Saturday, March 7, 2009

How to Win Your Customers in the Banking Sector?

“The cost of acquiring a new customer is 10 times the cost of selling to a current customer” – Harvard Business Review

Provide information to customers. Many customers are not aware of the benefits to be derived from banks. Customer literacy is the key to make them understand and win them. Provide the facilities that are customer friendly and the features that are customer enabled. For instance, Andhra Bank started biometric access to ATM banking wherein the customers can have access to their accounts through finger prints.

Provide kiosks in key business and floating areas to attract customers. Focusing on relationship building would pay off. It is always good to be polite with customers. It is necessary to smile and serve as it would break the ice with your customers. Gauging the individual customer needs is the need of the hour. There has to be flexibility in redesigning and modifying the marketing mix as per the customer requirements.


Anonymous said...

Mr. Rao,

Sorry to say, but I don't find any connection in the sentences. For instance, the article starts with "Provide information to customers", ..what do you mean by that, and to whom ? And in the second paragraph the sentences are not arranged in a flow, which leaves the readers confused.
I would really appreciate if you can connect the sentences and provide a flow to the article, I hope you understand what I mean..

Keep Trying.... :)

Anonymous said...

Working in a "mega bank", I find this article very interesting, Banks need to do a better job of discovering their individual customer's needs and to provide education and products that specifically meet those needs. The array and mix of products that a bank can offer is immense and many are not used because bankers fail to make sure their customers are aware of these products related to their needs. People often ignore the fact that people make money two ways: they either work for it, or their money works for it. Yet, many banking customers leave their funds in their checking accounts earning no or very little interest. Or they leave their savings in savings accounts earning tenths of a percent when there are money market accounts and special CDs that earn ten times their savings account with the similar access.

The reason why many customers do not take advantage of the services banks offer is two fold. First the banks are wary of the fact that bankers are not "traditional bankers" but sellers (like a used car salesman). Second, the sellers are unable to link their services to an increasingly complex financial and economic environment. Its difficult to find competent bankers when their compensation is just a little more than minimum wage.