Benefits of Customer Engagement for Financial Services
smiling financial customer looking at credit card talking on a smartphone

Why every financial company needs a customer engagement program

For financial institutions, the competition is fierce. Customers are savvy and know how to find your competitors in just a few clicks.

Online reviews are easily accessible, and 88% of consumers trust them as much as personal recommendations from a peer. Is your level of customer service strong enough to drive glowing reviews and beat the competition?

Building a strategy that resonates with your clients is critical for fostering positive customer relationships and driving sustained growth as a result. However, this often involves implementing new practices and upgrading customer engagement technologies. How can you know where to start?

Explore the critical elements of customer engagement strategy for financial institutions, understand the benefits of these strategies, and discover a real-world application from our experts at Radius Global Solutions.

 

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Key components of a financial customer engagement strategy

Banking customers who are fully engaged bring 37% more annual revenue to their primary bank than actively disengaged customers. This is because these customers are more likely to recommend their bank to others, seize upselling opportunities, and sustain their accounts for the long haul.

In contrast, disengaged customers are at a higher risk of switching to competitors and are less likely to participate in additional offerings or advocate for the bank. This highlights the critical need for financial institutions to invest in strategies that encourage long-term loyalty.

To keep your financial customers engaged, you’ll need to implement the following elements:

  • Omnichannel communication – Ensure consistent, seamless interaction across multiple platforms — from traditional channels like phone support to digital mediums such as AI-powered live chat and email.
  • Customer analytics and insights – Harness analytics tools to gather, analyze, and act on customer feedback and data to continually refine your engagement strategies.
  • Employee training and development – Equip staff with the necessary skills, technologies, and knowledge to deliver superior customer service and engage effectively with clients.
  • Personalization – Ethically use customer data to understand their challenges, preferences, and behaviors. That way, you can offer personalized experiences that exceed expectations.

Speaking of personalization, it’s impossible to effectively engage with your customers if you don’t know who they are. That’s why we recommend completing a customer journey map to build targeted messaging for every step of their relationship with your business.

Below is an example to help you get started:

 

customer journey map example for choosing a cable/digital television provider

 

Benefits of creating a customer engagement program

The benefits of creating an engagement program in the financial industry extend to customers, employees, and leadership teams.

Customers can enjoy enhanced satisfaction through personalization and proactive support when handling a highly sensitive asset – their money. Financial customers are looking for a provider that can offer fast, easy access to their funds via the channel of their choice.

Employees also often have increased job satisfaction. This results from clear communication channels, support from leadership, and the tools needed to succeed in their roles. Strong customer relationships often lead to positive feedback and reduced conflict, creating a more rewarding work environment.

Finally, leadership teams gain valuable insight into customer behavior and feedback. This aids in strategic decision-making and fosters a culture of continuous improvement backed by data. Leadership can also enjoy reduced customer turnover and positive impacts to their bottom line.

Another benefit is that customers who are invested in your company are more likely to interact with your emails and social media posts. According to a 2022 report from Forrester that surveyed 154 financial services customer engagement strategy leaders in the US, 66% of respondents said customers aren’t opening or reading communications from their bank or institution.

Don’t let your customers get disengaged. The benefits of winning their ongoing interest speak for themselves.

 

Real-world example: Building an engagement program for a lender

At Radius, our experts have successfully implemented customer engagement programs for countless financial institutions. One example is a case study where we offered our expertise to a leading online financial services company that provides unsecured personal loans.

Here’s an overview of how we helped our client exceed their goals:

  • Initial Challenge:
    • An online lender needed a nearshore customer engagement provider to handle diverse customer interactions efficiently and cost-effectively.
  • Our Approach:
    • Assigned dedicated agents for personalized interactions with applicants, borrowers, past-due customers, and customers with credit disputes.
    • Offered integrated omnichannel communication and leveraged robust analytics for continuous improvement.
  • Outcomes Achieved:
    • Significant improvement in monthly abandon rates and service levels.
    • A 25% increase in payment performance.
    • Enhanced loan approval rates and overall customer experience.

Due to our success with this program, our staff has grown from thirty agents in one contact center to over 120 agents across three sites. Our clients continue to enjoy the tangible benefits that a well-conceived customer engagement strategy can bring to all involved.

 

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Boost customer loyalty with an engagement program

Focusing on customer engagement will help your business meet the evolving needs of your customers, drive organizational growth, and improve employee satisfaction. With a properly implemented strategy, you can foster stronger relationships with customers, drive revenue, and empower employees to excel in their roles.

To explore how a tailored customer engagement strategy can elevate your financial institution, reach out to Radius Global Solutions today. Your path to exceptional customer engagement and sustained success begins with our experts!

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