The Financial & Emotional Benefits of Fully Engaged Bank Customers

Gallup (the research, polling and advice organization) has been writing a lot about the shifting landscape for financial institutions and their insights into channel optimization, emerging customer behaviors/ preferences, product penetration and relationship growth, & generally…engagement.

There are tangible benefits to be gained when clients are fully engaged (or loyal and emotionally attached) with their financial Institution and I’m betting that the same should apply to financial Advisors.  I will let you decide. The tangible benefits relate to Increased Revenue/Wallet Share and Product Penetration

Based on their November 2013 survey on Retail Banking, they reported that fully engaged customers bring in $402 additional revenue per year compared to those who are ‘disengaged’  For those clients who could be identified as Affluent ($100K to $1M in investable assets), the value is closer to $869 additional revenue.

Now you just have to multiply that by the number of your banking customers who could be “engaged”

Fully “Engaged” customers behave differently:

  1. 10% greater wallet share in deposit balances
  2. 14% greater wallet share in investments
  3. Twice the number of discretionary category add-ons investment, insurance, or advisory products with their primary bank)
  4. Greater Purchase Intent that is, a stronger intent to purchase from their primary institution over the next year
  5. 71% believe that they will be with that financial institution for life

Gallup on Fully Engage Customers 2

Fully engaged customers and clients are more likely to say they will open new accounts, switch an account from another financial provider, increase their balances, add ancillary products and services, or obtain financial planning advice than are those customers who are just satisfied.

Engagement Matters. Customer Satisfaction is good but Customer Engagement is much better. Engagement results in a tangible financial difference. How engaged are your clients ? How can you help them become more engaged ?  LegacyTracker

Read more here

Leave a Reply