{"id":52783,"date":"2022-01-27T09:24:25","date_gmt":"2022-01-27T14:24:25","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=52783"},"modified":"2023-05-30T08:42:56","modified_gmt":"2023-05-30T12:42:56","slug":"customer-loyalty-in-banking","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/customer-loyalty-in-banking\/","title":{"rendered":"Customer Loyalty in Banking: From Detractors to Promoters in Six Months"},"content":{"rendered":"

Customer loyalty is crucial for any business, but in banking, it\u2019s particularly critical. With so many competitive pressures from traditional financial institutions, fintech, and evolving customer demand, it\u2019s more important than ever for banks and credit unions to better understand their customers \u2013 and how to win their loyalty.<\/p>\n

<\/div>\n

In a recent webinar, Sogolytics explored how to nurture and retain loyal customers in the financial services sector. Here are some of the highlights of the webinar.<\/p>\n

<\/div>\n

What is NPS \u2013 and why does it matter?<\/h2>\n

The most prevalent metric for understanding customer loyalty is the Net Promoter Score<\/a>, or NPS. It\u2019s the basic yardstick used to measure customer loyalty.<\/p>\n

<\/div>\n

\"NPS<\/a><\/p>\n

<\/div>\n

Measuring NPS usually begins with asking a simple question on surveys, measured on a scale of 0 through 10: How likely are you to recommend us to a friend or colleague?<\/p>\n

<\/div>\n

Those answering 0 through 6 on the scale are Detractors, those answering 7 or 8 are Passives, and those answering 9 or 10 are Promoters. The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters.<\/p>\n

<\/div>\n

Most companies use Net Promoter Score as a quick and simple way to measure how their customer experience<\/a> (CX) programs are performing. The objective, then, is to turn the Detractors into Promoters.<\/p>\n

<\/div>\n

Why focus on detractors?<\/h2>\n

Simple: They\u2019re the most vocal of your customers. They\u2019re the most likely to leave your financial institution<\/a> and can do the most damage to your brand through word of mouth. In fact, customers will mention a good brand experience to 9 people but will tell 16 people about a bad one.<\/p>\n

<\/div>\n

\"An<\/a><\/p>\n

<\/div>\n

The best way to counter this action is to focus your efforts on areas that will more quickly pay off. That is, triage<\/em> your customer support efforts to stop the damage done by Detractors.<\/p>\n

<\/div>\n

This means addressing and answering the following questions:<\/p>\n

<\/div>\n