The Use of Digital Tools for Customer Engagement in the Financial Services Sector

Abstract

The 21st century brought with it the ‘digital media,' that gained popularity with growing access of Internet to consumers and companies began using it for promotion of market offerings. Post the economic crisis of 2008-09 which caused major setback to financial service firms, the firms increased the use of customer relationship management strategies. With escalating competition, the objective of CRM was to create and retain business and win over W-O-M of existing customers to bring in new customers. The ICT advancements and digital media aided financial firms in connecting with customers. Customer engagement became the new buzz word for companies practicing CRM. Digital tools helped companies to target market better- tracking customer preferences for providing more customized solutions and steering the way for value co-creation in the financial services sector. This chapter is focused on discussing the concept and need of customer engagement in the financial services sector, the use of digital tools by the firms for customer engagement, and their role in the value co-creation process.