The Role of Loyalty in Financial Services - US - May 2015
“Loyalty efforts should not be kept a secret. FS providers can be up front and ask consumers about their loyalty, especially if these firms are providing great customer experiences. Customers who are given the opportunity to make a recommendation will be more likely to do so. Addressing consumers’ concerns by providing solutions to issues (security and technology) helps create a foundation to a loyal relationship.”
– Monica Staco, Financial Services Manager
This report answers the following key questions:
- How can FS firms convert loyalty into referrals and repeat business?
- How can FS providers increase loyalty among parents?
- How can providers deal with issues regarding trust and security?
Loyal customers are the best customers to keep a business thriving. In financial services, loyal customers are the most likely to keep their business with the same provider, purchase additional products, and even make recommendations to their network. Loyalty does not develop overnight, however; financial service providers need to make smart efforts to win the loyalty of their customers. Readers of this report will learn what it takes to develop customer loyalty and what it might mean to keep it, as well as what others in the industry are doing to accomplish the same goal.
The concept of loyalty is discussed from a different perspective than previous Mintel’s reports. Loyalty is defined beyond rewards programs and looks at key consumers’ behaviors and attitudes that inform their views on their providers, which then impact their loyalty. Factors correlated to loyalty, such as satisfaction with the provider and its representatives, likelihood to recommend, past purchasing behaviors, are addressed in this report.
In addition, the loyalty index included in this report is a formula that measures loyalty to primary banking provider. The loyalty score is built upon metrics such as satisfaction rating with overall experience and representatives from primary banking provider, likelihood to recommend any financial services provider, actual recommendations to family and friends, and lastly past purchasing behaviors.
Loyalty does not develop overnight, and it goes beyond a rewards program. FS providers that create a great customer experience will lay the foundation for strong customer loyalty. A great experience means more than just excellent customer service; FS providers need to emphasize trust, integrity, and an understanding of their own customer’s needs. In addition, loyalty-building efforts should be implemented across all channels. Electronic communication and in-person conversations can be used together to support the same experiences of trust and service to lead to loyalty. Customers that are satisfied with their experiences and become loyal can reward FS providers with long-lasting relationships, repeat business, and even recommendations to their social and professional network.
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