Keeping customers is getting harder.
According to Accenture’s 2023 Global Banking Consumer Study, more than half of consumers bought from their primary banker’s competitors. The numbers are starker for younger generations.
82% of consumers aged 18-24 acquired a financial services product from a new provider in the past 12 months, compared with 34% of those aged over 65.
The cause? Digital channels are seen as less personal and so less relevant to retail consumers.
Retaining a customer can be 5-10X cheaper than acquiring a new one. Keeping a top customer can be 4x more valuable than that.
You must understand your most lucrative customers and engage with them in meaningful, relevant ways to do this.
Increased loyalty drives the two main elements of lifetime value; wallet share and the length of your relationship.
Focusing on your customer’s experience can be the shorter path to growth and competitive success.
More on Accenture’s study here