One on One with StrategyCorps’ Ryan Harbry
We caught up with Ryan Harbry, the regional director of sales and consulting at StrategyCorps to talk about the growing challenge of customer loyalty.
Why do you believe customer loyalty is uniquely important for financial institutions?
Customer loyalty is essential in every industry under the sun. In banking, it matters even more than most industries because fickle customers not only represent a missed opportunity for revenue, they have the potential to cost more than they’re bringing in, creating a reoccurring drag on earnings.
Do financial institutions expect too much loyalty from their customers?
If we’re honest, banking customers don’t exactly exemplify unwavering fidelity. Few would argue that consumers have the same degree of loyalty to their bank or credit union as they do with their hairstylist these days. 2021 research published by the Cornerstone Advisors indicates that 28% of Gen Z, 43% of Millennials, 35% of Gen X, and 33% of Baby Boomers have checking accounts with two or more financial institutions.
That’s 34% of people ages 21-74, showing that many people are cheating on their primary financial institution with others.
How do you keep customers and members from “straying” then?
Cultivating primary and engaged relationships is both an art and a science. It requires great people in the branches, sophisticated digital experiences, and products designed to foster engagement and incentivize behaviors. When these pillars are in place, a solid foundation is established. You can build a healthy customer base where the risk of unprofitability is largely mitigated. To the extent that you fall short in establishing primary relationships, your bottom line inevitably contains an area that operates much like quicksand, or a black hole, where a material portion of your earnings find themselves siphoned into the deep dark abyss.
How does keeping your product line fresh and engaging help maintain loyalty?
Don’t underestimate the importance of well-designed products and what they mean to the financial success of your bank or credit union. When done well, they facilitate loyal and engaged customers and members while at the same time minimizing the quicksand that pulls down your earnings. When done poorly, quicksand and black holes only gain strength.
To learn more about what Ryan Harbry is thinking and doing, connect with him on LinkedIn, send him an email (email@example.com), or give him a call at 404.819.1438.
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