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!
Dan’s 13 Value Bombs
I took away a whopping 13 key points from this episode! Bearing in mind i’m normally happy just to take 1 thing away that I and you can action per episode.
It’s absolutely littered with value bombs so if you feel like you might need that extra little nudge to get into video. Here it is.
So I had the opportunity to sit down with Dan Knowlton from KPS digital marketing.
And we discuss cut everything video. He did a talk at Atomicon 19, that’s Andrew & Pete’s conference where he encourages people to do more video.
And what’s funny is when I actually met him face to face myself, part of his talk, is where he gets people in the audience to create their own video so you’re only meant to do it over five minutes, I nipped out to record mine, and I bumped in to someone that I knew, and we recorded this video together. And then as we were coming back in, Dan had just come off stage so we took way too long basically to create a video. And we saw, Dan, as we were trying to get back in so we missed the end, and it was all a bit awkward, I managed to sort of turn it around and asked him on the podcast, pretty much at the end of the day, we had a bit of a laugh about me, missing the end of the talk.
What I loved about Dan was he was quite happy to talk about his struggles with video and how he did it wrong and what he’s done to change it so we talked about all those things but also where he went wrong in, even when he got comfortable doing video that he was always doing educational video and talks about the sales funnel.
These three stages of the buying cycle and making videos for each step of the buying cycle and when he did that, that’s when his sales increased. So we talked about that as well. So it’s quite a long interview.
For the first time ever I’ve cut out a portion of a chat with a guest because I lined up some jokes with Dan, and they just didn’t work at all. Never plan a joke, and especially don’t plan a joke when you’re expecting a certain type of response and they don’t respond in that way.
Anyway, they fell flat, and it didn’t work.
But all credit to Dan we have really great banter and a really great chat and there’s so much value in this episode.
So these are my top takeaways from my interview with Dan Knowlton, video marketing expert.
Number one: Dan believes that you need to want something bad enough to be okay with looking stupid on video. So, what is it, what is your end goal? Is it to sell your business for seven figures or whatever it is, do you want that bad enough that you’re okay with looking stupid on video that maybe someone might take the Mickey out of you, your friends, most likely, which happened to Dan. His mates absolutely rinsed him, but he wanted it so bad that he was okay with that. So, what, have you identified what it is that you want badly enough to be okay with looking stupid on video.
Number two: Start small. So, start with your smart thing. Don’t go out and buy loads of kit before you realise that you’re actually going to use it. So, I started with my smart phone, I’ve then got a Logitech webcam, which was about 70-80 quid, and now I’ve invested in a camera that’s 450 quid. So, I took it stage by stage. So, don’t go out and blow your budget on a load of equipment before you realised video is actually for you.
And number three: You have to make bad videos to be able to make good ones. They’re gonna be rubbish in the beginning, and mine certainly aren’t polished now, but I know that I’m getting better and better each time I do it. So, you’ve gotta be okay with it, it’s going to be rubbish. Don’t be put off by the first video that you do is awful, ’cause it probably is gonna be. But you have to make those rubbish ones to be able to make good ones. No one has ever naturally just turned on a camera and be awesome at video straight away. So, you gotta be able to be comfortable with and be okay with that the first videos you are gonna make are gonna be rubbish.
So, number four, this is actually something that I came up with, and something that I do for my videos is before I go on video, I say, “I like myself” in my head, and it makes me smile and I can’t not smile when I say that. I also have a mantra, which is a bit embarrassing, but I say in my head, “I’m Bruce Wayne, I’m the Batman.” Makes me really confident, actually feel like Batman, I’m actually reading a book at the moment, Todd Herman’s Alter Ego, he talked about creating an alter ego, I highly recommend that book, so if you feel like you’re not comfortable enough at video, in your mind you can create this alter ego, some kind of superhero that is amazing at video. Honestly, that book is incredible, I’m sort of halfway through at the moment, so check it out.
So, everyone kind of deals with imposter syndrome, so something Dan said was, “Just be comfortable “and be okay with that you don’t have to know everything. “You don’t have to be the 100% expert “that knows everything in your field.” So, just be comfortable with that ’cause a lot of people stop themselves from doing video to think, “Oh, maybe I don’t know enough,” or “so-and-so knows more.” It’s okay not having all the answers. You know what you know, and you’re an expert in your field at what you do. You don’t have to know absolutely everything. I don’t know everything about lead generation. Dan said he doesn’t know everything about video marketing. That’s fine, you can still create video content, you should still help people, you can still be informative and can still make great videos. So, one interesting thing Dan said was that showing some vulnerability, nobody likes a know-it-all.
So, this kind of goes back to the last point of it’s okay not knowing everything. So, he read the book about the guy who invented the TED Talks. And in that book, it said, “Show some vulnerability “and people will root for you.” If you start off being a know-it-all, people are gonna get their guard up and they’re gonna be quite cynical of you. But if you show your vulnerability, then people will start rooting for you and Dan actually did this in his talk when I met him at Atomicon, he talked about how his friends took the Mickey out of him for doing video, and he actually showed us the videos that his mates made like poking fun at him because it showed his vulnerability, and we all started rooting for him. So, it’s a really great kind of tip, really, that it’s okay to be vulnerable and not be perfect.
If you’re starting out with video, try Instagram Stories or Facebook Stories, ’cause they’re only around for 24 hours, so if you are making rubbish videos, then they’re not gonna stay around forever, so it’s really good to actually start gaining your confidence. If you’ve got no followers and you’re just starting out, then using Instagram Stories, Facebook Stories will help you build your confidence, get comfortable with video and you can do that over and over again and it doesn’t matter because it’s gonna disappear after 24 hours.
So, Dan believes there’s three types of content. I happen to agree with him on this, that there’s a cell cycle and there’s three stages. So, there’s people can be researching you, so there’s that kind of awareness stage. Then there’s consideration and there’s sales. So, creating content that map into all of these stages. So, he believes that start out with awareness and over six months you’ll be all about awareness, education, trying to inspire people and let them know. Give them free advice, essentially, on video. And then the next step is for them when they know about you, they know you’ve got the knowledge ’cause you’ve done all that awareness content, is to they’re maybe to consider you. So, creating content that’s about testimonials, how you can sort of position yourself as you’re the right option for them once they’ve got to know you. And then, obviously, the sales stuff, which is where you’ll have a call to action where you actually got an offer or something or you’re talking about the thing you’re trying to sell. One point he made was maybe reduce the amount of sales content you have. So, in terms of ratio, have much more awareness, a little bit less consideration, and then less of the sales stuff. So, when you’ve created those three types of content, you’ve got your awareness, consideration, and then your sales content, you can use Facebook Ads to use remarketing. So, there’s a great tool for Facebook Ads. If someone’s watched over a quarter or a half, let’s say, of your awareness videos, you can then use remarketing to advertise your consideration content to the people that have watched the awareness, if that kind of makes sense. So, you can kind of shuffle them along the funnel until they’re ready for a sale.
Dan gave us some really good practical tips on creating really good videos. So, lighting, get some lighting on your face, so I’ve got a LED light over there, I’ve got some natural light coming through the window as well. So, I’ve only got one light, you can see my face is a little bit dark on the other side, really I can do with another light there as well. So, I think we’re gonna get one of those. So, if you haven’t got lights, they are really cheap on Amazon, but like stand by a window, if you go right next to a window, natural light is even better, so, again you don’t have to fork out if you’re at the beginning. Sound is so, so important. So, I have got a Yeti microphone here. You can also get these kind of Lapel microphones, so I’ve got the adapter to go in my phone, and there’s a little microphone there. This was on Amazon, really cheap on Amazon to get some really good sound. So, I normally take that if I’m out and about and I can’t take the big old microphone with me. So, framing, I’m right in the middle of the frame at the moment, again, my videos aren’t perfect but, getting yourself looking nice in the middle. If you’re doing stuff on your laptop, it does look a bit weird if you’re looking up, and that’s why I think people take selfies from looking down, if anything, when you look down a bit it looks better, but just having a nice bit of framing, so you’re not chopping your head off and then it looks good, as much as possible.
Another really great tip from Dan is that on social media, people often don’t have their sound on. I remember going to LinkedIn’s launch of video ads, and they were saying, I think it was around 80 or I think it might have been higher than that, a really high percentage of people are watching videos with the sound off, so subtitles are really important. Rev.com, R-E-V.com, will help you. Basically, they will transcribe and do the captions for you, they time it up, everything. All you’ve gotta do is download a file that you can then combine with your videos called an SRT file. So, you can get your subtitles done really cheaply, that is a dollar a minute. So, that’s R-E-V.com. And if you are doing video content, if you’re using your marketing and then you get leads through, I’ve noticed a massive difference with this, that people are qualifying themselves as a lead, so if you’re buying leads in, they have no idea who you are. If they’ve come through and seen your video content, they’ve got to know you, they like you, they trust you, it’s a much warmer lead, you’ve paid less for it, sometimes nothing, and then they’ve decided already that they want to work with you. You’ve just gotta sort the deal out. It’s a much easier, warmer lead.