Customer Retention Opportunities Your Business Might Be Missing
While many of your best marketing tactics might be targeted toward gaining new customers, never underestimate the power of customer retention. Not only are current customers typically less costly than new customers, but they might also be a gold mine for cross-selling opportunities. By looking at the whole picture to find out what your customers really need, you can reduce the chances they’ll look elsewhere for products and services. This keeps them in your portfolio and away from your competitors. Using big data and segmentation can help you develop strategies to achieve this that you may not have considered before.
To keep your customers, you need to think like your customers. They consider more than just their bank accounts or credit scores. They understand their current financial status and their goals for the future. With intelligent data, you can look at your services from a customer’s point of view. If a customer has been spending a lot of money on home repairs, for instance, you could extend an offer of a home equity line of credit at the right time. Not only does this offer healthy, safe growth, it assures your customer that you’re dialed into his or her needs.
Not every customer is going to be a home run, so you should aim some customer retention tactics specifically at the most profitable clients in your portfolio. By matching profitable services with customers who are most likely to utilize them, you show some of your most important clients that you can predict their needs. The right data can help identify those customers who are most likely to use services, and who have the highest probability of success.
Finally, timely, relevant marketing materials can be an excellent retention tool. Think about it: Your customers are likely to receive a number of marketing materials — mailers, e-mails, online ads and more — from banks hoping to cast a wide net and snare new business. When your marketing materials are in line with your customer’s actual financial situation, there’s a better chance for response. By segmenting your current customers based on spending, credit and propensity to open new accounts, you can send the right materials at the right time to keep your customers using your services — not your competitor’s.