As it stands, Behavioural Economics (BE) has created a feast of debate and discord within financial services around consumer protection, conduct risk and the application of social science to hard-core commercial strategy.
The FCA have made it clear they wish to devise a blend of ‘hard and soft’ strategies that provides a more measured carrot and stick approach to conduct, service and product based regulation.
The question we’re often asked is how is BE used within the business to enhance customer experience along with meeting the FCA expectations?
Our approach is simple: Identify your business and customer biases and use strategies to gain customer engagement and a constructive corporate culture.
The BE strategies we use are:
- Map out your customer journey: Using software we can ensure the business steps into their client shoes, understands their biases and ensure services and products are easy to understand and access and are suitable for customer needs. In other words, know your client.
- Engage your staff: Align staff remuneration and career ambition with the customer journey. By tracking your customer loyalty (retention) rate you’ll be able to identify the right staff are in the right position with the right skills.
- Focus on tailored education: People want meaningful insight and not a hard sell. If customers feel their needs are being met they will buy. If your staff know they are growing in their roles, they will stay.
- Lead with emotional intelligence: Knowing the impact of your senior team on staff and business strategy will provide valuable knowledge to fine tune board strategy to enhance staff and customer engagement.
- Streamline and calibrate operations: By incorporating digital technologies and enabler tools, customers will find it easier to access knowledge and services and staff can process business quickly and compliantly.
The movement to a more visceral understanding for the impact of business strategy using BE is providing business with more understanding of what is working and what is not when it comes to their conduct and customer engagement. For more on BE you can download our guides by clicking the image below.