'Relevance' matters for retention.

• Author: Clapp, Bruce
• Position: Customer Retention

Banks that are succeeding in the marketing war today are focused on strengthening customer relevance first by methodically and systematically understanding the full customer need, and second, by demonstrating total commitment to the customer by building an offering that meets every aspect of that need. The truth is, once relevance has been established (and it's not easy), marketing can deliver more meaningful and measurable returns (especially in retention) than any other function inside of your bank. For sales, relevance offers a stronger position. For marketing, relevance develops context. For the CEO, relevance spells relief.

Being relevant to the customer's needs is the single most important aspect of retention. Case in point: In work we have done with Andy Daniel, founder of Customer Intelligence, analyzing over 4 million MCIF records, the number one reason for attrition is an unmet customer need. If we are not relevant to the customer's needs, we are not in the decision-set for their needs when they arise. Even though your bank may offer a competitive product, a customer will only consider those institutions that are relevant. So, the question begs: How do I become/stay relevant to my customer?

The answer is where the "gold" lies within customer retention.

Stay in touch. You need to communicate with your customer at least quarterly, and this is beyond routine statements and notices. Ideally, you are proactively communicating with your customer a "value" message (one that is not just a sales pitch, but offering a tailored approach to their needs) at least six or seven times a year. This takes targeting, clear messaging, and diligence--but the rewards are deeper customer relationships, increased retention and more product sales from your most important customer ... the one you already have!

Keep customers informed. You may think that all customers know what products you offer, what services you deliver...