One of the most challenging parts of running a business is client retention. It’s also one of the most important. For banks, clients are their most important asset. Without them, their business wouldn’t be viable: deposits wouldn’t be sufficient to cover whatever lending activities the bank is involved in and would cause many of the bank’s operations to come to a grinding halt.
This is why you should definitely focus on developing and optimizing your client retention strategies. These can help your bank build a positive reputation, cultivate value, and reduce or even eliminate the costs associated with client acquisition, which are usually considerably more expensive than retaining an existing one.
If you’re having issues with client retention, here are some tips to fine-tune your strategies:
Use an Analysis Software
Thanks to technology, there are now plenty of business tools available that help simplify, streamline, and optimize processes. One such tool you should invest in is a profitability analysis software. One of its many benefits is that it provides a glimpse of your company’s profitability from various angles, including from a customer’s point of view.
What this means is that you’ll have more opportunities to customize your products and services, ensuring that you can provide what customers truly need. This, in turn, helps cultivate stronger relationships that support your bank’s activities.
A profitability analysis software can also help you effectively price products, allocate costs, and calculate your expenses. Having access to such data can help you make informed choices, resulting in a more organized, more well-managed operation.
Get to the Root of Your Churn
Customers leave for a variety of reasons, including poor customer experience, lack of engagement, or loss of interest in the product or service. They may also feel as if your offerings no longer have the same value. No matter the cause of the customer churn, figuring out why it happens is absolutely essential. Only by knowing what is causing your customers to leave will you be able to solve the issue the right way.
Some of the best places to look for answers when it comes to customer churn is through feedback. If you have social media accounts, take note of comments, messages, and product reviews. Your customer service hotline is also a good place to start gathering information, along with the feedback form on your website.
Focus on Customer Experience
As previously mentioned, one of the reasons clients decide to discontinue their patronage is poor customer experience. This is influenced by practically everything you do, from the moment a customer starts inquiring about a product or service up to the moment they receive it. It even extends beyond this point, such as when you address complaints about a faulty product or follow up about service satisfaction.
For some banks, this means investing heavily in client-convenience initiatives like mobile app development, web banking integration, and chat-supported customer service. Implementing initiatives such as these will communicate to clients that their personal comfort is top of mind for your organization, and will encourage them to keep their accounts on your books.
Consider Automation for Re-Engagement
Re-engaging your previous clients is a worthwhile endeavor. There’s already a connection there so you don’t have to start from scratch. However, you might encounter some difficulties with re-engagement, especially when it comes to its more rote aspects. For example, sending weekly email newsletters and SMS offers can be a time-consuming task.
In this case, technology is on your side. You can use automation software to streamline your activities and manage all your engagements, whether they’re for new, existing, or past clientele. You can also use these programs to manage your contacts, so you know which ones you’ve already re-captured and which need more convincing.
Develop a Retention Program
If you don’t have a loyalty or retention program yet, now is the time to develop one. Everybody wants to feel good about themselves, and this kind of engagement activity shows your clients how much you appreciate them. This, in turn, will motivate them to keep their accounts active, or even expand their position with the bank.
Loyal customers who feel more connected to your company also offer bigger value. For one, they’re more likely to recommend and talk about your products. In a market where businesses highly value word-of-mouth marketing, this is definitely something you want to happen.
Banks frequently use incentives such as stair-step models for interest rates, boosted lines of credit, and more attractive payment terms on loans to keep long-time clients on their books. Clients with a good credit history and a years-long relationship with the bank might also be given perks like immediate access to investment products that the bank intends to release. Arrangements such as these are often mutually beneficial for both the bank and the client, and can further deepen the relationship between the two.
Client retention might seem tedious, but its benefits are definitely worth the effort. Consider these tips to help with your organization retain its existing customers, even as you continue to attract new ones.