The Hidden Value of Financial Advising
It’s no secret that banks and credit unions are looking for revenue sources. Cross-sell is a top priority in 2012 with financial institution managers and marketers dreaming of auto loans, mortgages, and sugar plums. While loan products may bring in revenue immediately, deepening customer relationships through financial advising sessions, bill pay enrollment, etc. should not be overlooked.
BAI Banking Strategies recently published an article called, “Three Tactics to Keep Customers from Switching.” The authors, Michael Beird and Karen Licker, show that upon joining a bank, new customers who feel that their needs have been fully accessed “reported higher overall satisfaction with their new bank and half expressed a desire to use the bank for additional products and services in the future.” Each time a financial institution gets to interact with a customer, talk to them about finances, or provide a small service (bill pay, online banking) they position themselves as the go-to bank for other (more profitable!) financial products in the future.
Deeper relationships and greater share of wallet regardless of the immediate revenue generation will lead to profitable and loyal customers down the road. Focusing on customer service is like making a long term investment—you might feel like you’ve lost money at the beginning, but it will pay off in the long run.