We all know a customer is the king of the market. This is especially true in the finance sector, as customers are the lifeblood of the business. With ever-evolving technologies and new players constantly entering the market, financial institutions are under immense pressure to keep their customers happy and loyal.
We often hear the term customer loyalty. It is a very simple term but very challenging to achieve. Keeping your customers happy and engaged with your brand is difficult in this highly competitive market. It can be earned through consistent good service, reliable products, and building trust over time.
Some consumer finance companies have customer retention rates as high as 96 percent. This article provides insights into customer loyalty and how to increase it through finance. So, keep reading.
Create A Frictionless Omnichannel Experience
Customers need access to their financial information anytime and from any device. To keep up with customer expectations, you must create a frictionless omnichannel experience. This means providing customers with a seamless experience across all channels, whether online, mobile, or in-person.
Consider adding mobile banking and instant messaging to your channels. This will allow you to provide a consistent experience to your customers regardless of how they choose to engage with you. We all know how frustrating it is when we have to start from the beginning every time we switch channels, so make sure your customer doesn’t have to go through that.
It is important to note that creating a frictionless experience is not only about providing access to information. It also ensures customers have a positive experience when interacting with your brand. It means providing helpful and knowledgeable customer service, having a user-friendly website, and offering competitive products and services.
Extend The Customer Relationship
The customer relationship does not end when the financial transaction is complete. To increase customer loyalty, you must extend the customer relationship beyond the initial purchase. This can be done by proactively keeping in touch with your customers and maintaining a good relationship with them.
You can send regular updates about your products and services, invite them to events or provide exclusive offers. You can also show your customers that you value their business by going above and beyond to solve their problems.
Doing this will build a loyal customer base that will likely continue doing business with you. A whopping 91% of customers are likelier to do business with a finance company that offers exceptional customer service.
Offer Competitive Rates And Fees
Finance is a competitive industry, so you must offer your customers competitive rates and fees. It will show them that you are committed to providing value for their money. You can do this by offering lower interest rates on loans, waived fees for certain products and services, and discounts on financial services.
The transparency of fees can also play a role in customer loyalty. Be sure to communicate all fees associated with your products and services so that your customers know what they are getting into. Being upfront about your rates and fees will build trust with your customers and show them that you are committed to providing a fair deal.
Stay Agile To Meet Customer Needs
Your customers’ needs can change quickly, so you need to be agile to meet their needs. It means being open to change and willing to adapt your products and services as required. It also means being responsive to customer feedback and making changes based on what you hear.
Staying agile will help you create a customer experience tailored to your target market’s needs. It will also make you more likely to retain customers in the long term. If your customer demands to finance home renovation loan service, and you don’t provide it, they will likely go to a competitor who does.
To stay agile, you need to have a robust customer feedback system. This will allow you to identify areas where the customer experience can be improved quickly.
Enable Tracking and Reporting
To increase customer loyalty, you must be able to track and report on customer behavior. This data can be used to identify trends and areas for improvement. It can also help you personalize the customer experience.
Several ways to track customer behavior include online surveys, customer feedback forms, and social media monitoring. Use this data to understand what your customers want and need from you. It will allow you to tailor the customer experience and make it more likely that they will return to your brand. Finance organizations that don’t track and report on customer behavior are missing valuable insights that could be used to improve the customer experience.
Implement Advisor Portal
An advisor portal is an online platform that enables financial advisors to manage their clients’ portfolios, track goals and objectives, and provide recommendations. It also allows clients to view their accounts, monitor their progress, and make changes to their investment mix.
Adding an advisor portal to your website can help increase customer loyalty by providing a one-stop shop for all their financial needs. It also shows that you are invested in their long-term success.