banks need brand advocacy
TRANSCRIPT
BANKS NEED BRAND ADVOCACYThe Compelling Case for Banks
to Implement Referral Programs
Banks’ challenges seem to be amassing faster than Bitcoins. Banks are tackling tough questions:
• How do we stay relevant to the digital generation?
• How can we balance security with usability?
• How do we break down our silos and convince our employees that innovation is a good thing?
• Retaining customers seems like an outdated goal – is it even possible anymore?
• How do we stay competitive against all these emerging technology vendors?
How do we satisfy our customers who are demanding more than they used to, and how do we keep them loyal to their financial institution?!
But the biggest question banks are asking today?
(Has it come to this?)
The Steve Miller Band warned us to take the money and RUN.
And that’s exactly what bank customers are doing. Taking their money out of your bank and running to the bank down the street.
Well, more to the point, banks need to do some thingS (plural).
Banks need to do something.
Don’t be this bank.
We’ve talked about a lot of “withdrawals.”
Solutions for Banks
Let’s make a few deposits, shall we?
Let’s break the solution into 3 parts.
What your
CUSTOMERS
Want.
What
SMART PEOPLE
recommend.
What
YOU
Need.
First, a few things to think about. Take a look at this study from The Financial Brand.
But let’s focus on this one. #1.
“Friends matter. Online and offline, friends influence opinions, they influence behavior, and they shape reputations for businesses. Political campaigns are hyper-aware of this and use electronic “friend references” to build coalitions and supporters. The sooner companies recognize this and embrace it, the better.”
Jim Emerick, the national customer experience executive and a senior VP at Bank of America
Now let’s take a look at what some of the VIPs in the financial industry are saying.
(These guys are embracing change).
“Word of mouth is the No. 1 way to generate new business leads. Customer satisfaction surveys with a thank you gift can be a very effective way to collect feedback and professionally encourage referrals.”
Suntrust
(This doesn’t work very well anymore. Referrals from your customers work better.)
Leverage your greatest asset – customer word of mouth
“By adopting new digital tools that enable companies to share data across all lines of business, banks can deliver the seamless customer experience needed to improve client satisfaction and boost revenue. The opportunity is immense. Implementing an enterprise lead and referral management system can mean an additional $1.5 billion for large banks, and $500 million for mid-size banks.”
Large US Bank
(I don’t think $1.5 billion would fit in this pig).
1. Banks are under a lot of pressure to innovate, stay competitive and retain loyal customers.
2. Banks’ customers don’t feel as valued as they should, and they want to be recognized and rewarded for their business.
3. Your customers’ friends and colleagues are all potential customers, so banks should leverage that in order to acquire more customers and increase customer retention and loyalty.
Now for a quick recap of what we’ve learned.
So the question is,
What do banks need?
Time’s up!
Every bank needsA CUSTOMER REFERRAL
PROGRAM!(of course)
A customer referral program will help alleviate some of the pain banks face, and position them for success over the long-term.
How, you ask?
There is a percentage of your current customers who do like to bank with you and who stay with you because you’re doing a great job and meeting their needs.
Banks that leverage their happy customers to make referrals, will generate a whole lot of new customers.
Customers acquired through a referral are more loyal and stay with a brand longer than customers acquired through other channels!
(Our banking customers are very happy about this)
Customers acquired through a referral are more loyal and stay with a brand longer than customers acquired through other channels!
(Our banking customers are very happy about this)
Referred customers require fewer marketing resources, which causes them to generate more revenue at a lower cost.
And who couldn’t use some more revenue, right?
Referred customers are nearly 20% more likely to stay with a bank, and generate over 15% more profits than other non-referred customers.
And finally…..
Harvard Business Review
Banks, a customer referral program is one of the FIRST things you should be doing to start working on some of those challenges we mentioned at the beginning.
Integrate enterprise referral software & quickly contribute to building and retaining relationships with your loyal customers by leveraging them to drive higher quality customer acquisition.
Automated referral software does the heavy lifting for bank marketers – with the demand generation, tracking, monitoring and fulfillment of rewards taken care of.
REFERRALPROGRAMS
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Got more questions? Amplifinity is the answer.
Let’s talk.
734.585.5684
AMPLIFINITY.COM
@amplifinity