Lifecycle Management Part 2: How To Keep Fickle Customers on Your Side
Just as you can use big data to attract the right customers at the right time with the right offers, as discussed in part one of this series, you can use it to find out what your customers truly need, which can help keep them loyal and happy.
For many consumers, they think, financial institutions are a commodity where they simply need to keep a checking account, or where they can get a first or second. Instead of seeing their financial services provider as true partner where they can get sound advice, product and services from experienced financial service experts, in many cases, they view their bank as a mere necessity.
Deals cause fickle customer attrition
This perception of the financial services industry can be problematic and demanding customers often seek out lower cost and what they perceive as more convenient services. These types of frustrated customers often times lose their loyalty to the financial institution and jump ship to a competitor if they think they are getting a better deal.
Of course, they often find the grass really isn’t greener on the other side. According to a recent study by J.D. Power and Associates, new bank customers are among the least satisfied and the most likely to leave their financial institution for another competitor. Satisfaction is much lower for new customers than for those who have been with an organization for more than two years.
It doesn’t have to be this way.
Remain a part of the community
Attracting and retaining fickle customers involves more than dangling the carrot of a good deal in front of them. If organizations want to win these customers’ business for years, bringing the human elements of financial services back can help.
According to Equifax’s Customer Lifecycle Management Best Practices, a leading financial institution has tried this approach with resounding success. Despite having well over 1,000 branches in more than 10 states, the organization has established an outreach program where associates contact new customers three times after their account is initially opened. After two days, there’s a quick “thank you” touch point; after two weeks, there’s a confirmation that the account is fully activated; and at two months, they begin cross-selling outreach.
Adding data to cross-sell human-to-human
In the final stage, the firm uses IXI™ Services from Equifax to identify the best products to offer to the right customers, which results in greater conversions and less time wasted on selling unwanted products to the wrong customers.
More importantly, the power of IXI data has helped the financial institution optimize their cross-sales channel in a way that deepens and creates true personal relationships between the bank and customers. This method saves everyone time, drives revenue and makes customers feel wanted appreciated. With this approach, the organization is establishing itself as a meaningful part of the local community, instead of consumers viewing the financial institution as a commoditized — and unwanted — utility. IXI has helped the nation’s leading financial services and consumer marketing firms optimize omni-channel marketing efforts, identify growth markets, and enhance practice and performance management.
Learn more about optimizing relationships with your customers in part three of this series.
Image source: Shutterstock
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