Many banks have often focused far too much on customer acquisition instead of keeping the ones they have. With so little else to compete on and knowing that it costs more to acquire new customers than to retain the existing ones, executing customer-centric retention strategies is the best way to make your community bank stand out. Here are five ways to boost customer retention.
1. Consolidate customer information
Most customers switch banks because of poor service. Your bank should prioritize consolidating all the information you have about customers from all touch points. This will help your bank create complete profiles on each of them and make their profiles available to all customer service representatives. This will allow your team to have meaningful conversations with customers each time they engage with your bank – in person, online, or via telephone. Such personalization in customer interaction will boost customer loyalty.
2. Prioritize delivering superior customer service
Superior customer service can significantly help enhance customer loyalty. People will be more likely to use your community bank if you answer all questions quickly and show them you care. Your bank must focus on growing customer relationships beyond transactional convenience and delivering the best possible customer experience. This can be done by reengineering your sales, service, and marketing strategies based on customer feedback. Your marketing message should be tailored to offer customers a better understanding of how your products and services can meet their goals and expectations.
3. Create a customer loyalty program
Customer loyalty is not simply providing perks and rewards. It’s about building trust. Service-focused customer loyalty programs include staying connected post-sales, offering VIP programs, using AI and chatbots to deliver digital banking support, and, as simple as this sounds, acknowledging customers by name and making them feel heard. Although most customers want rewards and VIP treatment, it’s more important they feel an emotional connection with the local brands they’re loyal to.
4. Collect customer feedback
One of the best strategies to improve customer loyalty and retention is to gather feedback from your customers regularly. Asking customers what they liked about their experience, what you could improve, and anything else they’d like to share is an excellent way to show that you value your customers. Banks should also encourage customers to write reviews or testimonials. This can further enhance customer loyalty and help you gain new ones.
5. Start an email list
Email marketing is one of the most effective digital marketing strategies you can use for your bank. It allows you to send emails to a long list of people instantly, and it’s perfect for building customer loyalty. The refer-a-friend campaign is a unique component of loyalty programs. When customers ‘refer a friend,’ they invite their family and friends to sign up for your company’s loyalty program in exchange for special offers and other rewards. When sending emails, try to send them regularly without going overboard. Too many useless emails will cause people to unsubscribe. Still, if you send regular product promotions, notifications, or special offers, they’ll likely remain subscribed and use your financial products.
Conclusion
Customer retention is about earning customers’ loyalty and ensuring they continue using your bank instead of competitors. Most of your profit will come from those who use your bank regularly, so it’s essential to satisfy customers and give them reasons to keep coming back.
Key Takeaways
- Consolidate customer information
- Prioritize delivering superior customer service
- Create a customer loyalty program
- Collect customer feedback
- Start an email list
