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So you’ve identified customer churn  – if not, some tips on what to look for here – but now what?

Here’s a few simple tips to reduce the churn rate, now that you know the problem. 

  1. Prioritise your bank/FIs best customers
  2. Offering incentives
  3. Get the right customers
  4. Create a roadmap for customer onboarding
  5. Proactive communication
  6. Always ask for feedback
  7. Know thy competitors
  8. Staying should be easy
  9. Let’s get retroactive

1. Prioritise your best customers!

All of your customers are suddenly leaving, do you grab every one and hold on to them? You could try, but you’ve got limited resources, so it’s far more important to prioritise customers you focus your efforts. Perhaps it’s the highest Customer Lifetime Value (CLV), perhaps it’s about your bank/FI’s strategic customers (are you primarily a business bank? Rural? Local?), perhaps there’s some partnerships who are really vocal advocates of your bank/FI? Whatever it boils down to, a decision needs to be made about where you’ll spend time and resources.

 

2. Offering incentives

If you know the customers you’re trying to retain are important, consider giving your customers a reason to stick around by offering them something special, like a promotion or temporary discount.

Consider the customers’ timeline when you want to offer a particular incentive as well: if a customer’s credit card is at the end of a promotional period, offering a discounted renewal may be enough to keep them around.

 

3. Get the right customers

Keeping your customers is a lot easier when you’re building the things they want – and this only happens with intentionality.

Customers leave when your product or service isn’t a good fit, or there’s better elsewhere. So review who is leaving – is it your target customers (e.g. small business customers)? If not, is it worthwhile trying to retain that customer, or is it not a priority?

Having focus around who your ideal customer profile is will help you both short and long term, as you continue developing great products and features for your specific segment – you should expect to see those customer relationships deepen over time.

And since you’ve now onboarded the right customers, you should consider the next point.

 

4. Create a roadmap for customer onboarding

Customer success might happen hands off, but a bit of intentionality goes a long way, so what does a customer journey look like to get onboard at your org? Is it frictionless or has it been painful to get to the point where they have a transaction account and card, and can finally use it? 

If you can make it as smooth and easy as possible for a customer to be onboarded, you’re already on the front foot – it’s much easier to keep someone happy than it is to change their mind – so what does that pathway look like? Are there technical challenges? Regulatory challenges? And what can you do to make these as pain-free as possible for customers?

 

5. Proactive communication

Communication is the name of the game – but for proactive communication to work, make sure you’re contacting them at key stages with relevant, valuable information.

Customer has just signed up to your bank/FI services? Contact them after a fortnight, and check in – has everything been set up correctly? Have they had success logging into your Internet Banking application, or equivalent?

Your customer is in the process of applying for a large loan, and it’s been a week or two with no contact? Contact them! Even if it’s as simple as letting them know the status. Provided the contact purpose has a very clear intention of adding value, your customers will appreciate it.

Not sure what level of contact feels appropriate for a customer? Just ask! There’s a big difference between your customer receiving weekly marketing emails about your latest credit card offer, and your customer receiving weekly updates about the status of their latest application, or anticipated changes. So communicate

 

6. Always ask for feedback.

Some customers want a little communication, some want a lot – so how do you know? What’s the right message to send? What makes people happy? Well, there’s an obvious answer – ask!

We don’t always know what we want, but ask enough customers in the same spot, and you’ll get a pretty good idea of any general gaps, or things that work well.

Of course, surveys can work, but even something as simple as finishing off an email or phone call with a mechanism for a customer (or one of your team members!) to file customer feedback can be extremely powerful.

 

7. Know thy competitors

With frequent new emerging technologies, the only constant is changing market conditions and it’s your responsibility to understand. Even better if you’re the type of business that focuses on what’s next, this positions you to avoid disruption, or even capitalise on it.

So take the time to understand the marketplace, and find out what your competitors are doing well – or aren’t doing well.

  • Are they responsive on social media?
  • Are there any trends to customer voice?
  • What are they well known for, good or bad?

Pre-emptively positioning yourself can help you better serve and retain your customers

 

8. Staying should be easy.

Moving banks is tedious at best. It’s a chore, so if a customer gets to this point you’ve either done something seriously wrong, or a competitors offer is just too good to be true.

Sometimes reducing churn can be just as simple as making it very easy for a customer to stay. Offering the best customer service is the simplest way to go about this, which might even mean offering a dedicated private banker to your most valuable customers.

Ultimately, the effect you’re looking for is when your customer considers filling out a competitors form, they think “no, this sounds like too much work”. And you can do that by just making things easy.

 

9. Let’s get retroactive

You’ve onboarded the right customers, given a stellar onboarding journey, provided the best customer experience and they’re happy 100% of the way – and still, you have a customer churning.

It’s not over yet! While this customer may not be able to be retained, you can learn from this and build strategies to prevent future cases like this.

If you’re ingesting your churned customer data (and even your happy customer data!), you can predict the most important signs of happiness and dissatisfaction, and engage before future relationships sour.

Start with the basics – when is most frequent for your customers to leave? 3 months? 3 years? Does their product behaviour change before they officially leave? Pull the many data points together and build a strategy for what happens when a customer fits that criteria.