The Need to Change Habits While Setting Financial Goals

Definitely, it is not an easy task to set short-term financial goal. Having to prioritize multiple and sometimes complex financial goals in an order of hierarchy, sometimes it becomes difficult to achieve a goal. Would u believe credit cards could assist customers  in achieving short-term financial goals?

The above statement might be funny because credit cards issued by financial institutions thrive on the interest paid by the customer’s inability to pay the full amount within the stipulated period. What if credit cards help the customer to set goals at the start of a year and display the status of the goals achieved at the end of the year thus increasing customer’s emotional engagement with the financial institution?

In short, it is a tiny change in customer’s behavior and financial habits.

Three phases that could possibly trigger a conversation in customer’s mind as to why a customer’s goal was achieved or not are discussed below.

  • First phase – Setting goals at the start of 2017.
  • Second phase – Displaying summary of goals with a positive acknowledgment that one goal was achieved.
  • Third phase – Displaying summary of goals with a negative tone that only one goal was achieved.

First phase – Setting Financial Goals (Setting goals at the start of 2017)
Emotional engagement – Customer slowly builds trust with the financial institution as the customer feels that financial institution provides information about funds in an easy-to-read manner while customer’s goals are planned and set. By encouraging the customer to set the goals in the context of current and outstanding funds in the card along with insights on spending patterns, the customer is able to have an clear understanding. This understanding would help the customer to make a well-informed decision while setting the goals.

Second phase – Summary of Goals Achieved
Emotional engagement – Financial institution positively thanks the customer for achieving one out of two goals and encourages the customer to think deeply by offering two options in a conversational tone: What is the next activity? or an introspection through insights on spending patterns? It is an human tendency to understand the possible reasons for not being able to achieve one goal when another goal is achieved. Customer feels appreciated and empowered to know the reason behind as to why a specific goal was not achieved and start trusting the credibility of the customized financial insights.

Third phase – Summary of Goals Not Achieved
Emotional engagement – Financial institution politely responds through visual imagery that customer was able to achieve only goal. Only one question is asked: What happened? This question is open-ended and encourages the customer to think deeply as to why only one goal was achieved. Customer will definitely look at the insights of current spending patterns for a deeper understanding. Though, initially the customer might feel uncomfortable with this visual imagery, later on the customer will begin to trust the credibility of the customized financial insights.

With the customers accepting the credibility of the customized financial insights, there would be a possible shift from the transactional relationship between the customer and financial institution to a deeper engagement.

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