The key to long-term success is not necessarily based on how many customers a business can acquire. Indeed, growing sales (and therefore a customer base) is beneficial, but in today’s financial world, keeping loyal account holders is easier and less costly than gaining new ones.
For this reason, community banks and credit unions must focus on developing long term relationships with account holders. Relationships that encompass multiple life events, such as births of children, marriages and graduations, are more likely to generate larger revenue streams compared to relationships with a host of new account holders who stay for only a short amount of time.
Therefore, financial institutions must understand the concept of customer lifetime value and how to foster the relationships that maximize that value. As the title suggests, customer lifetime value (CLV) is the measure of income to a financial institution from a customer continuing through the years of the relationship. CLV continues to grow the longer the relationship lasts, so the equation for CLV is quite simple: the longer the relationship, the greater the CLV.
But valuable, long-lasting relationships are not created in a vacuum. They’re nurtured through timely and productive communication. Targeted messaging is crucial to securing relationships with the customers who have the highest CLV: Generation Z. With that, this post will introduce a few helpful tips.
- Consider loyalty and brand advocacy. Human nature plays an important part in choosing a financial institution. Community banks and credit unions that make account holders feel wanted and position themselves as the go-to for specific financial products can establish a recognizable brand. Conveying this through a mobile marketing campaign can be an especially productive way to maximize CLV.
- Personalize the message to customers.Just as customers like feeling wanted, they also appreciate messages geared toward their specific needs. Personalized messages can help generate CLV because they reinforce a financial institution’s ability to meet several aspects of a customer’s needs. Today’s mobile marketing managers have a bevy of information at their fingertips, so creating personalized advertisements, offers and promotions doesn’t have to be difficult.
- The details matter.Effective consumer engagement is more than just sending personalized messages. Due care must be paid to maximizing the customer experience once a customer is engaged. After a message or offer is communicated, follow-up must be measured and responses adjusted to make the customer experience a memorable one.
While these concepts appear straightforward, executing them may not be. This is where working with Larky can contribute to a financial institution’s bottom line. Larky is a forward-thinking, fast moving fintech that builds compelling engagement programs to help community banks and credit unions connect with target audiences. Larky focuses on right place, right time engagement through mobile banking apps and creates specialized advertising campaigns directed toward select account holders. These campaigns inspire quick, easy follow up that leads to additional business and greater opportunities to maximize customer lifetime value.
Industry leaders should be particularly excited about Larky’s years of experience and track record of success. Its product offerings set industry standards and continue to evolve as technology continues to shape customer expectations and engagement. To maximize customer lifetime value in the 21st century, contact Larky to learn more.