5 Ways To Improve Account Retention

account retention

You want your account holders to stay with you as long as possible. As they get older, they keep higher balances, withdraw funds less often, and take out more products. Plus, getting new consumers can cost 6 to 7 times more than retaining existing ones.

So how can you keep your account holders? Below are five ways you can encourage people to stay at your institution. The common thread among all five? Care about them. Above all, show your account holders that you have their best interests at heart and are thankful they bank with you.

 

1. Provide A Great Experience All Around

 

Yes, it sounds obvious. No business aims to provide a BAD experience, but are you keeping up with the type of service consumers expect? They’re interacting with companies like Amazon on a regular basis, and want the same type of experience across all industries. Take a look at your current processes and see if there are ways to modernize. Can you make the online account opening process faster? Can you improve follow up?

Get your team behind this initiative too. Provide them with more training so they’re always equipped to talk about your products. If you’re planning on rolling out some changes at your institution, make sure your employees have the knowledge to answer some common questions people might have.

 

2. Provide Financial Tools And Resources

 

About 92% of Millennials say that being educated on personal finances is important. And, according to ABA, two-thirds of Millennials want digital budgeting tools from their banking provider. There’s an opportunity for your institution to provide younger account holders with the financial advice and tools they want from you. Consider having a class once a month that covers different financial hurdles, like buying a house or understanding student loans. You can bring in local experts from your community to lead the classes or use members of your own team.

 

3. Celebrate Them

 

Think of ways you can show consumers how happy you are to work with them. Megabanks can’t replicate the community aspect of your institution. They can’t send handwritten cards signed by their whole team on an account holder’s birthday...but you can. Have an account holder appreciation picnic (or other types of events) once a year to thank them for banking with you. Get food from local restaurants and invite a local musician to supply the soundtrack.

 

4. Give Out Really Great Perks

 

Borrow from other industries, like restaurants, and offer perks people actually want. For example, some restaurants give free meals on birthdays. What’s a freebie you could give? Maybe send an email on an account holder’s birthday offering the gift of one overdraft forgiveness within the next year. Or if you’re going the handwritten card route we mentioned above, throw in a $5 gift card to a local coffee shop.

 

5. Ask Them What They Want

 

One of the best ways to find out what consumers want from your institution is to just ask. Send out a survey with questions about how you could improve your products, service, and experience. Get them more involved in the business by asking for their ideas. What would they love for you to offer? Actually listening to their needs will make them feel truly valued.

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