Customer acquisition has become a more challenging aspect now in both the public and private banking sectors, as many banks and financial institutions are offering various attractive products and advanced technologies to attract customers for easy and convenient banking services. Banks are adapting various marketing techniques and technological advancements to acquire new customers.
Marketing teams are traditionally focused on building brands and increasing loyalty. Building reputation, trust, and security have become the main objectives for providing protection against new entrants to the financial sector. Agility, strategic aggressiveness, and sharp execution strategies are playing a key role in attracting customers .
Banks and financial institutions are making a lot of efforts to onboard customers for various offerings. The main efficient ways are as follows:
- Increasing branch networks to reach customers who are in remote areas
- Setting up aspirational targets for sales and service across channels
- Interacting with the customers, understanding their preferences in every aspect, and accordingly designing the products and services to meet the customers’ needs
- Based on the existing data base with the organisations, attracting new customers, and deepening relationships.
- Adapting the new advanced technologies for an easy and convenient on-boarding process and quick services
Once customers are onboarded, it is now important for the banks or financial institutions to offer services effectively and efficiently to keep up a sustainable banking relationship with the customer for years. Banks should not compromise on building reputation, trust, and security while maintaining the banking relationship with their customers.
Customer retention is an asset for businesses. Acquiring a new customer can cost five times more than retaining an existing one. Customer retention refers to the actions and strategies a business uses to try to keep existing customers. Customer retention analytics tools always help retain existing customers . Retaining customers is an important aspect, and organisations are strictly adhering to various measures to achieve long-term retention.
Interacting with the Customers
Customers always want personalised attention from organisations and expect good interactions with the bank and timely responses whenever there is a need. Banks or financial institutions should ensure customer interactions are simple, intuitive, and seamlessly connected across physical and digital touchpoints. Banks and financial institutions are focused on meeting the above-mentioned expectations by investing massive amounts in various segments, such as IT and infrastructure.
Reviewing customer journeys
Organizations to review the existing process life cycles of various products timely and understand any process and design gaps if exists and accordingly fixing the issues will lead to better customer experience and to avoid any adverse impacts
Data Analytics techniques used for customer retention
Banks and Financial Institutions do maintain customer’s data and this data will be used extensively for various product offerings and improving the customer services.
Banks to gather the customer data which is available across the channels and maintain for further data analysis and offer product and service recommendations to customers.
Technological advancements such as robotic-process automation, machine learning, tools are being extensively used to understand the customer transactional behaviours and preferences across banking portals helping the organizations to offer better customer services and offers
Integrating the banking systems with various external systems to provide house searches, booking viewings, budgeting, transactions, utility payments and reminders etc., will help the banks to deliver the customer daily needs and thereby retaining the customer for long
AI & Machine learning based data analytics
Organizations are now using artificial intelligence to make automated decisions that are based on data collection and data analysis. Once the data is collected from various channels, the data needs to be analysed by using machine learning and AI tools to offer best product recommendations to customers proactively. The analysis includes customer past purchases, browsing history and chat conversations etc. . By analysing historical data from social media, news, purchase history, feedback, searches, and reviews, AI and machine learning applications can predict consumer spending trends and behaviours more accurately.
Focus on high quality leads
Always focus on existing and potential customers data. By applying algorithms, define the customer segmentation basis annual spend, job title, type of industry etc., and accordingly offer distinct features.
Surveys and Feedbacks
Always analyse the survey responses and feedback provided by the customers. Basis the inputs received, analyse the details with text analytical tools to derive customer pain points.
Segment to focus on retaining the right customers
Using data analytics, customer segmentation can be done. Customers can further be classified as high NetWorth, privilege and regular customers. According to customer segmentation, banks can offer various personalized products and services to customers. Analysing data such as customer demographics, lifestyle, products purchased by each category and type of customer, the frequency of purchase and purchase value and offering the banking services will yield more revenues and customer retention to the bank.
AI-powered chatbots are becoming critical tools for organizations that want to deliver exceptional customer experiences. By providing instant answers to frequent questions, bots help reduce the burden on call centres and create more efficient, scalable customer service operations. Chatbots can update customers in addition to resolving customer issues. This includes informing them about new products and offers, as well as events and other activities.
- Retaining customers will always reduce the cost of new acquisitions.
- Existing customers make it much easier to market and sell new products and offers.
- Organisations will have sustainable growth by keeping existing customers.
How Brickendon can help?
- Brickendon will help in implementing the AI and machine learning-based tools for data analysis.
- Brickendon will help to deploy the technological advancements that help the banks retain customers and generate revenue.
- Brickendon will help to review the customer life cycle journeys and build integration techniques with external systems to fetch and understand the customer’s wants and needs.
- Brickendon will help deliver predictive analytics and chatbot model implementation to understand customer preferences and transactional behaviours.
- Brickendon can extend best omnichannel support to increase customer retention.
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