Based on these facts, the easiest way to grow is to focus on retaining current customers while increasing incremental product spend. Once you decrease turnover rates, it’s often possible to significantly increase your growth rate because you’re no longer forced to make up lost ground just to stand still.
Increasing customer retention often starts with consistent communication, branding and personalization.
1. Provide Proactive Support
Usually, customers who have problems with products and services will not communicate the issue. According to Lee Resources International, for every customer who complains about an issue, there are 26 who stay silent. Instead, they take their business elsewhere.
A best practice for “breaking the silence” and providing proactive support is to utilize the space on digital and print documents to request feedback and encourage open dialogue.
2. Value Proposition Reinforcement
Value propositions are a clear statement that should:
- explain services and how each service improves the customers' situation (relevancy),
- deliver specific benefits (quantified value),
- highlight competitive advantages that drive customers to stay with the orgianzation (unique differentiation).
3. Add a Personal Touch
As technology continues to evolve, customers are expecting more personalized communications that align with behaviors, needs and wants. According to “The Cost of Poor Customer Service” by Genesys Global Survey, 38% of consumers say personalization is important to the customer experience.
Marketing space on digital and print statements, letters, notices, etc. can be optimized to target customers with products and services that best fit specific needs. A best practice is to utilize existing customer data to identify specific criteria, including account balance, zip code, and spending habits, to name a few. From there, leveraging dynamic communications on all digital and print documents creates a timely, effective customer experience.
While it’s next to impossible to have a 100% retention rate, financial institutions can drastically decrease turnover by proactively approaching and maintaining current customer relationships.
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