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3Customer Retention Strategies for Small Business Lenders

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Retaining an existing customer is as important as acquiring a new customer. While many interesting benefits come with capturing new customers, keeping your existing customers happy and satisfied will continually result in greater ROI. Customer acquisition is vital for small business lenders to be able to maintain business, but customer retention needs to be the end goal. Of course, as a small business lender, if you become successful to keep your existing clients for an extended period, you can keep your business floating and guaranteed money flowing. But how do you create a customer retention strategy that keeps your current customer engaged and happy? Keep reading while we’re sharing some of the most applicable customer retention strategies that will help you inspire loyalty. Communicate With Your Customers Regularly Keeping the lines of communication open is one of the best strategies to retain your customers. Whether it’s about sending periodic email communications, providing marketing content, or offering loan products, create a strategy on how you will stay in touch with the clients. Put yourself in the client’s shoes and ask if this material you’d be willing to receive. Provide your valuable clients with content that informs, educates, and entertains them. Try to be proactive in communicating with your clients and provide them with value. If customers haven’t interacted with your financial institutions for a while, you should reach out, take their feedback about your products and services, and re-establish your relationship. You can also maintain a communication calendar to manage customer engagements and create opportunities to market your products and services. Leverage Technology to Improve Customer Experience In the past few years, advancement in financial technology has severely transformed the lending industry for good. Technology has the power to take your small business lending business to the next level, so you don’t shy away from it and need to adapt quickly. If you’re not proactive, you may lose your potential customers. This is why it’s imperative to embrace the latest technology so that you’re constantly improving the customer experience. Technology can help you identify and meet your client's unique financial needs and save their time, money, and efforts. For instance, you might consider incorporating online loan payments into your suite of offerings, or a loan origination software to provide easy and fast loans to your customers. Besides, some financial technologies such as digital account opening, video collaboration, APIs, cloud computing, cash flow forecasting software, and AI can also help you improve your workflows and processes. From gathering and analyzing financial data to manage cash flow, automate the loan approval process, building innovative credit scoring models, and more, you can leverage numerous benefits by adopting technology in your small business lending. Build Trust With Your Customers When deciding to purchase financial products and services from a small business lender, most customers say that trust is the most important factor in their decision. If you want to retain your customers, you need to win their trust. Reliability is a key factor in building trust, so your financial institution should be consistent in delivering value to your current customers. Here are some effective ways to gain your customer's trust and confidence: ● Provide top-notch customer service ● Offer customized financial products and services ● Streamline your loan application processes ● Share positive reviews and testimonials ● Be honest and transparent ● Ask for and act on feedback ● Provide your customers with readily accessible services So these are some of the many excellent strategies to retain your customers. If you want to earn more loyal customers, gain a competitive advantage, position yourself as a trusted advisor, earn more word of mouth referrals, and boost your revenue and profit, you must develop a good customer retention strategy.

Transcript of cashvisionusa

3Customer Retention Strategies for Small Business Lenders

Page 2

3Customer Retention Strategies for Small Business Lenders

Table of Content

Introduction…………………….……………………………………….. 2

Communicate With Your Customers Regularly……………………….2

Leverage Technology to Improve Customer Experience……………..3

Build Trust With Your Customers……………………..…………….………4

Introduction:

Retaining an existing customer is as important as acquiring a new customer. While many interesting benefits come with capturing new customers, keeping your existing customers happy and satisfied will continually result in greater ROI.

Customer acquisition is vital for small business lenders to be able to maintain business, but customer retention needs to be the end goal. Of course, as a small business lender, if you become successful to keep your existing clients for an extended period, you can keep your business floating and guaranteed money flowing.

But how do you create a customer retention strategy that keeps your current customer engaged and happy? Keep reading while we’re sharing some of the most applicable customer retention strategies that will help you inspire loyalty.

Communicate With Your Customers Regularly:

Keeping the lines of communication open is one of the best strategies to retain your customers. Whether it’s about sending periodic email communications, providing marketing content, or offering loan products, create a strategy on how you will stay in touch with the clients. Put yourself in the client’s shoes and ask if this material you’d be willing to receive.

Provide your valuable clients with content that informs, educates, and entertains them. Try to be proactive in communicating with your clients and provide them with value. If customers haven’t interacted with your financial institutions for a while, you

should reach out, take their feedback about your products and services, and re-establish your relationship. You can also maintain a communication calendar to manage customer engagements and create opportunities to market your products and services.

Top FinTech Trends that You Must Know About

Leverage Technology to Improve Customer Experience:

In the past few years, advancement in financial technology has severely transformed the lending industry for good. Technology has the power to take your small business lending business to the next level, so you don’t shy away from it and need to adapt quickly. If you’re not proactive, you may lose your potential customers.

This is why it’s imperative to embrace the latest technology so that you’re constantly improving the customer experience. Technology can help you identify and meet your client's unique financial needs and save their time, money, and efforts. For instance, you might consider incorporating online loan payments into your suite of offerings, or a loan origination software to provide easy and fast loans to your customers.

Besides, some financial technologies such as digital account opening, video collaboration, APIs, cloud computing, cash flow forecasting software, and AI can also help you improve your workflows and processes. From gathering and analyzing financial data to manage cash flow, automate the loan approval process, building innovative credit scoring models, and more, you can leverage numerous benefits by adopting technology in your small business lending.

Build Trust With Your Customers:

When deciding to purchase financial products and services from a small business lender, most customers say that trust is the most important factor in their decision. If you want to retain your customers, you need to win their trust. Reliability is a key factor in building trust, so your financial institution should be consistent in delivering value to your current customers.

Here are some effective ways to gain your customer's trust and confidence:

· Provide top-notch customer service

· Offer customized financial products and services

· Streamline your loan application processes

· Share positive reviews and testimonials

· Be honest and transparent

· Ask for and act on feedback

· Provide your customers with readily accessible services

So these are some of the many excellent strategies to retain your customers. If you want to earn more loyal customers, gain a competitive advantage, position yourself as a trusted advisor, earn more word of mouth referrals, and boost your revenue and profit, you must develop a good customer retention strategy.

Sources:

· How Banks and Financial Institutions Use Customer Retention Strategies Effectively | Retention Idea

· 4 customer retention and growth strategies for banks 2021 | Crowe LLP

References:

· https://www.investopedia.com/terms/r/returnoninvestment.asp#:~:text=Return%20on%20investment%20(ROI)%20is,a%20number%20of%20different%20investments.&text=To%20calculate%20ROI%2C%20the%20benefit,the%20cost%20of%20the%20investment.

· https://www.demandjump.com/blog/what-is-customer-acquisition

· https://blog.hubspot.com/service/customer-retention-strategies

· https://www.forbes.com/sites/forbesfinancecouncil/2021/02/10/digital-transformation-what-the-future-holds-for-traditional-and-alternative-lenders/?sh=390ef0c472c0

· https://www.forwardai.com/precise

· https://cashvisionusa.blogspot.com/2021/04/everything-you-need-to-know-about.html

· https://mailchimp.com/

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