Smartphones, tablets, and computers: each of those has changed how and where we get things done. And even though each has been heralded as the death of the other, we’ve not discarded one for the other or eliminated any of them from our lives. Instead, we use each of them for different things at different times.
Nowhere is this more evident than in the way we shop. While we may not make a lot of purchases on our phones, from start to finish, we do use it heavily along the way. We research on tablets, compare prices in-store or using our smartphones, bargain shop, and fill our carts. Most of us, typically, make final purchases on our computers (laptop or desktop) at home.
We are “Flex Shoppers” (UPS Pulse of the Online Shopper, June 2014). This means that even though the Q4 2013 results put m-commerce at only 12% of retail purchases, 40% of shoppers consult three or more channels before making a purchase decision. 68% of them have changed their purchase decision based on mobile phone research while in a store.
No more can you expect that because someone walks into your store — or visits your website or opens your app — that they will buy your product at that point. One channel lock-in doesn’t exist (although there is some evidence that in an app, visitors are less likely to comparison shop). Instead they will use their various channel options to compare and contrast and then decide, on the channel of their choice. Repeatedly.
Now more than ever product transparency, competitive and fair pricing, well-documented product services, and ease of transactions occurring across channels are key to successfully engaging a customer. Omni-channel is the new all digital.
Digital Natives
Millennials are the best example of this mindset. Labeled “Digital Natives”, it is built into them to comparison shop. For them, the ability to search and compare online has been conveniently available from day one. They’ve embraced that freedom and expect it.
These changes in the way we shop and the continued rise of digital natives directly impacts banks and banking. Banks need to be transparent in their products, clear in their offerings, and simplify their sign-up processes. Making it easy to complete a transaction is a sure winner. Complicate it, especially unnecessarily, and abandonment occurs. It’s key to watch your data, track your transactions and pinpoint those instances of abandonment, then react agilely and responsively with meaningful changes and valuable responses.
Yes, Millennials have expressly stated that they are not convinced banks are where it’s at and more than half feel the future of accessing money is going to be different, and, in their mind, it’s only five years away. Worse, they don’t see that innovation coming from traditional banks (largely because 33% see the major banks as completely identical).
But all is not lost. A recent survey by Merrill Lynch on the mindset of Millennials suggests that the truth is more complicated (“Millennials and Money”). A large part of the Millennials dislike of traditional financial services is that Millennials watched the global financial crisis and it re-affirmed a general distrust of investing and banks. There is some suggestion that education, a raised awareness, and an effort to be transparent can transform banking and investing for them.
Traditional banks just need to open up and simplify online and deliver omni-channel services that work. Which in itself may be enough innovation to differentiate. This will not only help secure longevity, with more than 50% of the workforce expected to be Millennials by 2020, it will also ensure consistency and deliver on the expectations of Gen Y and Gen X when it comes to cross-channel freedom, ease of service, and better customer experiences.
It’s not assuming that everything has to be all digital, all the time. It’s instead approaching this from the customer and delivering what actually meets the customers’ needs, remembering that they own the channels now.
This is the key to a digital future: Seamless cross-channel, simplified customer transactions.
Learn more about omni-channel, customer transaction experience in financial services here.