Table of Contents
Customer loyalty is an increasingly important issue for financial providers. Developments such as easier account switching in the UK or the emergence of new, mobile-based banking services in the US pose new challenges for established banks. They can significantly undermine consumer loyalty, making it imperative that providers understand what they can do to reinforce loyal behavior.
- Understand what parts of the customer experience have the greatest impact on loyalty.
- Learn what actions specific providers around the world are taking to encourage and incentivize loyal behavior.
- Assess the relative effectiveness of various schemes, innovations, and initiatives designed to maximize loyalty.
Reasons To Buy
- Why does customer loyalty in financial services matter?
- What can banks do to encourage loyal behavior without compromising profitability?
- Where should providers target their resources to drive the largest gains in loyalty and retention?
Banks are using big data and advanced analytics to provide a more targeted and individual level of service to their customers. When HDFC Bank in India upgraded its systems to allow a holistic view of its customers, service quality noticeably improved, resulting in a significant growth in acquisition and retention rates.
Providers can do more to improve their loyalty schemes. American Express has successfully integrated its scheme with social media to engage its customers. Contextualized rewards, based on customers' spending history, will enhance the customer experience, and banks can form partnerships with retailers to gain access to in-depth transactional data.
Mobile banking offers an ideal way for providers to increase the breadth of customer relationships by facilitating product sales. In the US, providers such as USAA and US Bank are marketing credit cards via mobile. Consumers can apply for these cards and transfer their balances instantly via their smartphones, with no need for paperwork.
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