Navigating dynamic growth cycle of the modern bank client

Winning customers is just the start of a long relationship that every firm must go out to sustain. PHOTO | SHUTTERSTOCK

Bringing a child into this world is not a challenge – upbringing is, states an old Swahili saying. The same is true when it comes to navigating the growth cycle of the modern customer. In today’s competitive world, it is not just enough to attract customers if the business will not eventually retain the contract and cultivate loyalty from the customer.

Nowhere is this more pronounced than in the banking industry where to attain customer loyalty, businesses must understand and appreciate their growth cycle if they are to stay ahead of the client satisfaction curve.

To accomplish this deed, businesses must devise and implement a strategy that builds, fosters, nurtures, and extends relationships with its customers. This entails the use of diverse customer-service techniques that go beyond the normal serving and loyalty programmes.

According to Smart Survey, a UK-based business analysis platform, customer retention was the holy grail for businesses in 2023 because it plays a critical role in profitability, growth, and brand perception.

Data from their latest survey indicates that a five percent increase in customer retention can boost profits by up to 75 percent while almost 65 percent of a company’s deals come from repeat customers.

It also revealed that customer retention is cheaper than new client acquisition while repeat customer statistics reveal that returning loyal customers spend an average of 30 percent more per order as compared to others.

To attain this level of customer retention, it is imperative for the business to be up to speed when it comes to the process a customer experiences before, during and after they purchase a product.

Understanding and effectively managing customer cycles also allows a business to convert them from clients to advocates for the business.

The first stage of effectively managing your customers’ growth cycle is by expanding your reach. In a world driven by multimedia, it is important that your marketing material and content can be found in places where consumers spend their time. Be it on social media or traditional media.

With the right reach, businesses need to move on to customer acquisition since reaching potential clients will not mean much if you cannot offer relevant content or messaging. This is attained by understanding your brand, the products you offer and what type of person will buy them. Contacting consumers directly with personalised communication improves the odds of a future conversion.

Once customer acquisition has been established, the next step is to develop and nurture the relationship. Once that first purchase is made, your business needs to keep in contact with the customer. This is where you develop a relationship with the buyer, ensuring they are fully satisfied with their initial transaction. Asking for feedback also helps develop the relationship because customers like it when their opinion is valued.

Despite the process of reaching customer loyalty seeming linear, it is important for businesses to note that it flows cyclically and is nonlinear. Businesses need to continually offer relevant and timely messaging to prior customers.

Writer is head of coverage, consumer and personal clients at Stanbic Bank.