To Act or Not to Act: 2 Metrics Drive Banking Customer Retention

To Act or Not to Act: 2 Metrics Drive Banking Customer Retention

Recently my satellite company called me up. I thought it was a typical sales call, upselling me to some premium package. But I was surprised… They told me that data they are collecting on my system showed that we are having some signal loss and they would like to send someone out to fix it – on their dime. No service call charge, regardless of what they find. I was a little shocked, and I must admit, I was looking for the catch. There wasn’t one. But it was true that we were suffering silently with some signal issues. They sent out a tech. He reviewed the situation, found the installation wasn’t done right, and re-installed the entire satellite system. All without us asking. I asked what the motivation was for taking such a huge step. He said the company had identified that they were losing customers based on quality issues. Those quality issues were totally fixable, but they just didn’t know about them. So, they started collecting data. But what amazed me was the proactive way in which they intervened – even those they weren’t asked. It got me thinking about our banking customer retention experiences. Would you intervene financially with a customer if you thought – but did not know – the relationship was at risk? I’ve asked this question to many banks, and all too often the answer is no. At best, I get an “I don’t know.” Knowing When to Act The problem is that our banking customer retention efforts are build on being reactive, not proactive. We respond when a customer complains or closes...