Develop a dialogue with your new customers.

• Author: Triplett, Ted
• Position: CUSTOMER RETENTION - Brief article

YOU'VE DONE IT. The prospect has opened an account with your bank. Now, all you have to do is keep him or her happy and move on to the next new customer, right?

Attracting new customers is only the first step. Keeping them is a challenge. By getting to know your new customers and communicating with them in meaningful, value-added ways, you minimize the chances of defection and increase the likelihood of developing a lifelong relationship with your customers.

It sounds so simple. But if it were so easy, why do so many banks have high attrition rates among new customers?

Many banks tend to use the "one-size-fits-all" approach to on-boarding. To ensure all new customers are welcomed and cross-sold, banks standardize their communications and send them based on some predetermined timeline. By doing this, banks risk alienating new customers by sending generic offers that may not be timely or relevant.

Banks with successful on-boarding programs start with a series of value-focused touch points designed to encourage customer feedback. That information provides a way to implement a cross-selling strategy focused on identifying and meeting the new customers' needs.

These initial communications are a series of proactive contacts with customers to ensure:

* The products they purchased match their needs.

* The rates and fees on the accounts are transparent and understood.

* The fulfillment process is smooth, accurate and timely.

* Any problems associated with the account-opening process are addressed immediately.

Eliciting feedback

Successful programs feature service-oriented communications sent early in the relationship--with a smooth transition into cross-selling additional products and services after the relationship has been nurtured.

Initial contacts are customer-focused--not product-focused. Messages are based on eliciting feedback by communicating with customers and encouraging them to share their needs with the bank.

With this feedback, the bank can then send offers with a clear-cut value proposition, giving customers a good reason to put their trust and money in their new bank.

This strategy involves frequent contact, a consistent message and personalization--thus becoming not...