How to Improve Customer Engagement in Banking? 5 Strategies

So, what methods are effective at boosting customer engagement, satisfaction and loyalty? Take a look below.

Personalize Your Services

AI in digital banking opened a plethora of new opportunities, one of which is hyper-personalization. You must make use of it, as it is the key to boosting customer engagement.

The more personalized your services are, the more engaged your customers will stay. You should start by analyzing your data to understand the customer. Then, use AI to provide your clients with custom content recommendations. You may also offer them personalized product recommendations—this is one of the features you will find in our LiveBank platform.

Leverage Your Marketing Channels

To keep your clients engaged, you need to keep in touch with them. The best way to do that is via your marketing channels. However, using just one or two of them won’t do the trick.

You should leverage all your marketing channels and target not only new, potential customers but also existing ones. Inform them about your new services, provide them with content (personalized, as mentioned in the previous section), and make sure they remember about your bank and know what’s going on. At the same time, don’t be too aggressive with this strategy—you don’t want to feel too pushy, as this might become irritating for the client.

Become Proactive

Proactive banking is the approach in which you analyze customer behavior to find issues, problems, and new points of interest before they occur. Thanks to this, you can provide your clients with relevant solutions in advance. This is an excellent way to improve customer engagement in banking, as they will feel that you’re always on point with your recommendations and actions.

Rewards, Partnerships, and Loyalty Programs

How to improve your customer engagement in banking most effectively? By making them want to stay engaged. This can be achieved through loyalty and reward programs. Offering even small benefits that the clients can choose from and switch between (for instance, every month) should make your customer engagement skyrocket. At the same time, make sure you’re providing them with small, value-adding bonuses—offering perks that are a standard in other banks may have the opposite effect.

Make the Transition Between Channels Seamless

Finally, you should adopt an optichannel approach. This refers to you providing your customers with a choice between different channels, where they can use the most convenient one and switch between them seamlessly. Clients who don’t feel frustrated by being forced to use specific channels are much more engaged, and in the era of phygital and digital banking, this is simply a must.

Why Does Improving Customer Engagement Matter in Banking?

There is one simple answer to the question of why you want to improve customer engagement—it translates directly to customer loyalty. The more engaged your clients are, the less likely they are to move to your competitors. What is more, banks that keep their customer engagement at a good level usually report higher profits. In the end, engaged clients build more value for your organization, so it is key to keep it that way.

The Takeaway

Improving customer engagement requires you to implement a set of changes to your organization. You need to utilize your data, personalize customer experiences, become proactive, and use multiple channels (both internal and external). In the end, this will result in higher profits and a rise in customer loyalty, which are some major benefits. After all, current customer acquisition costs are extremely high, so maintaining loyalty should be your priority.

If you are looking for a solution that will help you with this task, we can recommend our IT solution: LiveBank. Designed as a customer engagement platform, LiveBank comes with a diverse set of features that will help you achieve this goal. Do you want to learn more about it? Contact us now—let’s schedule a call to show you what our platform can do for your bank!

You may also read: Key Digital Banking KPIs to Become Truly Customer-Centric