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What Are the Best Tips for Improving Bank Customer Loyalty?

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  • Written By: Geri Terzo
  • Edited By: PJP Schroeder
  • Last Modified Date: 04 November 2016
  • Copyright Protected:
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    Conjecture Corporation
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There are certain behaviors that bank employees can adopt that are likely to improve any transaction experience. Showing appreciation to customers is one attribute that could lead to greater bank customer loyalty. This can be done in simple ways, including recognizing children who accompany parents at the bank with pieces of candy. Convenience is another factor that is likely to create a positive customer experience and could support loyalty. Of course, earning high interest in savings accounts and receiving other financial benefits are components that are likely to lead to retention.

Customers who have positive experiences at a bank are more likely to purchase the next financial product from the same financial institution. Banking relationships contribute to customer loyalty. Subsequently, by treating customers well, the result could be an improved bottom line, or profitability, at a retail bank.

The experiences that customers have in a bank are often tied to the culture within that institution. When employers treat employees well, for instance, this sentiment is more likely to continue to customers. Subsequently, bank customer loyalty has a good chance of improving. There is often robust competition in the banking industry where the only differentiating factor between rivals may be customer service. If an attitude of respect exists among the internal staff, that pleasant working environment could impact a bank's ability to retain customers.

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Advancements in technology allow financial institutions to integrate the latest systems throughout a banking system. As a result, speed, accuracy, and security all improve, and the financial transaction process becomes more enjoyable. Adopting the latest high-tech solutions to automated teller machines (ATMs), Internet, and mobile banking creates conveniences that can bolster bank customer loyalty. Extended hours at a bank is another courtesy that is often appreciated. When customers do not need to wait until the doors at a financial institution open to make a deposit or transfer funds, however, and can accomplish transactions from a mobile device, bank customer loyalty may rise even more.

Keeping fees at a minimum is another way to improve the banking experience for customers. Excessive fees for checking account maintenance, accessing a competing bank's ATM, or even for overdraft charges could be enough to lead frustrated customers out the door to another bank. Banks need to remain competitive and of course earn revenues, but when customers begin to feel taken advantage of, this could impact bank customer loyalty in a negative way.

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