Bank Marketing Show
Ep 41 - Creating Stickier Customers
The episode discusses the importance of retaining customers in the banking industry. It explores the concept of "stickiness" as a measure of customer loyalty and provides insights into factors affecting customer retention. The podcast emphasizes the role of technology in increasing customer stickiness and offers strategies for monitoring, improving, and addressing pain points to enhance customer satisfaction. Valuable information and resources are provided for banking marketers.
Creating Stickiness is Crucial for Banks
In today's competitive landscape, banks must focus on creating stickiness to retain customers amidst numerous ads and FinTech solutions.
Coordination Between Retail and Marketing Teams
Coordination between retail and marketing teams is crucial to avoid overwhelming customers with multiple messages or irrelevant offers.
Continuous Monitoring of Important Factors
Continuous monitoring of important factors is crucial for maximizing impact on customer stickiness.
Utilizing Technology for Outreach Efforts
Utilizing technology such as email automation systems or CRM tools can help manage and streamline outreach efforts.
Establishing a Feedback Loop with Customers
Establishing a feedback loop with customers through personalized interactions and asking questions at opportune moments can provide valuable insights.
Improving Customer Satisfaction
Putting processes in place and listening to feedback can help improve customer satisfaction.
Identifying and Fixing Pain Points
It is crucial to identify and fix pain points in core systems or data analysis.
Valuable Information for Banking Marketers
The podcast provides valuable information and details that can be useful for gaining additional knowledge and discussing with executive teams or colleagues in the banking industry.
- The Importance of Retaining Customers in the Banking Industry
- Factors Affecting Customer Retention in the Banking Industry
- Analyzing Data and Identifying Stickiness Factors
- Monitoring and Improving Customer Stickiness
- Improving Customer Satisfaction and Addressing Pain Points
- Valuable Information and Resources for Banking Marketers
The Importance of Retaining Customers in the Banking Industry
00:06 - 07:26
- Marketers focus on bringing in new customers, while banks are responsible for keeping them interested and satisfied.
- Stickiness is a measure of customer loyalty and likelihood to stay with the bank, determined by factors like multiple product usage, direct deposits, and long-term commitment.
- Measuring stickiness and identifying warning signs are crucial for maintaining strong customer relationships.
- Creating stickiness is essential for banks to retain customers in today's competitive landscape.
- Chime is an example of a FinTech company that initially targeted a specific market segment but expanded its offerings over time.
Factors Affecting Customer Retention in the Banking Industry
06:57 - 13:47
- Fintechs initially focused on solving specific problems, making it easier to attract customers who needed those solutions.
- Market fragmentation has made it easier for customers to switch institutions and move their accounts elsewhere.
- Lobby traffic in banks has been declining, reducing face-to-face opportunities with customers and potentially weakening relationships.
- Retention efforts should focus on connecting more deeply with customers and making it harder for them to leave.
- Coordination between retail and marketing teams is crucial to avoid overwhelming customers with multiple messages or irrelevant offers.
- Technology plays a significant role in increasing customer stickiness.
Analyzing Data and Identifying Stickiness Factors
13:22 - 19:49
- Technology can help analyze data and identify stickiness factors.
- Stickiness factors for banks can vary depending on factors like bank size and revenue streams.
- Usage of debit cards and other banking services can indicate stickiness or lack thereof.
- Changes in behavior, such as a decrease in debit card swipes, may suggest the use of another card or account elsewhere.
- Continuous monitoring of important factors is crucial for maximizing impact on customer stickiness.
- Bringing data into the picture is essential for understanding transactional patterns and effectively monitoring customers' behaviors.
Monitoring and Improving Customer Stickiness
19:31 - 26:23
- Consistently monitoring and analyzing factors that impact stickiness is challenging without a platform.
- Creating reports with truncated data in Excel can help analyze metrics more frequently.
- Implementing processes and continuously monitoring stickiness metrics is crucial for effective change.
- Automated campaigns through email or direct mail can be used to engage dormant customers, but segmentation is necessary to avoid overwhelming customers with multiple campaigns.
- Utilizing technology such as email automation systems or CRM tools can help manage and streamline outreach efforts.
- Establishing a feedback loop with customers through personalized interactions and asking questions at opportune moments can provide valuable insights.
Improving Customer Satisfaction and Addressing Pain Points
26:05 - 32:55
- Personal outreach is important in banking to create a positive customer experience.
- Survey responses can reveal consistent pain points that need to be addressed.
- Feedback should not just be collected, but also acted upon and incorporated into strategic planning.
- It is crucial to identify and fix pain points in core systems or data analysis.
- Putting processes in place and listening to feedback can help improve customer satisfaction.
- Surveys should not only focus on angry customers but also address specific frustrations or difficulties.
- A playbook called the "Stickier Customer Playbook" has been created with strategies for improving customer satisfaction.
Valuable Information and Resources for Banking Marketers
32:41 - 34:19
- The conversation in the podcast provides valuable information and details.
- The topic discussed is important but not often explored by marketers.
- There will be show notes available for this episode, including a free white paper.
- To access more valuable insights from the show, visit BankMarketingShow.com and subscribe to the podcast.