NEW DELHI – 14 March, 2022 – Bain & Company announced that they have officially launched their NPS Prism Banking product into the India market, aimed at helping companies drive meaningful customer experience changes in their businesses.
"Banks and financial providers in India have been dealing with critical changes to their industry for some time now, resulting in an urgent need to refocus, prioritise customer needs, and identify ways to offer superior experiences,” said Saurabh Trehan, a Bain & Company partner and Financial Services Lead in the India office.
NPS Prism for India Banking began in response to demand from major players in the market to become more customer-centric in light of demand for deeper insights into customer experiences, as well as the rise of digital banking, which is transforming CX in the banking sector. The role of digital banking in CX is rising further in importance as the banking industry experiences changing customer perceptions and behaviors during the COVID-19 crisis, with a shift from physical branches and payment methods to digital options. After its launch year, NPS Prism for India Banking customer data will be updated quarterly, allowing clients to monitor the real-time impact of CX efforts on their customer advocacy.
NPS Prism for India Banking will allow banking providers to answer critical questions about their customer experience to help them improve their advocacy, including:
- How does my CX compare to that of competitors at the brand, product, and episode levels?
- Which customer episodes have the greatest impact on customer loyalty?
- In which channels am I (and my competitors) delivering a better experience?
- How do I compare to competitors on customer-reported metrics (e.g., digital failure rates, “first time right”, call center wait times)?
- How does my digital penetration and digital experience compare to peers?
“Loyalty in consumer banking in India is getting more challenging with around 50% customers indicating willingness to switch their bank in the next 12 months. With low barriers for switching, providing good customer experience consistently across customer journeys has become all the more important both for customer retention as well as growth. Our customer research suggests promoters are 2.5x more likely to buy banking products with the same provider compared to detractors.” said Rakesh Pozhath, Bain & Company partner in Financial Services who is leading Prism launch in India.
Rakesh further added “In post-Covid environment, customers are increasingly preferring digital channels not just for routine transactions like funds transfer, reviewing account information but also for select account opening, onboarding and servicing episodes. However, digital failures (journeys starting with digital but ending in human channel) result in substantial drop in customer NPS. High digital failure rates (DFR) remain a challenge for most Indian banks, with DFR for Indian banks almost 2x compared to banks in US.” NPS Prism will be a valuable tool in allowing these organisations to gain an edge, by identifying deep insights into their customer experiences which will allow them to identify ways to improve, offer unparallel service and build lasting customer loyalty.
With Prism, CDOs, CMOs, Customer Experience Officers, Channel heads, CPOs and of course, CEOs will be able to make critical strategic decisions with data-backed insights. For example, episode level CX and digital benchmarking provides the CDO insights on which journeys to prioritize for digitization / redesign, enhancement of existing features in current digital assets and sequencing of features / products for new initiatives like a Digital attacker / Neobank.
Currently, the NPS Prism for Banking tool operates across the globe, including in the United States, Canada, Mexico, Colombia, Chile, Peru, Brazil, UK, Thailand, Malaysia, Singapore, Indonesia, and Philippines, with plans for further expansion.
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