The Bain & Company "2013 Customer Loyalty in Banking Report” found that one third of consumers purchased a banking product from a financial institution that was not their primary bank or credit union.
Why are customers drifting? Financial institutions tend to have a difficult time selling their products, services and brand effectively. In order to retain customers, you need stellar offers and the right channels of communication.
These customer retention strategies can help a financial institution keep their customers and increase profits.
Create Something Worthwhile
If you want to launch a promotion to draw in new customers, make sure it's something customers will actually care about. Needlessly communicating with them will only make your messaging become white noise.
On a similar note, any content you create for your customers should also be targeted at information they want or are actively looking for. You can learn what customers want through mechanisms such as distributing surveys online or in your branch. With this information, create blog posts, e-guides and social media posts that are focused on the most popular topics.
Utilize the Power of Email Marketing
You'll rarely hear talk about customer retention strategies without hearing about email marketing. Email is a relatively cheap way to communicate with your customers on a regular basis. One of the first things you implement into your email marketing strategy is an onboarding strategy. Create a series of emails that showcase products you provide, tips about using their new account, and any other information that will be useful to them.
Utilizing email marketing for customer retention should also be a key part of your strategy. Promoting rewards, offers and additional products and services to loyal customers will expand accounts and show them you are continually available to serve all of their financial needs.
Build a Foundation of Trust
Trust will translate into loyalty from your customers. The best way to earn customers' trust is to be as transparent as possible. Luckily, the digital age has made it easy to do that. Start and maintain a blog for your financial institution and use it to communicate important information and helpful personal finance tips. Create and maintain a social media presence and use it to respond to customer inquiries and share helpful information. You can also make your financial institution look more human by sharing pictures and videos of staff members. People like working with people.
Close the Loyalty Gap
These customer retention strategies will help you establish a better relationship with your customers, in turn creating higher customer loyalty and retention. You want to be the first place to turn when existing customers are looking to satisfy their financial needs. By doing that, your financial institution will see more profits and a greater return on investment.
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