Relationship recovery: an overlooked retention strategy.

• Author: Triplett, Ted
• Position: CUSTOMER RETENTION

SURE, CUSTOMERS COME AND GO. But the ones who depart often leave their bank in the dark about why they left--and worse, with no effort by the bank to win them back.

Research shows that most customers actually come into the branch when they close their relationship. It's a prime opportunity to try to save the relationship; yet the bank staff usually does very little to keep their business.

An effective win-back strategy is to empower your frontline staff to take care of the problem quickly and efficiently. The first action: Let the customers know how much your bank values their business, Then uncover their reasons for wanting to leave by asking some open-ended questions:

* "Why are you considering leaving our bank?"

* "Can you give me some details about your problem so I can help solve it?"

* "Have you experienced other problems in the past?"

Then ask the most important question: "What can we do to keep you as a customer?"

A personalized message can help

If the customer simply can't be saved or you don't make an attempt to keep them, don't give up. Craft a plan that includes a relevant, personalized message--rather than a one-size-fits-all letter or survey. Convey that you care about them and their relationship with your bank.

Consider an exit interview. Research conducted by Marketing Metrics found that at least 50 percent of customers who defect said they would participate in an exit interview; 30 percent would even tell you what you could do to win them back. With those kinds of odds, it's worth it to ask them for their feedback.

Allow some time to lapse before contacting the customer. Call too soon after the defection and you risk annoying them. Call a few weeks later, however, and you better show your sincerity. The extra time also gives the customer an opportunity to form an opinion of their new financial institution. Then they can make a clearer, more accurate assessment of their former relationship with your bank.

Key points for an exit interview

Design the interview so frontline staff can report...