Importance of customer loyalty
Online banking services represent a major breakthrough in banking, as they automate operations and improve personal management possibilities. However, because it is such a well-established method today, it is very difficult for institutions to retain customers in banking.
In most cases, it is much more profitable for these banking institutions to obtain a kind of formal bonding with customers and for them to prefer to remain in their service. Precisely for this reason, they implement a multitude of complementary services and benefits if customers agree to some kind of direct linkage.
Increasing the level of retention and customer loyalty in online banking is a priority objective, so services are characterized by improving the experience and simplifying operations. New financial products are also created according to the activity and profile of users.
Loyalty cost vs. Acquisition cost
Within marketing and business administration, customer loyalty and the cost of acquiring new customers are very important concepts that allow determining the actions and strategies necessary to increase market share. Precisely for this reason, the cost of each instance is determined and which is preferable according to the case of each company.
In the case of loyalty building, a series of marketing activities and techniques are envisaged, the cost of which varies according to the particular needs of the service provider. The main objective is to increase the regular customer base. It is therefore usually cheaper as it is more comprehensive and effective in the long term.
On the other hand, the acquisition cost is higher in terms of budget and resources dedicated to the task. It is a practice that focuses on bringing in new customers, rather than keeping the ones we already have. Therefore, the effectiveness of that budget is seen in the short term.
In short, it is cheaper and more effective to implement a loyalty strategy that promotes the user experience and offers services that make them more participative. Acquiring a single customer, on the other hand, is five to seven times more expensive than maintaining and improving the service of an existing one. Especially nowadays, where competition is increasing and globalization makes it possible to internationalize the bank of choice.
Open banking: financial services
The financial services available in online banking present a characteristic that differentiates them from traditional services: their immediacy and versatility. In fact, they have products designed to work together and offer benefits in terms of linkage and the type of operations carried out.
Among the main open banking services are accounts without fees or commissions, means and types of payments offered for companies seeking to improve the performance of commercial activity or financial solutions, among many others. Across the board, management and consultation operations are expected to be simplified.
Management and personalization of services
In relation to the previous point, online banking services seek to provide both companies and customers with agile databases and computer systems that allow active management of each process. Companies can offer more facilities to their customers and customers, in turn, get personalized services according to their particular needs.
The implementation of this type of linkage strategies represents an increase in the quality of service and user experience. The IT capabilities of the platforms and the automation of operations make it possible to reduce the cost of management significantly and to offer a faster and more efficient service.
Changes in customer service
In terms of changes in this service, artificial intelligence systems and the expansion of the database lead to an improvement in communication with the customer and in the level of response. The customer’s open banking offers him constant access to his account and contracted services.
The processing of queries and the specification of tasks is achieved through the application of protocols that are constantly updated according to feedback from the user experience. Artificial intelligence algorithms are presented as fundamental to maintaining the operational capability of the service.
The importance of customer retention is central to the strategies needed to improve commercial and financial activity. The online banking customer expects the service to be agile and effective, so it is essential for companies and businesses to invest in this aspect of the activity.