bankingciooutlook

3 Innovative Customer Retention Strategies for Bankers

By Banking CIO Outlook | Thursday, January 02, 2020

Banks must improve their communication strategies as well as understand customer expectations to boost the prospects of customer retention.

 FREMONT, CA:  The banking industry is extremely competitive. A customer will not think twice to switch to another bank if the facilities offered there are more lucrative or relevant. Moreover, attracting customers is not as easy as the cost of acquiring new customers is around seven times higher than retaining the existing one. Thus, major banks are focusing on retaining customers. Customer experience is a critical domain that has immense potential to restrict customer movement to other service providers.    

According to a study, 80 percent of the customers won’t hesitate to switch banks for a better experience. Further, banks that lead in the customer experience domain have a recommendation rate that is 1.9 times more than financial institutions at the lower end of the domain. Here are some of the primary customer retention strategies that can power customer retention efforts for the banks. 

Customer Newsletter Campaign

Maintaining regular communication with customers can significantly enhance the customer experience. Moreover, customers will feel valued, thereby enabling the banks to build trust-based relationships with the customers. A customer newsletter campaign can certainly assist the banks to keep their customers informed. Such an initiative will also enable the banks to demonstrate that they value their customers and are looking forward to assisting the customers with their financial goals. 

Customer Satisfaction Surveys

Customer satisfaction surveys can significantly influence the bottom line of financial institutions. Further, they are also a great means of collecting valuable customer information. Such surveys can offer an insight into what are the expectations of the customers and enable the banks to devise strategies to fill the gaps between customers’ expectations and services that are being offered.   

Partnering in Financial Wellness Programs

Various companies are looking to offer financial wellness programs for their employees’ financial well-being. However, such an initiative will require experts. Banks can partner with such firms and offer counseling services to customers. Such an initiative can significantly boost customer retention aspects as well as increase the prospects for the banks to acquire new customers.

 Banks are aiming to enhance their customer experience with an eye to retain their existing customers. With several options for the customers and cut-throat business competition, banks need to actively engage with their customers and devise innovative strategies to enhance their services.

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