Banking on Business Customer Retention
While 40% of business banking customers say they are highly satisfied with their current banking relationship, that rate more than doubles to 85% when their business banker has earned their trust and demonstrated that they can help manage their financial needs. Instead of maintaining relationships with one institution where primary accounts are held, another where loans are obtained, and yet another that provides expert financial guidance, small business owners seek an integrated banking experience. A bank that can provide this comprehensive package of services provides a clear advantage to small business owners over a siloed banking approach when it comes bank customer retention.
The impact of banks falling short of customer loyalty expectations in their relationships with business banking customers is profound. Customers who view their business bank as a mere repository for account funds are eight times more likely to indicate a desire to switch business banks than are customers who have developed a Trusted Advisor relationship with their banker. But those trusted relationship bonds between bank and business customer are extremely rare, accounting for only about 8% of customers in the survey. Bankers who were able to move more of their small business relationships toward this model have more of an impact on customer loyalty and bank customer retention.
A Wells Fargo study shows that 55% of American business owners believe that customer service plays an increasingly important role in differentiating one business from another. As a bank or financial institution, the customer experience plays a big role in driving customers to you and keeping them there. As such, fostering a positive customer service culture is key. Make sure your employees understand the importance of customer service by clearly explaining your expectations, tracking performance, and recognizing employees who embrace the culture.
The downfall of many larger banks, in particular, is that many of them forget that they are in the customer experience business. As affirmed by Bankrate, they lose sight that the only way to get new customers and retain old customers is to create value. So what does adding value really mean? It could mean offering customers a rich suite of online services so they don’t have to worry about making it to a branch office before it closes. It could mean offering longer hours to accommodate even the busiest of families or professionals. It could mean a live person answers the phone instead of a teleprompt system where customers get bounced around before speaking to a human. Or it could mean nixing fees to use a debit card at an ATM.
Building a business while nurturing the customers you already have means elevating their experience to keep them satisfied. This is the whole basis of bank customer retention. Whereas many of the larger banks have lost touch with their customers, the smaller banks still have a finger on the pulse of what makes their customers tick. Losing that perspective will lose you customers, and ultimately money.
Why choose ath Power? We are trusted within the financial services industry to deliver guidance and practical management, with a skilled team that brings decades of success and hands-on experience in CX design, research, analytics, and training across all banking lines of business. Contact us at 978-474-6464 to learn more.