Financial services brands can build customer loyalty and increase customer lifetime value through user experience. Great mobile banking apps are one way to achieve this.
Customer loyalty is a challenge for financial service firms. Like many businesses, this sector has often had a greater focus on new customer acquisition than retaining existing customers.
There are obvious benefits of a focus on customer retention. For example research shows the potential of selling new products to existing customers at 60-70%, compared to between 5% and 20% for new customers.
It’s now more of a challenge that it used to be. Thanks in part to the Current Account Switch service, introduced in 2013, it’s now much easier to change banking providers.
More than 3m customers have switched accounts since 2013. Moreover, there is less of a perception amongst the public that changing banks is a major hassle. 83% find it easy to switch.
Now that switching is easier, banks have to work harder to hold on to their customers, and user experience has a huge part to play here.
This is where digital comes in. The use of banking websites and apps has grown rapidly, with mobile banking apps used 11 million times a day in 2015, up from 7 million in 2014.
Banking apps and online services are now a key part of the experience for finance customers, and providing an excellent user experience in this area can be key to retaining (as well as attracting) customers.
To put it simply: if users find it easy to use banking services on mobile and desktop, then they’re more likely to be happy customers.