It’s no secret that banks are being forced to deal with new government regulations. They’re also searching for answers on how these new regulatory measures will impact their customer relationships. Many banks assume that eliminating free checking or charging a fee on debit cards would negatively affect customer retention and loyalty. But evidence suggests otherwise….
Category Archives: Relationship Management
One of the sure signs of a bad or declining relationship is the absences of complaints from the customer,” reports Harvard professor Theodore Levitt. “Nobody is ever that satisfied, especially not over an extended period of time. The customer is either not being candid or is not being contacted.” If you’re not getting customer complaints,…
Sure, customers come and go. But the ones who go often leave their bank in the dark about why they left—and worse, with no effort by the bank to win them back. Research shows that most customers actually come into the branch to close their relationship. It’s a prime opportunity to try to save the…
Many banks believe they have a relationship with their customers based on customer satisfaction ratings. They tend to assume that customer satisfaction equates to relationship strength and an indication that clients will stay longer and buy more products and services. However, a survey by the American Bankers Association revealed that satisfaction is not a guarantee…
I find that most industry white papers focus on the importance of cross-selling in the first 90 days of a new customer relationship. It’s a theory likely borne of the belief that cross-sell effectiveness declines after that point in the relationship. According to BAI, almost 81 percent of a bank’s opportunity to cross-sell happens in…
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…
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…
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…
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