At Blockbuster Video’s peak in 2004, the company had 9,000 stores, 60,000 employees and was valued at $8 billion. But by 2010, the national video-rental chain filed for bankruptcy. How did a company that once monopolized the video market go out of business?
In 1997, Reed Hastings was charged $40 for an overdue video rental from Blockbuster. Dismayed with the steep late fees, he, like so many others, complained, but to no avail. After that unsavory experience, Hastings got the idea for a video rental-by-mail service, and founded Netflix. Offering subscriptions, late fees became unnecessary. The company quickly gained popularity and within 10 years overtook Blockbuster in the movie rental industry.
If Blockbuster had had a customer-driven approach, perhaps it would still be around today.
Putting the customer first
A recurring theme at industry conferences last year like the SIFMA Ops Conference was the dynamic and complex environment that is reshaping operations, including the customer experience. A highly regulated industry like financial services combined with today’s tech savvy investor can make creating personal relationships and building and maintaining trust challenging. For example, connecting with clients over social media while abiding by regulations or communicating with clients via compliant text messages.
Today, investors are smarter than ever when it comes to customer service – they won’t accept another Blockbuster experience. Consider the following tips as you focus on building and maintaining a better customer experience:
- Engagement: Communicate regularly. Frequency of engagement builds loyalty. Connect with customers a couple times a week, if not daily. According to Strativity, a global customer experience research and consulting firm, 87% of customers are loyal if they interact with a brand daily, 64% weekly, 49% monthly, and 33% a year times a year. In addition, interact with clients on their preferred channels.
- Personalization: Customize solutions for each client and tailor customer communications. Increased personalization is directly correlated with increased client loyalty. Netflix personalizes its content to the individual tastes of each customer – making them feel valued.
- Transparency: Ensure the investor understands the most complex shareholder communications issues.
- Seamless and responsive user experience: Use a fluid, streamlined, integrated, seamless and personalized consistency for the customer at all touch points. Clients want to connect with you, the way they want, and when they want. They go through the channel that’s easiest and most convenient for them at the time.
- Compliance: Turn compliance into opportunity by using every document as a chance to enhance your customer’s experience and build a better relationship.
High-tech and high-touch go hand-in-hand
Every communication is a touchpoint with your customer – an opportunity for you to enhance your customer’s experience and enrich your relationships. At Mediant, we believe in a client-first approach. We help companies take control of their investor communications so they can build more powerful connections with their clients and shareholders and stay ahead of financial, regulatory and shareholder change.
For more information on our platform, contact us.