When you read or hear the word ‘omnichannel’ you might be thinking it has something to do with an omnivore and in a way it does. 'Omnichannel' is an approach or strategy that companies use to improve their customer experience.
A maybe more familiar term could be ‘multi-channel’. The multi-channel approach is defined by way emphasis is put on the channel where the customer currently is. For instance, social media, the website, or in-store. The customer is king and above it all, but the different channels are separated. Below, we’ve illustrated the multi-channel approach. As you can see, the customer is the center of attention and is surrounded by different channels whether it be social media, in-store, or e-mail.
The omnichannel approach takes it up a notch and seamlessly integrates all the different touchpoints a customer comes in contact with a company. Here, the customer is again the center of attention, but all the components are approaching the customer as one. Just like that omnivore who eats all the food, the omnichannel strategy incorporates all the channels together to improve the customer experience. We’ve also illustrated the omnichannel approach as you can see below. The customer is in the middle and the channels; social media, e-mail, in-store, and the website, are centered around the customer as well as cooperating with each other.
Wealth Management Firms
Now you might be wondering how this fits into your wealth management firm. The Top Trends in Wealth Management: 2020 report by Capgemini indicated that an omnichannel approach is one of the trends to be seen in the wealth management industry. As all companies and industries are going towards a more digital operational environment, wealth management firms can differentiate themselves by incorporating an omnichannel experience to improve the overall customer experience.
In the study conducted by Capgemini in 2019, 97% of the consumers believe smooth and simplified customer experience is essential while choosing a bank where their experience within the different channels is more important than the medium. Additionally, technologies such as Artificial Intelligence are important to manage data and have the utmost customer engagement. As mentioned before, to gather data and customer insights from different channels that are not well connected is difficult. An omnichannel approach will make this easier and time-saving in the end.
Firms need to build the capability to consolidate and evaluate data across multiple channels in the omnichannel approach to better the customer experience. UOB, a Singapore-based bank, did this through integrating online and offline services when it concerned investment decisions. Another option is to partner up with a third-party vendor to deliver high-quality global solutions to boost that customer experience and thus satisfaction. For instance, to consolidate its customer data in one place Mumbai-based Edelweiss Global Wealth Management collaborated with SalesForce. The result was a growth of 14% in customer satisfaction. To support the multi-channel distribution capability, firms should also explore agile solutions to complement their internal IT operations. Van Landschot, a Dutch bank, partnered with Xpirit to develop a core platform that fosters collaboration among its multi-disciplinary teams.
The Capgemini report also listed some implications to take into account:
- Wealth management firms should ensure an effective combination of human and digital channels to deliver a seamless omnichannel experience
- With the efficiency of an omnichannel strategy, wealth management firms will be able to save on resource costs and reduce the turnaround time of different processes.
- Wealth management firms should enable advisors through sales tools, competence building, and incentive frameworks for effective navigation into the omnichannel era.
- Multi-channel integration, through partnership and collaboration, can help top repurpose core legacy systems without incurring middleware costs or investment in a new platform.
Does your firm already implemented the omnichannel approach to improve customer experience and satisfaction?
Here, you can read the full Top Trends in Wealth Management: 2020 report by Capgemini.