3 Interesting Ways Banks Can Curtail Customer Churn Rate | Quantzig
Acquiring new customers is a more expensive process when compared to the retention of old ones. This is one of the main reasons why leading companies have put reducing the customer churn and improving their customer retention capabilities on their priority list. The banking sector is among the industries recording the largest rate of customer churn every [...]
Acquiring new customers is a more expensive process when compared to the retention of old ones. This is one of the main reasons why leading companies have put reducing the customer churn and improving their customer retention capabilities on their priority list. The banking sector is among the industries recording the largest rate of customer churn every year.
The rising competition in the market, which gives customers the liberty of choice and better offers, is one of the primary contributors to customer attrition for retail banking companies. To state the obvious, providing effective, meaningful service is key to reducing customer churn. But how can companies in the banking sector get there and bring down customers leaving them for competitor brands? To identify early signs of potential customer churn, banks first need to start getting a holistic 360-degree view of the customer base and their interactions across multiple channels such as bank visits, calls to customer service departments, web-based transactions, mobile banking, and social media interactions. This would allow them to detect early warning signs of customer churn such as reduced transactions or stoppage of auto-pay or negative experiences, and you can take specific actions to prevent churn.
At Quantzig, we understand the impact that customer churn rate can have on your business. And to help banking and financial services companies provide the best customer service and reduce customer churn rate, our team of experts have highlighted three strategies that they must consider:
How to Curtail Customer Churn Rate?
Enhanced CRM tech
Retail banking companies are already exploring facilities like mobile banking, which makes things hassle free and results in improved CRM. However, it is newer technologies within the CRM suite, such as social listening, Voice of the Customer (VOC), and sentiment analysis tools that will be vital to banks tieing up the information flow between their customer-facing technology and using it to engage customers with the right communications at the right time.
Remove silos in the hierarchy
Studies show that satisfaction levels are still quite low among banking customers. Companies in the banking sector will need to remove silos in their hierarchy to free employees so that they can focus on reducing customer churn. This means giving more attention to customer service in the front office, and better use of engagement-driving technology in the back office.
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It often happens that even after analyzing data thoroughly, the top management fails to understand where they are going wrong. In most cases, companies tend to overlook factors that might seem trivial, but in reality, these factors might have a significant impact on customer churn. This might eventually result in customer churn. Hence, it is vital for banking sector companies to know what exactly their customers feel and address their concerns. Banking sector companies could use a suitable call center software solutions to integrate their social media channels. People have become tech-savvy and prefer posting about their concerns over social media. In such a scenario, if they receive a quick response or even an acknowledgment of the receipt of their request, it will result in customer satisfaction and improved loyalty.