Magazine article ABA Bank Marketing

How Customer Engagement Bolsters Your Value Proposition

Magazine article ABA Bank Marketing

How Customer Engagement Bolsters Your Value Proposition

Article excerpt

Today, banks are facing low interest-rate spreads and increased REGULATIONS. At the same time, they're also struggling to offer a value proposition that resonates with customers.

A Gallup Retail Banking Industry Survey said that banks need to do a better job of helping their customers see the value in what they provide. But that's a challenge, especially when important customers are vulnerable to the competitive pull that occurs when better value is offered elsewhere.

Customers who don't belie e their bank offers added value perceive no advantage for their bank over the bank across the street. That means higher attrition rates and lost revenue.

However, research indicates that customers who strongly agree that their bank provides excellent value are much more active than less engaged customers.

Gallup data show that customers who are "fully engaged" bring 37 percent more annual revenue to their primary bank than do "actively disengaged" customers. These customers also have more products with their bank, from checking and savings accounts to mortgages and auto loans. Plus, they have higher deposit balances in their accounts than less engaged customers with the same products.

Exceptional customer service

One key to make your bank defection-proof is this: Prove to your customers that your products and service provide tremendous value in ways that can't be found anywhere else.

Gallup research also shows that one of the most effective ways to add value is through exceptional customer service--the strongest driver of engagement. Customer engagement, which Gallup describes as a customer's emotional or psychological attachment to a brand, product or company, is the definitive predictor of business growth.

Today, customers diligently research and consider their options before making decisions. It doesn't matter if they're purchasing a $40 pair of jeans, a $30,000 automobile or opening a savings account. …

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