Getting Closer to Your Customer in the New Normal

Today’s economy is turbulent. Geopolitical shifts, supply chain disruptions, and trade wars contribute to this. Rapid technological advancements in artificial intelligence (AI) also play a role. This roller coaster ride might seem like an anomaly. But all this turbulence, might very well  become the new normal. Fasten your seat belts.

The global marketplace is volatile. Traditional economic indicators are less reliable. Inflation rates fluctuate unpredictably. Central banks adjust monetary policies often. Market sentiment shifts due to geopolitical developments that can emerge overnight. This uncertainty creates challenges for businesses and individuals as they navigate financial decisions.

However, according to the latest Salesforce Connected Financial Services report, only 44% of customers experience proactive engagement based on factors like changes in market conditions that might affect them.

It’s more important than ever to use financial services personalization during economic events. This will make sure customers feel supported in a proactive way. Let’s look at how you can provide proactive, personalized service to your banking customers in the wake of current and future economic uncertainty.

In this blog:

The current state of economic affairs
Understanding the shifting sands of customer needs
Technology as the relationship catalyst
Identifying exposures and delivering proactive solutions
Building trust through transparency and empathy
The future of financial services: A partnership for resilience
Salesforce is your trusted advisor

The current state of economic affairs

According to CFO Dive, consumer spending likely decreased in the first quarter. This is the first decrease since the COVID-19 pandemic. Inflation and household sentiment impacted purchasing power. After a strong 4% increase in the fourth quarter, consumption declined. The decline was estimated at an annualized rate of 0.2% quarter-over-quarter in the first quarter.

Conference Board Senior U.S. Economist Yelena Shulyatyeva warned that with such a large swing, “consumers will likely become even more cautious and tighten their purse strings further if inflation continues to rise.”

The Consumer Price Index was up 2.8% from a year earlier:

The financial services industry has a critical challenge. They need to build strong customer relationships. This will help them deliver financial services personalization during economic events. Now more than ever, banking, wealth management, and insurance providers must move beyond transactional interactions and embrace a proactive advisory role. 

To mitigate risks from market volatility, it’s essential to use technology, AI, and data analytics. New AI technologies, like autonomous agents, can quickly find opportunities in your client’s portfolio or policy coverage. 

You can deploy autonomous agents to mitigate exposures and proactively reach out to customers with approved messaging and custom offers that meet their bespoke situations, at scale. These agents can even schedule one-on-one consultations, based on the severity and urgency of the client’s needs.

Understanding the shifting sands of customer needs

The traditional model of financial services, focused primarily on processing transactions, is no longer enough. Customers, whether individuals or corporations, face many uncertainties. They need partners who offer proactive, personalized insights and solutions. This helps them navigate complex situations like:

• Export-Import Exposures: Businesses engaged in international trade face fluctuating currency exchange rates, tariffs, and trade policy changes. These factors can significantly impact their profitability and cash flow.
• Country and Sector-Specific Exposures: Geopolitical instability, regulatory changes, and economic downturns in specific countries or sectors can create major risks. They can affect businesses with investments or operations in those areas.
• Financing Opportunities and Liquidity Shortages: Access to financing is critical in economic uncertainty. Businesses may face liquidity shortages due to delayed payments, increased operating costs, or reduced sales.
• Policy Addendums and Reduced Coverage: Insurance policies change to reflect new and changing risks. Policy addendums and reduced coverage may leave policyholders vulnerable to losses.

To illustrate this, here’s a graph of the S&P index from the past six months that includes a 50-day moving average:

Technology as the relationship catalyst

Technology is the key to a deeper understanding of customer needs and providing proactive solutions.

Financial institutions can identify risks and opportunities with data analytics. You can use this technology to analyze market trends, economic indicators, and customer transaction history. AI algorithms can detect patterns and anomalies in vast amounts of data. These algorithms can also provide early warnings of impending volatility that humans might miss.

AI can create personalized financial plans and risk assessments for customers. This includes identifying potential market volatility exposures. AI can also recommend strategies to mitigate those risks. Chatbots and virtual assistants can provide 24/7 support. They can also answer customer queries and enhance the customer experience.

Technology also helps you monitor market conditions and customer portfolios in real time. When changes occur, customers receive automated alerts. This provides timely information, so they can take action.

Secure online portals and mobile apps help customers easily access financial information. They also help customers communicate with advisors in real-time. These digital platforms can share educational resources and market insights. This improves communication and collaboration.

Identifying exposures and delivering proactive solutions

Specifically, financial institutions can use technology to address challenges from market volatility.

To address export-import exposures, AI-powered tools can analyze currency exchange rate fluctuations and trade policy changes. This helps businesses hedge their currency risks and adjust their pricing strategies. Data analytics can also identify new market opportunities and potential supply chain disruptions.

You can counter country and sector-specific exposures with risk management platforms that help monitor geopolitical events and economic indicators. They provide early warnings of potential risks in specific countries or sectors. This allows businesses to diversify their investments and operations. Businesses can then reduce their overall exposure.

AI-powered credit scoring models can assess businesses’ financial health to help identify financing opportunities and liquidity shortages. These models can also identify possible liquidity shortages. Digital lending platforms can provide quick and easy access to financing. This access can help businesses bridge short-term cash flow gaps.

AI can analyze insurance policies for policy addendums and coverage gaps. Automated alerts can notify policyholders of policy changes. Policyholders can then adjust their coverage as needed. Digital platforms help policyholders and insurers communicate easily. This can resolve questions or concerns.

Building trust through transparency and empathy

Beyond technology, building strong relationships requires transparency and empathy. Financial institutions must be open and honest with their customers about the risks they face and the strategies they can use to mitigate those risks. They must also show empathy and understanding, recognizing that customers are often dealing with significant stress and uncertainty.

Here are ways you can support your customers and build trust during unprecedented times:

• Offer clear and concise communication: Financial institutions must communicate complex information in a clear and concise manner, avoiding jargon and technical terms.
• Deliver personalized support and guidance: Customers should feel that they’re receiving relevant guidance from their advisors through financial services personalization during economic events.
• Provide proactive problem solving: Financial institutions should be proactive in identifying and addressing customer concerns.
• Build long-term relationships: The focus should be on building long-term relationships based on trust and mutual respect.

The future of financial services: A partnership for resilience

In a world of constant change, strong customer relationships are critical. Financial institutions can embrace technology, AI, and data analytics. They can move beyond transactions and become trusted partners. This helps customers navigate market volatility. And it helps build a more resilient future. 

The future of financial services lies in creating a partnership where the provider and the customer work together to ensure financial well-being, even in the face of unpredictable shifts.

Salesforce is your trusted advisor

For over 25 years, Salesforce has provided secure and compliant cloud data management. Financial institutions worldwide trust Salesforce. Agentforce uses the power of the Salesforce platform to put all your data to work. Think of it as limitless digital labor. Now you can better connect with your customers, especially during these uncertain times.

Our purpose-built Financial Services Cloud eliminates the costly, time-consuming burden of custom AI development. Pre-configured data models for insurance, banking, wealth and asset management, seamlessly integrate with Agentforce, delivering immediate AI-driven insights and actions. Coupled with the expansive reach of Marketing Cloud, you can build hyper-personalized campaigns, anticipating client needs amidst market volatility — from tariff impacts to retirement planning. 

With a 360-degree approach, you can proactively engage with customers. You can offer timely and relevant solutions that show true empathy and value. Agentforce gives you a limitless workforce that can manage outbound and inbound tasks 24/7. Like the economy, Agentforce never sleeps.  

Banker’s hours are a thing of the past. Silence is not an option. Reach out and connect with your customers. Use empathy and data-driven insights around the clock. If you don’t, your competitors will. 

Check out this demo to see how banks like yours are gaining ‌competitive advantage with Agentforce for Financial Services.