Organization with strong customer engagement outperform those without it.

The Importance of Customer Engagement for Banking Brands

Customer engagement grows your profitability. - Image via Wikicommons User Shayaharony

Not this kind of “engagement”!

Commercial or community, bank or CU, everyday, people are interacting with the banking brand that matters to them. But the big question is: Just how much does it matter?

Online banking is ballooning the amount of transactions and interactions that customers can have with their bank. It’s easier than ever to just keep an eye on your balance. The only checkbook balancing you need to do any more is if you put your checkbook on your head when you’re carrying a ton of groceries and trying to fish your keys out of your pocket to unlock your door. (Why wouldn’t you just put your checkbook in your pocket? That’s beside the point.)

All these interactions are a dream scenario for a financial marketer, but – like with a lot of things – “there are two types people” when it comes to their customer base. Those who are engaged and those who aren’t.

According to research from Gallup Consulting, actively disengaged customers represent a 13% decrease in profitability compared to the average customer. A fully engaged customer represents a 23% premium. More customer engagement means more share of wallet.

To put it simply, they say, “organizations that engage their customers outperform those that do not.”

A brand probably doesn’t matter to a disengaged customer. They threw a dart at a phone book to find their bank.

On the other hand, you can think of an engaged customer like an invested… investor. They like what you do and your brand matters to them. They choose to bank with you for a reason.

Banks and credit unions that want to increase their share of wallet should do it through customer engagement. The most effective way to engage customers is to create emotional connections.Organization with strong customer engagement outperform those without it.

You can look to Facebook or Twitter to see elements of emotional appeal in action. The most successful banks and CUs portray an entertaining attitude more than they try to sell products. You’re more likely to find a funny meme on their feeds than a product pitch, and you’ll often hear about how the bank/CU is giving back to its community.

However, this doesn’t do a lot to benefit the customer directly. This is where educational content can work really well for customer engagement. Here’s how:

  • People are desperately looking for answers to their questions
  • You can take a load off their shoulders with an answer
  • Your answers can help them make the best decision that will allow them to save money and avoid mistakes

If you stress the emotional benefits of your money-saving solutions you’ll put yourself in place before the competition. Your brand will matter more because you were able to provide an answer when your customer really needed one.

Learn more! Sign up for our 30-minute ‘How To’ workshop on driving sales with emotional connections