Relationship Status: 4 Ways Retail Banks Can Increase Customer Loyalty and Satisfaction
While average banking customers say they are satisfied with retail banking, retail bank loyalty is another story. In a 2012 World Banking Report, consulting firm Capgemini and Efma found that, while 80 percent of customers say they’re satisfied with their primary banking institution, only 50 percent were confident that they’d stick with that bank for the next six months. By increasing customer loyalty via cross-selling, mobile solutions and excellent customer service, you can limit customer attrition, protecting your revenue and your customer-bank relationship.
1. Integrating mobile solutions and social media
Modern banking looks very different from the banking that was done just 10 years ago. With the ability to deposit via a cell phone snapshot, check and move balances on phones and read all about it on Facebook and Twitter, banks need to offer a full range of mobile services to remain competitive. After all, customers are looking for convenience, and mobile banking is the epitome of saving time. What’s more, banks also should be aware of what customers are saying via social media and be ready to address those comments in a personal way. Corporate social media accounts are a must.
2. Cross-selling products
They’re your customers—keep them in-house by working to offer products they might want or need without having to go to another financial institution. A 2011 report by PwC’s Financial Services Institute found that, while the average customer manages over six financial products, only half of those are at the customer’s primary financial institution. By offering the right services to the right customer at the right time, you increase your chance of keeping customers from seeking products elsewhere. Predictive data and cross-selling products can help give you the tools to keep your customers in-house.
3. Increased flexibility and transparency
With the rebound of the banking industry, there has come a new crop of retail banks operating on a platform of transparency and trust, doing away with the formality sometimes attributed to the world of banking. Online solutions, the removal of fee-based banking and encouraging trust through personal relationships have taken customer loyalty to a whole new level. Without flexibility in fees, hours and solutions and transparency in operations, you could lose business to a new-school bank that promises to offer customers the trust they crave with their retail bank.
4. Financial advisory
Let’s face it—pushing products on the wrong customer can backfire, making your customer feel like one of thousands. Instead of relying on scripts and hard selling, retail banks would do better to get to know their customers, creating and maintaining portfolios and achieving a personal banking experience. Whether it’s taking the time to reverse a fraudulent charge and check up on the affected customer, explaining a better way to save or suggesting a more cost-effective mortgage product when a customer experiences a change in income, showing that your customers are more than just account numbers is true financial advising and enough to bring your relationship to the next level.