WHITE PAPER DOWNLOAD
Insurance | Capital Markets | Corporate & Commercial Banking | Wealth Management & Private Banking
Customers come and customers go. It’s a fact of life. But it doesn’t mean organizations should quietly accept high turnover rates without attempting to mitigate losses.
The average financial services firm turns over customers at a rate of 12.5% per year. That’s a lot of revenue (current, future, and referral income) to lose – even before the cost of acquiring new customers is considered. In fact, organizations are significantly more likely (60 to 70%) to increase sales to a current customer than to win back a former customer (20 to 40%) or close a sale to a prospect (5 to 20%). Keeping customers loyal helps reduce the expense and effort of finding new customers to replace the revenue. This is particularly important in wealth management, where Bain & Company’s analysis finds that loyal affluent customers are nearly 3.5 times more profitable for organizations than the average customer.
An integrated enterprise customer relationship management (CRM) solution provides the tools and information organizations need to eliminate common causes of customer churn and foster enduring customer relationships.