From Transactions to Relationships: How Salesforce Builds Customer Loyalty in Financial Services : Cyntexa
by: Cyntexa
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In times of cutthroat competition, the financial industry holding on to loyal customers is a rare sight to find. One reason for this is that people nowadays find it difficult to trust entities that provide financial services with their hard-earned money. Thus, for a financial institution, this can be a difficult situation.
However, financial service providers can vouch for the correct customer relationship management platforms. These platforms are highly regarded for their capabilities for sustaining and strengthening relationships between service providers and their customers.
Salesforce is the customer relationship management platform that tops the list. It is one of the most trusted and well-equipped CRM platforms that multiple financial institutions use to foster trust among their customers.
Let's first understand why customer loyalty is crucial for financial service providers before we see how Salesforce can save them.
Why Does Customer Loyalty Matter in Financial Services?
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Reduces The Acquisition Cost Of New Customers
For any service provider, the cost of acquiring new customers is really high and less rewarding. This is because it requires everything to be done from scratch to lure and convince new customers. However, having a loyal customer base can significantly reduce the financial service provider's customer acquisition cost. This, in return, can save them resources, which can later be utilized to benefit loyal customers as rewards for their loyalty.
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Increases Credibility Through Word-Of-Mouth Marketing
A loyal customer base can always help financial service providers enhance their credibility and legitimacy in the financial industry. A loyal customer will always verbally appreciate and applaud the service provider, which will act as word-of-mouth publicity. No matter how much a company spends on marketing, it can never be as effective as word-of-mouth marketing. It's relatively reliable and trustworthy, more than any other marketing.
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Boosts Profitability
There’s always a saying in the business world that repeat customers are more valuable than new customers. This is because repeat customers inherently have a more significant impact on an organization's long-term success. Moreover, they are easier to sell and are brand advocates who are majorly responsible for boosting the overall profitability of service providers.
Don't forget to check out: Making Financial Services Firms Thrive Amidst Challenges in 2024
Ways In Which Salesforce Empowers Financial Institutions
The Salesforce ecosystem offers multiple plans, programs, and tools that financial institutions can utilize to boost their productivity significantly, just like the Salesforce Loyalty management program, which can significantly enhance customer loyalty management for financial institutions.
Understand Salesforce Loyalty Management as a program that is designed to assist businesses in curating, managing, and customizing plans to keep a track record of their customers' loyalty.
Let's take a look at the things the Salesforce Loyalty Management program has to offer
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A Complete 360-Degree Customer View
Salesforce Loyalty Management offers users a complete 360° view of their customers. Everything from their account details to their past financial records is stored and accessible from one centralized database, allowing the financial institution to cater mainly to specific customer needs.
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Real-Time Insights
The loyalty management program provides users with real-time updates and advancements that can help them make well-informed decisions. Moreover, Salesforce helps financial institutions categorize their customer base and plan targeted marketing campaigns.
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Enhanced Customer Experience
The finance industry is built on trust, so exceptional customer service is a must. This is precisely what the Salesforce ecosystem has to offer. The capabilities of loyalty management can heighten customer experience. Financial institutions can also provide faster response times, efficiently resolve issues, and ultimately make customers feel valued.
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Regulation And Security Compliances
Salesforce Loyalty management adheres to all the necessary banking compliances to ensure the smooth running of the program, including regulating the KYC (Know Your Customer) and AML (Anti-Money Laundering) norms. Customer data also stays secure, with no negligence or breach scenarios.
Types Of Customer Loyalty Programs For Banks And Financial Institutions
According to a study by CGI, about 81% of modern bankers look forward to receiving incentives or bonuses in some form as part of the bank’s loyalty program.
There are so many renowned and leading banks around the world that believe in offering dedicated loyalty programs to their customers. JP Morgan has a points-based bank loyalty rewards scheme called One Card, and Citibank's bank loyalty program is called Citi Thank You. These are some ways these financial institutions connect with their customers and establish long-term customer relationships.
Here are some different varieties of loyalty programs that banks and financial institutions can offer to retain customers.
Points-based Programs
Customers can earn points for using the bank's services, such as making debit card purchases or maintaining a high account score. In return for these points, they can get various rewards, like travel vouchers and merchandise.
Tiered Programs
In this type of loyalty program, customers unlock different levels or tiers by baking or purchasing activities to upgrade to a new one. Thus, being on the higher tiers can help customers get perks like waived fees, exclusive customer services, or even lower interest rates.
Partner Programs
Banks can partner with other businesses to offer customers exclusive discounts and rewards at partner retailers, restaurants, or travel providers. Customers can also be given redeemable points or cashback when they spend money with the bank’s partner.
Referral Programs
Customers earn rewards for referring friends and family to the bank or downloading an application. This loyalty program helps banks attract more customers without spending much on marketing.
Gamification Programs
Lastly, there are gamified loyalty plans. These programs include elements of game mechanics like points, badges, and leaderboards. These programs are highly engaging and intriguing for more and more customers to participate in. This can also be a fun way to promote saving habits or awareness around specific financial products among customers.
Check out another amazing blog by Cyntexa here: CRM Implementation Made Easy: A Step-by-Step Guide for Success
Summing Up
Establishing and maintaining a loyal customer base in the changing dynamics of the financial industry can be simplified by using CRM systems like Salesforce. Salesforce does so much more for financial services than being just a CRM. It also has a specialized Financial Services Cloud designed explicitly for this industry.
By implementing Salesforce solutions, financial institutions can build trust, personalize interactions, and ultimately cultivate a loyal customer base.
The post From Transactions to Relationships: How Salesforce Builds Customer Loyalty in Financial Services appeared first on Forcetalks.
June 14, 2024 at 05:48PM
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