customer engagement in banking sector

3 secret keys to unlock the customer engagement in banking sector

customer engagement in banking

The entire banking sector runs on relationships. For centuries, the relationships between the banks and their customers have been a backbone of the state’s economy. But with the increasing customer demand for better digital experience in this era, the banking sector is rapidly changing their customer engagement policies.

Before, there was only one way to build firm customer relationships, and that was face-to-face interaction. People used to visit the bank to collect information about opening a bank account, interact with the executives and make their decisions.

Now, people are increasingly relying on mobile communication and internet banking. So, the entire dimension of building trust and engagement has changed. The notion of banking experience needs to be seen from a different perspective, incorporating fresh techniques and technologies.

According to market research, customers who are fully engaged, bring 37% more annual revenue to their primary bank than the customers who are disengaged.

Today, the customer engagement in banking sector depends on three vital factors-

  • Effective communication
  • Real-time experience
  • Trust

    Omni-channel Communication system

crm activities in banking sector

Most of the banking organizations start thinking about customer engagement after a new customer opens an account. But, initially it should instigate even before the relationship begins. Communication is the best medium to identify, target and attract potential customers in any kind of business. The Banking sector is not an exception.

The more people are getting used to with online and mobile communication, the more banking organizations are integrating live chat, mobile app and social media channels with their Customer Relationship Management software.

Businesses with the robust Omni-channel customer engagement policies retain an average of 89% of their customers, as compared to 33% for businesses with poor Omni-channel policies [Source: Aberdeen].

Further, people have personal preferences regarding communication channels. Incorporating multiple channels means you are giving your customer multiple opportunities to choose their preferred medium.

With your banking CRM software you can integrate all the channels of communication to a single platform, so that you can effectively communicate with potential and existing customers.

Personalize Banking Experience

customer engagement strategies banking

While making a financial decision customers have more information sources at the bank. Today, they are in a much more favorable position than the companies that tuned the dimension of sales and marketing principles.

Now, customers want more personalized services to enhance the banking experience. 70% of buying experiences are based on how the customers feel they are being treated [Source: McKinsey]. And they want to feel special.

However, delivering a personalized experience can be difficult for banks, because of the regulations and legacy systems that hold them back from intervening on people personal lives.

But, with the CRM for banking sector you can strategically track your customer’s financial journey, organizing the data taken from them. Once you get the valuable insights from your data analysis, you can sort out proper customer segmentation, and will be able to deliver a customized experience to each segment.

Clarity of Information

customer engagement activities in banking

As in any relationship, it is imperative to build a strong foundation of trust before moving further. People have major trust issues, when it comes to a financial decision. It’s far more severe than buying a cloth or choosing a hotel for your vacation trip, as it relates to you and your family’s future.

Frequent communication and a wonderful personalized experience can enhance the trust level to some extent. However, the main factor behind breeding faith in customers’ heart is to provide them accurate and clear information.

Before communicating with customers, your executives should have sufficient information to make things clear and leave no doubt for confusion.

The banking CRM system has information management tools to update and share information. Limited access will keep secure your data from others, while enhancing the collaboration and product understanding within the team member.

Once your executives have enough information to resolve the entire inquiry, the client will gradually start trusting your bank and find the confidence to open an account.


Today, customers have more options than ever before, thanks to the mobile technology that allows the bank to travel to the customers. But the most interesting thing is the bank executives can also take advantage of these technological advances.

Ramping up your customer engagement strategy is a worthwhile effort that ensures higher customer retention. Customer engagement is the cornerstone of a relationship that embraces trust and loyalty, if done correctly.

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