One of the positive outcomes of the COVID-19 pandemic is that it catalyzed everyone of every age and demographic to become digital natives. Even the most resistant consumers adopted digital tools and services (from ecommerce and social media to telehealth and digital banking) out of pure necessity. As a result, it stands to reason that a majority of customers today are digital natives.
Yet, only 67% of retail bank consumers used their bank’s mobile app in the past year, according to a study by J.D. PowerOpens a new window . And less than 60% are open to learning more about new products and service offerings from within the app. For many customers of institutions such as banks or insurance, apps serve as little more than a place to check balances and pay bills. If 82% of consumers want their financial institutions to serve them digitally, but app engagement is at a minimum, how can retail banking institutions bridge the gap?
Unfortunately, app design, by nature, is antiquated. Users are forced to navigate through various screens and toggle different menus to access the information they want, creating maze-like limitations that are frustrating and time-consuming. Companies are pushing endless new features to bolster user interfaces, but what is the point if users do not actually engage with them?
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From social media to entertainment to news, digital engagement today happens on feeds. But financial institutions have been slow to adopt feeds due to sunk costs and are, instead, doubling down on portals and apps. Those pouring all their digital engagement resources into improving the app and portal UI and UX are missing a huge window of opportunity to uplevel their CX strategies via the channel proven to keep customers most engaged. In this piece, we will explore three main benefits of feeds over mobile apps and web portals and why they should be incorporated into organizations’ ongoing engagement strategies.
Feeds Offer Personalized Content
It is no surprise that global users spent 19.6 hours a month on TikTok in 2021, according to StatistaOpens a new window . TikTok and LinkedIn have mastered the art of delivering a genuinely engaging feed, and data engineers at both companies have crafted some of the most symbiotic relationships found outside of the animal kingdom. With the help of algorithms, TikTok and LinkedIn boast mutually beneficial relationships between user and platform as user-provided data — whether it is first-party data or an analysis of post engagement — is translated into meaningful, intentional experiences built on the foundation of personalized and tailored content.Â
Similar to TikTok and LinkedIn, you can gain valuable insights into how users interact with your app or web portal and their behavior by analyzing their feedback and preferences. Accordingly, you can suggest appropriate content and offer personalized recommendations. It is a win-win situation for everyone since users spend more time on feeds and, in return, receive highly relevant engagement opportunities.
Feeds Value Customers’ Time
App companies continue to operate under the misconception that more time equals better engagement and develop products with this end goal in mind. Good content is often sacrificed at the expense of more content, and users are presented with the paradox of decay in relevance despite the volume of posts that are up on their screens. Cue the digital rubbernecking and doomscrolling, and users are left wondering how they spent hours lurking on an app without engaging with any posts. Traditional mobile apps are built on the notion that the user’s time is free and unlimited, whereas feeds play on the fact that the customer’s time is scarce and valuable.
Feeds Offer Low Barriers to Entry
Apps and web portals present high barriers to entry, from registering for an account and creating a secure login to opting in for push notifications and opting out of app tracking. Consumers desire simple and seamless platforms without regular modifications and updates. Increased functionality designed to streamline the app experience is fundamentally based on the assumption that customers are willing to engage within the app.
Nevertheless, it is important to consider whether attempting engagement with a customer while they are mid-workflow is a good idea. Mobile apps and web portals are “pull†mechanisms — when a customer arrives, they already have a workflow in mind, such as paying bills or checking their balance. Engaging with them while they are attempting to complete a task runs the risk of disrupting their workflow and driving the customer toward the path of active disengagement (opting-out or churning). Tailored engagements offer limitless opportunities to establish valuable and meaningful relationships.
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For example, heretofore, digital engagement in banking and insurance has been episodic and transactional — onboarding messages, account activation, or billing notifications. When implemented correctly, feeds are proven to positively impact each stage of the customer lifecycle, from onboarding to ongoing engagement to re-engagement, by aligning contact with content, meaning each engagement is informed by all previous engagements. This is akin to how social networks and news aggregators elevate the most engaging content to the top of our feeds. Organizations that successfully integrate feeds into their CX strategies are likely to experience a measurable increase in return on investment and strengthened customer relationships.
Most of today’s customer engagement strategies are driving customers toward dormancy and active disengagement because they are out of sync with the ebb and flow of digital engagement. Brands that have shifted to a feed-first engagement model are left with a less costly, more loyal, and more satisfied user population. These “devotees,†or customers-for-life, are more likely to attribute positive sentiment to a brand and serve as advocates. Feeds are the “push†engagement nodes of the digital world — consider their place in your post-transformation digital strategy.