Retaining customers in the banking industry is a tricky business. Even though customers would initially prefer to stay with their current provider, 46% of Millennials will look for companies and services that better meet their needs Experian That is a large percentage of Millennials that have the potential to jump ship. This article looks into reasons why banks are losing out on opportunities to keep Millennial customers and offers some best practices to help increase customer loyalty.
Banks are great at selling their services and convincing new customers to sign up, however where they lack is in managing and nurturing existing customers. Some areas of the financial industry are worse at this than others, such as credit card and mortgage companies, however there is room for improvement in all areas of banking services.
You know that feeling when you bump into someone you have met several times and they still fail to acknowledge who you are… It is the same feeling customers get each time their bank asks if they are an existing customer. Banks need to offer a much more personalized website experience for their customers. If a banking customer receives a seamless experience across service lines, devices and tools, they will be stretched to find a reason to leave, and this is what banks should be striving for to keep their Millennial customers. Here are some ways banks can work on website personalization: Consistency: Banks need to offer a consistent experience across all their service lines. Currently, many banks offer several services that don’t appear to be from the same bank. Consistency will offer several benefits in terms of building loyalty. Firstly, if the experience feels familiar, Millennial customers will gain trust for the bank and choose to return to the same bank when they need a new service. Customers will feel more confident in the process of applying for a new service because of its familiarity so that straying to a competing bank will be less likely. Offer a fast mobile experience that doesn’t break: 55% of Millennials rank technology failures or the inability to carry out a transaction online in their top three most frustrating banking experiences Medallia
Personalization can be difficult for banks to deliver because of they can be stuck in regulations and their own bureaucracies that block them from moving forward. However, to keep up with Millennials, banks need to break through these boundaries and switch to a customer centric approach. One way banks can do this is via nurturing existing customers with content personalization and financial advice that is relevant to where they are in their journey. This shows that the bank has a genuine interest and commitment to the consumer’s well-being. For example, using the data available, banks can offer advice to a new family trying to stay afloat, to students getting through college or the young couple who just bought their first home.
The Commercial Bank of Dubai is an example of a bank that provides a consistent user experience across all services and, in addition, has began to provide personalisation tools to offer a sophisticated nurture experience for its users. Here is an example of a personalization tool they have developed: Virtual Assistant: Sara is CBD’s virtual assistant who helps with different questions about products and services available from the bank. Think of her like a Siri for this bank alone. The goal of Sara is to stop any customers waiting for answers and we all know Millennials love instant satisfaction to queries online.
Have you experience excellence in personalization and banking?
September 20, 2020
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