Technology has become a double-edge sword for the financial service industry. It has lowered the operating costs for banks and added convenience for their customers; however, it has also eroded the customer relationship. Customers no longer have to come into the bank to make a transaction, or leave the comfort of their homes to find…
Category Archives: Banking Insight
The account opening process is a perfect time to identify new customer needs because: Customers expect to spend time at the bank establishing their new account. Customers expect to be asked about and are more open to sharing personal information when opening a new account. Customers generally open new accounts in person, thus providing the…
I’ve said it before, and it bears repeating: The best way to distinguish your bank from the competition is by creating value. For most any bank, “value” means offering competitive products and services. But it’s important to note that creating value isn’t about simply lowering the price on your core products or services. Actually, competing…
It’s a universally accepted concept: The bank that delivers what customers really want ultimately wins the competitive advantage. At a minimum, a bank must understand what customers value and how to create, communicate and deliver that value to them. Otherwise, customers will simply go somewhere else. But before you as a marketer can improve the…
With the perception of banks at an all-time low, a successful customer retention strategy requires frequent contact, a consistent message, education and trust — thus becoming not only a cross-selling strategy, but also a relationship-selling strategy. Relationship-selling is a fundamentally different way of thinking about your customers. It’s based on a philosophy that business should…
With increased competition and saturated markets, banks are seen as interchangeable commodities. In commoditized situations, customers are easily swayed to leave by the free offers and special rates being offered by competitors. Banks that can identify, create, and maintain a sustainable differential value advantage will be less vulnerable to competitive pressures. Therefore, one key to…