Consumers are adopting new technology into daily life and their routines. Technology is changing the way consumers search the internet, shop for groceries and home goods, and the way they view and save their money. These changing trends offer opportunities for institutions to become industry leaders and shape the way consumers behave in the future.
Gamification of Consumer Finance
- Gamification is a strategy to engage consumers in a product through a system of goal setting, rewards, feedback, and motivation. Gamification can improve customer loyalty and retention as well as attract new customers.
- While gamification has been most used to encourage consumer saving habits, all areas of financial services are benefiting from this strategy.
- PNC Bank has gamified savings for its customers by creating a game called "Punch the Pig" that automatically transfers customers money into a savings account for them. This idea has been improved by mobile apps such as Chime, which is currently the highest-ranking savings and banking app. Chime is adding new features constantly including a "get paid early" by eliminating the holding period on direct deposits.
- Gamification can be implemented during the application process by using chatbots to fill out application forms to make the process seem more interactive. Extraco Bank used this strategy when converting to a paid checking model and saw a seven-fold increase in conversions.
- Credit cards can add a social network element to increase cardholder loyalty and buy-in. Barclay's Ring MasterCard is an excellent example of this strategy. The card doesn't offer as many features as many other credit cards but attracts customers by letting them participate in card design and be part of a community to provide feedback.
- Users are able to verbally ask a question of their smartphone, smart speaker, or other enabled devices rather than typing their question into an internet search engine. Using voice search, or a voice assistant, helps users accomplish tasks more easily.
- This trend of voice search has been increasing with a prediction for 50% of all internet searches to be voice searches by 2020.
- Voice search is allowing for a more enjoyable shopping experience. 62% of routine voice search users are likely to make a purchase within the next month while 80% who have made a purchase are satisfied with the result. Additionally, 44% of smart speaker owners are likely to make purchases weekly, mostly for routine household items.
- Industry leaders in voice search are Google and Amazon . Both companies produce smart speakers for the home. The ownership of smart speakers is estimated to rise by 42% from 2018 to 2022. Working to answer search queries correctly is a challenge that must be improved in the future as only 81% of search queries are answered correctly currently.
- Opportunity awaits brands who can execute well on voice search since 42% of users are welcome to receiving content from brands regarding promotions and specials. Repeat sales can be driven by voice search as well, with 24% of customers spending more money with a brand after a successful voice search experience.
To determine technology trends that impact consumer behavior, we performed extensive research, using our trusted media sites, relevant surveys, discussions, and reports. This resulted in global trends which were restricted by filtering for location, multiple source mentions, and date.