Acquisition and loyalty
Quote of the month
“Loyalty programmes address two key challenges all bankers currently face: boosting customer retention and increasing card usage. Holding onto customers longer has become a business imperative across the banking industry.”
Rhonda Ocha, Vice president, Consumer credit at MasterCard Worldwide
Overall issues
- Attracting new customers
Banks need to be more aware of the role of pricing and of a strong brand when trying to recruit and retain customers. They also need to identify the ‘right’ new customers more clearly. - Retaining new and existing customers
Banks can no longer rely on retaining customers through inertia and loyalty. Good measurement methods (including which customers they are losing and why) are vital for an early warning of potential customer loss. They need to retain their most profitable clients. They must also decide whether to develop new loyalty programmes and rewards, or focus on better service and meeting customer needs. - Improved customer communications
This critical topic affects all of the other issues. Banks need to build relationships with customers by developing superior communications channels that are reviewed regularly. By proactively keeping in closer touch with customers, they can understand their needs, recognise potential problems and develop more effective propositions.
Lessons from the most recent conference
“Customer acquisition and loyalty – 6th annual conference”, Budapest, 7-8 October 2008 (www.efma.com/loyalty2008)
Best speaker:
Anne Kyhl Hauskou, First vice president of Nykredit, Denmark
Best presentations:
- "Winning new customers and building customer/community loyalty"
Craig Kelly, Managing director of Creekside Consulting, USA (ex SunTrust Bank)
- "The role of brand positioning and customer communication in attracting and retaining customers"
Rita Torres Baptista, Head of marketing communication and consumer research at BES, Portugal
- "Increase conversion, increase ROI – Look after the little numbers and the big ones will take care of themselves"
Hamish Nicklin, Head of financial services at Google, United Kingdom
Upcoming event
Efma Conference on "Customer service" in Madrid on Thursday 10 to Friday 11 June 2010 (www.efma.com/service)
