Banking Technology: Cognizant’s Head of Banking and Financial Services in the UK and Ireland Says Code Halos are Key to Improving Banks’ Net Promoter Score

“In order to address modern challenges and improve their NPS, banks must turn to the wealth of digital information that surrounds their customers,” writes Tony Virdi. “Every digital click, swipe, “like”, buy, comment and search produces a unique virtual identity around every one of us—what we at Cognizant call a Code Halo.” Excerpts:

“Code Halos offer unprecedented insight into consumers’ behavior, preferences and needs. By tapping into this data and analyzing it, banks can understand their customers better, react faster when needed and anticipate their future requirements.

A company’s Net Promoter Score has become an important measure of customer satisfaction. It asks them a simple question: how likely they are to recommend that company to a friend. The responses split the audience into three groups: promoters, passives and detractors.

By subtracting the percentage of detractors from the promoters, banks obtain their NPS. NPS has been a valued metric in many consumer-facing industries for several years, but its importance and influence in financial services is growing fast.

NPS’ emergence in financial services, and particularly retail banking, is partly due to increasing competition and a greater ease with which customers can switch provider. Traditionally, NPS has been seen as less relevant in industries where there are significant barriers or costs associated with changing to a rival provider, since peer recommendations are not such an incentive to change. In the UK at least, several changes are making it much easier for consumers to switch banks.

Social media has a massive part to play here. Banks’ own social media channels have become critical to customer responsiveness and therefore NPS. In the event of any unexpected problems, the social detractors that emerge have to be tackled quickly and ideally turned into advocates or even promoters. To do this, banks have to actively monitor for and identify customers talking about a poor experience or problem and provide direct, timely support.

The importance of Code Halo thinking will keep growing as consumers continue to become more connected and social. By harnessing it, they can turn more of their customers into active promoters, and improve their increasingly important NPS.”

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