We’ve all noticed it—whether managing finances or shopping for the latest fashion, the convenience of digital channels has become hard to ignore.
For many brands, the rising costs of maintaining physical stores, coupled with changing consumer preferences, have made digital channels the focal point for customer engagement. The need to adapt has never been clearer, as companies across industries are rethinking their strategies to deliver better digital experiences and understand the diverse paths customers take on their journey to purchase.
Nowhere is this more evident than in the financial services sector, where the rise of fintech and digital banking is transforming the way consumers manage their finances.
The Shift in Retail Banking
Retail banking has undergone one of the most profound transformations in recent years
The closure of countless branches across Europe is both a response to cost-cutting measures and a reflection of changing consumer preferences. With fewer physical locations to manage, banks are investing heavily in enhancing their digital offerings.
As ever, there are winners and losers. As Jim Marous of The Financial Brand notes, the future of banking lies in digital transformation. Successful banks aren’t just replicating in-branch services online; they’re creating digital experiences that are intuitive, secure, and personalised, designed to meet the evolving needs of their customers.
Marous notes “Most legacy financial institutions fall short of the engagement levels set by industry leaders. Cumbersome onboarding processes, for one, make transforming account openings into long-lasting relationships that much harder”.
The winners excel at creating user-friendly, secure, and personalised online experiences.
The Insurance Sector’s Digital Evolution
The insurance sector is also making the switch to digital. As customers increasingly manage their policies, file claims, and seek quotes online, traditional insurers are feeling the pressure to change. Insurtech companies have been at the forefront of this transformation, offering digital-native services that prioritise ease of use and accessibility.
These companies are raising the bar, forcing traditional insurers to rethink how they connect with customers and to go digital
ING Group: Redefining the Customer Experience in Financial Services
In financial services, the digital shift goes beyond simply offering an online platform for transactions. It’s about redefining the customer experience entirely.
ING Group in the Netherlands is a prime example. By transitioning many of its services online, ING has created a mobile banking experience that is both comprehensive and user-friendly. Features like personalised financial advice and 24/7 customer support through chatbots have allowed ING to maintain strong customer loyalty, even as the physical presence of branches becomes less relevant.
Monzo: A Digital-Only Banking Pioneer
Monzo, a UK-based bank, has built its success entirely around a mobile-first experience. Known for its user-friendly app, Monzo offers features like instant spending notifications and budgeting tools that simplify managing finances. Transparency is a core value. Monzo’s focus on being upfront about fees has made it a trusted choice for its users.
By focusing on a seamless digital experience and active community engagement, Monzo’s approach to community engagement, including active involvement in product development and transparent communication, has rapidly built a loyal customer base.
Retail’s Seamless Omnichannel Approach
Retail, too, has embraced the digital revolution, accelerating a trend that began well before COVID-19 pandemic. Many retailers have shifted their focus to online sales channels, integrating e-commerce with physical stores to create a seamless omnichannel experience.
Online fashion retailer Zalando, for example, has mastered this approach by using data to personalise the shopping experience, offering tailored product recommendations and marketing campaigns that resonate with individual customers. Blending online and offline channels, Zalando ensures that every customer journey is cohesive and tailored to meet their needs. Success lies in its ability to leverage data analytics, offering personalised product recommendations and marketing campaigns
IKEA: Consumer-centric Shopper experience
Retail giant IKEA offers a valuable example. In a bid to further enrich the experience IKEA use of augmented reality (AR) to help shoppers to visualise how products will look in their homes before making a purchase, bridging the gap between online and offline shopping.
This brings a dual benefit. This use of technology enhances the shopping experience and strengthens IKEA’s brand as a leader in innovation.
Shopper Journey Research with DVJ
Understanding the shopper journey allows brands to identify the most effective touchpoints and channels for reaching potential customers. This insight helps refine marketing strategies, ensuring that efforts are focused where they will have the most impact.
Planning digital journeys makes great sense right up until the point that real customers get involved, with their various needs, expectations and demands. Whether the shopper is on a specific mission or browsing casually, insights from Shopper Journey research guide both brands and retailers in crafting experiences that resonate with their target audiences. By investing in this research, brands are better positioned to navigate the complexities of the digital shopping landscape.
The point is there is no one linear Path to Purchase. It varies, depending on the customer, their mission and contextual factors like availability and time pressure.
DVJ Shopper Journey research offers crucial insights into these complexities. By mapping diverse shopper behaviours, it enables brands to tailor their strategies, ensuring they effectively understand the real decision-making and process at every step.
