Customer Retention In Financial Services
One mistake that a lot of businesses make in the financial services sector today is focusing on acquiring new clients and giving little thought to retention. In fact, retaining customers can be your biggest and most significant weapon as a business. With that being said, in this blog post, we are going to take a look at customer retention in the financial services sector in further detail to help you get a better understanding.
What is retention?
Customer retention is a term that is used to describe the actions and activities that organizations and businesses take in order to lower the number of customer defections. The goal of implementing a customer retention program is to enable businesses to keep a hold of as many of their customers as possible. This typically involves using brand loyalty and customer loyalty initiatives, however, there are many different strategies to choose from depending on the nature of your company and your target consumer base.
Do you know how many customers are leaving you or are just dormant?
When focusing on customer retention strategies, one of the most difficult elements is determining whether or not a customer is going to leave your business or whether they are simply dormant. This is something you will need to figure out using data so you can make sure that you target your efforts effectively.
What are the benefits of retention?
There are a number of different benefits that are associated with focusing on customer retention. This includes the following…
- Increase in customer lifetime value
- Your brand will stand out from the crowd
- You are going to earn more word of mouth referrals
- It is cheaper than acquisition
- Loyal customers are more profitable
- Enables new product sales
- Customers will explore your brand
- You will get more feedback from engaged customers
- Loyal customers are more forgiving
- You will have more room to try out new things
When you consider all of the advantages that have been discussed, you can see how focusing on customer retention is the only way to drive true value to your business. Getting a new customer can feel exciting and like an achievement. However, it’s not until you have converted that client into a loyal customer that you will really begin to feel the fruits of your labour.
Importance of retention some food for thought.
i) Business don’t make money in year 1
ii) Profit from customers start in year 2 onwards
Therefore, you need to focus on retaining customers to truly drive profit. If you have a high turnover of clients, you’re not going to make much money.
So there you have it; the importance of customer retention in the financial services sector. As you can see, holding onto customers is arguably even more important than finding new customers in the financial services sector. This is something you need to give a lot of consideration to when it comes to your marketing efforts today.
The roles are reversed this week as the one and only Bob Gentle from the Gravity Digital Agency Power Up Podcast – https://bobgentle.com/podcast/ interviews your host Alex.
Alex tells Bob more about the clients ‘The Lead Engine’ works with his career history; including some of the failures, he’s had.
Find out why Alex set up the podcast and what he’s been trying to do to help the listeners grow their business.
Plus some weird and wonderful personal questions.
Struggling with your financial services content strategy? Struggle no more more…
Content – it’s a very broad term and it’s a term that many struggle to define. Content covers many different mediums, but it always seems to get shoehorned into just one piece of content… The dreaded ‘blog’.
Obviously, we call it ‘the dreaded blog’ in jest, as blog posts and written content can do wonders for your organic SEO. However, we get the impression that many people aren’t aware that other forms of content actually exists… But guess what? They do exist and they should be forming your financial services content strategy if you want to start getting more enquiries.
The possibilities for different types of content are endless and really knows no bounds, which is the great thing about content. Videos, podcasts, articles, calculators, social posts, chatbots, as well as conversion tools are all different types of content, which you may not be aware of.
At this point you may be thinking “how can a video benefit my financial services content strategy?” but, you’d be surprised. By creating a simple video based on a topic of your area of specialism, you will be opening yourself up to a realm of other content opportunities to capitalise on. Not sure how? Let us explain…
So you want the best financial services content strategy…
They say that the first step is always the hardest, however you’ve already taken the first step as you’ve actively taken the initiative that you want to work on improving your content strategy, so the rest should be easy from here.
As you know, we practice what we preach and the video we created called ‘Financial Services Content Strategy’ is all part of our content strategy and you will learn why very soon and it will all make sense.
How this episode came about
To kick-start things, we want to let you in on how this episode came to fruition because it’s all tactical. First off, we looked at what people in financial services were searching for online through SEMrush (an SEO tool) and focussed our attention on financial services marketing and other related keywords.
The next step we took is to create a sitemap of keywords with their keyword difficulty and the volume of people searching for said-keyword each month. If you’re unfamiliar with keyword difficulty, 0 is easy and 100 is practically impossible to rank for.
To give you an idea of the kind of keyword difficulty you could expect to see in financial services, the keywords ‘remortgage’ and ‘first time buyer’ are in the high 80’s and the lowest keyword difficulty we’ve seen is in the mid 30’s – which is easier to rank for, but anything below 75 is achievable.
Why we do this
There is method behind the madness, we choose to plan our content strategy this way as there are loads of opportunities to rank higher on Google when it comes to SEO. We don’t like to brag but we are in the top spot for mortgage leads and financial services leads, so rest assured, we practice what we preach.
We also know that when you create one piece of content, you can repurpose it into different forms of content to maximise the reach. The ‘Financial Services Content Strategy’ video is a prime example of repurposing, as the video will be repurposed on the podcast which means that new people will be hearing it for the first time. It will then be created into an article (blog post) where it will sit on the page called ‘Financial Services Content Strategy’, where both the video and podcast can be embedded onto the page, accompanied with a transcript and show notes.
And if that wasn’t enough content for you, we can even pull out quotes and turn them into social posts with a link to the video, podcast, or mini video that can be used for ads or remarketing.
Are you making the most out of email sequences?
If you’re utilising an email sequence, lead magnets or gated content, you can use those enquiries and put them in an email sequence to receive a weekly email with a topic that is going to be beneficial to them.
The key here is to not make the email ‘too salesy’ as this could have an adverse effect on what you actually want to achieve. As tempting as it may be to try and sell, you need to establish credibility with your client first and you will naturally do this by not pushing a sale. We speak from experience, as we find the less we try and sell, the more enquiries we get.
If you’re stuck for ideas of topics you could use in your email sequence, we find that case studies work really well – real-life examples of how you’ve helped someone achieve what they want to achieve, as this all reinforces credibility.
You’ll also find that the more relevant the content is, whether that’s on your page or email, the better you’ll rank, the better you’ll perform and the more leads you’re going to get. If you focus on one topic within your content, you’ll be regarded as a specialist in your industry and you’ll start receiving backlinks which will help your SEO and send traffic from the links to increase your rankings.
Key things to take away
Some marketers may tell you that you need to create x amount of pieces of content a day in order to rank higher on Google, but this simply isn’t true. You do however, need to be tactical about what keywords you are going to target, because you can find a niche area of your specialism and essentially create a niche inside a niche based on keywords (a bit like keyword ‘Inception’) and you can claim that top spot on Google for said-keyword.
But really, all you need to do is target keywords that your ideal customer is going to find useful and relevant and create content based on that. Because let’s face it, if it’s not relevant, what really is the point? Google is constantly looking for the most relevant content for the keywords searched and your customer wants to find and an answer to their query. So the more helpful you make it and the less salesy it is, you’ll start to see better results.
You can do this through the various different forms of content, as you now know, the possibilities are endless and this can form the basis of your financial services content strategy.
We hope this article helps with your content strategy!