With 2012 just beginning, the new year is presented for the banking sector as a new era in which entities seriously reflect on new strategies to strengthen customer loyalty.
In an environment in which the air is increasingly impregnated with optimism about emerging from the difficult period of recession, interest in advanced customer management takes on greater importance as a tool for improving profitability in financial institutions. In this sense, some research in the United States confirms that a company that manages to reduce its rotation by only 5% can improve its profitability between 25% and 100%.
With the increase in fierce competition and the multiplication of regulations that closely monitor economic behavior, banks are struggling to increase the loyalty of their customers while they demand differentiated services or greater added value in their relationships with their entities. In other words, a customer experience that increases their satisfaction and trust, puts an end to disenchantment and consequently increases the levels of loyalty and benefit for the entity.
The data speaks for itself: Loyal customers have been shown to generate 30% to 70% more value for banks than ordinary customers throughout their relationship with the banking institution. These customers buy more products and are even willing to tolerate higher bank charges; In addition, they will continue with the same bank as long as it fosters a quality relationship and ensures a good long-term return on investment.
This new issue of our newsletter focuses precisely on the importance of the proper design and correct implementation of a loyalty strategy. In this way, I recommend the section The alarm clock, where you can find the video “Customer infidelity” and an article on this subject in which you can delve into what are the mistakes and successes in terms of customer retention in the sector banking.
Recommendations that BancSabadell has undoubtedly implemented throughout its more than 130 years of history and that have led it to become the financial institution that generates the highest level of satisfaction in the private customer segment, the Spanish bank that fewer claims received before the Bank of Spain in relation to its size and the best valued by the market for objective quality in its branch network. A well-known example of customer management that you can consult in the Shower section.
In our Breakfast section, I encourage you to read the book “The Satisfied Customer: Quantitative and Qualitative Strategies to Build Consumer Loyalty”, in which you will be able to find out which aspects of the product, service or Marketing have the greatest effect on customer satisfaction.
To finish, I propose you to attend the Customer Experience Forum 2012, organized by Forrester in New York and where the customer and especially the management of their experience, will be the axes that mark the lines of this event.
I hope that the theme chosen for this issue makes you reflect on the importance of keeping your customers satisfied to guarantee their loyalty and guides you in the retention strategies of your business model.