FEATURE
BATTLE OF THE BANKS – HOW TO BUILD LOYALTY IN BANKING
White Label Loyalty is a Yorkshire-based company that specialises in designing tailor-made loyalty programmes for brands . Achille Traore , CEO , White Label Loyalty , talks to us about how the financial sector is growing more dependent on customer experience and why it is implementing loyalty programmes as a result .
The financial sector is hardly renowned for showcasing softer and emotive traits . No surprise then that cultivating customer loyalty is something that it has yet to get right – certainly on a universal scale .
Of course , millions of us will have been with our banks for a long period and there will always be a large segment of folks who rarely – if ever – change their bank . But it ’ s important to establish
from the get-go that we do not mistake apathy and inertia for loyalty . Besides , for every individual who doesn ' t switch , there ’ s a whole lot out there that do and it ’ s costing banks millions .
Stop the switching
Banks typically spend around £ 150 rewarding a new customer for switching their account – a cost-justified by the assumption that customers will stay with the same bank for their lifetime . However , the stats tell a different story : 32 % of customers leave in the first year of opening a new bank account , according to Joey Coleman .
A survey by Deloitte also found that only 19 % of banking customers are deemed as ‘ truly loyal ’ to their bank – these findings were the same across the US and Europe . Such results suggest that this industry hasn ’ t scratched the surface of building a loyal customer base .
At the same time , the broader financial services market is becoming increasingly competitive as FinTechs and digital giants with volumes of customer data have moved into the market , offering everything from ApplePay and PayPal
28 www . intelligentcxo . com