by focusing on what is needed: feature discovery or engagement. This in turn drives retention and reduces churn.
Customer journey mapping is an exercise in understanding who our customers are and what motivates them - in their own words and based on their own actions! It’s necessary to continuously track the crucial metrics across a customer's lifecycle in order to deliver an experience of the highest calibre A deloitte survey revealed - 63% of retail and institutional banks plan to invest in customer data analytics, and 60% plan to invest in customer service. The same survey also showed that 84% face challenges in adopting AI in support of these efforts.
This is where FinBox can help - Our adaptive journeys and conversion kits are a powerful stack with only six lines of code, that integrate seamlessly into your app. Timely, personalised insights, actionable recommendations, and contextual nudges are designed to deepen engagement with your customers. FinBox Adaptive journeys are maximised for conversions - our adaptive checkout feature has proven to boost AOV by 79% and repeat purchase rate by 20%!
To know more, get in touch here!