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Articles for the ‘Financial Services’ Category
Building Customer Advocacy To Boost Your Bottomline
Today financial services providers, whether they are banks, investment firms or insurance companies, want desperately to deepen existing customer relationships. A key driver of deeper customer relationships centers on a trait often labeled “customer advocacy.” Simply put this trait is the perception by the customer that the firm acts in their interests and not just what’s best for the firm.
Unfortunately, today there’s a mother lode of mistrust because too many institutions have looked the other way. And while a customer may not switch providers as a result, persuading that customer to buy additional products and services becomes problematic despite the advancement of marketing tools and technology.
Forrester Research has created statistical models that demonstrate that customers who do business with financial services companies who rate high on customer advocacy are most likely to consider buying more products from that company. Here are 4 common themes demonstrated by these companies along the customer advocacy dimension.
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Bank Marketing In A Digitally-Focused Marketplace
For banks, there has never been a more important time to re-think traditional marketing strategies and tactics because the landscape has and is changing with great velocity. The credit crisis, near-zero interest rates, loss of trust and low brand loyalty have resulted in banks seeking new ways to re-build lost revenue and profits. Add to that the myriad of investment choices like credit unions and government backed securities, banks are increasingly competing to acquire and retain their customer base.
A recent Accenture study estimates that as many as 30% of a bank’s customer base is “in play,” meaning these customers will change their banking relationships or change the amount or nature of their relationship with the bank’s products and services.
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