Customer retention rate is a figure that quantifies your success in regards to retaining happy customers. It determines the number of customers that remain in the business after a period without including new customers (customers who had not joined your company at the beginning of that period). As such, it measures the effectiveness of your services, business continuity, and growth. So, if you want your business to be successful, you must identify why customers are leaving, make changes and design an actual customer retention plan. Here's how to raise your customer retention rate for your financial services clients.
Set realistic goals
People who seek financial planning assistance from professionals want to see results regarding financial growth. Thus, when beginning a relationship with the customer, ensure that you first understand the results they are looking for and set realistic goals for them. For example, if a customer wants to invest their savings in bonds or capital markets, do not give them exaggerated figures of what they should expect. Instead, underestimate the expected returns but ensure they get more. Realistic goals are easy to achieve and impress customers to ensure long-term retention.Offer anticipatory services
Anticipatory services play an important role in building customer trust through informing customers of upcoming investment problems, payments or events before they happen. Such a move reassures customers that you are on top of the game, and you understand your job. For example, if your customers invest in capital markets, and there is an expected drop in share prices; it is important to notify them before the price reduction substantiates.Utilize social media
Social media not only offers exposure but also a platform for customers to interact with you freely. It offers an informal platform where customers do not have to follow certain protocol to get their concerns noted. So, ensure that all concerns raised through social media are addressed and do customer follow-ups after that.Protect customer information
Money is a scarce commodity. Therefore, when operating a financial services business, you will be targeted by numerous hackers and business rivals who are seeking to extort money from your systems or valuable customer information that they can trade for money. Whatever scenario you face, you will lose customer trust and your business will fail. Hence, the need to invest in security systems that offer web application security and protect your information from hacking and cyber threats. Some customer may need reassurance that you have such security features in place before investing in your business.Bottom line
Every financial business is a major target for hackers. The rewards are high for hackers when they succeed. But with the recent technological upsurge, no severe financial services business should risk facing information security challenges. Securing customers’ and business information must be a top duty that is implemented before a company rolls out. Seek recommendations, assurance that features you are looking for are in place and test the security system. You do not want to face lawsuits due to breaching confidentiality contracts.
