In FinTech, customer acquisition costs (CACs) can easily set you back hundreds and even thousands of dollars.
CACs have been on the rise for quite some time, too, and they might be eating into your FinTech business’s bottom line. If you’re struggling in the current climate, it’s time to shift your focus from solely acquiring new customers to retaining those you already have.
This guide discusses the value of customer retention for FinTech businesses. We also break down some tips to help you boost your company’s customer retention rate.
Why Customer Retention Matters
When it comes to marketing and growing your FinTech business, it’s easy to catch yourself focusing exclusively on customer acquisition — especially in your company’s early days.
While everyone wants to win new customers, you shouldn’t be so committed to this pursuit that you neglect those you already have.
Here are some of the top reasons to prioritize customer retention in the FinTech sector:
As a general rule, it costs less to retain an existing customer than it does to acquire a new one.
Think of it this way. You’ve already done the heavy lifting (and spending) to win over a current client. They trust you and understand the value of your services.
As long as you continue providing outstanding service, they will likely stick with you and continue paying for your assistance.
More Sales Potential
In addition to costing less, current customers are also more likely to spend more on additional products or services.
Because they trust you and have (hopefully) seen results from working with you, it won’t be as difficult to convince them that they should invest in another service you offer.
When you care for your existing customers, they will help you acquire new ones.
People like to talk about positive experiences, including experiences with businesses and service providers. If you offer quality services or a valuable product, your customers will discuss it with their friends and family.
As a result, these people will be more interested in checking out your FinTech business and investing in your offerings.
Better Business Insights
A brand new customer might be hesitant to provide in-depth feedback about their experience or how the services they’re receiving could be better. However, someone who has worked with a business for a while might feel bolder and more willing to share insights.
These insights, in turn, may help you improve your business and make positive changes that naturally attract more customers or clients in the future.
Top 7 Customer Retention Tips for FinTech Businesses
From saving money to more word-of-mouth recommendations, the benefits of prioritizing customer retention sound pretty enticing, don’t they?
If you’re ready to shift your focus and increase your retention rate, try implementing some (or all) of the seven following tips:
1. Seek, Share, and Implement Customer Feedback
Your customers are better equipped than almost anyone else to tell you what’s working with your products or services and what needs improvement. Reach out to them and ask for feedback.
Share their responses with other team members, from marketers to software developers, so they know what they need to change moving forward. Then, commit to implementing feedback wherever possible — this shows your customers that you value them and their input.
2. Feature Testimonials in Marketing Content
Nearly 100 percent of people search for testimonials and reviews when deciding if they want to work with a particular business. Including testimonials from existing customers in your marketing content helps to highlight their experiences and show others what they can expect from working with you.
3. Create a Loyalty Program
A loyalty program incentivizes people to continue working with your business.
There are many ways to show appreciation to your existing customers and keep them excited about sticking by you. For example, you can offer a discounted month of service or a statement credit for every six months they partner with you.
You could also offer rewards or entries in a drawing for positive reviews, referrals, social media shares, etc.
4. Educate Your Audience
If people know that your FinTech company is credible, their chances of continuing to work with you increase. One way to build credibility is by regularly sharing educational content.
If you aren’t already, start providing customers with links to blog posts, videos, etc. That way, they know where to go to learn more about the FinTech world and the specific services you offer.
5. Build a Better Online Presence
In addition to publishing educational content online, you can increase customer retention through a robust online presence.
From regularly posting on social media to engaging with people who comment on your posts, being active online shows people that you’re invested in their experience and genuinely want to offer solutions to their problems.
6. Develop a Customer Delight Roadmap
Pay careful attention to what works and doesn’t regarding your customer retention strategy. Do people respond particularly well to an educational video series or your loyalty program?
Use this information to create a customer delight roadmap. This roadmap will detail the steps that employees throughout the company can use to provide a positive experience and encourage people to continue investing in your products or services.
7. Take Care of Your Employees
It’s just as important to support your employees as it is to support your customers.
If you provide a positive and uplifting work environment, your employees will be ambassadors for your business.
In other words, they’ll speak positively about it and your products or services, which creates free marketing opportunities and leads to better customer retention and customer acquisition rates.
Retain More Customers with Quality FinTech Content
Customer retention is always important, but it’s especially valuable in industries with high customer acquisition costs (such as the FinTech industry).
If you’re struggling with these high costs, consider dedicating more time and resources to customer retention efforts.
Use the tips discussed above as a jumping-off point, and don’t hesitate to reach out to professionals if you need help with content creation and improving your online presence.
Our team at FinTech Content is ready to answer your questions and create an action plan that produces great results!