Sunday, 22 July 2018

Information and commentary for the small business banking industry

Why customer loyalty programs are important

25 Jan

There’s an important difference between a satisfied customer and a loyal customer. A loyal customer is less likely to switch to another bank, even in the face of discounts and special offers, while a satisfied customer is more likely to be lured away by promotions.

Your loyal customers recommend you to others, increasing the value of the bank, so it’s worth investing in customer loyalty.

The first step is to learn as much about your different customer segments as you can. Find out what, when, and how your customers buy, and use this information to improve the service you offer. Identify the aspects of your bank that encourage loyalty, and aim to duplicate them.

For example, if customers are loyal their dedicated small business advisor, then it is important for you to get out and meet customers and build your bank’s reputation. If your customers are loyal to the bank’s brand, then advertise in the media, sponsor events and build the reputation of the bank.

Listening to your customers, delivering a consistently high quality service and maintaining
communication are all important factors in developing a customer loyalty program. And of course, loyalty programs offer rewards to customers, and banks are in a unique position in that they have many areas they can offer attractive discounts.

The below article looks at customer loyalty in more detail.

Read the full article at:

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