Embracing Digital Transformation in Customer Communications: A Strategic Imperative

Customer experience, security and cost are perennial components at the forefront of every one of our clients’ strategic agendas. It is no surprise that when technology and consumer appetite for replacing written communication with digital methods came emerged, the UK financial services industry embraced the opportunity. However, as with any initial tech adoption, these early solutions were not without flaws. The clunky user interfaces and poor security are primary reasons customers still opt for print and post methods of communication. We estimate that the UK Financial Services industry mails 1.2bn of customer communications annually, with an associated estimated cost of £3bn.

This hangover from the early days of digitizing customer communication is not due to lack of effort. Customer experience, security and cost remain central to almost every strategic project we undertake with our clients. Furthermore, customer engagement strategy is typically a major focus. Why then do UK Financial Services firms spend on average £525k per year on antiquated digital customer communications?

In many cases, the clunky portals and mailboxes currently in use by many of our clients work just ‘good enough’ to avoid attracting attention. However, we believe these legacy solutions are approaching their end of due to three significant macro shifts over the last 15+ years:

1. Consumer Expectation: With digital natives now representing the majority of consumers and their predecessors and digital adopters becoming increasingly comfortable with digital comms, there has been a fundamental shift towards digital engagement platforms. While some individuals may still prefer print communications, their numbers are steadily declining. As such, organizations must adapt to meet the expectations of an increasingly digital-savvy consumer base or risk falling behind competitors who embrace innovation.
2. Technical Capabilities: Modern solutions now enable organizations to deliver seamless and intuitive digital communications that surpass traditional methods in experience, security and cost.
3. Regulatory Environment: Regulatory requirements are becoming more stringent, necessitating frequent and transparent communication with customers. Digital platforms enable organizations to track engagement metrics effectively, ensuring compliance with regulatory standards and mitigating the risk of sensitive information falling into the wrong hands.

Our research indicates that, on average, our clients can save up to £6million per year by implementing a modern secure digital customer engagement platform. These savings are driven by an increase in adoption, enhanced security and improved maintenance costs. We know that customer experience, security and cost are critical to your organization. Therefore, we encourage you to evaluate your current solution is and consider that there is likely a better alternative.