But let’s face it. This only puts
a band-aid on the problem. It does
little or nothing to mitigate the underlying problem—lack of customer
It’s time to think holistically and
to start building stronger ties with
According to Gallup, more than 50
percent of the customers considering
buying a new product seek out information prior to the time of purchase.
Appreciate and recognize
The banks that educate and inform customers about their institution and products see higher returns on investment. If
your bank doesn’t provide it, they’ll consider other options. And consumers have
more than ever before. As a result, they
diligently research and consider their
choices before making buying decisions.
However, customers are interested
in more than just rates. Most custom-
ers want to feel they’ve made the right
banking decision. They want a relation-
ship with their financial service provider.
If their bank treats them well,
through appreciation and recognition for their business, customers will
remember. And they’ll be significantly
more motivated to stay, and buy.
To gain loyal customers, you have to
earn their trust and give them a reason
to stay. Consistent communication, both
in the message and in the frequency of
the message, is one key to earning trust.
A well-planned communication
strategy is an opportunity to give your
customers an ongoing education in
what your bank has to offer.
Every successful strategy requires
frequent contact, a consistent message,
education and trust. Recent research by
J.D. Power & Associates shows that customer satisfaction and cross-sell success
improve with the number of customer
contacts (the optimal number of communications being five to six).
Building stronger customer relationships by frequently communicating and
educating your customers may sound
simple, but it’s a strategy that most
banks fail to effectively implement.
Why? It requires marketers to send
frequent messages that educate and
offer customers clear-cut value propositions. Not all communications must be
offer driven. There lies the problem and
frustration for most bank marketers.
Ask for customer feedback
Many CFOs, CEOs and their
management counterparts view a
relationship-selling strategy as an unnecessary expense. Marketers are typically instructed to send offer-driven
communication pieces to generate
immediate measurable revenue.
But these banks are missing the
bigger picture. They fail to take time
to engage their customers in a relationship and get feedback about
what the customer thinks, needs and
wants before sending them product
Yes, a relationship-selling strategy
requires more marketing dollars, but
it’s truly one of the most effective ways
to give customers a real reason to put
their trust and money with your bank.
Remember, it’s not how much
money you spend that counts. It’s how
much money you can make, in the
way of increased retention, cross-sell
ratios and profit.
With customers having so many
options and competitors aggressively
trying to lure away your customers, you
can’t afford (literally) to miss the opportunity to build trust-based relationships.
Focus on developing a relationship-selling strategy based on frequent and
consistent communication. n
ABOUT THE AUTHOR
TED TRIPLETT is the
president/CEO of Ted
Lincoln, Neb. His area
of expertise is helping
financial institutions build and
deepen customer relationships. Email:
The banks that educate and
inform customers about their
institution and products see
higher returns on investment.
WHAT’S YOUR BIGGEST ASSET? It’s not your building, your employ- ees or numbers on a spreadsheet. It’s the relationships you have with your customers. I’ve seen too many banks putting those relationships at risk. How?
By sending only offer-driven communications to customers. Their reasoning: They
want their marketing efforts to always generate immediate results and drive revenue.
Why You Need a Holistic
Approach to Customer