FINANCIAL SERVICES
According to Andy Nemes of loyalty management platform Antavo , customer retention has become an increasingly large challenge for fintechs and banks . He writes that “ the reason customer retention in financial services is a pain point for many companies in the industry is that their attention is divided between multiple pressing challenges ”.
Nemes points to three key areas that result in customers being lost . They are ;
1 . A lack of digital presence - To speed up the process of digital transformation , companies must offer solutions that incentivise online interactions .
2 . Increasing competition - When fintechs lack effective customer retention tools , it ’ s too easy for customers to switch to a competitor offering better deals .
3 . Valueless loyalty programmes - Customers need relevant benefits if a loyalty programme is to be effective . Loyalty programmes that don ’ t consistently add value result in poor retention .