Customer Acquisition and Retention in Financial Services Today

If you are a lender, in insurance, offer mortgagesto do some basic R and D otherwise known as
or are a bank you are well aware of theresearch and development. What do consumers
competition in the market, what other businesseswant? What are people buying?
can offer clients as well as what they cant. But- Get some research numbers from a consumer
do you know what the market wants right now?data base surveys that can tell you where people
Are you aware of consumer trends and howare going to spend their money or who they are
consumers choose financial services? Investing intalking to as well as trends over several years.
a little research and development of customer- Think like a consumer and try and understand
acquisition and retention will put your financialwhat is most important to them when they are
services ahead of everyone else.deciding which provider to use.
Most people will tell you the secret of customer- Use your research to plan a distribution strategy
acquisition is relationships.for customer acquisition and retention.
And those people are right. Think about what- What can your company offer that no other
makes you come back to a company? Honest,company can offer? How are you
hardworking and helpful people right? Right.“like” them? What similarities in your
Insurance is a hard business to sell, not onlycompany, from huge to small town can relate to
because so many people sell insurance, butnew customers and what are the perks that you
it’s a gamble for people. When people buycan offer to retain them?
insurance, they are gambling against themselves.Maybe it's coffee shop cards you can persuade
Will they get in an accident? Will their house burnthem with if you cannot offer rock bottom rates.
down? How can one company, besides thoseMaybe it’s building a deeper relationship- like
companies that sell mandatory insurance- like carpotlucks or going golfing that can retain their
insurance- make other insurance really exciting?customer relationship. Remember that junk mail is
But- if your company is one of the thousandsa waste of your company’s money- junk
selling mandatory auto insurance- how can you bemail advertising is being recycled before potential
sure to consistently get new customer acquisitioncustomers are opening the envelopes. As well as
and retain those customers over everyone else?internet ads are considered SPAM. Getting up
If you live in a small town, it may be easier toclose and personal with new customer
spread your company’s word with yourrelationships will keep your customers around
good looks and charm at the local grocery store,longer and they will spread the word for you-
high school football games and Fourth of Julysaving your company money as well as making it.
picnics, but in a larger busier city you may need