The War of Attrition
Any activity, any game, any little bit of work, is really a numbers game. If you look at any objective that requires reached in any field, you will find that you need to help with X quantity of hours for success, or make X dollars to stay afloat, or draw a minimum of an audience of X number of individuals.
The financial services industry? It has a lot of numbers, only one is more important than the others: the amount of individuals who make use of your services. Which number is taking an attrition hit. A big one.
According for an article through the Financial Brand, dissatisfaction having a financial establishment represent 50% of the attrition rate for consumers1. This really is clearly the highest percentage of the four reasons, another three being death, divorce, and displacement. The only bright-side to dissatisfaction, instead of the other thee “Ds,” is it can in fact be changed and influenced with your actions.
There are three good reasons for dissatisfaction that routinely appear as a reason for consumers leaving a business or product behind:
- A Poor Product
- Poor Service Quality
- Inconvenience of Using Services or Product
These three troubles are some things you can manage, so here are a few suggestions:
- Poor Product
It may appear just like a given, but having a good product could keep people returning. Here’s your checking accounts, loans, debit cards, and all sorts of facets of your company that you offer for your members.
Today, consumers want more for the similar price and it is your decision allow it to them. With new and emerging fintech choices for the consumer’s banking needs, you have to better your own product arsenal to keep your loyal members-well, loyal.
Whether it’s lowering loan rates of interest, improving your mobile app, or attaching a rewards program for your debit card, it is of vital importance to shift and enhance the way you do business.
A debit rewards program, particularly, is a great place to start enhancing your products. After all, multiple consumer surveys show rewards for basic banking activities are the highest ranking consumer desire using their financial institution2. Buzz Points is one such rewards program that gives what consumers want, whilst turning it into revenue for lending institutions. The 2X “buy local bonus” is another enhanced feature of Buzz Points that adds more sparkle for your product.
A better product can make up for deficiencies in other locations, along with a better method is just an easier sell.
- Service Quality
Show of hands, who here has ever been into a store coupled with to deal with bad customer support? Easier question, who because ever known as a company’s customer support line coupled with a dreadful experience? (I’m taking a look at you call center guy in India.)
Did you enjoy that have, or have you dread every second? Exactly. Good customer service matters.
Which brings us back to the greater product example above. Product and service go hand-in-hand in the mind of the consumer. But servicing a rewards program can be labor intensive. So make sure your rewards provider is delivering ongoing engagement for you personally, which cardholder support is included.
After all, 80% of impressive loyalty programs have a dedicated team3. Make sure your provider provides that team, not only a promise.
Of course, the basics of member service always apply to all your staff. Friendly demeanor and helpful conversations in telephone calls. Experienced and knowledgeable service reps who be aware of products. Basically, the whole experience ought to be tailored to avert being something you yourself would hate to undergo.
If you’re going to give people an option to do something, a minimum of make it easy in it. Making it difficult to pay a bill is the worst. The customer really wants to give you money, but it’s a struggle. Checking statements can be challenging, and that is disconcerting too. Transfer money from one account to a different? It ought to be simple. Inconvenience is really a major problem for retention.
Make simple to use, make it simple, make it intuitive. Most of these problems apply to on the internet and mobile banking, so we’ll concentrate on those. For any website, make an effort to make it intuitive and simple to navigate, make getting to your ultimate goal simple and easy to complete.
For an application, it needs to be able to perform those self same things, but even easier. Phone screens are small and the very best apps are designed for making easy smooth transitions. For instance, the Capital One credit card app makes it simple to create payments from saved back accounts and it is effortlessly navigable.
Excellent app service can lead to rave reviews from members. Fort Community CU won Credit Union Journal’s 2019 Best Practice award for their mobile app, an application that’s intuitive, simple to use, has got the job done, and their members loved it2. Along with the truth that the app can also be integrated with the Buzz Points Reward Program, which seamlessly integrated with their app and allowed customers to check and spend their points, and you’ve got covered two of the three dissatisfaction areas.
Dissatisfaction is a concern nowadays, but i am not saying the financial industry needs to be plagued with similar problems other medication is. In a nutshell, be better compared to rest.
(And if you’re interested in the way the Buzz Points rewards program can increase your product offering, and add depth for your customer care and marketing teams, visit BuzzPoints.com.)