In this competitive world it’s not good enough to get
satisfied with what you have, instead one has to keep innovating his product
& services offerings. The degree of competition in the financial sectors
matters for the efficiency of the production of financial services, the quality
of financial products and the degree of innovation in the sector.
Customer is King and the key to dominate any industry is to know exactly
who your customer is. Understand demographic, geographic, biographic of customer before enter into market and change the same based on consumer behavior and consumption pattern. McDonald, KFC had to change their recipes for Indian market, hence they still expanding and successful.
In a rapidly changing world, financial services providers
must remember that their customers are changing, too. Consumers are more aware
of their finances than they were few years ago. The best service providers, engage customers and find out how their
needs are evolving. If a bank or a business has not checked out its market
or its customers to find out "what goes on with them within the last year,
you don't know your customers." Customer feedback and surveys can derive requirements and with data mining and analysis product managers can design the product.
Some of the ways are given below which builds the
exceptional products and services that can acquire the right customers and
eliminate the competition.
1. Establishing trust and good faith
with clients
Banks and financial services firms need to stand
out in the crowd by offering customers something extra. The bottom line is
there's nothing which will differentiate one bank from another, aside from
building trust bond with customers. Make an emotional orientation to the buyer
and allow them to know that you understand their financial needs. Then come at
them following solution-based thinking,
not product pushing.
The financial services providers that help
customers manage their finances well and arrange low cost funds from reliable
sources will have larger client bases. And existing clients will prefer to give
your address to prospective references in their contacts.
2. Use technology that is ease to customers
Technology has changed the expectations consumers
and businesses have. Clients use information on the web to match financial
service firms and product offerings. Many more customers are comfortable with applying
for funds online and that they expect user-friendly tools to try to do so.
E-mail messaging and chat interaction may now be
primary ways financial advisers communicate with clients. Bring in new smart
apps or web portals with catchy UI, simple processes and less number of steps/
clicks to post enquiry. Companies must consistently
react to changes in technology to stay reaching customers within the best ways.
SBI Bank came up with Yono app offering all services in it. Fintech platforms-
paisabazaar.com, policybazaar.com, mokshafinance.com, lend.in etc. have come
with digital solutions and product comparison, EMI calculators, etc. for user
convenience.
3. Offer your customer something that
your competitor doesn’t
Figure out exactly why your competition is
desperate and make sure whatever they are lacking in is the area and where your
business is exceptional at. For example, if they are lacking in customer
service, deliver an authentic and personalized experience to your own
customers. This will raise the level of competition and you will be on the top.
If you’re a smaller company,
send your customers birthday cards, small gifts and personalized letters. People
today gravitate towards the emotional side of things. So be authentic and stop
being like your big competitors. This will differentiate you from other
companies offering similar services.
Further, if you have the limit resources, you can
forge strategic alliance with
companies having same target group but different product. Create a combo at
best price. For example – PNB Bank tied up met life for selling
insurance to its customers and increasing another revenue vertical.
4. Well position your brand image
The financial services world is like high school in
some ways: Reputations are often difficult to regulate or change. On one side
your have to build positive image by building harmonious relation and on other
side you have to safe guard negative publicity, bad reviews, etc.
Consumers never forgive companies that were front
and centre during the economic crisis. Financial services companies that stay
focused on customers and their needs are going to be the businesses customers
keep at the highest of their "like" list. Request your customers to
post reviews on social media and your site.
5. Higher internal productivity
To offer best product at
competitive pricing, company needs to increase productivity by reducing cost
and increasing output. As the scale increase unit economics and profitability increases. Output can be increased by bringing in new technology,
experienced employees and favorable work culture. Also company can hire best performers at competing players which will not only give a good resource but also apprise inside strategy of competitors.
The companies needs to stay in alert as customers' needs shift quickly and they have to provide
workable solutions. Once you are able to command above points you will have all the opportunity in the market
to make huge profits in a short period of time and command majority market
share.
With Love.
Amit Pamnani
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image credits - pexel
