How a CCM Platform Can Reduce Communication Costs for Banks

by | Oct 15, 2021

Banks Can Reduce Communication Costs While Preserving Client Engagement

Digital transformation is essential to your bank’s survival and success in the current environment where competition is rife, client expectations are heightened, and budgets are tight. To serve more clients with lower operational costs, your bank must encourage digital adoption – enhancing client communications is a great way to achieve this. An effective end-to-end CCM solution can also help reduce communication costs for banks.

Enhancing client communications often means sending more communications and estimating the cost thereof can be challenging. CCM vendors typically charge per communication, which means the more successful you are at communicating with clients, the more you spend.

This can create a situation where you become a victim of your own success, as your digital adoption initiatives deliver way above expectations, meaning your digital volumes skyrocket and your communication budget is blown.

Doxim’s CCM solution can help encourage paperless adoption, reduce communication costs, enhance client engagement and customer experience. SCHEDULE YOUR PERSONALIZED DEMO TO LEARN MORE

 

‘DOUBLE DIPPERS’ ARE EATING YOUR COMMUNICATION BUDGET

There is another risk related to increased digital adoption. What if clients agree to receive digital communication, but do not agree to go fully paperless? These ‘double dippers’ want the convenience of digital communication but are not yet willing to let go of the familiarity of receiving an envelope in the mail. In traditional vendor pricing, this would mean a doubling up of messaging costs. Your bank achieves no cost saving on postage but must add the cost of each digital communication. 

Communicating with these clients costs more than those that are on print only because you are paying for both print and digital communications.

A Keypoint Intelligence report reveals that when it comes to financial services customers, over a third (37%) receive print only, a third (32%) receive digital only, and the remaining third (32%) receive both. This doubling up of costs, while positive for your omnichannel communication strategy, could be catastrophic for your budget.

In two years, the percentage of digital only customers is expected to increase to 36%, at the expense of the print only percentage, which declines to 31%. But the number of double dippers is expected to remain the same. This means banks must either adjust communication budgets to accommodate double dippers or find innovative ways to encourage them to go fully paperless.

FIND COST CERTAINTY WHILE PRESERVING CLIENT ENGAGEMENT

Unpredictable communication costs can wreak havoc with a bank’s annual budget. At the same time, digital communications are a critical way to increase client engagement and serve more clients at a lower cost, so scaling back communication plans can cause long-term problems. By communicating less effectively or less often, you risk losing clients and prospects to big banks or non-traditional options that offer more engaging client experience strategies.

The solution to this thorny issue is to find ways to simplify your communication-related budgets, so you know what to expect on your monthly communication invoice. The truth is your digital transformation project will not be approved if the return on investment is not attractive or can’t be calculated at all. ROI calculations become far more accurate when the fee for the year (ex-postage) is fixed.

What you need is cost certainty – one predictable fee structure that covers all communications across print and digital. As you migrate clients to digital, the monthly fee (excluding postage costs) remains stable. This approach simplifies budgeting and removes the need for complex invoices based on volumes that need to be audited. It also allows you the flexibility to experiment with several types of communications, like targeted offers to encourage your “double dippers” to turn off the paper.

HOW DOXIM CAN HELP REDUCE COMMUNICATION COSTS FOR BANKS

Doxim provides an end-to-end solution to manage customer communication in banking. Our CX and digital transformation experts work alongside banking clients to map current communications, identify gaps, and draft the framework that will inform the communication strategy.

Doxim’s CCM platform (SaaS and in the cloud) provides a quick, low investment option to integrate channels, consolidate data sources, and create consistent messaging across all communication types. We offer a flexible pricing model with a predictable monthly fee for all member communications regardless of channel, so the bank can grow its digital channels and save on postage costs.

Using a single CCM vendor also eliminates other challenges, such as managing multiple vendors, maintaining regulatory compliance, and keeping up to date with information security requirements. Outsourcing these requirements allows the bank’s employees to focus on providing the level of service needed to grow the client base. 

Let’s chat through your banking organization’s customer communication requirements. CONNECT WITH ME

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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