By Ron Daly
Newton’s Third Law says that for every action, there’s an equal and opposite reaction. But while he’s talking physics, I’m thinking customer retention. All good things seem to have a bad side, and for banks, stickiness is near the top of the list.
So, ask yourself if your stickiness is the good kind or bad kind: Do your customers perceive your bank as a sticky bun, offering a satisfying experience that leaves them with a good taste? Or maybe it’s more like flypaper, where customers put up with sub-par service or outdated delivery systems because they feel trapped?
Financial institutions with a flypaper attitude see no need to move into new technologies; they’ve had the same customers for years. Sure, the industry had a lock on financial services for decades; but with online banks, new challenger entrants, mobile wallets, Wal-Mart and Millennials questioning traditional banks’ relevancy, that’s changing. Retaining customers now means offering what they want most: anywhere banking, time savings and products that fit their lifestyles.
It’s no wonder. With the unprecedented pace of convenience technology, people are placing greater demands on all their personal service providers. From travel to insurance and from real estate to banking, consumers want information and access right at their fingertips. Delivery channels like smart phones and other mobile devices rule now, along with innovative services and one-click apps that break apart legacy technology silos.
What do people want?
Consumers may have started with their PFI because it offers typical bank services, but they stay because of what else it offers. It’s that “what else” that counts, and that means getting sticky. At Virtual StrongBox, we recommend three ways to do it: go mobile, get personal and be secure but also convenient.