Neobanks have disrupted the financial services industry with their digital-first approach, offering customers seamless banking experiences without the hassle of physical branches. However, as competition intensifies, delivering a superior customer experience (CX) remains a key differentiator. Traditional survey-based CX measurement methods often fall short in capturing real-time customer sentiments. This is where Observational Customer Experience (oCX) comes in—a groundbreaking AI-driven approach that evaluates customer experience without relying on surveys.

What is oCX?

oCX, or Observational Customer Experience, is an AI-powered metric that assesses customer sentiment based on unsolicited feedback from online sources, such as social media, review platforms, and discussion forums. Unlike traditional CX measurement methods that rely on structured survey responses, oCX extracts insights from real-world customer interactions, providing a more authentic, unbiased, and real-time view of customer experience.

Why Neobanks Need oCX

Neobanks cater to digital-savvy customers who actively share their opinions online. Traditional customer feedback mechanisms, such as NPS or CSAT surveys, often fail to capture the complete picture due to low response rates and inherent biases. Here’s how oCX addresses these challenges:

1. Real-Time Customer Insights

• • With oCX, neobanks can continuously monitor and analyze customer feedback from multiple online sources, allowing them to react quickly to emerging issues.
  • Unlike surveys, which are conducted periodically, oCX provides ongoing insights, making it easier to track trends and respond to customer concerns in real time.

2. Unbiased and Authentic Feedback

• • Survey-based CX measurements can be influenced by factors like survey fatigue and response bias. oCX eliminates these biases by analyzing organic customer opinions expressed in real-life scenarios.
  • Since neobank customers are highly engaged in digital communities, oCX taps into these conversations to uncover genuine insights.

3. Understanding Gen Z and Millennial Customers

• • Digital-native customers rely heavily on social media, review sites, and online discussions when evaluating financial services.
  • oCX helps neobanks decode customer sentiments, emotions, and preferences by analyzing unstructured feedback in real time, enabling them to tailor their services to meet evolving expectations.

4. Enhanced Decision-Making with AI-Powered Analysis

• • Neobanks operate in a fast-paced environment where quick decision-making is crucial. oCX leverages AI and machine learning to identify sentiment patterns, predict potential churn risks, and highlight key customer pain points.
  • By converting unstructured feedback into actionable data, neobanks can make data-driven improvements to their products and services.

How oCX Works

oCX assigns numerical scores (0-10) to written customer reviews using advanced AI techniques such as sentiment analysis and the Gaussian Mixture Model. This approach mirrors Net Promoter Score (NPS) computations, producing an NPS-like score without requiring surveys. By continuously analyzing thousands of customer interactions, oCX offers a high-confidence assessment of CX quality in a completely automated manner.

Implementing oCX in a Neobank’s CX Strategy

1. Monitor Online Conversations

• • Track customer reviews, social media discussions, and complaint forums to gain a holistic understanding of customer sentiments.

2. Identify and Address Pain Points

• • Use AI-driven analysis to pinpoint recurring issues and prioritize service improvements.

3. Optimize Product Offerings

• • Leverage customer insights to refine digital banking products, enhance mobile app usability, and improve transaction processes.

4. Close the Loop with Proactive Engagement

• • Act on oCX insights by implementing targeted customer engagement strategies, such as personalized communication and service enhancements.

The Future of CX in Neobanking

As neobanks continue to evolve, relying solely on surveys for customer experience measurement is no longer sufficient. oCX offers a more dynamic, accurate, and scalable solution, helping digital banks stay ahead in an increasingly competitive market. By embracing AI-powered CX measurement, neobanks can drive meaningful improvements, foster customer loyalty, and maintain their competitive edge.

At Alterna CX, we empower neobanks with oCX technology to decode customer sentiments and turn unstructured feedback into actionable insights. Want to learn more about how oCX can elevate your neobank’s customer experience? Get in touch with us today!