Fintech companies spend much of their time and pour capital into acquiring new customers. But with the rise of clients shifting from the financial sector to insurance and then retail, fintech companies now need to invest in customer retention. The sector typically has inventories that are limited to the same sorts of products and services. And as most financial products are intangible, bringing the real value of products to customers before they purchase and finding ways to buy more can be a challenge.
Thus, there will be a need to promote products and services that must be creative, responsive and germane, which can lure customers who are not actively looking for new offerings. Today, customers have higher expectations than ever before and they are expecting companies to embrace all data available to tailor solutions that can fulfill their requirements.
So, how FinTech companies can meet these rising demands and improve customer retention.
Customer retention is the strategic process of a collection of activities that can business leverage to upsurge the number of repeat customers. This strategy enables companies to both provide and extract more value from their existing customer base.
Thus, to do so, fintech firms need to develop systems that can gather and assess structured and unstructured data, algorithms to classify behavioral patterns and customer propensity, and analysis capabilities that can then feed that information into dashboards. Setting up a centralized customer data platform (CDP) to integrate paid and owned data from across channels is also vital to these efforts.
These CDPs, unlike traditional CRM solutions, provide built-in machine learning automation to rinse internal and external data, connect a single customer across devices, cookies, and ad networks, and allow real-time campaign execution across touchpoints and channels.
FinTech Companies Can Learn More from E-Commerce
E-commerce companies are effective at offering unified purchase experiences across devices, particularly with mobile-first strategies in mind. But retaining existing customers is also a big challenge for e-commerce business.
Earlier, retailers were more focused on tried-and-true customer acquisition marketing methods. But the evolution of new customer age has led to several new marketing strategies marketers need to embrace. As the cost of advertising continues to climb a ladder, it is essential to convert clicks and views into sales for the business.
So, e-commerce companies hire people with analytical knowledge who understand how to execute best-in-class analytics tools to unveil insights on customer behavior and demand. That can then convert these insights into a user-driven purchasing experience that can offer continuous value for existing as well as new customers.
Though, having a high customer retention rate means an e-commerce company can save time and money in the long run. Considering facts and statistics, a two percent increase in customer retention has the same effects on the company’s bottom line, while cutting other costs by ten percent. So, by focusing the efforts on keeping the current customers, fintech companies can find their business growing over time, while saving on advertising and other marketing strategies.