There are a lot of Fintechs out there nowadays and if you don’t fully satisfy your customers or at least get them to a point where they have nothing bad to say about you (nothing great but nothing bad) they are willing to move to the next available Fintech that does the same thing you do.
So how can you solve this problem? Well, we delve into 5 helpful ways in this article:
First off, why should customer retention be important to a fintech startup?
If you are a fintech startup founder, you are most likely hyper-focused on growth. The kind of growth that leads to more customers and more revenue and you’ve most likely accepted a high monthly churn as long as new customers keep coming in.
It is probably not the best approach because it costs way more to acquire new customers than to retain old ones. So why not give equal focus to customer retention?
Focusing on customer retention can increase revenue over an 18-24 months period by as much as 80%, reduce customer acquisition costs by 30%, and increase total customers by 1.5x. These are numbers that signify real growth.
How can you improve your customer retention rate as a Fintech company?
1. Know Your Customers
I saw a tweet the other day about people focusing more on competitors than they do on customers, and I think it rings true nowadays.
To get ahead of the curve when it comes to customer retention, you need to know your customers in and out. Know their pain points, their needs, and how they expect you to solve their problem.
How do you do this?
Market research! By conducting in-depth interviews, conducting surveys and sampling focus groups, you can get insights into what makes your customer tick.
Your market research should cover these four stages:
- Explore: This answers questions like “what are the needs of the market?”
- Test: This answers questions like “which idea does my market prefer?”
- Validate: This answers questions like “how successful will my product or campaign be?”
- Optimize: This answers questions like “which improvements will make my product even better?”
2. Personalize Your Customer’s Experiences.
Once you know your customers like the back of your hand, personalizing their experiences should be the next logical step. With customer retention, you need to know customers A and B are not the same.
Playing to these differences increases your chances of customer loyalty. The greatest example of personalization is probably Coca-Cola’s share a coke campaign, and see how many people still remain loyal to Coca-Cola today. They didn’t even stop there with the personalization tactics because they still ran a Diwali campaign this year centred around bringing people together (Which is what Diwali is all about)
Personalization is very essential because it makes customers feel seen and cared for, and it doesn’t have to be elaborate. You can start with having personalized blog content for each customer segment.
3. Pay Attention To The Data
Your business decisions should be backed by the data you are collecting from customers and their behaviours. Data on age, gender, location, income, preferences, and more.
Creating customer profiles and segments based on this data will help boost customer retention and allow you to provide services and information that are relevant to your customers. But with this data, it is important it remains current always.
4. Always find new ways to improve brand loyalty.
Being stuck in your ways will not do you any good. You need to consistently find ways to improve brand loyalty, no matter how great your product is. It might be a giveaway today, a webinar tomorrow, or a physical event in the next couple of days.
5. Humanize Customer Interactions
A lot of fintech companies rely on chatbots to attend to customers and solve customer problems, but automated responses or robotic answers can get really annoying, really fast.
Include a human touch in your customer interactions and let customers interact with real-life customer support agents. Using this strategy will leave your customers feeling like you care about them and improve the likelihood of customer retention.
Want to keep your customers?
We can help!
Knowing your customers and personalizing their experiences are two important tips we mentioned in this article, and Lumen helps you do both.
With Lumen, you can get easy insights into your customer’s behaviour. What they do when they visit your app/website, where they fell off, and the pages they visited the most. Once you do this, you can send personalized messages to them using emails, SMS, and push notifications to bring them back in.
So get started on using Lumen today by visiting uselumen.co