• Matt Ryan, Chief Transformation Officer at Reef, Powered by Totem


• 22.03.2024 09:00 am
#finserv #transformation #digitalisation #customers

Since the commercial world began its digital transformation, industries across the world have been forced to adapt rapidly to shifting consumer behaviours and preferences, and nowhere is this truer than in the retail sector. 

The rise of online shopping in the early 2000s forced retailers to rethink how they engaged with customers. They were challenged with how they could deliver a seamless, on brand experience no matter what the channel. What emerged was ‘omnichannel’ retail – one seamless experience, online and off.

Fast forward to today and retailers have truly embraced this approach, leveraging technology to track customer interactions across each touchpoint, enabling personalised marketing, efficient customer service and a cohesive shopping experience. 

In this article, we will look at what brands across financial services (FS), such as investment advisors, wealth management and asset management firms, can learn from the retail sector as they look to blend in-person and online engagement.

Creating an engaging experience that communicates your value

The transformation within the retail sector, especially in creating experiences that communicate value, offers profound insights for the financial services sector. This shift is not just about blending online and offline interactions but leveraging the strengths of each domain to enhance the overall customer/client experience. 

Take the example of innovative retailers, such as AO, that transformed delivery services from a literal product drop-off to a more personalised experience, showcasing how online insights can enrich in-person interactions. Delivery personnel are now armed with data on customer preferences, meaning they can now offer tailored recommendations or special touches that elevate the overall brand experience. This approach mirrors the potential for firms in the financial services sector, enabling them to use online learnings about a client's preferences and behaviours to inform and enhance in-person meetings or consultations.

Furthermore, the integration of technology in retail has enabled a seamless transition between online and offline experiences. QR codes in physical locations, for example, leads to immersive online content that is helping to simulate in-person interactions, while apps provide a bridge between the digital and physical realms. These are hugely successful examples of how the lines between online and offline are increasingly blurred. Today’s FS brands can leverage similar technologies to create a unified and interconnected journey for their clients and customers.

Insights into your customers

Another crucial lesson from the retail sector is the power of data-driven insights in enhancing customer engagement. By leveraging advanced analytics and AI-driven technologies, retailers have gained deeper understanding into consumer behaviour and preferences. FS firms can similarly harness the wealth of data at their disposal to personalise their services, anticipate client needs, and deliver targeted recommendations. Through data-driven personalisation, these companies can elevate the overall customer experience and build stronger relationships with their clients.

Furthermore, the retail sector's emphasis on community-building presents an opportunity for companies to foster a sense of belonging among their clients. By creating online environments that deliver valuable information and insights including things like educational events, webinars, podcasts or videos, companies can facilitate meaningful connections and cultivate a loyal community of investors. Building a sense of camaraderie and shared purpose not only enhances customer engagement but also reinforces brand loyalty in the long run.

Additionally, the retail sector's adaptation to changing consumer behaviours highlights the importance of agility and innovation in today's dynamic market landscape. Companies across the financial services sector must be willing to experiment with new technologies and business models to stay ahead of the curve, particularly when it comes to digital hospitality and community building. Ideally, everything you can do face-to-face should have just as good a digital equivalent, and vice-versa. So, if you are holding seminars for investors to share your expertise, then there should be a digital version that can be dialled into live and recordings available for anyone who can’t make it – and hosting it on Zoom or other video conferencing apps is no longer good enough. 

There are now ways to create white-glove experiences online that also allow you to keep clients and potential clients engaged and see how they are interacting with your content.

Creating a luxury experience

The retail sector's evolution in customer engagement offers valuable insights for companies seeking to enhance their own strategies. By prioritising branded experiences, leveraging data-driven insights, fostering community engagement, and creating a white-glove experience, these companies can elevate their customer engagement efforts and build stronger, more meaningful relationships with their clients. 

In an era of unprecedented change and uncertainty, the ability to adapt and innovate will be key to success in the financial services industry.