Jon Roughley at Experian explores customer experience in comparison sites, and how marketing plays a part in the customer journey.
There’s no denying that there’s room for improvement when it comes to the customer journey. This is particularly true when we look at the handover from comparison site to the specific lender. We often talk about customers’ appreciation of a seamless journey, yet there are also many benefits for the other party involved – lenders. Here are some of the potential wins.
Better quality leads
Ensuring eligibility and affordability checks happen further up the journey is the most logical sequence of events from the customer’s point of view. The overall effect of this could be improved audience targeting and higher quality leads. Lenders and consumers alike are both given the benefits of certainty, rather than the anxiety of unintended consequences at the point of application.
Higher rates of conversion
It’s futile for lenders’ products to appear on a price comparison site if nobody’s buying them. Getting as many suitable prospects to complete a purchase as possible is in the lender’s best interest – it’s the reason they’re there.
While some customers are there to browse and research, our data suggests that less than half of consumers successfully complete the credit card application process post comparison – that’s after choosing a product they’d like to apply for. It’s not difficult to see why. The customer journey is riddled with experiential landmines, which if removed, can boost conversion.
Acquisition opportunities
Shopping for a credit card can be an onerous experience. In 2014, only 14% of existing credit card consumers took out a new card, with a further 8% comparing at least two cards but deciding not to take one out. If the end-to-end customer journey was less painful it could stimulate more switching and competition, and therefore more acquisition opportunities for lenders who create the most effortless experience.
Improved brand sentiment
An uninterrupted end-to-end experience would make accurate expectation setting far easier, especially if early pre-qualification or ‘pre-approved’ is presented next to the lender brand. This could result in fewer unsuccessful applications and less negative sentiment amongst consumers. Even if applicants are rejected, better expectation management could soften the disappointment.
These journey improvements could also help build more positive brand associations. By working together to create better experiences, lenders and comparisons sites could both improve their own reputation and customer perception.
Greater product awareness
Marketers often mistakenly believe that long-standing, satisfied customers drive positive word of mouth. That’s not the case. Recent data suggests it’s actually new customers who do most of the talking, because, by nature, we’re more inclined to talk about recent, uncommon, surprising or memorable events than what’s familiar and routine. To put this another way, more acquisition means more word of mouth (all other things being equal). Getting more new customers also generates more awareness of the product – ideally the positive kind.
Reduced cost of acquisition
A higher quality of leads and increased conversion means less time and money is spent processing rejected applications, and marketing to customers who can’t buy the product – a huge benefit to risk departments. At the same time, improved brand sentiment and heightened awareness could make prospects more inclined towards the brand from the outset.
By Jon Roughley
Experian