What is the state of customer loyalty in the era of turnover?
How can we build customer loyalty in an age of constant change, turnover, and customer dissent?
The climate of customer loyalty is changing. Many financial institutions are struggling to improve their value proposition in the eyes of the customer. According to U.S. Financial Health Pulse, even prior to the pandemic, just 14% of millennials felt strongly that their financial institution helped them improve their financial health. So how can we build customer loyalty in an age of constant change, turnover, and customer dissent? Here is a look at this unique problem.
What Has Changed?
Consumers are no longer limited in their choices thanks to the digital era we live in. More so than ever, consumers do not often choose a single financial institution, but can spread out their services across a variety of providers. This makes them far less likely to find all their financial services met within a single institution. Pair that fact with a consumer base that is less patient and has higher expectations and you can see the risk to customer loyalty.
What Is The Risk to Customer Loyalty?
In short, financial institutions have to work harder to convince potential customers to stay with them than they have in the past. In fact, only 55% of digital-centric consumers said that they would definitely use their primary financial institution for their next financial services purchase. The risk is simple: Banks and credit unions that are not proactive in adding to their value proposition risk losing customers. Evolving with the customer is an absolute must. So what can be done?
How Do We Build Customer Loyalty?
There are two common threads that consumers are seeking in modern banking: Increased convenience and easier financial advising. While these threads might look different today than they did even 5 years ago, they are very much cut from the same fabric. Customers have always looked for better advising and accessibility from their financial institution. So how can the institutions of today be proactive and build customer loyalty from these threads?
The first step is being more intentional with on-going educational and advisory services. A third of high-net-worth customers are unsatisfied with the financial advice provided by their main financial institution, while over 80% of retail customers would trust their financial institution more if they provided better on-going education about their products and services.
And secondly, financial institutions must be proactive about adding new technologies to create higher levels of convenience and access. More than 50% of Gen Z, Millennials, and Gen Xers would switch financial institutions for better mobile and online capabilities.
Contact Invo Solutions For Some Help
At Invo Solutions, we are committed to providing new technologies to financial institutions that not only improve efficiency, but also improve customer experience. 75% of financial institutions named digital banking transformation as their top priority in 2021, followed by customer experience improvements at 51%.
We think both of those things can be improved simultaneously. Find out more about Invo Solutions can help your financial institution today by giving us a call at (855) 468-6843 or request more information today!