What credit union marketers can learn from auto dealerships

Banks and credit unions need to improve retention and reduce attrition. Here's some tips to foster more loyal relationships.

The majority of marketing for car dealerships focuses on conquest — they want to bring customers in and make the sale. However, the underlying issue is retention. Dealerships spend hundreds-of-dollars to sell one car to a customer; that’s seven times more expensive than retaining an existing customer. In banking, the numbers are comparable.

In any business, retention is the key to success. Banks and credit unions, like car dealerships, need their customers to remain loyal. Dealerships use the service department to keep the customer coming back, but what can financial marketers do?

In a digital world where people go online to view their accounts, deposit checks remotely and pay bills from their phone, the direct line of communication brought by speaking to someone at the branch is frayed, or cut entirely.

Fortunately, there are mountains — or more accurately, clouds — of data available to help you speak to consumers. Engagement at the right time will ensure that you’re meeting your people’s needs and providing a high level of service worthy of loyalty, recommendations and referrals.

 

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