Differentiating at the right journey touchpoints is the key to value creation
Application and approval
Primary services
Secondary services
Quality of support provided by the staff and easy documentation are the key parameters assessed by the customers
Q1 – Was the application process hassle-free and efficient?
Voice of Customer insights
Customers across all regions, value empathetic staff support
- “The main reason I went for Brand A, is because service is most important for me. If I’m making proper payments, on time, they should improve services offered to me”
- “The staff at Brand B had no manners at all. Even after applying hidden charges, they shout at the customers. That’s why I switched”
- “Customer cares about each and everything, be it service, rate of interest or deductions on time”
Customers appreciate simpler documentation process
- “I know physical verification is important, but the documentation can also be done, through apps, by uploading soft copies. This is more convenient. However, for some people, both options should be available”
In case of primary services offered, the segment is demonstrating uniform performance, with a need for improvement on relevant updates and ease of app usage
Q2 - Was my experience across primary services good/ bad vs expected?
Voice of Customer insights
Timely communication on relevant offers can drive conversions
- “Despite having accounts in two other institutions, I went to a third one solely based on the rate of interest. I kept waiting for my existing institutions to offer me any discounts, but no communication came”
The customer experience before purchase and post-purchase should be consistent
- “The process of application was not as simple, as expected, however, the response to customer complaints was better, which made it ok at the end. Once I got the loan, installments were easy to pay.”
Effective customer support can turn a previous bad experience into a better one
Q3 - Did the company deliver secondary services as efficiently as the primary services?
Voice of Customer insights
Customer dissent is heavily influenced by late fees and hidden charges
- “Some institutions will evaluate balance and payments on the fifth of every month. Some on the seventh of every month. So, even if you had put in some amount at that time, some institution will not deduct the amount.”
- "When I think I am paying the interest timely and avoiding late fees, I am still incurring charges such as insufficient amount charges. I am the customer, and I am availing your services, then why am I being charged so much?”
Customer service should be reflective of the brand
- “My family prefers to avail financial services form at least two institutes to not put all our eggs in one basket. Customer service is good for all major institutions; hence you cannot go wrong with them.”
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on prioritised experience attributes
Adherence to regulatory changes and financial inclusion, has a positive impact on market sentiment
- The sector is witnessing evolving regulatory frameworks aimed at ensuring stability, transparency, and risk management
- Many NBFCs are aligning their strategies with environmental, social, and governance (ESG) principles to attract socially conscious investors
Innovative and customised financial offerings are the new customer demands
- NBFCs are increasingly partnering with fintech companies and leveraging digital public infrastructure to expand their reach and offer innovative solutions
- There is a growing emphasis on tailoring financial products to meet the specific needs of niche markets, such as second-hand vehicle financing, micro-insurance, and working capital loans
NBFCs are seeing 48 percent switchers who are seeking more transparency in processes and communication
Customer segmentation based on satisfaction and loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassador’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
96 percent of the customers are delighted with their current service provider
Customers expect honesty and clarity when it comes to financial dealings.
- A lack of transparency, such as hidden charges, unclear terms, or misleading communication, can quickly erode trust for 48 percent of the customers
Ambassadors and switchers both prioritise a few attributes, such as:
- 21 percent are loyal to a widely recognised, trusted brand name
- 21 percent make their decision to continue with the existing provider based on the market sentiment
- For another 20 percent, the service providers’ portfolio drives loyalty.
The ability of the segment to perform on CX requirements is high at 82/100 , with a focus on the ‘Expectation’ and ‘Integrity’ pillar
Performance across the KPMG Six pillars of Customer Experience
(Weightage of the pillars to the overall experience requirements)
‘Expectation’ (27 percent) and ‘Integrity’ (22 percent) are the key pillars of experience influencing customer’s purchase decision
The segment can meet customer requirements on ‘Resolution’ by -
- Implementing an efficient grievance redressal system
- Providing regular training to customer support staff on empathy, communication, and problem-solving skills
- Using AI-powered chatbots and helpdesk software to ensure 24/7 support and faster response times.
- Setting clear SLAs and monitoring feedback
The segment can meet customer requirements on ‘Expectation’ and ‘Integrity’ by -
- Safeguarding customer information with robust cybersecurity measures
- Operating with honesty and adhering to ethical standards
- Conveying the terms, conditions, and fees associated with financial products and services
- Empowering customers with knowledge about managing finances
Customer’s willingness to pay more on offerings is heavily dependent on brand integrity and market sentiment
Top experience attributes influencing the customer’s willingness to pay
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The brand is well known and trusted amongst social circles
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Wide range of relevant financial offerings catering to all customers
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The promise of delivering maximum benefits for the expectations driven by the market sentiment
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Detailed information on offerings with full disclosure of terms and clear communication
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Hassle-free refund/ closure once the customer no longer requires the service
An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.
Customers have a high willingness to pay across the top two pillars – ‘Expectation’ and ‘Integrity’
- 36 percent of customers would spend on a trusted brand as it reduces perceived risks for investments
- Innovative offerings can differentiate the brand from competitors, encouraging 32 percent of customers to pay more for added benefits or flexibility
- 30 percent of customers are willing to engage and pay with brands having a positive market sentiment
- Transparency in operations fosters trust and confidence, enhancing perceived value for 27 percent of the customers.
