One-third of consumers purchased a banking product from a finance institution that was not their credit union or primary bank, according to 2013 Pathwwway White Label report. To retain customers, you need the right communication channels and require stellar offers. How do banks and financial institutions engage in customer retention strategies that can help them?
#1 Create a Worthwhile Promo
If you want to launch a promotion for drawing in new customers or attracting existing ones, the promo should have the capacity to drive in clients, rather than driving them away! Meaningful brand messaging or white noise, the choice is yours when it comes to designing an effective promotional message. Customers need to be given what they seek, whether it is through content marketing in the form of blog posts, social media posts and online guides that focus on popular topics or other forms of marketing.
#2 Opt for a Powerful Email
Customer retention strategies are not considered in the absence of emails, which continue to remain a powerful means of marketing communication in this technology-driven world. An on-boarding strategy is not the only aspect of effective email marketing. Creating emails to showcase financial products and services and new information and tips can be an effective bridge to communicating and retaining clients. Email marketing should be a key part of strategy. Expanding accounts is possible through the use of rewards, offers, additional services and products to loyal customers.
#3 Building Trust, Closing the Loyalty Gap
Trust works out to increase loyalty. Customer trust is possible by increasing transparency. The digital age has made it easy to do just that. Maintaining a blog for a bank or financial institution that impacts personal finance tips helps to build a social media presence and respond to customer queries. Financial institutions look more human and make that personal connection by sharing their activities online. Customer retention strategies are essential for closing the loyalty gaps and ensure existing customers can satisfy their financial needs.
Financial institutions and banks using retention strategies report better ROI. As uncertain economic conditions prevail, a tech savvy customer who expects competitive fees, personalised service and convenience and rewards have left banking and financial institutions working hard to develop and implement retention strategies effectively for driving revenue. From loyalty programs to customer feedback, online personalized and mobile banking services to exceptional retention marketing strategy, these top banks and financial institutions are redefining retention.
#4 Generating Value for the Customer
Financial consultancy provider Genroe, for example, helps companies to gain a deeper understanding of existing clients for generation of higher value. Bank retention strategies, according to Genroe, should work to position themselves correctly in the customer lifecycle. Silent attrition is to be explored. Banks need to join the conversation when it comes to finding out why their customers are leaving them. Global technology consulting firm Brillio which optimizes innovation in banking and finance institutions stresses that banks need to increase customer retention by meeting their needs before someone else does. Data analytics is essential to measure consumer actions and to know how to engage clients. Effective retention analytics helps banks to model, predict, measure and provide actionable business insights and future proof brands.
#5 Increase Customer Connect
Banking executives encourage online bill payment to further retention. US bank, for example uses this feature as a soft sell approach, which makes the customer experience positive and adds to the success of the marketing campaign. Engaging customers with online and mobile platforms further results in increased retention. Customer loyalty studies by Bain & Company and Pathwwway White Label also show that strengthening existing customer relations is the key to gaining product sales and a proactive approach impacts the capacity of customers to make a purchase. A winning model of loyalty and additional capabilities can add to customer retaining. The research shows that everything from accelerating the digital transformation to building a brand that builds trust is important.
#6 Seamless Customer Experience
Retail banks also win customer loyalties for the long haul by meeting customer needs, providing superior services and delivering a customer experience that is intuitive and seamless. Mobile based banking and tech-savvy clients pose new challenges for banking marketers. So, banks need to challenge the right customer with the right activity with personalised context and within the right channel.
#7 Trust as a Competitive Advantage
California Bank and Trust, a leading commercial bank has analysed how retaining customers is all about satisfying them. Customer satisfaction yields long term loyalty, revenue and sales. The best way to gain competitive advantage is to gain loyalty, Purchased loyalty differences from convenience loyalty or true loyalty. Banks and financial institutions that focus on the customer rather than their business build consumer loyalty and determine customer needs and expectations.
#8 Consistency Counts
McKinsey & Company has advised governments, institutions and international businesses for about 100 years. The research firm has emphasised customer satisfaction is based on consistency. Customer journeys now span a wider gamut of financial services and solutions. According to the American Bankers association, the retention strategy is a key to survival, because it costs less to retain existing customers as opposed to acquiring new ones. Banks need to carry out communication, penetration, conversion, integration and differentiation to retain existing customers and utilise segmentation maps to their fullest capacity.
Google-Financial Services addresses data as the currency for retention of customers.
#9 Meeting New Expectations
Meeting fresh expectations is also a key to client retention, according to Deloitte Financial Services. The aim is to upgrade customer programs and raise the bar on customer engagement. For this, visible banking is very important. Focus on social media business strategies for understanding data to enhance digital marketing. With increased regulation, non-conventional competitors, decreased revenue and increased economic uncertainty, actionable information and advice is critical for banks and financial institutions that seek to retain customers.
#10 Nurturing Customer Loyalty
A case study of HSBC has revealed the banking industry’s stalwart fosters loyalty by nurturing customers. Satisfied employees, in turn, also play a critical role in client retention. Customer segments with a potential for future growth are critical. Trust is the key component of consumer retention. Accenture has found that customer relations are susceptible to disruption at conventional banks. Near three-fourth of US customers, for example, consider banking relations as merely transactional.
According to Wells Fargo, some important retention strategies include keeping it simple, acknowledging customers by name and creating a customer service culture. Staying connected post sales is all about continuing to incentivise the customer and making every aspect of the client experience positive.