Innovate customer interactions to strengthen loyalty

Consumers have their pick when it comes to choosing a financial institution and fees, services and products play a significant role in their decision. But the results of a new survey demonstrate that a customer’s loyalty may also be influenced by how financial institutions interact with them.

The study conducted by Bain and Company reveals that customers are likely to be more loyal to institutions that not only provide effective and fast services, but those that take a personalized approach to banking practices. Further, customer loyalty can translate into roughly $10,000 per individual over the life of their banking relationship versus customers who are not loyal, American Banker reports.

When it comes to driving customer loyalty, there are a few key actions that may influence a consumer’s decision.

1. Quickness and efficiency
Online and mobile banking are growing platforms among U.S. banking customers, but a large percentage of Americans continue to make the majority of their financial transactions at physical branch locations, according to American Banker. While this scenario is not harmful or damaging in and of itself, high in-branch transaction levels may slow down banking operations and customer service call centers, adding some frustration for consumers.

2. Level of service
Confronting customer issues, such as statement errors, loan rejections, fraud or lost and stolen debit cards also has a large impact on a customer’s loyalty, American Banker reports. These moments are likely to be emotionally-charged, making it imperative that staff is trained to adequately handle these crises and provide guidance and superb customer service to resolve potential issues.

3. Comprehensive services and technology
Providing a variety of mediums to communicate and transact gives customers more control and options when managing their day-to-day finances. Online banking, mobile applications, social networking pages and email campaigns can help banks build and foster stronger relationships with consumers.

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