Recently, the spectrum of consumer services offered by the financial industry has been augmented to include a strategic approach to goal setting and achievement. While a long-term increase in personal net worth remains a priority for many customers, all live in the here and now. Financial service providers that act as an innovative source of empowerment and trust for customer needs — throughout life stages — are well positioned to retain brand loyalty.
An important aspect underpinning every customer’s goals, as well as their odds of achieving success, is general credit health. Whether an individual is considering retirement, a first-time home purchase, or sending a child to college, securing favorable loan terms is often a necessary plan component. Interest rates and overall credit health have a direct impact on one’s ability to make dreams a reality.
By partnering with customers to help them manage their credit outlook, financial service institutions are doing more than acting as good moral agents. Companies that engage consumers where they are, as well as where they want to be, enjoy increased brand fidelity – and a stronger bottom line. Statistics show that fully engaged customers represent an average 23% premium in terms of wallet share, profitability, revenue, and relationship growth compared with the average customer¹. Starting a dialogue about credit health and education yields a potentially loyalty-boosting competitive advantage.
In an era marked by a dwindling new customer base, this advantage may be a difference-maker. Only 6% of consumers reported switching banks within the past year². The crisis is particularly acute at the virtual-only level. Exclusively online customers have lower rates of loyalty to their primary bank, as well as lower retention and advocacy rates.
Financial Institutions looking for new ways to acquire customers, as well as strengthen bonds with the ones they already have, should consider investing in consumer credit health engagement. Why? Because it provides positive outcomes for all parties. A Market Rates Insight Study³ showed that financial institutions can sell an average of four times the number of products they currently do by offering customers more leading-edge services, such as credit score reporting and identity theft alerts.
It’s that simple.
1Gallup Business Journal 2014 - Why Customer Engagement Matters So Much Now
²2015 J.D. Power Retail Banking Satisfaction Study
³Growth and Revenue Potential from Emerging Financial Services- Market Research Insights Study 2014